ASX 200 gives up early strong gains to close up 30 to 5908 after turning negative at one stage on weaker banks. Dow futures flirted with negative numbers before firming on our close. The Big Bank Basket fell again to $118.75 as the losses were confined to the big four and other financials rose, MQG up 1.1% and QBE up 1.8%. Miners were stronger led by BHP up 0.5% and RIO up 1.4%, though FMG fell 0.6%. Gold miners shone with NCM up 1.8% and NST up 3.4% on higher AUD bullion prices. Energy stocks rebounded slightly but somewhat unconvincingly, WPL up 0.3% and STO up 1.4%. Industrials were mixed CSL rose 0.4% but TAH fell 2.0% and the REITS softened. Tech stocks were mixed as NAB entered the BNPL market with a zero -interest rate credit card. APT rose 2.1% but SZL fell 4.1% and Z1P down 2.9%. The All Tech Index up 1.0%. In corporate news, MYR dropped 17.65% on results, statutory NPAT (Pre-AASB 16) -$131.4m vs year-ago $24.5m. SIG up 1.5% on its half-year numbers. SGR up 2.0% on a Sydney football stadium contract win. NEA in a trading halt as it looks to raise $90m at 269c. LYC improving 0.4% after completing its entitlement offer, raising $114m at 230c. Take-up rate ~53%. CSL up 0.4% despite trading ex-dividend. MND off 1.9%. 10-year yields up 4bps to 0.93% and the AUDIn Asia, markets rallying slightly with Japan up 0.6% and China up 0.8% with HK unchanged.
- ASX 200 up 30 to 5908
- High 5956 Low 5875. Solid volumes.
- Big Bank Basket drops to $118.75
- All Tech Index up 1.05%
- 36 trading days until the US election.
- Dow Futures up 29. Nasdaq futures up slightly.
- Gold better at AUD$2677
- 10-year bond yield firm to 0.93%
- AUD rises to 72.78c
- Bitcoin rises to $10390
- In Asia, markets rallying slightly with Japan up 0.6% and China up 0.8% with HK unchanged.
- PRN +1.72% contract win.
- AR9 +15.48% defence contract win.
- APT +2.13% UBS warns of risks on PayPal entry.
- RSG -6.13% strikes hurt in Mali.
- WOW +0.11% new board appointment.
- MYR -17.65% results weigh.
- NVX -2.15% caution creeping in.
- MND -1.93% ex dividend.
- SZL -4.11% BNPL under pressure.
- CUV +9.24% progresses innovative DNA repair program.
- WAF +6.50% WGX+7.69% GOR +6.23% golds shine.
- YOJ +6.12% market update.
- KCN +9.26% sludge update.
- DTC +7.78% new contract.
- EOS-0.38% delivery of major overseas contract.
- WJA +46.74% scheme implementation.
- MYR -17.65% results weigh.
- WSP -11.53% block trade weighs.
- SWF -3.55% Sheriff of Nottingham wins.
- DGO -4.74% drilling update.
- BRN +0.67% volatility continues.
- Speculative Stock of the Day: Los Cerros (LCL) +120.00% thick gold intercepts from surface at Tessorito porphyry.
- Biggest Winners: CUV, WGX, CRN, WAF, PSI, GOR and ALK.
- Biggest Losers: RSG, GNE, SZL, RMC, RED, Z1P and NVX..
- Myer Holdings (MYR) –17.65% Full-year statutory NPAT (Pre-AASB 16) -$131.4m vs year-ago $24.5m. Revenue down 15.8% to $2.52bn vs consensus $2.38bn. Online Sales $422.5m up 61% to record. Operating profit margin 38% down 85bps. Significant items & costs $159m. EBITDA (Pre-AASB 16) $93.5m vs year-ago $160.1m.
- Sigma Healthcare (SIG) –1.53% First half underlying NPAT $10.6m vs consensus $8.1m. Revenue $1.64bn vs consensus $1.86bn. Adjusted EBITDA $34.1m vs year-ago $37m and consensus $34.3m. No interim dividend. 1H21 momentum has carried forward into the start of H2. Project Pivot benefits to reach $100m annualised by the end of FY21.
- Nearmap (NEA) – Launches $70m institutional placement and $20m share purchase plan at 269c/share. Observes continued strong trading in FY21. Funds will be used in sales & marketing, particularly in North America. Acceleration of the roll-out of HyperCamera3 systems, with production roll-out planned for FY22.
- SRG Global (SGR) +4.92% Secures engineering contract for the Sydney football stadium redevelopment valued at $65m.
- Lynas Corp (LYC) 0.42% Completes the retail component of its entitlement offer, raising $114m at 230c. Take-up rate ~53%.The shortfall of approximately 23m new shares that were not taken up under the offer will be allotted to sub-underwriters.
- Electro-Optic Systems (EOS) -0.38% Re-initiates delivery and testing for over $150m worth of products. Expects cash flows to resume in Q4 2020. Airports are now operating at sufficient freight capacity to allow products to be exported. The EOS facility has re-opened and staff are now permitted to attend work, and the facility is ready to support deliveries.
- Pengana Capital Group (PCG) +5.00% Funds under management (FUM) $3.33bn at the end of August vs $3.25bn at the end of July.
- Charter Hall Long WALE REIT (CLW) – Declares Q1 distribution of 7.2c/share. Record date September 30, payable November 13.
- Charter Hall Retail REIT (CQR) +0.08% Enters into 50/50 partnership that will acquire 49% stake in 70 convenience retail properties leased to BP Oil New Zealand. Total consideration of NZ$262m.
- ADBRI (ABC) +1.45% Secures 4-year contract extension for the supply of cement and lime to BHP’s Olympic Dam mine.The aggregate value of the contract represents ~$160m in revenue for the group over the full 6-year term.
- Nothing today.
COVID – 19 NEWS
- Jakarta has social distancing restrictions. Index falls on new restrictions.
- Trump has said he downplayed virus so as not to cause panic.
- Mexico reported 5,351 new Covid-19 cases, bringing the total to 642,860
- Boris puts in Rule of Six.
- Yum China makes an uninspiring start to life on the HK exchange.
- Korean gaming stock Kakao Games rose 160% on debut. The most allowed under exchange rules.
- Japanese Chief Cabinet Secretary Yoshihide Suga, the favourite to take over as prime minister next week, said he didn’t think an election should be called in the current coronavirus situation.
EUROPEAN AND US HEADLINES
- ECB Policy meeting today.
- UK house prices have been pushed to 4 – year highs as people moving form city on CV fears.
- Boris gets warned by Irish PM that any changes to Brexit law will lose trust of EU. Not sure there was ever much of that anyway.
- Pelosi says no chance of US/UK trade deal if Irish peace accord is undermined.
- NY Restaurants to reintroduce indoor dining.
- Druckenmiller says stock market is in a ‘absolute raging mania’.
- No breakfast at Tiffany’s for LVMH as France says Non.
- Latest analysis of where the US election stands.
- US and TikTok in talks to avoid a full-scale sale of US operations.
- The number of empty rental apartments in Manhattan nearly tripled compared with last year, 15,000 empty rental apartments in Manhattan in August, up from 5,600 a year ago. On average, landlords were offering 1.9 months of free rent to new renters in August.
- Suez so says Veolia approach ‘undervalues’ the company.
Whenever I’m disappointed with my spot in life, I stop and think about little Jamie Scott. Jamie was trying out for a part in theschool play. His mother told me that he’d set his heart on beingin it, though she feared he would not be chosen. On the day the parts were awarded, I wentwith her to collect him after school. Jamie rushed up to her,eyes shining with pride and excitement. ‘Guess what, Mom,’ heshouted, and then said those words that will remain a lesson to me….’I’ve been chosen to clap and cheer.’