The ASX 200 dropped 19 points to 5864 (0.3%) after an initial flurry wore off quickly. For the week, the ASX 200 rose 5 points. The Big Bank Basket once again slipped to $115.37 as CBA fell 1.0% and ANZ down 1.1%. Other financials were mixed as MQG rose 2.45% on news of a potential large deal in Italy. Miners rose after a few days of iron ore falls with FMG back up 1.0% and BHP up 1.3%. Energy stocks remain underwhelming, WPL down 0.3% and STO down 0.4%. Gold miners rose despite falls on the bullion price, NCM up 0.2% and EVN up 1.0% DEG was a star in the mining space again, up another 3.3% with BGL also doing well up 3.5%. CSL dropped 1.1% and other industrials fell with BXB down 1.9% and TCL down 3.1%. Tech stocks better as the All Tech Index up 0.83% with APT up 2.65% and XRO up 1.6%. In corporate news, SYD down 1.1% despite traffic down 96.5% vs year ago. Domestic passengers in August 91k, 39k international arrivals. Down from July’s 276k domestic passengers and 42k international arrivals. No economic events today. CLV losing 8.2% on its FY results, NPAT $12.5m vs consensus $9.3m. Declared a final dividend of 2.5c/share, fully franked. Nothing on the economic front, the 10-year yields at 0.88% AUD steady at 73.13c. In Asian markets, Tokyo was flat and China up 1.2%.
- ASX 200 down 19 to 5864.5.
- High 5921 Low 5864.
- For the week up 5 points.
- Big Bank Basket fell slightly to $115.37
- All Tech Index up 0.83%
- 30 trading days until the US election.
- Dow Futures down 30
- Gold steady at AUD$2672
- 10-year bond yield rise to 0.88%
- AUD rises to 73.13
- Bitcoin firms to $10911
- In Asian markets, Tokyo was flat and China up 1.2%.
- ALK +6.12% Beaver Creek presentation
- DEG +3.33% Placement completed.
- SAR +4.23% good boost despite gold falls.
- URW -7.28% pregnant with an equity raise.
- ORA -0.83% change of director’s interest.
- CLV -8.16% no clover today on results.
- BOC -9.80% more politics.
- KGN +3.18% CS upgrades.
- SBM +1.51% production profile revision.
- QAN +0.51% Joyce earns $1.7m
- BBX +25.00% response to ASX query.
- CAT +14.57% NFL season helping sentiment.
- TEK +13.64% waking up.
- LSF +3.15% directors buy $10m worth.
- LLC +1.73% cuts 15% of UK staff.
- BID +10.34% quietly creeping higher.
- Speculative Stock of the Day: SRJ Technologies (SRJ) +60.00% commences trading on ASX and Mitsui talks a stake. Decent first day volume.
- Biggest Winners: TPW, GXY, RBL, PLS, ADI, RMC, ALK and KMD.
- Biggest Losers: IAP, URW, GMA, ABP, AMA and RED.
- Sydney Airport (SYD) -1.09% August traffic down 96.5% vs year ago. Domestic down 96.1% to 91K passengers, international down 97.2 to 39K passengers. Down from July’s 276k domestic passengers and 42k international arrivals.
- Clover Corp (CLV) –8.16% Full-year NPAT $12.5m vs consensus $9.3m. Revenue $88.3m vs year-ago $76.7m. Final dividend of 2.5c/share, fully franked. Notes uncertainty from COVID has the potential to impact demand both positively and negatively. The higher retail demand for infant formula in Q3 & Q4 FY20 may have been a “one-off”, with possibly reduced demand in 1H FY21. Continues to engage with its customers to maintain its market position with orders for H1 FY21 at this point expected to be consistent with those of H1 FY20.
- Emeco Holdings (EHL) -2.31% Completes the retail component of its entitlement offer, raising $38m at 85c/share. The shortfall under the retail entitlement offer will be allocated to sub-underwriters, including Black Diamond. Together with the institutional entitlement offer, total proceeds were ~$149m.
- Cromwell Property Group (CMW) – Declares quarterly distribution of 1.875c/share. Record date September 30, payment date November 20.
- Link Group (LNK) -1.05% Incoming MD and CEO Vivek Bhatia to assume the role on the second of November.
- Asaleo Care (AHY) -0.95% CFO Campbell Richards to leave later this year. Andrew Leyden has been appointed as the company’s new CFO.
- Nothing today.
COVID – 19 NEWS
- Indian lock down takes its toll.
- The People’s Bank of China has fixed the midpoint for the Chinese yuan against the US dollar stronger for a fifth straight day.
- China is launching more military exercises in Taiwan Strat as US envoy visits the island.
- Apple to begin online sales in India ahead of the holidays.
EUROPEAN AND US HEADLINES
- European futures flat lining.
- TikTok Global to be created. Events moving fast as Walmart and Oracle to take stakes. It is a 15 second video app that teenagers use. Not really sure what all the fuss is about. Sure the Chinese government love all those cat videos. Walmart now involved and potential IPO. Decision from Trump soon.
- The Trump administration has asked gaming companies to provide information about their data-security protocols involving Chinese technology giant including Tencent. Tencent, the world’s largest gaming company, owns Los Angeles-based Riot and has a 40% stake in Epic, which is the maker of the popular video game Fortnite.
- CaixaBank and Bankia agree to a EUR 4.3bn merger to create an institution with assets of EUR650bn.
- Banks are back firing staff again as around 64,000 job losses have been announced so far this year from the likes of Citi and HSBC.
- Moderna pushed back timeline on vaccines.
- Ford to make an Electric R-150. Not sure it will be the same as the combustion engine one.
- EU turning up the pressure on Boris and his merry men over a trade deal.
- German PPI 0.0% month on month. Slightly better than forecast. UK retails sales up 2.8% in August, slightly down on forecasts.