The ASX dropped 48 points to 5876, off lows but not convinced. Banks reverse early big losses. Dow futures down 100 points. The big news of the day was the WBC $1.3bn fine, the largest in corporate history, which infected the sector but given WBC has provisions of around $900m, it is good to put it behind it. The Big Bank Basket steady at $114.63. Could have been a lot worse and some bargain hunters appearing. CBA down 0.1% and WBC down 0.1%. Other financials struggled to make headway, MQG down 0.4% and IAG down 2.2%. Miners in the red led by BHP down 0.6% and FMG down 0.2% whilst gold miners were put to the sword with NCM down 3.7% and EVN down 5.3%. Oil and gas falling yet again, WPL down 2.0% and STO down 1.9%. Industrials sloppy with few gains, TCL one of the few in positive territory up 1.9%. TLS fell 1.0%, TPG down 2.2% on the NBN news yesterday, REA under pressure falling 3.6% and other tech stocks in trouble. APT lost its CFO and 5.8%, XRO lost 1.4% and WTC down 2.2%. The All Tech Index dropped 2.6%. In corporate news, JMS up 1.8% on a quarterly report, CGF rose 3.0% on takeover rumours and NVX down 21.0% on North American trading progress. BKW results today saw a 0.9% fall and SOL rose 0.8% after confirming the dividend. On the economic front, nothing of note and the 10-year bond yield steady at 0.80%. The AUD 70.38c. In Asian markets we saw further falls especially in tech stocks, Japan down 1.1% and 1.9%.

Today’s Highlights

  • ASX 200 down 48 to 5876
  • High 5903 Low 5825. Average volume.
  • Big Bank Basket finds buyers up to $114.63
  • All Tech Index down 2.63%
  • 26 trading days until the US election.
  • Dow Futures down 100
  • Gold slips to AUD$2631
  • 10-year bond yield fall to 0.80%
  • AUD falls to 70.38c
  • Bitcoin steady at $10275
  • Asian markets weaker as Japan fell 1.1% and China down 1.9%.

STOCKS

  • KMD +4.19% broker rethink.
  • PPH +3.01% livin’ on a prayer.
  • CGF +3.02% takeover speculation.
  • NVX -21.05% Battery day disappointment.
  • GXY -9.30% PLS -7.25% lithium miners under pressure.
  • APT -5.83% CFO heads off.
  • EVN -5.31% GOR -3.49% gold miners suffer.
  • VMT -9.76% EV under some pressure on Musk day.
  • SVL -15.00% silver no longer hi ho.
  • PBH -5.74% results of entitlement issue. 92% take up.
  • TNT +4.65% acquisition.
  • QAN -1.78% now selling fully stocked bar carts
  • Speculative Stock of the Day: TAO Commodities (TAO) +91.67% after announcing an option to acquire a titanium and zircon mineral sands project in Tennesse USA.
  • Biggest Winners: KMD, OML, MGR, GMA, JHG, HMC and CGF.
  • Biggest Losers: NVX, CIA, GXY, ALK, RED, PLS, AVH and DEG.

TODAY

  • Washington H. Soul Pattison (SOL) +0.85% Full-year reported NPAT $953m vs year-ago $247.9m. The increase in statutory profit was largely due to an accounting gain of $1.05bn relating to TPG Telecom following the completion of the TPG/Vodafone merger, partly offset by New Hope Corporation impairments and restructuring expenses incurred in its Queensland mining operations. Group Regular Profit after tax $169.8m vs year-ago $307.3m. Revenue $1.37bn vs year-ago $1.62bn. Fully franked final dividend of 35c. Total dividends for FY20 of 60c, up 3.4%.
  • Seven West Media (SWM) -8.33% Signs five-year broadcasting deal with V8 Supercars. It is thought to be half the price that Network Ten paid at the end of 2013.
  • Westpac (WBC) -0.12% Agrees to a civil penalty of $1.3bn in relation to AUSTRAC’s anti-money laundering and counter-terrorism financing civil proceedings. WBC in its H1 2020 results provided for an estimated penalty of $900m. The bank will increase the provision in its accounts for the year ending September 30 by a further $404m to account for the higher estimated penalty and for additional costs, including AUSTRAC’s legal costs of $3.75m.
  • Afterpay (APT) -5.83% CFO Luke Bortoli steps down, he will remain with the business to assist with 1H21 results. Bortoli will be replaced by Rebecca Lowde, who will assume the role of CFO on the 6th of October.
  • Brickworks (BKW) –0.95% Full-year underlying NPAT $146m vs consensus $152.9m. Revenue $953m vs consensus $920.3m. Underlying EBITDA $281m vs consensus $277.3m. Final dividend 39c vs year-ago 38c. Management notes there are no major land sales planned in FY21. Orders and sales have increased in September across most businesses. In North America, BKW is expecting improved earnings as building conditions normalise post the pandemic. Re-initiated capital program.
  • Aventus Group (AVN) +0.84% Declares Q1 DPS of 4c vs quarter-ago 2.35c. Payout ratio increased to 90% following improved performance of the portfolio (excluding Melbourne).
  • Home Consortium (HMC) +3.08% Advises that HomeCo Daily Needs REIT is on track for ASX listing in late November 2020. HMC notes the HomeCo Daily Needs REIT will need to undertake an equity raising at the time of its ASX listing. Funds will be used to acquire two Sydney neighbourhood centres for a total consideration of ~$220m. The proposed acquisitions once completed will be important seed assets in the HomeCo Daily Needs REIT and will take the total assets under management of the vehicle to ~$800m. Appoints Simon Shakesheff as Chairman.
  • Bellevue Gold (BGL) –5.66% Full-year NPAT -$5.7m vs year-ago -$7.2m. Revenue $0.1m.

ECONOMIC NEWS

  • Nothing of note.

COVID – 19 NEWS

  • The German Economy Minister, Peter Altmaier has tested negative for the coronavirus but is quarantining at home as a precaution.
  • India’s total confirmed coronavirus cases rose to 5.73 million as of 8 a.m. local time on Thursday.
  • South Korea added 125 more coronavirus cases in the last 24 hours.
  • Donald Trump said that the White House could veto any tightening of Food and Drug Administration rules for authorizing the emergency use of a coronavirus vaccine.
  • Missouri Governor Mike Parson, who has resisted calls for a mask mandate in his state, said he and his wife have tested positive for Covid-19 and are in quarantine.
  • UK will deliberately expose healthy volunteers with CV19 to test vaccine potential.

BONDS

ASIAN NEWS

  • Tech stocks under pressure in Asia.
  • Luxury spending in China will grow 20%-30% this year, according to a report from Boston Consulting Group, but much of that growth is going to come from consumers in the 50 largest and richest cities.
  • Spending hasn’t rebounded is gambling in Macau, which is forecast to see an 81% drop in revenue this year.
  • And travel still below pre Covid levels.

EUROPEAN AND US HEADLINES

  • European futures showing around a 1% loss on the open. EU andf UK inching closer to a trade deal.
  • Trump refuses to commit to a peaceful transition of power if he loses.
  • JP Morgan about to outdo WBC with a US$1bn fine.
  • Bookies suspend betting on next James Bond. Tom Hardy the shoe in for the role apparently.
  • US justice Department has propsed curbs on social media protections, not a great move for the tech behemoths.
  • UK Chancellor scraps his budget to focus on jobs and growth.
  • Mars drops Uncle Ben’s as a brand.

And finally…

News just in …someone has been killed with a starter pistol…looks like it was race related.

Do sewage workers do a solid days work, or do they just go through the motions.

We were so poor growing up

For Christmas I’d have a pack of batteries with a label on it that said ‘Toys not Included’

Clarence

XXX