ASX 200 spent a volatile session watching and waiting ending down 4 to 6062 after a swoon and a rally. Volume picked up as election results kicked off. Dow futures could be anything by the time you read this. Knee jerking to election results. Banks were weak across the session with the Big Bank Basket down to $123.76 as CBA and WBC cut loan rates and into their margins. Both were off around 2%. Big miners too in the doghouse, as tensions with China ramp up, BHP down 1.2% but FMG down 4.6% feeling unloved. Gold miners went nowhere on the stringer AUD and Bullion prices, NCM down 0.9% and NST down 0.3%. Energy stocks fared better with WPL up 0.4% and STO up 0.8%. Tech starred today with APT up 1.6% and XRO up 3.4% with the All Tech Index up 2.9%. Industrials slightly better but patchy, COL down 2.3%, TLS down 1.1% again with some reopening trades doing well, TCL up 1.8% and SYD up 2.1%. NSW/VIC opening back up in a few weeks. In corporate news, PDL down 8.0%, full-year cash NPAT $146.8m vs consensus $152.1m. Final dividend 22c/share (10% franked). WOW down 0.7%, Q1 sales $17.85bn vs year-ago $15.90bn, comparable growth up 12.3% vs year ago. BOQ down 2.8%, trading ex-dividend. BXB up 0.5%, upgraded by Morgans. Travel and leisure names finding favour, FLT up 6.1%, HLO up 4.2%, QAN up 2.2%. NSW Premier Berejiklian announced that NSW will reopen its borders to Victoria from 12.01 am on November 23. PPH down 11% with the company announcing a 4-for-1 share split following its 1H21 results. In economic news, Retail trade for September down 1.1% vs consensus of a 1.5% fall. 10-year yields eased to 0.80%.

Today’s Highlights

  • ASX 200 down 4 to 6062 Average volume.
  • High 6096 Low 5986. Big range. Focus on election.
  • Big Bank Basket falls to $123.76
  • All Tech Index up 2.87%
  • Dow Futures all over the place. Up 70 currently.
  • Gold eases to AUD$2669.
  • 10-year bond yield eases to 0.80%
  • AUD 70.97c
  • Bitcoin rallies to $13897
  • In Asian markets, Japan up 0.4% and China steady.

STOCKS

  • NAN +12.50% strong business update.
  • FLT +6.07% NSW border to open to Victoria.
  • IFM +10.49% European contract.
  • PPH -12.70% figures disappoint.
  • PDL -7.98% underwhelming figures.
  • FMG -4.63% big trouble in little China perhaps?
  • OPC -2.84% response to media speculation.
  • WHC -3.74% Chinese issues.
  • ESR -27.03% disappointing drill results.
  • VMT -6.52% director’s interest.
  • TSO +27.59% wide high – grade gold intercepts.
  • SGF +11.42% Change of director’s interest.
  • AMS +7.14% Investor presentation.
  • CBA -2.02% WBC -1.98% cut loan rates.
  • RSH +3.23% manufacturing update.
  • PLL +13.56% nice bounce back.
  • APT +1.63% tech back in vogue.
  • TCL +1.85% Melbourne reopening helping.
  • TWE -3.13% China issues with wine.
  • GAP +18.52% ups profit guidance.
  • CWP +0.17% strong growth being targeted.
  • Speculative Stock of the Day: Micro-X (MX1) +40.54% market update on DHS self-screening for passengers at airports. Baggage would be first to be contracted before passengers could be self-screened.
  • Biggest Winners: NAN, IFM, NTO, TPW, RBL, AMA and MP1.
  • Biggest Losers: PPH, PDL, FMG, WHC, JMS, CHN, SBM and COE.

TODAY

  • Woolworths reports (WOW) -0.67% Q1 sales $17.85bn vs year-ago $15.90bn, comparable growth up 12.3% vs year ago. Management comments, “It has been a pleasing start to F21 with all retail businesses delivering strong sales growth and customer metrics remaining solid. COVID costs remain material as we continue to prioritise the safety of our customers and team but have moderated as we become more efficient at operating COVIDSafe. During the quarter, 22 BIG W stores were closed to in-store customers and 85 ALH venues were closed in Victoria. BIG W stores reopened on 28 October and ALH venues will reopen on 9 November.”
  • Pendal Group (PDL) –7.98% Full-year cash NPAT $146.8m vs consensus $152.1m. Revenue $474.8m vs consensus $477.3m. Final dividend 22c/share (10% franked). FY21 Outlook: Will be using “Underlying Profit After Tax (UPAT)” to report the underlying earnings of the business. The dividend policy will be to payout 80-95% of UPAT each year. Fixed costs are expected to increase by 8-10%, ~$12-16m. PDL believe this strategy will deliver a more cost-effective model and increase FUM by around 50% by FY25.
  • Infomedia (IFM) +10.49% Secures multi-year enterprise agreement with Ford Europe. The company has signed a strategic pan-European contract with Ford Europe to provide the next generation of its Microcat electronic parts catalogue EPC in the region. The total contract value of this strategic win is approximately $14m over 5 years; revenue will begin to ramp up from January 2021.
  • Coca-Cola Amatil (CCL) +0.72% Enters into scheme implementation deed with CCEP at 1275c/share. The consideration implies an equity value on a 100% fully diluted basis of ~$9.28bn and an enterprise value of $10.87bn.

ECONOMIC NEWS

Retail Sales

  • Quarterly retail volumes advanced 6.5% in the three months through September, after declining 3.5% in the prior quarter.
  • Online sales fell 1.3% in seasonally adjusted month-on-month terms in September 2020, following a rise of 6.4% in August.
  • Sales in New South Wales soared 11.6%, leading gains in all states and territories. Victoria fell 4.2%

COVID – 19 NEWS

  • Dutch Prime Minister Mark Rutte announced plans to extend the country’s partial lockdown until mid-December.
  • Italy faces new restrictions as the country records 28,244 new cases Tuesday.
  • Greece recorded 2,166 new Covid-19 cases in the past 24 hours, a record high.
  • Sweden’s new cases hit a record of 4,062 on Friday. As of Tuesday, a total of 134,532 Swedes had been infected, with 5,969 deaths.
  • JP Morgan now sending workers home again as UK imposes new lockdowns. And issues a terrorist alert just to make things worse.

BONDS

ASIAN NEWS

  • Ant Group IPO crushed by authorities.
  • Chinese President Xi has laid out an ambitious plan to double the economy by 2035. This would equate to a 4.7% GDP growth rate.
  • China also is focused on becoming a high-income nation by 2025. It needs a US$12,375 income per capita to achieve that up from US$10.410.

EUROPEAN AND US HEADLINES

  • The US will sell Taiwan US$600m worth of armed Reaper drones. Not cheap at US$125m a pop.
  • Some digital start ups in US are now taking deposits.
  • German regulators were deficient in Wirecard scandal.
  • World’s largest cinema chain sees a 91% drop in business.
  • Maradona is out of danger after an operation for a subdural hematoma. 

And finally….look away children…

A soldier ran up to a nun. Out of breath he asked, “Please, may I hide under your skirt. I’ll explain later.”
The nun agreed…
A moment later two Military Police ran up and asked, “Sister, have you seen a soldier?”
The nun replied, “He went that way.”
After the MPs ran off, the soldier crawled out from under her skirt and said, “I can’t thank you enough, sister. You see, I don’t want to go to Syria.”
The nun said, “I understand completely.”
The soldier added, “I hope I’m not rude, but you have a great pair of legs!”
The nun replied, “If you had looked a little higher, you would have seen a great pair of balls…. I don’t want to go to Syria either.”

So, Donald Rumsfeld is briefing George Bush in the Oval Office.
“Oh and finally, sir, three Brazilian soldiers were killed in Iraq today.”
Bush goes pale, his jaw hanging open in stunned disbelief.
He buries his face in his hands, muttering “My God…My God”.
“Mr. President,” says Cheney, “we lose soldiers all the time, and it’s terrible. But I’ve never seen you so upset. What’s the matter?”
Bush looks up and says…”How many is a Brazilian?”

Clarence

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