The ASX 200 spent a quiet day meandering around gaining 33 points to 6531 (0.5%) Dow futures down 40 points. Good volume, Options a futures expiry tomorrow. Banks took heart from housing data and comments at an AFR conference on banking with housing in focus. APRA also seems to be a light touch. The Big Bank Basket rose again to $141.30. Other financials were becalmed with MQG down 0.4% and MFG up 1.2%. Insurers too wallowing.  Healthcare though on the ascendency after some losses yesterday, CSL rose 0.4% and COH up 2.0%. Miners slipped led by BHP down 0.5% and FMG down 0.6%. Gold miners in a tranquil sea, with energy down across the board with STO down 1.8% and WPL up  0.5%. Industrials were all about AGMs and investor updates, TCL rose 1.5% and WES rose 1.4%. Tech stocks sidelined with the Index down 0.11%. In corporate news, CWN has been blocked by the gaming regulator from opening its casino until February and a review has been completed. A2M down 4.8%, the market looking for more than reaffirmed guidance at its AGM. Challenging first half given daigou reseller channel issues. ALL up another 3.8% despite reporting a 47% drop in profit for the year. Eyes on growth in FY21. On the economic front, the seasonally adjusted Wage Price Index (WPI) rose 0.1% in the September quarter vs consensus of a 0.2% lift. 10-year bond yields fell to 0.88% with the AUD slipping slightly. Meanwhile in Asia, markets were mixed with Japan down 0.73% and China up 0.5%.

Today’s Highlights

  • ASX 200 up 33 to 6531 (0.5%). Options a futures expiry tomorrow.
  • High 6541 Low 6495. Narrow range. High volumes.
  • AGMs and investor presentations continue to dominate.
  • Big Bank Basket rallies to $141.30. Huge rally off lows.
  • All Tech down 0.11%
  • Dow Futures down 30
  • Gold steady at AUD$2578
  • 10-year yields slip back to 0.88%
  • AUD slips to 72.89c
  • Bitcoin kicks to $17,959
  • Asian markets mixed again with Japan down 0.73% and China up 0.5%.


  • NAB +2.06% temporarily closes all branches due to a physical security threat]
  • CWN -0.62% admits money laundering. Decision time. Rien ne va plus until February.
  • DXS +0.31%% sells interest in Grosvenor Place.
  • TOP – unchanged- mind the gap says Alex.
  • KGN -0.05% backlash on options.
  • CHN +13.64% more significant results.
  • WHC +5.49% more rumours on corporate action.
  • EOS +5.43% defence on the attack. Japanese deal helps.
  • PLL -7.06% profit taking.
  • A2M -4.83% reaffirms guidance.
  • MX1 +15.69% AGM and new chair.
  • KZA +31.93% Paxalisib SNO data.
  • LCK +14.29% hydrogen play.
  • ALQ -2.86% investor presentation.
  • 4DS -6.90% profit taking.
  • PLT +9.65% investor presentation
  • FWD +7.26% AGM comments.
  • Speculative Stock of the Day: Noronex Limited (NRX) +211.11% reinstatement of quotation.
  • Biggest Winners: CHN, SGF, TLX, AWC, WHC, ADN and EOS.
  • Biggest Losers: PLL, PYC, CEN, A2M, COE, PLS, ABY and HM1.


  • The a2 Milk Co. (A2M) -4.83% Maintains FY21 guidance in AGM presentation. Sees revenue between NZ$1.80-1.90bn vs consensus NZ$1.83bn. EBITDA margin for FY21 expected to be in the range of 31%. Management comments, “Challenging first half for ANZ segment with daigou/reseller channel impacted by COVID-related issues. We expect the current impact will moderate over the course of the year. Fresh milk in Australia continues to perform strongly with current 12-month market share of 11.6% in October, up from 11.3% at June year end.”
  • Mayne Pharma (MYX) -1.41% FDA grants orphan drug designation to Mayne Pharma for itraconazole to treat coccidioidomycosis.
  • Lifestyle Communities (LIC) -0.38% Sales have been hit by the shutdown of Victoria’s real estate industry, which will impact settlements through FY21. Construction has continued with civil programs and housing on track. Enquiry for new developments remains in line with expectations prior to lockdowns. With the current pipeline of projects, LIC has capacity for settlements to be in the range of 900-1,100 over the next three years.
  • United Malt Group (UMG) +3.04% Full-year EPS 17c, in line with consensus. Revenue down 2% to $1.29bn vs consensus $1.27bn. Underlying EBITDA down 11% to $156.1m vs consensus $134.2m. Final dividend 3.9c/share, 0% franked. Management Comment,“The £51M investment in the Bairds Scottish malting facilities will add 79,000t of capacity across our Arbroath and Inverness sites, bringing Baird’s total capacity to approximately 300kt per annum. Arbroath facility is planned for Dec-2020 to facilitate full production capability from January 2021. We expect commissioning of Inverness in Dec-2021.”
  • Perpetual (PPT) -0.85% Completes acquisition of 75% interest in Barrow, Hanley, Mewhinney & Straus. The acquisition of ~$58.3bn in assets under management (AUM) triples Perpetual’s AUM which now exceeds $87bn. Following the acquisition, Perpetual confirms it is on-track to achieve over 20% underlying EPS accretion on an annualised basis.
  • iSentia Group (ISU) -4.00%Reports all key services have been restored following last months cyber security incident; FY21 profit before tax expected to be reduced by $7-8.5m.
  • Aristocrat (ALL) +3.84% Full-year normalised profit down 46.7% to $476.6m vs consensus $471.3m. Revenue $4.14bn vs year-ago $4.40bn and consensus is $3.95bn. Normalised EBITDA $1.09bn vs year-ago $1.60bn and consensus is $1.04bn. Final dividend 10cps, fully franked vs year-ago 34cps. Plans for continued growth in the 2021 full fiscal year.
  • Ardent Leisure Group (ALG) -unchanged- Currently 42 of 44 centres are open. Revenue performance for the reopened centres has shown steady improvement. Dreamworld and WhiteWater World: Attendance from September 16 to the end of October is 81% of the pcp. Annual pass sales and associated cash receipts between July and October are better than the pcp. November trading has been subdued as pent-up demand from the local drive market subsides. SkyPoint: Due to the Queensland border being closed to both international and interstate guests, attendance has declined significantly compared to the pcp. The lower attendance has been offset by a higher yield, due to a focus on promotions aimed at the local drive market
  • ALS (ALQ) -2.86% First half profit $70.3m vs year-ago $135.6m. Revenue $838.8m vs year-ago $921.0m and consensus $825.4m. EBITDA $189.7m vs year-ago $257.6m. EBIT $123.3m vs year-ago $194.8m. Interim dividend of 8.5c/share. Management Comments, “continue to focus on cash generation leveraging on the excellent progress made in H1 FY21. Focus on balancing short term liquidity preservation and investment in selected growth opportunities. Disciplined acquisition strategy focused on accretive acquisitions, primarily in food and pharmaceutical markets.”
  • Seven Group (SVW) -0.36% Industrials demand and activity are strong, expects growth in this segment in FY21. WesTrac is on-track for FY21 high single digit underlying EBIT growth. Coates expected to rebound in H2 for low single FY21 digit growth in underlying EBIT. Notes Beach’s production guidance between 26.0-28.5 MMboe and underlying EBITDA between $900-$1000m (SVW holds a 28.5% interest). TV ad market has improved since August results but remains short and volatile. Contribution from Media and Energy segments to the group is less certain.
  • NAB (NAB) +2.06% Temporarily closes all branches due to a physical security threat. The bank is working closely with police and will provide an update as soon as it can


  • The seasonally adjusted Wage Price Index (WPI) rose 0.1% in the September quarter vs consensus of a 0.2% lift. Through the year, the index fell 1.4% according to the ABS. Head of rice statistics Andrew Tomadini had this to say, “Organisations continued to adjust to the economic uncertainty, recording fewer end of financial year wage reviews and delaying enterprise bargaining agreement increases. This led to a significantly reduced number of jobs recording wage rises when compared to previous September quarters.”

RBNZ accidentally reveals new stimulus plan to financial firms a bit early.



  • South Australia shuts down for 6-days. Not happy Jan.
  • California’s Los Angeles County will impose new restrictions to fight a rapid surge in cases, and warned that it may bring back stay-at-home orders if the outbreak worsens.
  • Novavax Inc. is set to provide 30m doses of its vaccine candidate, augmenting Indonesia’s supply of 85m from China’s Sinovac Biotech Ltd. and 57.6m of the locally produced Merah Putih.
  • The British Medical Association (BMA) warned that lifting lockdown on Dec. 2 without beefed-up regional restrictions risked a fresh surge in infections.
  • Houston cancelled its annual Thanksgiving Day parade and the highest-ranking county official urged residents to call off large celebratory gatherings.
  • New Orleans cancels Mardi Gras on CV19 concerns.


  • Chinese Premier Li Keqiang wrote the Chinese economy will probably grow this year and surpass 100 trillion yuan (US$15.3 trillion) despite “great difficulties” in keeping it running smoothly.
  • AirAsia Japan has filed for bankruptcy. India now under review.
  • Three ex-Hong Kong lawmakers were arrested in connection with a disruptive protest in the legislative chamber as China continues its clampdown.


  • Trump has fired the Homeland security official that claimed election was the fairest of them all.
  • Mastercard CEO calls for new US stimulus. Clinton says stimulus not enough.
  • Goldman Sachs to cut more jobs in latest round.
  • Ray Dalio says he maybe missing something with Bitcoin.
  • Michigan County reverses earlier decision and ratifies voting.
  • Trump nominee to Fed board Shelton fails to get seat.
  • Team Trump loses another challenge in Pennsylvania.
  • BA launches CV19 tests on some transatlantic flights.
  • US troop withdrawals from Iraq and Afghanistan.

And finally…

A hunter goes into the woods to hunt a bear. He carries his trusty 22-gauge rifle with him.

After a while, he spots a very large bear, takes aim, and fires. When the smoke clears, the bear is gone. A moment later, the bear taps the hunter on the shoulder and says, “No one shoots at me and gets away with it. You have two choices: I can rip your throat out and eat you, or you can drop your trousers, bend over, and I’ll have my way with you.”

The hunter decides that anything is better than death, so he drops his trousers and bends over; and the bear does what he said he would do.

After the bear has left, the hunter pulls up his trousers and staggers back into town. He’s pretty mad. He buys a much larger gun and returns to the forest. He sees the same bear, aims, and fires. When the smoke clears, the bear is gone. A moment later the bear taps the hunter on the shoulder and says, “You know what to do.” Afterward, the hunter pulls up his trousers, crawls back into town, and buys a bazooka.

Now he’s really mad. He returns to the forest, sees the bear, aims, and fires. The force of the bazooka blast knocks him flat on his back. When the smoke clears, the bear is standing over him and says, “You’re not really here for the hunting, are you?”