The ASX 200 rose 13 points to 6688 (0.2%) in another lacklustre day of a narrow range and stock specifics taking centre stage. Seems we are Waiting for Godot but want to hit the 6700 level. Maybe tomorrow. Dow Futures down 49 points. Despite another rise in iron ore prices, the miners failed to fire as consolidation continues after huge moves last week. BHP down 0.3% and RIO down 0.8%. Maybe some selling around as IGO taps the market for $800m to take a strategic stake in Greenbushes, Energy stocks slip as Peter Coleman from WPL announces retirement, the stock falling 0.2%. Banks were mixed with CBA in the green up 1.3% and the Big Bank Basket up to $148.66. Healthcare in the pink led by CSL on vaccine hopes up 0.9% and Industrials mixed, TCL up 0.7% whilst TLS dropped 0.6%. Tech was on the nose in places, Z1P continued the decline falling another 4.3% and MNY down 4.1%. In corporate news, ADH up 2.8%, on a positive trading update. Sees underlying EBIT between $62m-$66m in 1H21 vs consensus $56.1m. GEM down 6.6%, expects remediation costs between $50m-$80m. Occupancy and attendance recovering well. BOQ -1.0%, 2,500 housing loans remain deferred with $889m balance at the end of November, representing 3% of its total housing loan portfolio. ABP in a trading halt, launches $402m equity raise. Gold names up on the back of firmer commodity price, NCM up 1.9%, EVN up 2.4%. Consumer confidence improved for the second week in a row. The overall index rose 1.7%, with all the subindices except ‘current financial conditions’ gaining. Confidence now at its highest level for 2020. NAB Business survey for November: Conditions: +9, up from +2; Confidence: +12, up from +3. 10-year yields unchanged as is the AUD. Asian markets drift lower with Japan off 0.18% on another stimulus package and China down 0.3%.
- ASX 200 up 13 to 6688.
- High 6699 Low 6659. Narrow range.
- Big Bank Basket up to $148.66
- All Tech up 0.79%
- Dow Futures down slightly by 49 points.
- Gold higher at AUD$2519
- 10-year yields rose again to 1.03%
- AUD steady at 74.28c
- Bitcoin steady at $19,2183
- Asian markets drift lower with Japan off 0.18% on another stimulus package and China down 0.3%.
- LNK +13.71% new bid.
- GXY 7.46+% PLS +7.55% ORE +4.55% lithium stocks in favour.
- TYR +5.11% buyers following trading update.
- TLT +13.69% more speculation on a bid.
- AEF +4.60% stirring.
- CHN +7.23%. SLR +5.29%, RMS +4.61% small gold miners rally on bullion prices.
- ABY -11.11% float flop.
- SKO -4.69% thin volume.
- GEM -6.59% underpayment issue.
- Z1P -4.34% sell off continues.
- DTC -6.23% selling continues.
- IHL +20.69% psilocybin clinical trial for PTSD.
- TEK +10.00% finally. Rump placed.
- SMR +7.24% coal on the up.
- IPO Update: Float flops DBI -15.95% and YFZ -30.00%.
- Speculative Stock of the Day: Creso Pharmaceutical (CPH) +51.61% massive volume as cannabis stocks are smoking hot.
- Biggest Winners: IFT, LNK, TLT, MEZ, PLS, GXY and CHN.
- Biggest Losers: DBI, ABY, GEM, WHC, SKO, SXL, Z1P and PPK.
- Charter Hall (CHC)/Alliance Real Estate JV acquire a second tranche of logistics properties from Aldi. Newswires report the further $281.5m for the acquisition of two more Aldi distribution centre assets follows the initial $648m acquisition in June and brings the total to close to $1bn.
- IGO Limited (IGO) – Thought to be looking at a ~$800m raising to help fund the acquisition of a stake in Greenbushes.
- CSL Limited (CSL) +0.88% CSL’s Seqirus announced new data from a systematic review presented at the European Scientific Working Group on Influenza (ESWI) virtual conference, confirming the benefit of an MF59-adjuvanted trivalent seasonal influenza vaccine (aTIV) for adults 65 years and older.
- Link Administration Holdings (LNK) +13.71% SS&C offers LNK 565c/share.
- Village Roadshow (VRL) +2.75% Shareholders voted in favour of both the Structure A Scheme and the Structure B Scheme. The company will now apply to the Federal Court for approval of the Structure A Scheme. Alternatively, if the Structure A Scheme is not approved by the Federal Court, the company will apply for approval of the Structure B Scheme.
- Platinum Asset Management (PTM) –1.14% Funds under management November update: $23.55bn vs $21.77bn at the end of October.
- Althea Group (AGH) -1.83% Update on Australian and UK operations. Continues its strong performance in the Australian and UK medicinal cannabis markets with unaudited revenue of $847,499 in November. The average number of new patients and new prescribers in Australia per business day is at an all-time high. Althea’s UK operations continue to grow with 48% month-on-month growth and unaudited revenue of $110,378 recorded in November. On track to deliver its biggest quarter to date following a strong start to December.
- Bank of Queensland (BOQ) -1.02% 2,500 housing loans remain deferred with $889m balance at the end of November, representing 3% of its total housing loan portfolio. BOQ has 3,300 small and medium-sized enterprise (SME) loans remaining on deferral with balances of $390m at the end of November, representing 3% of total SME lending.
- G8 Education (GEM) -6.59% Remediation costs estimated between $50-80m over the period from 1-Jul-14 to present. Occupancy and attendance recovering well with current like-for-like occupancy of 75.5%. Expects CY21 to be a recovery year given the absence of additional government subsidies and the ongoing impacts of COVID-19. The absence of a CY20 fee increase coupled with lower occupancy sees wages increase as a percentage of revenue. To drive earnings growth in the medium-term, the group will be increasing the pace of its improvement program. In CY21, ~10 new greenfield centres are expected to open with a capital outlay of ~$4m. Start-up trading losses in CY21 are expected to be $4m based on current centre opening dates with strong returns expected over the medium term as centres mature. ~$10m in capital expenditure deferred from CY20 will be released in CY21, taking estimated CY21 capital expenditure to at least $50m, with further incremental spending based on return hurdles.
- Adairs (ADH) +2.80% Expects 1H21 sales between $235-245m vs consensus $240.8m. Trading update FYTD to 6-Dec: total sales up 23.4% vs year ago. Gross margins in Adairs and Mocka well above prior-year levels. Sees underlying Group EBIT between $62-66m in 1H21 vs consensus $56.1m.
- Marley Spoon (MMM) – Unchanged – Reaffirms FY revenue growth guidance of 90-100% vs year ago.
- APN Convenience Retail REIT (AQR) – To acquire 3 service station and convenience retail properties for $75.3m. Announce $35m equity raising at 355c/security. Reaffirms FY21 guidance previously provided: FFO and distributions per security of 21.8-22.0c/security.
- Abacus Property Group (ABP) – The company has executed on its strategy to become a strong asset-backed, annuity-style, investment house and has delivered a pleasing Q1 FY21 trading performance across its portfolio. $926m of capital has been deployed into acquisitions in the key sectors of Office and Self Storage post FY19 including $205m in FY21 to date. Expected H1 Funds from Operations (“FFO”) of 8.9-9.1 cents per security and expected FY21 interim distribution of 8.5 cents per security. Abacus is undertaking a fully underwritten 1 for 4.8 accelerated non-renounceable pro rata entitlement offer to raise approximately $402m in order to repay debt and increase acquisition capacity. Pro forma expected gearing of 17.5% and acquisition capacity of $911m post completion of the entitlement offer.
- NAB Business survey for November: Conditions: +9, up from +2; Confidence: +12, up from +3.
- Consumer confidence improved for the second week in a row. The overall index rose 1.7%, with all the subindices except ‘current financial conditions’ gaining. With this, confidence is now at its highest level for 2020.
- The seasonally adjusted estimate for total dwellings approved rose 3.8% in October.
- Private sector dwellings excluding houses rose 6.2%, while private sector houses rose 3.1%, in seasonally adjusted terms.
- The seasonally adjusted estimate for the value of non-residential building approved rose 58.6%.
- Residential property prices rose 0.8% in the September quarter, according to the ABS. All capital cities apart from Melbourne recorded a rise in residential property prices in the September quarter. The rises in residential property prices were led by the Sydney (1.0%) and Brisbane (1.5%) property markets. Property prices fell 0.3% in Melbourne.
- House prices rose 1.4% in Sydney and 1.6% in Brisbane, while attached dwelling prices rose 0.2% in Sydney and 1.3% in Brisbane.
COVID – 19 NEWS
- U.S. officials insisted they’ll have enough Covid-19 vaccine doses to let most Americans get inoculated by next summer.
- The World Economic Forum will hold its 2021 annual meeting in Singapore instead of its traditional home of Switzerland.
- Workers who went back to work in the office in 10 of the largest U.S. business districts fell to 16.9% of pre-Covid-19 levels in the week ended December 2.
- White House summit on CV19 today with two of the leading vaccine makers not attending.
- France looks like it will miss a coronavirus goal set by President Emmanuel Macron as a condition for lifting the country’s lockdown next week.
- The WHO said it prefers information campaigns to mandatory Covid-19 vaccinations.
- China could post its first year-on-year decline in consumer prices in over a decade. Aside from pork, commodity prices in general are lower than a year ago because of weak global demand.
- JD Health soars on debut. Up 52% at one point. US$39bn valuation. The health-care affiliate of Chinese e-commerce giant JD .Com expects to have 100m users by end of 2021. It is the largest internet health-care platform and online pharmacy by revenue in China.
EUROPEAN AND US HEADLINES
- The Ikea catalogue will be no more. Going digital after a history going back to 1951.
- Uber has called time on developing its own self driving cars. People are so much cheaper it seems.
- Johnson heading for Brussels again. Last gasp to do a deal.
- US puts sanction on 14 Chinese officials.
- Here’s a lesson for the Robinhood traders, one Russian billionaire’s son lost up to US$50m in a day.
- New York restaurants to face clamp down as hospitalisations rise.
- Robert Zimmerman sells 600 songs over 50 years for $300m. Universal Publishing Group the buyer. He is 79. The times they are a changing.
- Break dancing is now an official Olympic sport. We are living in strange times.
- Its Jab day in UK. Elderly and most at risk about to be jabbed from today.
Four mature age wealthy guys were playing their weekly game of golf.
One remarked how nice it would be to wake up on Christmas morning, roll out of bed and without an argument go directly to the golf course, meet his buddies and play a round.
His buddies all chimed in said, “Let’s do it! We’ll make it a priority – figure out a way and meet here early, Christmas morning.”
Months later, that special morning arrives, and there they are on the golf course.
The first wealthy guy says, “Boy this game cost me a fortune! I bought my wife a diamond ring that she can’t take her eyes off”
The second wealthy guy says, “I spent a ton too. My wife is at home planning the cruise I gave her. She was up to her eyeballs in brochures.”
The third wealthy guy says “Well my wife is at home admiring her new car, reading the manual.
They all turned to the last wealthy guy in the group who is staring at them like they have lost their minds. “I can’t believe you all went to such expense for this golf game. I slapped my wife on the bottom and said, ‘Well babe, Merry Christmas! It’s a great morning – Golf course or intercourse?”
She said, “Don’t forget your hat.”