ASX 200 up 22 to 7584 (0.3%)

  • HIGH 7615 LOW 7572 New records as CBA shine.

MAJOR MOVERS

Winners: NVX LKE LTR CTT MAF ABB GXY

Losers: 88E AX1 MP1 CEN ALK ING EHE

  • POSITIVE SECTORS: Banks. Iron Ore Miners. Consumer stocks.
  • NEGATIVE SECTORS: Healthcare. Tech. BNPL. Gold Miners.
  • BIG BANK BASKET: Better at $190.39. CBA today NAB tomorrow.
  • ALL -TECH INDEX: Down 0.6%. APT down 0.9%
  • GOLD: Slips to AUD $2362.
  • BITCOIN: US$45767. Pausing for breath.
  • AUD: Firms to 73.36c. 10-YEAR YIELD: Steady at 1.21%
  • ASIAN MARKETS: Tokyo up 0.92% Hong Kong up 0.11%, China up 0.11%.
  • US FUTURES: Dow futures down 30. NASDAQ down 4.

ASX 200 closed up 22 points to 7584 hanging on to a new record but well off its high. CBA set the scene this morning with its stunning result and capital management pushing up the banking sector. CBA rose 1.5% and the Big Bank Basket rose to $190.39. Other financials joined in with MQG up 0.6%. Big miners also in demand surprising given the falls in iron ore recently. The Big Two showed gains with BHP up 1.5% and RIO up 1.3%. Industrials though were mixed with healthcare in casualty as CSL fell 0.6%, ALL dropped 2.0% and TCL falling 1.6% on some broker ‘ho humness’. Results dominate and then reactions, MP1 fell 6.3% and SUN off 0.1% on broker comments. Lithium continues to fire up with the usual suspects going well. AXE announced it had been approved for an all-important Chinese patent and rose 15.8%. Happy days.

END OF DAY PODCAST – ASX 200 closes at yet another record high of 7584 up 22 points. Banks the focus as CBA delivered and some. CBA rose 1.5% and the Big Bank Basket up to $190.39. Big miners were surprisingly strong despite iron ore falls. Must be the promise of dividends. Lithium stocks remain the flavour oof teh month with LTR up 8.8% and AXE up 15.8% on news of Chinese patents. 

STOCKS ON THE MOVE

  • AXE +15.79% Chinese patent approved.
  • CXO +13.89% strong support for capital raising and strategic investment.
  • LTR +8.84% battery/lithium stocks doing well.
  • HZR +10.24% hydrogen bounce.
  • VML +9.84% good reception to capital raising.
  • NVX +12.32% broker recommendation.
  • LKE +9.57% strong interest to fund 70% of Kachi project.
  • ABB +7.78% strategic backhaul deal.
  • ABR +4.33% Ausbiz review.
  • ORE /GXY +6.5% lithium rally continues.
  • AX1 -6.79% broker calls sell.
  • MP1 -6.31% broker downgrades.
  • SLR -2.18% gold price.
  • WLE -0.98% entitlement offer closes fully subscribed.
  • 88E -12.50% half yearly reports.
  • IAG -2.65% results disappoint.
  • NEW -6.25% ex dividend.
  • SOR 5.97-% profit taking.
  • NMT +13.33% Vanadium pilot plant – successful completion.
  • Speculative Stock of the Day: European Lithium (EUR) +18.46% Company presentation today.

ANNOUNCEMENTS

  • Insurance Australia Group (IAG) -2.65% Reports Full-year cash earnings of $747m, in line with preliminary results. Gross Premiums Written $12.60bn vs consensus $12.66bn. Confirms underlying insurance margin of 14.7% Announced a final dividend of 13.0c/share, unfranked. Confirms FY22 guidance: GWP low single-digit growth and a reported insurance margin 13.5-15.5%.
  • Huon Aquaculture Group (HUO) -2.06% Speculation Tattarang could emerge with a 19.9% stake in Huon Aquaculture Group. A buyer, believed to be Andrew Forrest’s Tattarang, has been acquiring shares at up to 392 cps, notably above the agreed to JBS offer price of 385 cps. Note that a 19.9% interest would be a large enough stake to block the JBS scheme of arrangement in a vote.
  • Westpac (WBC) +0.74% RBNZ issues Westpac official warning over failing to detect and report 8,000 global transactions between Jul-18 and Feb-19.
  • Arena REIT (ARF) +1.06% Reports Full-year net operating profit $51.9m vs consensus $51.3m. Reports FY Statutory net profit well above estimates, at $165.4m vs year-ago $76.6m, consensus was $87.2m. Property income $59.8 vs consensus $61.5m. Earnings per share of 15.2 cps vs year-ago 14.55 cps. Announced a Full-year dividend of 14.8 cps. FY22 Guidance: Dividend guidance of 15.8cpu, +6.8% on the year.
  • Challenger (CGF) +3.57% Shareholder Apollo understood to be putting pressure on Challenger to divest its fund’s management business, Fidante.
  • Computershare (CPU) +0.74% Full-year management EPS US$0.5203 vs company guidance US$0.5177 and consensus US$0.50.EBIT US$440.7m vs consensus US$432.2m. Management profit US$281.4M vs consensus US$262.6m. Revenue US$2.26bn vs consensus US$2.24bn. Final dividend 23c, 13.8c franked. In FY22 sees, management EPS US$0.534. The CCT acquisition is expected to be completed in October/November.
  • Mineral Resources (MIN) +0.02%Full-year underlying profit $1.10bn vs consensus $1.22bn. Revenue $3.73bn vs consensus $3.79bn. Adjusted EBITDA up 148% to $1.90bn vs consensus $2.05bn. Capital expenditures $745m vs consensus $607m. Final dividend 175c.
  • IRESS (IRE) +5.78% Receives non-binding takeover proposal from EQT at a revised implied value of 1591c cash per share. Grants Due diligence.

ECONOMIC NEWS/ BOND MARKETS

ECONOMIC DATA

  • Westpac-Melbourne Institute Consumer Confidence Index (August): -4.4% to 104.1.
  • Global growth is back on track. For now. No Delta Blues here.

IN THE NEWS

  • NSW government talks ‘freedom opportunities’. 344 new cases for Sydney and Dubbo locked down.
  • Twiggy has threatened to block the HUO deal with JBS on environmental concerns.

CV19 NEWS

  • Vaccine Tracker: 4.51bn doses across 181 countries. 41m doses a day.
  • Australia is up to 194,799 doses a day on average. 4 months to cover 75%.
  • Worryingly Israel CV19 cases have surged despite high levels of vaccinations. More hospitalisations.

ASIAN MARKETS

  • Softbank down around 1.5% on its earnings numbers.
  • Chinese authorities call for anti-drinking ban for business. Things are getting real now.
  • Evergrande has soared after confirming talks to sell some assets.
  • China jails Canadian for 11 years for spying but may extradite him instead.

US AND EUROPEAN NEWS

  • European markets alluding to a caution flat opening.
  • Messi signs a two-year contract with PSG. Thousands turn out to welcome him to Paris.
  • NortonLife has done a deal to buy UK listed cyber group Avast.
  • Hackers have made sip[honed off US$600m of crypto tokens.
  • Worryingly Israel CV19 cases have surged despite high levels of vaccinations. More hospitalisations.
  • Deliveroo H1 Revenue up 82% to GBP 922.5m Still made a loss though.

And finally…

1. Teaching Math In 1950…

A logger sells a truckload of timber for $100.
His cost of production is 4/5 of the price.

What is his profit? $____

2.Teaching Math In 1970…

A logger sells a truckload of timber for $100.

His cost of production is 4/5 of the price, or $80.

What is his profit? $___

3. Teaching Math In 1990…

A logger sells a truckload of timber for $100.

His cost of production is $80.

Did he make a profit?   __Yes or __No

4. Teaching Math In 2000…
A logger sells a truckload of timber for $100.

His cost of production is $80 and his profit is $20.

Your assignment:   Underline the number 20.

5. Teaching Math In 2020

A logger cuts down a beautiful forest because he is selfish and
inconsiderate and cares nothing for the habitat of animals or the
preservation of our woodlands.

He does this so he can make a profit of $20.

What do you think of this way of making a living?

Topic for class participation after answering the question: How did
the birds and squirrels feel as the logger cut down their homes?

There are no wrong answers, feel free to express your feelings
e.g, anger, anxiety, inadequacy, helplessness, etc.

Should you require debriefing at conclusion of exam there are
counsellors available to assist you adjust back into the real world.

Clarence

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