ASX 200 down 46 points to 7582.
- HIGH 7629 LOW 7582 Narrow range. Vic extends lockdown.
Winners: 88E, PPK, AXE, A2M, IMD, GWA
Losers: AX1, BPT, BEN, ALK, BRN, SWM
- POSITIVE SECTORS: Consumer staples -Tech
- NEGATIVE SECTORS: Banks – Iron ore miners – Energy
- BIG BANK BASKET: Down to $184.78
- ALL -TECH INDEX: up 0.18% APT down 0.25%
- GOLD: Rallies to AUD $2417
- BITCOIN: US$47482 Pushing higher
- AUD: Steady at 73.35c
- 10-YEAR YIELD: Smacked to 1.14%
- ASIAN MARKETS: Tokyo down 1.61% Hong Kong down 0.96%, China up 0.17%
- US FUTURES: Dow futures down 117 . NASDAQ down 13
- European markets expected to open around 0.5% lower.
ASX 200 starts a busy week falling 46 points to 7583 (0.6%). Narrow range again and the market holding up despite obvious CV19 headwinds. Company reports took centre stage. BEN falling 9.9% after results set the stage for the banks with the Big Bank Basket down to $184.78. Insurers holding firm, other financials eased, MQG down 0.7%. Materials were also in the sellers’ sights as iron ore fell, BHP off 1.4%, FMG down 1.9% and RIO down 1.6%. Gold miners showed slight gains with NCM up 1.3%. Energy stocks were under pressure as WPL and BHP revealed they were in talks and STO slipped 3.3% with BPT results once again disappointing, down 10.0%. More writedowns. Industrials were mixed. In corporate news, JBH was up 2.5% with both revenue and profit higher. BSL was up 0.6%,tripled its dividend and launched an on-market buyback of $500m. GPT was up 3.0%, profit jumped as asset values rose. SYD down 0.7%,rejected a revised 845c offer from Aviation Alliance consortium. MTS added 2.2%,finishes $200m off-market buyback
STOCKS ON THE MOVE
- A2M +12.08% takeover rumours.
- SYD -0.65% increased non-binding offer. Macquarie to advise.
- AXE +12.66% Biochip announcement. Diversity option.
- GWA +9.51% results.
- CBO +3.16% good bounce.
- PPK +14.06% BNNT doing well. LI-S prospectus closed last week.
- AVZ +6.12% good news on Carierre de L’Este.
- ALK -9.18% high grade mineralisation.
- BRN -8.41% capital call with LDA.
- CTT -6.12% luxury retail out of favour.
- BBN -4.55% broker downgrades.
- BCB -25.00% Chinese economy weakens.
- MNS -12.35% profit taking.
- VML -5.41% sellers back on top.
- PKS +11.58% going well.
- BYE +4.17% stirring?
- 88E +15.91% Merlin -1 well confirms light oil.
- TLX +8.62% rally continues.
- WPL -4.55% BHP -1.40% talks progressing on oil and gas assets.
- Speculative Stock of the Day: Australian Mines (AUZ) +35.00% binding offtake agreement signed with LG Energy solution for the supply of mixed nickel-cobalt hydroxide from Sconi.
- Bluescope Steel (BSL) +0.63% Has delivered FY Underlying EBIT of $1.72bn vs recent company guidance of $1.72bn. Underlying NPAT came in at $1.17bn vs expectations of $1.17bn. Revenue missed slightly, coming in at $12.87bn vs expectations of $12.89bn [based on 9 estimates with a range of $12.45-13.52bn]. BSL declared an unfranked final ordinary dividend of 25cps, and an unfranked special dividend of 19cps; record 8-Sep, payable 13-Oct. Furthermore, a share buy-back of up to $500m has been approved to be conducted over the next twelve months. Looking ahead, BSL provided 1H guidance of underlying EBIT in the $1.8-2.0bn range.
- Beach Energy (BPT) -9.92% Has reported FY underlying EBITDA of $953m vs expectations of $910.3m – based on 15 estimates with a range of $886-962m. Underlying NPAT came in at $363m, well ahead of expectations of $324.8m. Underlying EBITDAX $1.01bn, again well ahead of expectations of $930.7m. Revenue $1.56bn vs $1.53bn expected. Final dividend of 1cps declared, fully franked; record 31-Aug, payable 30-Sep. Production guidance was updated to 21-23 Mmboe.
- Bendigo & Adelaide Bank (BEN) -9.91% Has delivered FY NPAT of 4$57.2m, missing expectations of $463.8m. Net interest income came in at $1.41bn, versus expectations of $1.42bn, whilst net interest margin was 2.26% vs expectations of 1.95%. The bank declared a final dividend of 26.5cps, fully franked; Record 6-Sep; Payable 30-Sep.
- JB Hi-Fi (JBH) +2.50% Has delivered FY NPAT of $506.1m, in line with recent company guidance. Revenue came in at $8.92bn, again in line with guidance. EBIT $743.1m, slight miss on prior guidance of $743.2m. A fully franked final dividend of 107cps was declared; record 27-Aug, payable 10-Sep. Given the ongoing impacts of Covid, the company did not provide any FY22 sales or earnings guidance.
- Woodside (WPL) -4.55% Understood to be in advanced talks to acquire BHP’s petroleum unit for $20bn.
- carsales.com (CAR) +3.85% Full-year underlying profit $153m vs consensus $145.2m. Adjusted Revenue $438m vs consensus $429.9m. Adjusted EBITDA $254m vs consensus $246.1m. Final dividend 25c, fully franked. Management comments, “while current lockdowns and retail closures are having an impact on leads and private ad volumes, if our experience is consistent with prior lockdowns, the business is well placed to recover all or most of the declines once retail re-opens.” Expects to deliver solid growth in Group Adjusted revenue, Adjusted EBITDA and Adjusted NPAT in FY22.
- Imdex (IMD) +10.67% Full-year profit $31.7m vs consensus $25.3m. Revenue $264.4m vs consensus $257.3m. EBITDA $75.5m vs consensus $67.3m. Final dividend 1.8c. Has had a positive start to FY22 with strong demand for its IMDEXHUB-IQ™ connected technologies. At August 13th, sensors in use were up 6% from the end of June. Drilling optimisation sales are also increasing in all regions, including South America. IMD will focus on multiple operational initiatives to drive its growth strategy and point out multiple Long-term positive drivers.
- Treasury Wine Estates (TWE) +0.24% Reaffirms full-year EBITS guidance of $495-515m.
- Praemium (PPS) -3.57% Full-year profit $1.5m vs consensus $3.9m.Revenue $65.8m vs consensus $70.7m. Underlying EBITDA $14m vs consensus $16.3m. EBITDA margin 21% vs year-ago 28%.
- Lendlease Group (LLC) -7.55% Full-year core operating profit after tax $377m vs consensus $364.4m. Operating EBITDA $757m vs year-ago $565m. Final distribution of 12c. Adds FY22 is expected to be a challenging year, statutory Profit in H1 FY22 is expected to include a restructuring charge and impairment expense, based on outcomes arising from the business review. Expects to reach $8bn+ production target p.a. by FY24.
- GWA Group (GWA) +9.57%Full-year normalised profit $42.3m vs consensus $40.7m. Revenue $405.7m vs consensus $400.6m. EBIT $68.5m vs consensus $66.7m. Final dividend 6.5c. Sees continued momentum in residential detached completions. R&R in Residential/Commercial activity is expected to be stable to slightly positive. Commercial new build expected to remain subdued. Expects $3m annualised supply chain savings from FY22.
- Sydney Airport (SYD) -0.65% Confirms it has received a revised bid from the Sydney Aviation Alliance for 845c. The board has considered the proposal and has concluded it undervalues Sydney Airport and is not in the best interests of shareholders.
- GPT Group (GPT) +3.00% First half funds from operations (FFO) $302.3m vs year-ago $244.5m. profit $760.5m vs year-ago -$520.4m. First half distribution 13.3cps, +43% vs a year ago. Has withdrawn its FFO and distribution guidance for FY21.
- Seven West Media (SWM) -7.77% Full-year underlying EBITDA $253.9m vs company guidance $250-$255m and consensus $252.9m. Underlying profit $125.5m vs year-ago $36.9m. Revenue $1.27bn vs consensus $1.28bn. No dividends were declared. Targeting 40% broadcast share in H1. Digital earnings are expected to double to more than $120m in FY22. Operating expenses in FY22 are expected to be between $1.08bn to $1.1bn on a normalised basis, plus $94m of one-off costs.
ECONOMIC NEWS/ BOND MARKETS
- The Australian Retailers Association says the NSW measures alone would cost about $1.5bn in lost revenue a week.
- Cheery thought for the day: This month, the Infectious Diseases Society of America estimated that the delta variant had pushed the threshold for herd immunity to well over 80% and possibly close to 90%.
- NSW 478 cases. Victoria 22 cases. Lockdown and curfew in Melbourne. Dubbo has 100 cases.
- The Chinese economy is slowing more than expected due to CV19 issues. Retail sales expanded 8.5% in July from a year earlier, lower than the 10.9% predicted by economists; industrial output increased 6.4% versus the median estimate of 7.9%; fixed-asset investment grew 10.3% in the first seven months of the year, compared with a forecast of 11.3%. The unemployment rate rose to 5.1%.
- Japan’s economy grew 0.3% in April-June from the previous quarter, equal to an annualised pace of 1.3%.
US AND EUROPEAN NEWS
- Taliban take Kabul. Critics turn on Biden.
- Canadian PM calls a snap election two years early.
- Hyatt to buy Apple Leisure Group for US$2.7bn.
A young man went into confession crying, and told the priest:
“Forgive me father for I have sinned”.
“What have you done?” asked the priest.
“A few weeks ago I went to the library. I remained there until closing time and when I was about to go home, rain started pouring down. It was so intense I had to wait in the library.
I had waited for a while with the librarian, a young attractive single girl, then one thing led to another, and I ended up sleeping with her”. The man stopped talking but kept weeping.
“Well don’t cry, it’s a sin but it is not that bad. You should say 5 Hail Marys and it will be forgiven”. Said the priest.
“But it doesn’t end there” the man kept sobbing. “a few days later my elderly neighbour asked me to help her with her computer. Her husband was hospitalised and she couldn’t send an email to her son. I went there and fixed the problem, but when I was about to leave, rain started pouring down. It was really stormy and I had to wait. One thing led to another and I ended up sleeping with the old lady” the man cried.
“Oh dear well that makes it harder indeed, but still – you should say 15 Hail Marys and you will be forgiven” Said the priest.
“Oh I’m afraid the worst part is still ahead” cried the man. “Yesterday I went to the barber. I was his last client that day. As soon as he finished and was about to close the shop rain started pouring down so intensely, I had to wait with him. One thing led to another and I ended up sleeping with him as well” the man cried.
“Oh dear, it is indeed worse than I thought” said the priest.
“So what should I do father?” the man asked.
“Well” answered the priest . . . . .
“You should get the hell out of here before it starts raining!”