ASX 200 dropped 33points to 7116 (0.5%) as results dominated. Banks slid on WBC NIM woes down to $170.88 (0.9%) for the basket. WBC dropped 3.1% with ANZ off 1.0%. MQG better up 0.8% but insurers fell after IAG results, QBE down 1.5%. Industrials were mostly firm, WES up 0.4%, ALL up 0.7% and REH managing a % gain. REA rose as tech stock saw buyers, XRO up % and WTC rallying %. The All–Tech Index down 1.0%. Healthcare in ICU as CSL stumbled again, down 1.4%, RMD fought back from early losses, unchanged. COH continues to get a good hearing up 1.6%. REITs mixed, VCX down 4.1% with SGP up 0.2%. Resources recovered a little after China cut some rates but not by enough. BHP down 0.4% of results tomorrow, FMG up 0.4% and lithium stocks in demand, PLS up 2.5%, MIN up 1.0% and LTR doing well rallying 2.7%. Oil and gas are slightly better, WDS unchanged and coal stocks flat. In corporate news, PMV announced a strategic review and the CEO pulled the pin rising 12.2%, BRG followed up 9.0% on better margins and new product launches. AD8 proved the critics wrong with a 10.7% on record results. ELD collapsed 10.8% on profit guidance and IRE cut its dividend and sold a business to pay off dent and collapsed 35.6%. A2M was skimmed 13.6% on more Chinese woes and RWC dropped 8.3% on housing slowdown. Nothing on the local economic front. Asian markets mixed again, Japan up 0.4%, HK down 1.6%, China down 0.5%.10 -year yields steady at 4.27%.

HIGHLIGHTS

  • Winners: PMV, AD8, BRG, LOV, OML, RF1, LRS
  • Losers: IRE, A2M, ELD, OCL, RWC, A4N, SWM
  • Positive sectors: Lithium. Tech. Consumer discretionary. Oil and gas.  
  • Negative sectors: Banks. Healthcare. Gold miners. Insurers.
  • High 7146 Low 7120 Narrow range. Closes on lows.
  • Big Bank Basket: Falls to $170.88 ( -0.9%)
  • All-Tech index: Down 1.0% IRE weighs.
  • Gold:  Unchanged at $2962.
  • Bitcoin: Slips to US26103
  • Aussie Dollar:  Unchanged at 64.02c.
  • 10-Year Yield: Steady at 4.27%.
  • Asian markets:  Japan up 0.4%, HK down 1.6%, China down 0.5%.
  • US Futures: Dow down 10 Nasdaq down 5
  • European markets looking at a flat opening.

MAJOR MOVERS

  • PMV +12.2% strategic review and CEO quits.
  • AD8 +10.7% great results.
  • BRG +9.0% higher margins.
  • LOV +6.6% retail bounce.
  • LRS +4.8% lithium rebound.
  • ASK +3.7% broker upgrades.
  • SYA +4.4% big volumes again.
  • NXL +8.6% kicks higher post-result sell-off.
  • SPZ +20.0% final report.
  • RF1 +5.0% weekly NTA.
  • IRE -35.6% woeful results.
  • A2M -13.6% big troubles in little China still.
  • ELD -10.8% profit guidance.
  • RWC -8.3% results presentation.
  • CXO -2.4% capital raising weighs.
  • FLN -16.0% sliding away.
  • AQZ -3.0% illiquid.
  • ADH -15.5% resignation of director.
  • Speculative Stock of the Day: Nothing on any volume.

COMPANY NEWS

HEADLINES

ASIAN MARKETS

  • Chinese lenders cut the one-year loan prime rate by 10bps and kept the five-year prime loan rates unchanged despite calls for more cuts.
  • Country Garden will be removed from the Hang Seng Index from Sept. 4 and replaced by Sinopharm.

US and EUROPEAN HEADLINES

  • Trump says he will not appear in Republican primary debates
  • Russia’s first post-Soviet Moon mission ends in space crash “The apparatus moved into an unpredictable orbit and ceased to exist as a result of a collision with the surface of the Moon.” Classic.
  • German July PPI down 1.1% M/M v -0.2% forecast. July Producer prices down 6%.

And finally….

Clarence

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