Proactiveinvestors Australia Proactive Investors Australia Proactiveinvestors Australia Proactive Investors Australia RSS feed en Sat, 20 Jul 2019 11:30:30 +1000 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[Media files - Bulls, Bears & Brokers: Canary Capital’s Paul Hart on hot market sectors ]]> Thu, 18 Jul 2019 12:32:00 +1000 <![CDATA[Media files - Bulls, Bears & Brokers: DJ Carmichael’s Davide Bosio on the latest market deals ]]> Tue, 16 Jul 2019 15:07:00 +1000 <![CDATA[Media files - Bulls, Bears & Brokers: Alto Capital’s Tony Locantro relates books and movies to investing ]]> Thu, 11 Jul 2019 11:56:00 +1000 <![CDATA[Media files - Bulls, Bears and Brokers: Martin Place Securities’ Barry Dawes on gold outlook for July ]]> Wed, 10 Jul 2019 11:07:00 +1000 <![CDATA[Media files - Bulls, Bears & Brokers: Alto Capital’s Tony Locantro on this week’s interest rate cut ]]> Thu, 04 Jul 2019 14:55:00 +1000 <![CDATA[Media files - Bulls, Bears & Brokers: Martin Place Securities’ Barry Dawes on the outlook for 2019/2020 ]]> Wed, 03 Jul 2019 12:08:00 +1000 <![CDATA[Media files - Bulls, Bears & Brokers: DJ Carmichael’s Davide Bosio on property market deals ]]> Tue, 02 Jul 2019 12:20:00 +1000 <![CDATA[News - S&P/ASX 200 could see further upside after ending the financial year up 6.8% ]]> S&P/ASX 200 (INDEXASX:XJO) has suffered a fall in the afternoon with the index closing 47.5 points or 0.71% lower at 6618.8. Every sector was in negative territory with resources the major drag.

The Australian sharemarket started 2018/19 with the ASX200 at 6,194.6 and has ended the financial year up 6.8%.

Notably, the stock market has so far traded up consecutively for the past six months, which is the second longest period for a sustained rise over the last 10 years.

Wealth Within chief analyst Dale Gillham said that it’s important to understand that stock markets do not rise forever and nor do they fall forever, as all trends come to an end.

That said, investors like to think that they will go on forever and, therefore, do not plan for the market to change direction.

Gillham added: “While a move down on the All Ordinaires Index is inevitable, I don’t expect it to start moving down until late July or early August, which is in line with the half year reporting season.

“Right now we are searching for a new all-time high before falling into the next low, which will occur sometime in late September or early October.

“Many may be concerned about the speculation of a significant fall in the market, or a major crash or correction, but let me say upfront that the expected fall later this year is just part of normal market movements.

“This is a good thing for investors, as the market needs to find support to sustain the next move up into 2020.”

World and Australian economy in a snapshot

Overall, the global economy has slowed over the past year, largely restrained by the US-China trade conflict.

Central banks are now favouring rate cuts over rate hikes largely because inflation remains low.

The US economy generally remains in good shape. But Chinese authorities have been stimulating their economy in response to the slowdown caused by the trade dispute with the US.

Australia’s record economic expansion has completed its 28th year. But like other major economies, growth has slowed over the past year.

The Australian economy is currently growing at a 1.8 % annual pace – the slowest pace in 9½ years.

Interest rates have fallen to fresh record lows; wages are growing near 2.5%; underlying inflation is around 1.5%; the jobless rate is 5.2%.

Fri, 28 Jun 2019 17:57:00 +1000
<![CDATA[News - S&P/ASX 200 ends second consecutive session in the red ]]> S&P/ASX 200 (INDEXASX:XJO) ended the day 17 points or 0.26% lower at 6640.5. The major banks were the main drivers of losses with the big four all closing lower.

ANZ Bank (ASX:ANZ) was the steepest decliner, down 1% while Commonwealth Bank (ASX:CBA) lost only 0.23%.

Heavy losses were felt among the utilities, communications and financial stocks. A 1% drop for Telstra (ASX:TLS) weighed most on the telco sector.

Sandfire rebounds

Healthcare and industrials stocks were notable gainers while resources also saw advances.

Sandfire Resources (ASX:SFR) saw a rebound of 4.3% from its 11% decline yesterday when the gold and copper miner announced a $167 million acquisition of MOD Resources (ASX:MOD).

Lithium miner Orocobre (ASX:ORE) fell 4.9%, the most among the top 200 stocks, following a price target cut from a broker yesterday.

Bellamy’s Australia (ASX:BAL) was another major decliner with the organic dairy and infant formula maker declining 4.6%.

Wed, 26 Jun 2019 17:23:00 +1000
<![CDATA[Media files - Bulls, Bears & Brokers: Martin Place Securities’ Barry Dawes says gold prices to rise even more ]]> Wed, 26 Jun 2019 14:03:00 +1000 <![CDATA[Media files - Bulls, Bears & Brokers: DJ Carmichael’s Davide Bosio on gold’s market breakthrough ]]> Wed, 26 Jun 2019 13:04:00 +1000 <![CDATA[News - S&P/ASX 200 ends in red but gold miners continue to rise ]]> S&P/ASX 200 (INDEXASX:XJO) closed down 7 points or 0.1% to 6,658 as investors remained cautious ahead of the G20 Summit in Japan on Friday.

US President Donald Trump is scheduled to meet with his Chinese counterpart Xi Jinping on Saturday in what will be their first face-to-face meeting since trade talks stalled in May.

Gains for gold miners

The ASX joined Asian markets in negative territory today with falls in the financial, IT, utilities, energy and industrials sectors outweighing gains in the telco, materials, consumer staples and healthcare sectors.

Gold miners were among the best performers as investors searched for safety.

Saracen Mineral (ASX:SAR) gained 6.1% to $3.85, St Barbara Limited (ASX:SBM) rose 5.5% to $3.08, while Resolute Mining (ASX:RSG) climbed 3.7% to $1.255.

Pizza and fried chicken

Domino’s Pizza Enterprises (ASX:DMP) dropped 7.2% to a four year low of $36.30 after being hit by a class-action lawsuit claiming the company and its franchises underpaid workers for five years.

Collins Foods (ASX:CKF) gained 0.7% to $7.72 after reporting a 16.9% lift in full-year revenue to $901.2 million.

The company’s net profit jumped 20.3% to $39.1 million boosted by strong food delivery app sales at its Australian KFC network.

Tue, 25 Jun 2019 17:04:00 +1000
<![CDATA[News - The lithium market is evolving rapidly, but what is lithium, what is it used for and how much is it really worth? ]]> That’s the question the London Metal Exchange has been grappling with lately in conjunction with partner Fastmarkets as it attempts to put together some sort of benchmark contract that will be both meaningful and useful.

Whether it will be successful or not remains to be seen, as the lithium market is a complex one in terms both of product and pricing, and the LME has not been specific as to when it thinks the new contract will be available.

Certainly, there’s a fair amount of goodwill towards the idea, with no less a company than China’s Tianqi Lithium Corp (SHE:002466), one of the world’s largest lithium producers, coming out in favour of the deal.

But on the other hand, there are good reasons why lithium pricing is opaque: there are several different products and most buying and selling is done via offtake contracts at specific, but individually agreed prices. And these prices aren’t always disclosed.

To work out what’s going on, it’s worth jumping right to the top of the value chain to the new and continuously evolving batteries that are sucking in all this supply.

Many battery types

There are several different battery types, including lithium cobalt oxide, lithium manganese oxide, lithium iron phosphate, lithium nickel manganese cobalt oxide, lithium nickel cobalt aluminium oxide, and lithium titanate.

And within those battery types there can be subdivisions and new refinements, as for example in the lithium nickel manganese cobalt (NMC) oxide battery.

NMC batteries are the ones favoured by the electric vehicle industry as they have very low self-heating levels. To date the standard NMC battery has been the 111 battery, with the digits in that number referring to the ratio of each metal used in the battery.

But partly to minimise the use of cobalt, which has become more expensive of late due to supply chain problems, and partly because it can deliver even greater energy density, a new type of NMC battery is now entering into the picture, the 811.

Whether or not the 811 achieves a general uptake in electric vehicles remains an open question, but widespread adoption would have a significant impact on lithium producers going back downstream.

Enter lithium hydroxide

Why? Because the 811 batteries require lithium hydroxide as their main input rather than the more standard lithium carbonate used elsewhere.

READ: Alliance Mineral Assets maintains speculative buy recommendation from Hartleys

That in turn means that companies like European Metals Holdings Ltd (LON:EMH) and Alliance Mineral Assets (ASX:A40), which have both demonstrated a capability to produce lithium hydroxide, will be better equipped to meet the new demand than companies which have no such capability.

Of course, major lithium producers like Chile’s SQM (NYSE:SQM), currently capitalised at around US$3.8 billion, already produce a mix of lithium hydroxide and lithium carbonate to sell into the market.

READ: European Lithium makes progress with Wolfsberg resource extension drilling

But for the new generation of miners and would-be producers like European Metals, Savannah Resources PLC (LON:SAV), European Lithium Ltd (ASX:EUR), Infinity Lithium Ltd (ASX:INF), Jindalee Resources Limited (ASX:JRL), Piedmont Lithium Ltd (AS:PLL), Anson Resources Ltd (ASX:ASN), Argosy Minerals Ltd (ASX:AGY), Galan Lithium Ltd (ASX:GLN) and Bacanora Minerals Ltd (LON:BCN) a consideration of the end product will be key.

Some projects will be too small to justify the additional expense of hydroxide plants, and will most likely end up shipping concentrate to China. But the ones with scale are likely to benefit from adding additional processing capability, as lithium hydroxide adds a considerable premium to the pricing.

All of which increases the headache for the LME and Fastmarkets when it comes to putting together the structure of the new contract.

READ: Infinity Lithium sees significant opportunity in European domestic lithium supply chain

For one thing, it’s not entirely clear that the Chinese will accept any direction in terms of lithium pricing. But even if they do and a global standard can be established, will it refer to carbonate or hydroxide, or even lithium fluoride or sulphate?

And there’s also the question of impurities and deleterious elements. How much of a tolerance will the new contract have for these? All is not clear.

Still, the new LME contract isn’t the most pressing issue that the lithium industry is facing at the moment.

Oversupply notion

Far more important is the impact of the widely held notion that lithium supply is likely to go into surplus and that prices in general may drop. We can see this sentiment reflected in the share prices of companies as diverse as Tianqi, capitalised at US$30 billion, but shares in which have declined by almost 50% over the past year, and in European Lithium, capitalised at just over A$50 million, and which has also endured a share price decline of around 50% across the same period.

The question is: how much is this notion of oversupply really justified?

There’s no doubting that there’s plenty of lithium around. It’s the 32nd most abundant element in the earth’s crust, ahead of lead, tin, uranium, tungsten, silver, mercury, platinum and gold.

It is widely mined in the famous lithium triangle in South America, where the borders of Argentina, Bolivia and Chile intersect, as well as in Australia and China. New projects are being brought along in Europe, Africa and Asia too.

But will it really be enough to meet the burgeoning demand from electric vehicles and energy storage?

Lithium demand to surge?

That’s much more open to question, and more a matter for conjecture than really accurate forecasting. But some useful trends can be discerned. For example, global lithium demand is forecast to surge 20% in 2019, according to Chilean producer SQM.

“We believe that full electric vehicle penetration rates reached 2% in 2018, and this number is expected to over double in the next five years," SQM said in its most recent annual report.

The company estimates that batteries currently account for 65% of total lithium demand, including batteries for electric vehicles, which account for around 36%.

SQM conceded that new supply will keep pressure on prices, but added a significant rider: “There are several lithium grades of different qualities available in the lithium market, and not all products are sold at the same price. We do not believe that all lithium supply entering the market is suitable for all customers."

Another major producer, Albemarle Corp (NYSE:ALB), concedes that oversupply could be a factor, but also points out that it is insulated by the existence of long-term fixed price contracts that go out to 2021. This is a feature of the industry that is widespread.

Kidman Resources, for example, which is being absorbed by Australian conglomerate Wesfarmers Ltd (ASX:WES) and which is in joint venture with SQM, has already struck supply deals with Tesla Inc, battery producer LG Chem Ltd and Mitsui & Co.

The Wesfarmers move on Kidman may prove timely, as lithium markets start to improve.

Industry to struggle to keep pace

Data on how much supply will actually be sucked in by the new electric vehicle market is sketchy, but there seems a widespread acknowledgement inside the lithium industry that it will struggle to keep pace as demand continues to grow exponentially.

Analysis undertaken by US university, the Massachusetts Institute of Technology argues that the five metals that will be most affected by new technology are tin, lithium, cobalt, silver and nickel. Batteries make up a considerable component of that, as can be seen in some projections from European car makers.

Volkswagen, for example, is planning to put 22 million electric vehicles onto European roads by 2028. Porsche has recently invested €6 billion in its electric vehicle program, while Mercedes has invested €10 billion.

Mercedes wants to have 10 electric vehicle models on the market by 2025. BMW will put electric vehicles into mass production next year. In Japan Toyota has teamed up with Orocobre (TSE:ORL) to build a lithium hydroxide plant. And the list goes on.

All of which means that the lithium price, whichever one you use, is likely to rise in the coming years.

Analysis undertaken by Deutsche Bank and Asian Metal [] looks at the pricing outlook for five lithium products: lithium hydroxide, seaborne 98.5% lithium carbonate, China spot lithium carbonate, seaborne spodumene concentrate, and seaborne 99.5% lithium carbonate.

While a significant spike in prices is not expected any time soon, there is a general upward trend on all pricing measures through to 2025, by which time lithium carbonate China spot is likely to be testing US$15,000 a tonne again.

Tue, 25 Jun 2019 11:33:00 +1000
<![CDATA[News - Gold Coast Investment Showcase will feature companies from diverse range of sectors ]]> Gold Coast Investment Showcase 2019 next week will feature ASX listed companies from a diverse range of sectors including resources, technology, biotechnology and oil & gas.

Organised by Vertical Events, the corporate investment conference will be held on Tuesday and Wednesday, June 25 and 26, at Surfers Paradise Marriott Resort & Spa.

Diverse program

Putting together an investment conference with a program as diverse as the Gold Coast Investment Showcase, requires many years of work, and, in particular, industry confidence.

Vertical Events’ Business Development Manager Jaxon Crabb believes it has been the success of their specific sector events that has greatly assisted the growth of the all-sector Gold Coast conference.

He said: “The success of these events has provided us with a large pool of companies which is required to put together one of Australia’s only diversified investment conferences.

“Around five or six years ago we noticed this style of conference didn’t exist and we thought there is no better city to hold a pure investment conference than the Gold Coast.

"It is not often an investor can attend a conference and in the first session hear from a biotech company, into a tech company, followed by a resources company, then an education company, concluding with an investment fund and all of these companies are listed on the ASX.”

Kazia Therapeutics and FYI Resources in first session

Among the presenters on the opening session on June 25 are Kazia Therapeutics Ltd (ASX:KZA) CEO Dr James Garner and FYI Resources Ltd (ASX:FYI) managing director Roland Hill.

Other companies presenting in the session are MyFiziq Ltd (ASX:MYQ), Retech Technology Co Ltd (ASX:RTE) and Regal Investment Fund (ASX:RF1).

AdAlta Ltd (ASX:1AD) CEO and managing director Sam Cobb is among the presenters in the second session of day one.

This session will also include Anatara Lifesciences Ltd (ASX:ANR), Antisense Therapeutics Limited (ASX:ANP), Renascor Resources Ltd (ASX:RNU) and Locality Planning Energy Holdings Ltd (ASX:LPE).

Blackstone Minerals in afternoon

The presentation of Blackstone Minerals Ltd (ASX:BSX) managing director Scott Williamson will attract keen interest in the afternoon session.

Other presenters are Matsa Resources Limited (ASX:MAT), NeuroScientific Biopharmaceuticals Ltd (ASX:NSB), BMG Resources Ltd (ASX:BMG), Strata-X Energy Ltd (ASX:SXA) and Share Collective.

Austex Daily Unique Research executive director Rob Murdoch kicks off day two with his presentation ‘The ASX Resources Market – What it may mean for the rest of 2019’.

Altech Chemicals in day two opening session

Also presenting in the opening session are Altech Chemicals Ltd (ASX:ATC) CFO and company secretary Shane Volk and Venture Minerals Limited (ASX:VMS) managing director Andrew Radonjic.

Other companies presenting in this session are Sienna Cancer Diagnostics Ltd (ASX:SDX) and ResApp Health Ltd (ASX:RAP).

King Island Scheelite and Meteoric Resources on program

King Island Scheelite Limited (ASX:KIS) executive chairman Johann Jacobs will present during the second session as will Meteoric Resources NL (ASX:MEI) managing director Dr Andrew Tunks.

Also presenting in that session will be Oventus Medical Ltd (ASX:OVN), De.mem Ltd (ASX:DEM) and OptiScan Imaging Ltd (ASX:OIL).

The final session of the conference will feature Winchester Energy Ltd (ASX:WEL) and Pioneer Resources Ltd (ASX:PIO).

Gold Coast Investment Showcase 2019 will wrap up with a panel discussion titled ‘A diversified portfolio – the way ahead’ featuring Morgans investment adviser Stuart Mackenzie, Share Collective CEO Tyson Keen and investor guru Brian Leedman.

“Relaxed nature”

Jaxon Crabb added: “Our investors relish the diversity of this event as they feel as though they are not comparing company presentations against each other.

“It is difficult for this to occur at sector focused investment conferences when there are multiple companies exploring for the same commodity all presenting on the same day and the investors are trying to distinguish the key differences between the companies.

“Also, most importantly, it is the relaxed nature of the event and the audience demographic, mostly Gold Coast retirees, which all leads to this conference being one of our most enjoyable events.”

To view the program, click here.

Fri, 21 Jun 2019 14:39:00 +1000
<![CDATA[News - S&P/ASX 200 trades lower but may have more steam left ]]> S&P/ASX 200 (INDEXASX:XJO) may end its positive run today with the index trading 0.64% down to 6644 points at 2:13 pm.

Wealth Within chief analyst Dale Gillham feels the market is bullish and will remain bullish in the medium term with his target being 6900 to 7400 points.

Gillham added: “My position on the Australian stock market has not changed, despite many other experts claiming that the market is over heated and, therefore, is expected to see it fall away strongly.

“In the short term, I believe the ASX 200 will rise over the next two weeks breaking through the all-time high before falling away for one to two weeks into mid to late July.

“The sectors I like moving forward include Energy, Financials, Materials and Healthcare. There are also many stocks in the top 50 within these sectors that looking good right now.”

Investors prefer stocks over cash after RBA interest rate cut: Dale Gillham

Right now many are asking why the Australian stock market has been so bullish in recent months and if it will continue to rise next year.

There are a range of different factors that contribute to the direction of the market and for the most part it reflects our confidence in business and the economy.

If confidence is high or increasing the stock market will rise, which creates momentum. How fast or slow the momentum is will be determined by economic factors. The most recent of these being the election outcome and the subsequent RBA rate cut. In my previous reports, I communicated that the stock market was bullish prior to the election, and so the surprise election outcome increased the bullish momentum.

With the RBA interest rate cut, we know that as the cash rate drops so do returns on cash investments. Therefore, with the cash rate being below inflation, it makes sense that investors would exit cash investments in favour of stocks to achieve a higher return together with the opportunity to also receive capital gains as the assets rise.

Fri, 21 Jun 2019 14:16:00 +1000
<![CDATA[News - Gold price soars on dovish Fed pronouncements and Middle East uncertainty ]]> The gold price spiked sharply to US$1,380 on Thursday after the Federal Open Markets Committee signalled strongly that lower interest rates in the US are likely, and soon.

According to analysis undertaken by Bloomberg, markets are now pricing in a 76% chance of a 25 basis point cut as early as July, with the probability of a 50bp cut at 24%.

Gold and the dollar have long enjoyed an inverse pricing relationship, absent other outside factors, and the gold price has been gradually strengthening over the past few months on a general expectation that rates will be cut.

At a five-year high

The latest jump in the price is significant though, as gold is now at a five-year high. The turnaround in price is all the more remarkable, given that bears were in the ascendant last year as the Fed was confident then in its pursuit of rate rises rather than rate cuts.

That possibility dragged gold below the US$1,300 level as investors took the view that the rising yield on the dollar offered more attractions that the safe-haven but yieldless status of gold.

Now though, the opposite calculation is at play. The chairman of the Fed Jerome Powell has said that the case for easing has strengthened as the US and the global economies gradually slow, while President Trump is openly bemoaning the latest signals from Mario Draghi that more stimulus might be on the way in Europe.

This dynamic may in turn lead on to a renewal of the currency wars and given that Donald Trump’s long-held argument for a weaker dollar to support exports has now fallen into alignment with Fed policy, it seems likely that the dollar may have further to fall.

That in turn will be good for gold, although it’s hard to know how much of that is already priced in.

The trade war isn’t helping, of course, and Mr Powell is likely to take a significant cue from the outcome of forthcoming talks between President Trump and President Xi at the G20 summit in Japan this month.

Middle East uncertainty

Then, simmering in the background is also the uncertainty of the situation in the Middle East. With the dollar in the ascendant last year, Middle East woes were barely able to impact on the gold price.

This time round though, with the dollar weak and oil tankers on fire in the Persian Gulf, the resultant negative sentiment might well drive buyers into gold in more serious numbers. They will be encouraged to buy, of course, by the upward momentum already created by the weaker dollar and so we may for a while see the emergence of an upward spiral in the gold price.

In that context it doesn’t seem that unlikely that gold will go through US$1,400 before too long, perhaps within weeks, if the Fed does cut rates in July. 

“For 2019 we continue to expect a mild-to-moderate overall uptrend for gold, short-term spikes and troughs notwithstanding,” says Yuen Low, an analyst at Shore Capital. He notes the Fed’s concerns about low inflation and “uncertainties.”

New mid-tier player on LSE

Overall, Thursday was not a bad day at all for the London market to welcome a new mid-tier producing gold miner Resolute Mining Ltd (ASX:RSG) (LON:RSG) into its ranks, although the shares were flat at 68p on the day, following a 10% rise in Australia overnight.

Fri, 21 Jun 2019 09:17:00 +1000
<![CDATA[Media files - Bulls, Bears and Brokers: Alto Capital’s Tony Locantro says now is the time to get aggressive with stocks ]]> Thu, 20 Jun 2019 12:36:00 +1000 <![CDATA[Media files - Bulls, Bears & Brokers: Martin Place Securities’ Barry Dawes on moves from commodities this week ]]> Wed, 19 Jun 2019 11:17:00 +1000 <![CDATA[News - Perth-based DJ Carmichael being acquired by wealth manager Shaw and Partners ]]> Perth-based financial advisory and planning firm DJ Carmichael is being acquired by one of Australia’s pre-eminent investment and wealth management firms Shaw and Partners.

The acquisition will provide Shaw and Partners with the opportunity to continue to scale its national footprint by further expanding its existing Perth business.

To be rebranded as Shaw and Partners

This transaction is expected to close by the end of August 2019, at which time the DJ Carmichael business will be completely rebranded to Shaw and Partners.

DJ Carmichael has been in operation for more than 120 years and has approximately $650 million in funds under advice.

As part of the acquisition, DJ Carmichael CEO Davide Bosio will take on the role of Western Australia state manager and director of corporate finance under the Shaw and Partners brand.

Bosio said: “We are very much looking forward to becoming a part of Shaw and Partners’ formidable growth story.

“This deal is fantastic for our clients and our staff as it gives us greater distribution and research nationally.

“We also have an ability to offer one of the strongest wealth management platforms in Australia at a time when the largest financial services firms are turning their backs on clients and many skilled advisers who have provided solid advice over the years.

“We are incredibly proud of this next stage of our development and evolution. The combination of our firms simply makes sense and I look forward to leading the team through this exciting period.”

Committed to new office space

Shaw and Partners is in the final stages of signing a new lease in premium office space, which will service the existing Western Australia Shaw and Partners office and clients along with new DJ Carmichael clients, advisers and staff.

“Obvious growth area”

Shaw and Partners co-CEO Earl Evans said: “The Western seaboard is an obvious growth area for us.

“Securing critical mass in Western Australia will allow us to accelerate our presence, broaden our reach and allow more clients to access Shaw and Partners’ investment capabilities and intellectual capital.

“We are eager to integrate the DJ Carmichael team into our existing Perth infrastructure. We have had an office in Perth for 6-plus years and it’s now timely that we focus on expanding it by blending the two operations and adding a local Research and Corporate Advisory capability into the business.”

“Deep expertise in major markets”

Co-CEO Allan Zion said: “Our business continues to grow and evolve due to our agile approach, ability to adapt to changing market conditions and our deep expertise in major markets.

“We are looking forward to continuing to serve our Western Australia based clients and to both broaden and enhance the quality of the DJ Carmichael offering.”

The acquisition follows Shaw and Partners’ recent strategic partnership with Swiss Private Bank, EFG International, which resulted in EFG acquiring 51% of the issued shares in Shaw and Partners for A$61.2 million.

Tue, 18 Jun 2019 16:50:00 +1000
<![CDATA[Media files - Bulls, Bears & Brokers: DJ Carmichael's Davide Bosio on acquisition by Shaw and Partners ]]> Tue, 18 Jun 2019 13:04:00 +1000 <![CDATA[News - S&P/ASX 200 closes in the red weighed down by telco stocks ]]> S&P/ASX 200 (INDEXASX:XJO) finished the session down 23 points or 0.4% to 6,530, weighed down by a heavy 2.3% fall in the telco sector.

Losses in the energy, materials, consumer staples, IT and healthcare sectors also held the market down, outweighing gains from the financial, industrials, utilities and property stocks.

Vocus takeover called off

Vocus Group (ASXVOC) which owns Dodo and iPrimus lost about a quarter of its value, after AGL Energy (ASX:AGL) aborted a $3.02 billion takeover bid for the internet provider.

AGL managing director and chief executive Brett Redman said: “We are no longer confident that an acquisition of Vocus at the proposed terms would represent sufficient certainty of creating value for AGL shareholders."

Vocus shares plunged 24.5% to $3.29, while AGL gained 1.6% to $19.88.

South32 and Cochlear end lower

South32 (ASX:S32) ended 4.2% lower at $3.17, after lowering the estimated coal reserves at its Illawarra Metallurgical Coal project.

Cochlear (ASX:COH) fell 1.2% to $201.83 despite announcing its Nucleus Profile Plus Series hearing implant has been given FDA approval and will launch in the US immediately.

Economic news

In upcoming economic news, the US Empire State manufacturing index will be released along with capital flows data and the NAHB housing market index.

Mon, 17 Jun 2019 16:50:00 +1000
<![CDATA[News - S&P/ASX 200 closes the week at a 11-year high ]]> S&P/ASX 200 (INDEXASX:XJO) finished stronger by 11 points or 0.2% to 6553 today, boosted by strong gains in the materials and energy sectors.

The index closed the week at a fresh 11-year high, after playing catch up to gains overseas. Over the week, the index jumped 1.7%.

Miners were the main catalyst for the rise after iron ore exceeded over US$103 a tonne. A combination of rising iron ore prices and the RBA’s rate cuts have benefited miners over the past month.

ASX continues to push higher

It is now 139 months since the all-time high of 6873 points on the All Ordinaries Index set back in 2007, which has been the longest period in time that our market has taken to make a new all-time high following a bear market.

In the last 60 years, the longest time was 94 months following the lows in the early 1970’s. Therefore, any suggestion that the Australian market is overheated and running too fast is a little premature.

Upcoming catalysts

In the coming week, Reserve Bank events will dominate. Governor Philip Lowe’s speech in Adelaide on Thursday should hog the headlines.

In the US, the Federal Reserve interest rate decision is the key focus of investors over the coming week.

Fri, 14 Jun 2019 16:49:00 +1000
<![CDATA[News - S&P/ASX 200 trading slightly up, Afterpay shares perform strongly out of trading halt ]]> S&P/ASX 200 (INDEXASX:XJO) rallied strongly to be up 40 points in the first 30 minutes of trade but has given early gains back headed into the afternoon session.

Insurance broker outfit Austbrokers (ASX:AUB) downgraded earnings this morning while Emeco (ASX:EHL) confirmed it is on track for 40% growth in operating EBITDA for FY19.

Shares in Afterpay came out of trading halt this morning following the capital raising and traded very strongly, up 9% at one stage.

Afterpay shares have now settled to be trading up 5.5% at $25.50, which is VWAP for the day.


[REPORT] Miners push local shares higher for a sixth session but losses for banks keep gains in check #ausbiz

— CommSec (@CommSec) June 12, 2019


Pre-market: S&P/ASX 200 eyes new all-time highs, Afterpay raising $330 million

ASX 200 futures are pointing to another green session after the market closed on highs yesterday not seen since late 2007.

The ASX 200 is closing in on its all-time high of 6828.70, which was reached in November of 2007.

Both the S&P 500 Index (INDEXSP:.INX) and the Nasdaq Composite (INDEXNASDAQ:.IXIC) gave back their opening gains over the day to close flat.

Beyond Meat Inc (NASDAQ:BYND), which listed in early May was down 25.02% to US$126.04 but the stock is still well up on its US$25 IPO price.

Two RBA assistance governors speak in Melbourne today

At around 9.30am AEST today, RBA Assistant Governor (Financial Markets) Christopher Kent is due to deliver brief remarks at the Australian Renminbi Forum in Melbourne with audience questions expected.

This evening at around 7.00pm AEST, RBA Assistant Governor (Economic) Luci Ellis is due to deliver a speech titled "Watching the Invisibles" at the Freebairn Lecture in Public Policy in Melbourne.

Other economic data points today include the monthly Westpac consumer sentiment survey results at 10.30am and China’s monthly rolling year CPI and PPI at 11.30am AEST.


[VIDEO] Dow Jones eased by 0.05% after 6 days of gains. SPI futures pointing to a slightly better start locally after Aussie stocks hit 11.5 year highs on Tuesday. #ausbiz

— CommSec (@CommSec) June 11, 2019


READ: Afterpay's rocky few days vindicated by broker reports, shares up 3.6%

Well-known buy-now, pay-later ASX tech stock Afterpay Touch Group Ltd (ASX:APT) is in a trading halt while it raises $300 million via a share placement.

The placement had a price range of $21.75 to $23.00 depending on demand and has been set at $23.00 due to strong demand.

If the placement was fully subscribed, which it clearly will be, three founders will part with 2.5 million shares, which will be allocated to two US cornerstone investors, Tiger Management and Woodson Capital.

A share purchase plan (SPP) will follow the placement and sell-down to raise an additional $30 million meaning the company will raise gross proceeds of $330 million.

The capital injection is to fund growth in the US, the UK launch and continued investment in Australia and New Zealand.

Wed, 12 Jun 2019 08:32:00 +1000
<![CDATA[Media files - Bulls, Bears & Brokers: Martin Place Securities' Barry Dawes discusses highs in the All Ords ]]> Wed, 12 Jun 2019 00:33:00 +1000 <![CDATA[News - S&P/ASX 200 rises for a fifth consecutive session ]]> S&P/ASX 200 (INDEXASX:XJO) gained 102 points or 1.59% to 6546.3 with all sectors except utilities comfortably in positive territory.

The local market has made a strong return from the long weekend, rising for a fifth consecutive session.

Big lift in business confidence

The National Australia Bank (NAB) business conditions index fell from +3.3 points in April to +0.6 points in May.

However, the business confidence index rose from 0.1 points in April to a 10-month high of +7.3 points.

It was the biggest lift in business confidence in almost 6 years.

Petrol price falls

According to the Australian Institute of Petroleum, the national average price of unleaded petrol fell by 2.0 cents in the past week to 143.7 cents a litre. Wholesale prices are near 3½-month lows.

Filling up the car with petrol is the single biggest weekly purchase for most families.

Over the past month motorists in some capital cities have seen pump prices fall by 20-30 cents a litre.

Prices need to stay lower for longer to have a discernibly positive impact on retail spending.

Attractive business conditions

Political certainty combined with tax cuts, rate cuts, the minimum wage decision, lower petrol prices and support for lenders from regulators all point to more attractive business conditions ahead.

The major uncertainty at present is the status of the US-China trade talks.

Tue, 11 Jun 2019 16:52:00 +1000
<![CDATA[Media files - Bulls, Bears & Brokers: DJ Carmichael's Davide Bosio on picking winners in resources plays ]]> Tue, 11 Jun 2019 00:07:00 +1000 <![CDATA[News - S&P/ASX 200 closes 1% higher following last-minute rally ]]> S&P/ASX 200 (INDEXASX:XJO) closed higher for a fourth straight session with a last minute rally helping the index rise 60 points or 1% to 6,443.

The energy sector was a standout, gaining 1.2% following a 1.7% spike in global crude prices.

The jump was sparked by comments by Russian president Vladimir Putin, who said his country had differences with OPEC over what constituted a fair price for oil.

Woodside Petroleum (ASX:WPL) climbed 1.7% to $34.64, while Santos (ASX:STO) gained 1% to $6.79.

Marley Spoon (ASX:MMM) shares surged 68% to $0.74 after the meal kit company signed a $30 million deal with Woolworths (ASX:WOW).

READ: Marley Spoon enters partnership with Australia’s largest supermarket network Woolworths

Marley Spoon says it will benefit from the supermarket giant’s “deep industry experience, through the ability to engage with Woolworths’ customer base, and to work with the Woolworths sourcing and supply chain teams.”

Syrah Resources (ASX:SYR) fell 3.6% to $1.06, after the graphite miner lowered its second quarter production guidance to between 45kt-50kt, down from its previous expectation of 50kt-55kt.

Fri, 07 Jun 2019 16:50:00 +1000
<![CDATA[Media files - Bulls, Bears & Brokers: Alto Capital's Tony Locantro discusses 'cheap risk' stocks on ASX ]]> Thu, 06 Jun 2019 21:42:00 +1000 <![CDATA[News - S&P/ASX 200 rises for a third straight session ]]> S&P/ASX 200 (INDEXASX:XJO) closed up 24 points or 0.4% to 6,383 with gains across the board.

The index finished firmer for a third day, buoyed by optimism of further rate cuts in Australia and in the US.

Major oil and gas discovery

Santos (ASX:STO) and Carnarvon Petroleum (ASX:CVN) announced the discovery of a major oil and gas resource off the coast of Western Australia.

READ: Carnarvon Petroleum appraisal confirms major Dorado oil and gas resource, shares up

Santos CEO Kevin Gallagher said “This is a great result which indicates the Dorado discovery is larger than anticipated and which significantly de-risks a future development.”

Santos rose 1% to $6.72, while Carnarvon rallied 3.7% to $0.56.

Bank of Queensland gains

Bank of Queensland (ASX:BOQ) announced Westpac's outgoing head of consumer banking George Frazis will join on September 5 as managing director and CEO.

The regional lender’s shares closed up 1.0% to $9.44.

Regis Healthcare falls

Regis Healthcare (ASX:REG) fell 6.6% to $2.56 after warning its full-year profit would likely come in at the lower end of its $47-51 million guidance, while also flagging lower earnings for the year ahead.

The company now expects earnings for FY20 to be about $105 million – down from an expected $113 million in FY19 – due to expenses from regulatory changes.

Thu, 06 Jun 2019 16:48:00 +1000
<![CDATA[Media files - Bulls, Bears & Brokers: Martin Place Securities' Barry Dawes discusses gold's recent bull market ]]> Wed, 05 Jun 2019 23:23:00 +1000 <![CDATA[News - Mining industry continues to grow but the heat is on: PwC Mine report 2019 ]]> Things are looking good for the world’s top miners as per PwC’s annual review of global trends in the mining industry, as represented by the Top 40 mining companies by market capitalisation.

In 2018, the world’s 40 largest miners consolidated the stellar performance of 2017.

As a group, they increased production, boosted cash flow, paid down debt, and provided returns to shareholders at near record highs.

Top 40 mining companies performance trends ($bn)

Yet investors seemed unimpressed, at least judging by market returns and valuations. What accounts for this discrepancy?

Following is an extract from PwC’s annual review of global trends in the mining industry:

Steady but the heat is on

The Top 40 continued to see steady growth in revenue and profitability, as predicted in our forecast last year.

Dividends to shareholders are at an all-time high and balance sheets are strong.

Capital expenditure showed an increase for the first time in five years, albeit still below 2008 pre-boom levels.

Trade wars, geopolitical crises and climate change continue to create industry volatility.

This uncertainty was particularly evident at the end of December 2018, when commodity prices and emerging economy exchange rates decreased substantially.

One thing is clear – mining requires far more than good financial performance to continue to create and realise value in a sustainable manner.

We believe the under-performance is connected with the risk and uncertainties of a changing world and the market perception about the mining industry’s ability to respond.

The future success of the mining industry will not only depend on its ability to adapt but also its ability and willingness to sell its brand as the primary provider of raw materials to many essential industries and products that humans rely on everyday, whether it be the ten metals and minerals - including gold, silver, aluminium and nickel - that can be found in their cell phone, the lithium in the battery of their electric vehicle, the steel from iron ore in their cooking pot or the coal fuelling their electric lights.

A chance to fix 'brand mining'

With strong balance sheets and cash flows, now is the time for the Top 40 to address the issues weighing down market valuations.

Climate change, technology and changing consumer sentiment are among the defining business challenges of our age.

To restore faith in ‘brand mining’, leading miners need to prove they are keeping up with the pace of change.

As an industry, this means transforming their reputation as efficient ‘converters of dirt’ to prominent builders of both economic and societal capital.

Prioritising green and customer-centric strategies, enabled by technology, will help earn the trust of stakeholders and enable miners to create sustainable value into the future

Action and words needed on carbon

As producers of fossil fuels and high users of energy, miners are squarely in the public eye on the issue of carbon emissions.

Any misstep results in significant reputation risk and impacts the entire industry’s social licence to operate.

Mining must, therefore, be among the quickest to respond to the changing landscape.

While Top 40 miners are performing strongly in terms of sustainability reporting, stakeholders have made it clear that disclosure is not enough.

Direct, measurable and visible progress is required for trust to be regained and maintained.

Miners have already done a lot to improve internal efficiencies for the reduction in groundwater consumption and other environmental impacts.

Most of the Top 40 have also targeted a further reduction in greenhouse gas emissions between 3% and 5% by 2020.

Accelerate and widen technology adoption

Technology is becoming a critical differentiator for the world’s leading miners.

Automation and digitisation continue to gain momentum, as companies are focused on harnessing technology to reduce the cost of maintenance and extraction.

But compared with many other industries, mining’s level of technological maturity is still relatively low.

Consumers need mining: engage with them

Mining supplies many of the raw materials behind the technology and products that consumers love.

And, like other sectors, mining is responding to consumer concerns around the sustainability of these goods.

For example, Rio Tinto and Alcoa formed a new venture with Apple to create the world’s first carbon-free aluminium smelting process.

RCS Global has partnered with a number of organisations to use blockchain technology to trace and validate ethically sourced cobalt, which is in high demand for use in lithium-ion batteries for electric motor vehicles.

Notable takeaways from this year’s Top 40:

• Four new entrants: in gold, Kirkland Lake Gold Ltd, AngloGold Ashanti Limited and Polymetal International plc and coal company PT Bayan Resources Tbk. They replaced PotashCorp (now part of Nutrien where mining is a small part of their business), Randgold Resources (now merged with Barrick Gold Corporation), National Mineral Development Corporation and KAZ Minerals.

• The dominance of Top 40 gold companies increased to ten companies this year, coal companies increased to six and diversified companies still accounted for 13.

• Two key movers in 2018 were The Mosaic Company, which moved up 11 spots to 17 and Fresnillo which moved down ten places to 28.

• The top five companies make up 50% of total Top 40 market capitalisation.

2019 outlook starts showing pressure on margins

Our 2019 outlook assumes flat revenue as marginally increased production and higher average iron ore prices are offset by weaker coal and copper prices.

We expect operating costs to rise because of inflationary pressures on input costs. The expected outcome for margins will be largely in line with the current year.

Wed, 05 Jun 2019 15:40:00 +1000
<![CDATA[News - S&P/ASX 200 futures slightly up after US tech stocks smashed overnight ]]> S&P/ASX 200 (INDEXASX:XJO) futures are slightly up after US tech giants were rattled by reports that the Justice Department may probe Google for antitrust violations.

Facebook (NASDAQ:FB) finished down 7.51%, Alphabet (NASDAQ:GOOGL) down 6.12% and Amazon (NASDAQ:AMZN) down 4.64%.

In early May 2019, it was reveal Warren Buffett’s Berkshire Hathaway was buying Amazon, later to be disclosed as a US$900+ million position – Amazon is down more than 10% since May began.

Both the S&P 500 Index (INDEXSP:.INX) and the Nasdaq Composite (INDEXNASDAQ:.IXIC) finished lower but notably the Dow Jones Industrial Average (INDEX:DJX:.DJI) finished up 0.02%.


Stocks fell today on news that the U.S. government is assuming greater oversight of some big tech companies. The Nasdaq dropped 1.6% to enter correction territory, and the S&P 500 fell 0.28%.

— CNBC (@CNBC) June 3, 2019


All eyes on the RBA today at 2.30pm

The Reserve Bank of Australia meets today to set interest rates, which currently stand at 1.5%.

The consensus is for a 25 basis point cut to 1.25% and we will know the outcome at 2.30pm today.

Lower interest rates are designed to stimulate economies and are generally good for equity markets.


[VIDEO] Morning Report - ASX 200 set for a positive start on Tuesday despite weakness for US stocks overnight

— CommSec (@CommSec) June 3, 2019


Tue, 04 Jun 2019 08:45:00 +1000
<![CDATA[Media files - Bulls, Bears & Brokers: DJ Carmichael's Davide Bosio predicts more takeover activity in gold sector ]]> Mon, 03 Jun 2019 22:26:00 +1000 <![CDATA[News - S&P/ASX 200 follows US markets to be down on the day, RBA rate call tomorrow ]]> S&P/ASX 200 (INDEXASX:XJO) opened down 0.21% and has trended down over the day to be down around 1% heading into the close.

Both the S&P 500 Index (INDEXSP:.INX) and the Nasdaq Composite (INDEXNASDAQ:.IXIC) finished over 1% lower last Friday putting Asian markets on notice today.

Although the local Australian market has been performing strongly since the shock election win last month, fears around trade negotiations continue to disrupt world markets.

Making things even harder for our local market, the US futures are pointing to a 0.5% loss for their Monday.

Australia's central bank, the RBA meets tomorrow to determine interest rate levels and the consensus is for a 25 basis point cut to the standing rate of 1.50%.


The Week’s Top 5 - 3 June 19

— CommSec (@CommSec) June 3, 2019


Mon, 03 Jun 2019 15:25:00 +1000
<![CDATA[News - Companies to outline investment stories at next week’s Proactive CEO Sessions ]]> ASX-listed companies with interesting yet diverse stories will present to investors in Sydney and Melbourne at next week’s Proactive CEO Sessions.

Five companies will present in Sydney on Monday, June 3 - West Wits Mining Limited (ASX:WWI), Global Energy Ventures Ltd (ASX:GEV), XTEK Ltd (ASX:XTE), Emmerson Resources Ltd (ASX:ERM) and King Island Scheelite Ltd (ASX:KIS).

The Melbourne session on the following day, Tuesday, June 4, will also feature five companies – West Wits Mining, Global Energy Ventures, Xtek, ShareRoot Ltd (ASX:SRO) and Tempus Resources (ASX:TMR).

Both events are filling fast but there are still some seats available. Bookings can be made via

READ: West Wits Mining brings South African gold to Proactive’s CEO Sessions

West Wits Mining chairman Michael Quinert will outline the company's strategy to investors.

The primary focus is the Witwatersrand Basin Gold Project in South Africa for which a scoping report was recently accepted by the mining regulator.

This will enable progression to the final stage of the mining licence submission process.

Witwatersrand hosts a resource of 3.65 million ounces grading 3.4 g/t gold which is the base for a full-scale mine development under the mining licence being progressed.

READ: XTEK to outline domestic and international growth opportunities at Proactive’s CEO Sessions

XTEK managing director Philippe Odouard will outline the growth opportunities for its XTclave protection products and XTatlas real time video solutions for western military forces.

The company recently obtained an order from the Australian Defence Force (ADF) valued at $2.1 million for x-ray equipment and training.

This equipment consists of advanced, portable, lightweight x-ray image capture units used to receive near real-time imaging in a variety of applications.

The order follows an international order earlier this month for XTEK’s proprietary XTatlas software technology.

READ: Global Energy Ventures to discuss its natural gas marine transport solution at Proactive’s CEO Sessions

Global Energy Ventures’ executive director, corporate & finance Martin Carolan will discuss the company's natural gas marine transport solution.

The company further developed its global compressed natural gas (CNG) strategy during the March quarter in parallel with its CNG Optimum shipyard selection process, finalising ship technical specifications, construction and scheduling plans.

The combination of successful design, test and full technical specification documentation for the Optimum 200 ship establishes GEV as the only ‘construction ready’ marine CNG vessel globally.

READ: Emmerson Resources to outline exploration plans funded by royalties at Proactive’s CEO Sessions

Emmerson Resources’ managing director Rob Bills will talk about the company's gold and base metals strategy.

The company is both a gold producer and gold and base metals explorer with assets in the Northern Territory and New South Wales.

Its producer status means that the company generates cash flow, which is in the form of a 12% royalty on gold produced by its partner Territory Resources Ltd at the Edna Beryl underground mine.

At the NSW exploration projects, Emmerson recently intersected porphyry-style copper mineralisation.

READ: King Island Scheelite to outline tungsten strategy at Proactive CEO Sessions

The KIS tungsten story will be outlined by the company’s executive chairman Johann Jacobs at the Sydney session on Monday.

KIS is focused on taking advantage of an improved tungsten outlook by redeveloping the Dolphin Tungsten Project on the southeast coast of King Island in Bass Strait.

The company recently entered into an offtake agreement for tungsten concentrate from the high-grade project.

This deal encompasses the delivery of 1,400 tonnes of tungsten oxide (WO3) or 2,200 tonnes of concentrate over a four-year period to Austrian company Wolfram Bergbau und Hutten AG.

READ: ShareRoot to talk healthcare opportunities at Proactive’s CEO Sessions

ShareRoot CEO Michelle Gallaher, who was Telstra'a 2017 Victorian Business Woman of the Year, will present in Melbourne on Tuesday.

The company is applying its existing expertise and platform technologies to deliver digital, data and artificial intelligence (AI) technologies and services to the global healthcare sector.

Gallaher took over as CEO in March 2019 to lead a strategic review and change.

She was previously managing director and co-founder of The Social Science (TSS), a social media marketing agency that was acquired by ShareRoot in April 2018.

READ: Tempus Resources to talk gold opportunity in emerging Ecuador at Proactive’s CEO Sessions

Tempus Resources' technical director Brendan Borg will discuss the company's new focus on gold in Ecuador, a rapidly evolving exploration hotspot.

The company entered an agreement last month to acquire two Ecuadorian companies that own three mineral exploration concessions.

These concessions, known as the Zamora Projects, cover 1,000 hectares adjacent to and within the same district as the world-class 9.48-million-ounce Fruta del Norte gold discovery.

In addition, Tempus also has a 2,195-hectare concession hosting the Valle del Tigre Project to the north of Fruta del Norte.

Register for the CEO Sessions today

Sydney details, Monday, June 3, 2019

Melbourne details, Tuesday, June 4, 2019

Fri, 31 May 2019 09:57:00 +1000
<![CDATA[News - S&P/ASX 200 slightly down on the day as Trump stirs markets again ]]> S&P/ASX 200 (INDEXASX:XJO) has bounced around over the morning after selling off early on more trade news to going slightly positive just before midday.

In an unexpected move, President Trump will impose a 5% tariff from June 10 on Mexico.

The tariff will rise steadily to 25% until illegal immigration across the southern border stops.


Dow set to drop more than 150 points after Trump announces tariffs on Mexican imports

— CNBC (@CNBC) May 31, 2019


Pre-market: S&P/ASX 200 futures suggest a positive start but oil hit hard

ASX 200 futures are up around 0.3% early on suggesting a positive end to the week but the oil sector may be in for a tough day.

Both the S&P 500 Index (INDEXSP:.INX) and the Nasdaq Composite (INDEXNASDAQ:.IXIC) finished slightly higher overnight.

Crude Oil WTI was down over 5% from its intraday high and closed near its low at levels not seen since March 2019.

AU Private sector credit and China manufacturing data today

At 11.00am today we have China releasing their Manufacturing PMI (forecast: 49.9) and non-manufacturing PMI data (forecast: 54.3) – these can be market-moving releases.

At 11.30am, the Reserve Bank of Australia (RBA) releases its monthly change in private sector credit (forecast: 0.3%).

It is the change in the total value of new credit issued to consumers and businesses and is a measure of confidence as lending increases when confidence is higher.


[VIDEO] US shares rose by 0.2% on Thursday; bouncing off Wednesday's 3-month lows; defensive stocks led the market higher; commodities slumped; bonds strengthened. More here. #ausbiz

— CommSec (@CommSec) May 30, 2019


Fri, 31 May 2019 09:01:00 +1000
<![CDATA[Media files - Bulls, Bears & Brokers: Alto Capital's Tony Locantro says rare earths still hold risk ]]> Thu, 30 May 2019 23:43:00 +1000 <![CDATA[News - S&P/ASX 200 slips as US-China trade impasse shows no signs of easing ]]> S&P/ASX 200 (INDEXASX:XJO) closed down 44 points or 0.7% to 6,440, giving up yesterday’s gains following a slump on Wall Street overnight.

The prospects of a resolution to the ongoing trade war between the US and China weakened, after US President Donald Trump said he’s not yet ready to make a trade deal with China.

This led to a sell-off in US stocks yesterday, which has impacted markets across Asia today.

Rare earths firms gain

Lynas Corp (ASX:LYC) shares surged 15.5% to $2.76, amid speculation China may restrict exports of rare-earths metals due to its trade dispute with the US.

Rare earths are used to make mobile phones, LEDs, electric cars and other high-value items. China dominates the global market, accounting for 71% of the global rare earths supply.

Consequently, rare earths exploration firms benefited, with Arafura Resources (ASX:ARU) jumping 22.9% to 8.6 cents and Peak Resources (ASX:PEK) rising 20.5% to 4.7 cents.

Wed, 29 May 2019 17:10:00 +1000
<![CDATA[Media files - Bulls, Bears & Brokers: Martin Place Securities' Barry Dawes on iron ore price resurgence ]]> Tue, 28 May 2019 22:59:00 +1000 <![CDATA[News - Kangaroo Island Plantation Timbers to appoint Keith Lamb as MD in development transition to export operations ]]> Kangaroo Island Plantation Timbers (ASX:KPT) has initiated a long-planned transition to port construction, forestry production and export operations with the company selecting Keith Lamb to take over as managing director.

Subject to regulatory approvals and effective June 1, Lamb will take overall responsibility for the next phase in KPT’s shift to profitable and sustainable operations.

Current managing director John Sergeant will remain in an executive capacity, continuing as an executive director.

READ: Kangaroo Island Plantation Timbers’ project will be good for environment

Lamb holds masters-level qualification in forestry and business administration, working as director of operations and portfolio manager for New Forests Asset Management Pty Ltd (New Forests) from 2005-2017.

In his New Forests role he held responsibility for $2.5 billion in timberland and related agricultural and industrial assets.

READ: Kangaroo Island Plantation Timbers a unique resource company with regenerating asset

Kangaroo Island chair Paul McKenzie said Sergeant had “driven growth of the company from a sub-scale timberland owner … to a sustainable producer of quality timber, poised to deliver a significant infrastructure project.

He continued: “During that time, KPT’s market capitalisation has grown from around $3 million to around $120 million.

“We thank John for his stewardship of the company and we are glad that he will continue to assist in the next stages of the company’s development."

READ: Kangaroo Island Plantation Timbers outlines vision for hardwood exporting via KI Seaport

KPT requires a deepwater site relatively close to shore with berthing capabilities for large ocean-going vessels.

An environmental impact statement for the wharf was publicly exhibited last month, with Sergeant saying the company expected approval later this year.

The wharf is to be built on a sheltered north coast site that is closest practicable to the timber resource.

Sergeant said that KPT anticipating construction to begin by the end of the year and first timber exports in the first quarter of 2021.

READ: Kangaroo Island Plantation Timbers completes pontoon pre-approval work

Once the role is effectual, Lamb will be based in Adelaide focusing on KPT’s medium to long-term growth while Sergeant continues work on the current development approval process.  

McKenzie added: “Mr Lamb is one of the most respected forestry professionals in Australia, with a history of deploying institutional capital to create value for forest owners, and with a genuine commitment to the role that forestry can play in building resilient and prosperous regional communities.

He is the right person, at the right time and we are proud to have him as the new leader of the business.”


Tue, 28 May 2019 20:35:00 +1000
<![CDATA[News - S&P/ASX 200 rebounds after three-day slump; iron ore miners gain ]]> S&P/ASX 200 (INDEXASX:XJO) closed up 32 points or 0.5% to 6,484, boosted by strong gains in the materials, energy, financial, IT and telco sectors which outweighed weakness from utilities and property stocks.

Miners were the biggest gainers

Iron ore miners were the biggest gainers, after the price of the metal jumped by 4.2% to a five-year high of US$108 a tonne on supply concerns and a fall in stockpiles in China.

Rio Tinto (ASX:RIO) gained 2.2% to $105.31, while Champion Iron (ASX:CIA) surged 6.9% to $3.10.

New Hope Corp (ASX:NHC) reported a 39% jump in third-quarter coal production to 2.9 million metric tons, reflecting an increased share of production from its Bengalla joint venture in NSW.

Economic news

The weekly ANZ-Roy Morgan consumer confidence rating rose by 1.2% to 118.6 points, boosted by expectations that the Reserve Bank will cut the cash rate next Tuesday to 1.25%.

In upcoming economic news, the US S&P/Case Shiller home price index is due to be released, along with the Dallas Federal Reserve manufacturing index.

Tue, 28 May 2019 17:07:00 +1000
<![CDATA[News - S&P/ASX 200 set for positive start as US markets have Monday holiday ]]> S&P/ASX 200 (INDEXASX:XJO) futures are pointing to a slightly stronger start today of up 0.2% after no lead from the US.

There are no major economic data releases today so the focus will be on global news and company specific news.

New Zealand milk producer Synlait (ASX:SM1) has forecast strong base milk prices for the 2019/20 season of $7.00 kgMS.

Recently listed Telco Uniti Wireless Ltd (ASX:UWL) is in a trading halt pending completion of a capital raising. It listed in February 2019 at 20 cents and shares traded at $1.04 before the halt.

Paradigm Biopharmaceuticals Ltd (ASX:PAR) has this morning reported a greater than 50% reduction in pain across 205 patients with knee osteoarthritis (OA).

Paradigm shares have tripled in the last 12 months, last priced at $1.48.


[VIDEO] Shares in Europe edged higher by 0.2% last night. US & UK markets were closed for holidays. Aussie shares are set for a quiet start on Tuesday. #ausbiz

— CommSec (@CommSec) May 27, 2019


Tue, 28 May 2019 08:41:00 +1000
<![CDATA[Media files - Bulls, Bears & Brokers: DJ Carmichael's Davide Bosio says market supportive of takeover activity ]]> Mon, 27 May 2019 22:16:00 +1000 <![CDATA[News - S&P/ASX 200 set for tough day as US markets finish over 1% lower ]]> S&P/ASX 200 (INDEXASX:XJO) early futures have the index opening down 0.5% which will end what has been a strong week for the ASX 200.

Both the S&P 500 Index (INDEXSP:.INX) and the Nasdaq Composite (INDEXNASDAQ:.IXIC) finished down over 1%.

Oil prices fell nearly 6% in response to rising US crude inventories and weak demand from refineries.


[VIDEO] Morning Report - An escalation in trade tensions between the US & China has invigorated global growth concerns. As a result stocks fell and safe havens, such as government bonds rallied. #Markets #AUDUSD

— CommSec (@CommSec) May 23, 2019


Pre-market company news: EHE trading update, SYD holds AGM

Aged care provider Estia Health Ltd (ASX:EHE) has downgraded its FY19 EBITDA guidance to a range of $92-94 million.

While this is an increase of 2-4% compared to FY18, the guidance given at the February result was low to mid single digit growth, which was following by an April update re-affirming earnings guidance.

Sydney Airports Ltd (ASX:SYD) holds its annual general meeting (AGM) today and it has reaffirmed its 2019 distribution guidance of 39 cents per stapled security, representing 4.0% growth on 2018.

The company also expects that 2019 will see more subdued growth in passengers across the board, which it has seen that in the first four months of this year.

Fri, 24 May 2019 09:45:00 +1000
<![CDATA[Media files - Bulls, Bears & Brokers: Alto Capital's Tony Locantro on the persistent housing affordability crisis ]]> Fri, 24 May 2019 00:05:00 +1000 <![CDATA[News - S&P/ASX 200 set for negative start but Flash PMI shows faster growth ]]> S&P/ASX 200 (INDEXASX:XJO) futures are pointing to a weak start today after US markets bounced around driven by US-China trade news and meeting minutes from the Federal Reserve.

Both the S&P 500 Index (INDEXSP:.INX) and the Nasdaq Composite (INDEXNASDAQ:.IXIC) finished lower but bounced off their afternoon lows.

Notably, both oil and natural gas were down around 2%, driving sell-offs in those stocks and sectors with exposure.

Locally, Commonwealth Bank released its monthly Flash Services PMI and Flash Manufacturing PMI data points for May.

The Flash Services PMI came in at 52.3 vs last month’s 50.1 and the Flash Manufacturing PMI came in at 51.1 vs last month’s 50.9.

A score of above 50 indicates expansion and a higher number than the previous month indicates a faster rate of growth


[VIDEO] US sharemarkets fell as nvestors monitored news on the US-China trade dispute. The Dow Jones index ended lower by 101 points or 0.4%. The S&P500 index lost 0.3%. And the Nasdaq index fell by 35 points or 0.5%. #ausbiz

— CommSec (@CommSec) May 22, 2019


Pre-market company news: ALL half result and TRS trading update

Discount retailer The Reject Shop (ASX:TRS) has released a trading update this morning saying sales are below expectations and gross margins are well below expectations.

Shares in the company will likely be in for tough day.

Slot machine manufacturer Aristocrat Leisure Ltd (ASX:ALL) is in for a positive day after it revealed NPATA of $422.3 million for the half ended 31 March 2019.

This is above many analysts expectations and will likely see investors in the gaming stock rewarded.

Thu, 23 May 2019 09:39:00 +1000
<![CDATA[News - S&P/ASX 200 trading slightly down at lunch, Lynas surges ]]> S&P/ASX 200 (INDEXASX:XJO) lost 20 points in the first house but has regained 15 points to be slightly down on the day.

With many of the Chinese-listed rare earth stocks trading at limit-up prices over recent days due to tariffs, investors have turned to Lynas Corporation Ltd (ASX:LYC).

Lynas mines rare earths from its Australia-based mine and traded as high as 11.9% this morning to $2.53 before pulling back to $2.40 around lunch.

Both the S&P 500 Index (INDEXSP:.INX) and the Nasdaq Composite (INDEXNASDAQ:.IXIC) finished higher last night as global investor sentiment improved.

The improvement was the result of the US temporarily easing trade restrictions on Huawei, which has been cause for concern recently given the US and China are negotiating on trade.

More positive signs for Australian housing market

The Coalition’s shock win on the weekend has been the start of a chain of events in equity markets that point to confidence in a recovery in housing.

While some debate remains as to the house market’s future, the gains in the banks and those stocks strongly exposed to housing such as Adelaide Brighton Ltd (ASX:ABC) can’t be ignored.

Adelaide Brighton hit a high of $4.22 today, which is 23% higher than its low of $3.43 reached last week.


[VIDEO] Mid-Session: The Australian sharemarket is down slightly at lunch while remaining near the 11.5 year high hit on Tuesday. Fortescue Metals $FMG is a weight as it trades ex-dividend. #ausbiz

— CommSec (@CommSec) May 22, 2019


Wed, 22 May 2019 12:53:00 +1000
<![CDATA[Media files - Bulls Bears & Brokers: Martin Place Securities' Barry Dawes on post-election investor confidence ]]> Tue, 21 May 2019 22:06:00 +1000 <![CDATA[News - S&P/ASX 200 gets a boost from banks as housing expectations rise ]]> S&P/ASX 200 (INDEXASX:XJO) was a bit flustered on the open today after a release from banking regulator APRA circulated before the open.

APRA proposed that the 7% serviceability buffer on home loans be removed, which is good news for borrows and the housing market.

All the big four banks are trading between 1-2% higher at around lunch.

RBA meeting minutes suggest door is still open for a rate cut

At 11.30am today the Reserve Bank of Australia released its meeting minutes from its most recent interest rate decision meeting, providing further insight into future policy moves.

The notes confirmed the RBA will continue to pay close attention to developments in the labour market and set monetary policy to support sustainable growth in the economy and achieve the inflation target over time.

The market took this to say that a rate cut is on the cards if there is no improvement in the employment data.


[VIDEO] Mid-Session: Local shares were weighed down in early trade reflecting the losses on Wall Street, although the Index found its footing helped by the minutes from the last RBA meeting. #ausbiz

— CommSec (@CommSec) May 21, 2019


Pre-market: S&P/ASX 200 set for negative start as US markets fall on Huawei ban

ASX 200 futures are pointing to a weak start today after US China tensions flared again on reports that US companies are cutting supplies to Huawei.

Both the S&P 500 Index (INDEXSP:.INX) and the Nasdaq Composite (INDEXNASDAQ:.IXIC) finished lower with semiconductor companies the worst hit, the semiconductor index was down 4%.

Alphabet's (NASDAQ:GOOGL) Google yesterday moved to restrict its dealings with Chinese telco giant Huawei.


The major U.S. indices all closed in the red, with the Dow dropping 0.33%, the S&P 500 falling about 0.67% and the Nasdaq closing down 1.46%. Tech was the day's worst performing sector, and Apple had the largest negative impact on the Dow.

— CNBC (@CNBC) May 20, 2019


Fed chairman speaks at 9.00am AEST

Federal Reserve chair Jerome Powell is due to deliver a speech titled "Assessing Risks to our Financial System" at the Financial Markets Conference in Florida at around 9.00am AEST.

Given Powell’s status, volatility is often experienced during his speeches as traders attempt to decipher interest rate clues.

Questions from the audience are also expected.

Financial results from JHX and OFX released pre-market

James Hardie (ASX:JHX) has released its full year result (31 March end) revealing adjusted net operating profit of US$73.8 million for the final quarter and US$300.5 million for the full year.

On 5 February 2019, JHX guided to adjusted net operating profit of between US$295 and US$315 million so the result has come in low-mid range of guidance.

OFX Group Ltd (ASX:OFX) also has a March year end and has delivered 8.1% growth in underlying EBITDA to $32.2 million but a 5.8% decrease in statutory NPAT to $17.6 million.

OFX’s CEO and managing director Skander Malcolm said: As we look to the year ahead, our growth priorities are clear.

“We will continue our regional growth strategy, particularly in North America and Asia, while improving the client experience, growing our Corporate and Enterprise base, and building partnerships to help us grow and execute more effectively.”

Tue, 21 May 2019 08:42:00 +1000
<![CDATA[Media files - Bulls, Bears & Brokers: DJ Carmichael's Davide Bosio on market certainty after election result ]]> Tue, 21 May 2019 00:39:00 +1000