Daily Report
Website     Research Team     Stockbroking      Corporate      Wealth Management
CEO/MD Weekly Update
Davide Bosio updates us on the program for this year’s annual Diggers and Dealers conference in WA.
Markets Summary
Markets Review
Local Market

The Australian share market closed higher following two days of monster losses after being thrown a lifeline by central bankers across the Tasman.

The benchmark S&P/ASX200 closed up 41.4 points, or 0.64 per cent, to 6,519.5 points, while while the broader All Ordinaries was up 42 points, or 0.64 per cent, to 6,588.5 points.

The gains came mostly after the Reserve Bank of New Zealand cut interest rates by 50 basis points, which was double what traders had been expecting and led many to assume the Reserve Bank of Australia was more likely to cut rates next month.

The Aussie hit a 10-year low against the US dollar following the move and bond yields flattened further while shares rose as investors sought yield, he said.

Consumer stocks, telecoms, utilities and property trusts were all up between 1.4 and 1.6 per cent while energy share and tech stocks were the only sectors to lose ground.

Four of the top five gainers among the ASX200 were goldminers as the price of the precious metal rose 1.9 per cent to more than $2,200 an ounce against the Australian dollar, and 1.1 per cent to more than $US1,485 against the greenback.

Resolute Mining was up 8.7 per cent, Regis Resources 6.2 per cent, Northern Star 5.7 per cent and Evolution 5.5 per cent.

Overall, the materials sector was subdued, up a collective 0.2 per cent, with mining giant BHP down 0.9 per cent to $36.75 and Rio Tinto down 2.1 per cent to $89.50.

Pinnacle Investment was second-biggest gainer, up 8.4 per cent to $4.63 on top of Tuesday's 10 per cent gains following the release of strong earnings results.

Commonwealth slid 1.4 per cent to $78.70 after Australia's biggest bank said its full-year profit was down a worse-than-expected 4.7 per cent to $8.5 billion following a $1.2 billion royal commission-related hit.

The other big banks posted gains, with Westpac up 1.1 per cent to $28.03, ANZ rising 0.8 per cent to $26.93 and NAB up 0.7 per cent to $27.69.

Suncorp rose 4.8 per cent to $13.32 after scrapping its so-called marketplace strategy to refocus on banking and insurance.

Melbourne biotech company Opthea shares soared 120 per cent to $2.06 after it announced a positive results for its eye-injection treatment for patients with macular degeneration.

The energy sector was down as the price of crude dropped below $US60 a barrel amid continuing US-China trade tensions and worries about weakening world demand.

Woodside dropped 0.4 per cent to $32.76, Santos was down 0.8 per cent to $6.58 and Beach Energy dropped 1.6 per cent to $1.885.

Consumer stocks did well, with Woolworths gaining 2.3 per cent to $35.50 while Wesfarmers was up 2.1 per cent to $38.68.

International Markets

The S&P 500 has recovered from steep early losses to end slightly higher as investors snapped up oversold shares and bond yields rebounded from significant lows that raised fears about a recession.

Increasing worries over a global economic downturn and bets the Federal Reserve will have to pick up its pace of interest rate cuts pushed Treasury yields sharply lower early, with 10-year yields touching their lowest since October 2016.

Ten-year yields began to cut their earlier decline in afternoon trading after a soft auction.

During the session, the premium on three-month Treasury bill rates over 10-year Treasury yields, a closely watched US recession indicator, was at its most elevated levels since March 2007.

Financials were the biggest loser among S&P 500 sectors, down 1.2 per cent, while the staples and materials indexes ended up more than 1 per cent each.

Investors also were attracted to some bargains in shares after the recent sell-off. The S&P 500 is down 4.7 per cent since its July 26 record high close.

The Dow Jones Industrial Average fell 22.45 points, or 0.09 per cent, to 26,007.07, the S&P 500 gained 2.21 points, or 0.08 per cent, to 2,883.98 and the Nasdaq Composite added 29.56 points, or 0.38 per cent, to 7,862.83.

Interest rates futures suggested traders are building bets the Fed will cut interest rates three more times by year-end.

Central banks in New Zealand, India and Thailand on Wednesday cut their lending rates amid growing fears that the US-China trade war could aggravate a slowdown in the global economy.

Trade concerns re-emerged after President Donald Trump last week threatened to slap 10 per cent levies on the rest of $US300 billion of Chinese imports and called China a currency manipulator on Monday.

The energy sector was down 0.8 per cent after oil prices slid.

On the plus side, CVS Health Corp shares climbed 7.5 per cent after the drugstore chain raised its full-year profit forecast.

Walt Disney Co dropped 4.9 per cent, a day after its quarterly earnings missed analysts' forecast on higher investments in its streaming platform.

Source: Morningstar

EFG Int. & Shaw and Partners US Future Leaders Fund presentation
DJ Carmichael was pleased to attend the Perth presentation of the US Future Leaders Fund on Monday, 29 July 2019

EFG International and Shaw and Partners hosted 12 events across six states in five business days to roadshow the EFG Asset Management (EFGAM) US Future Leaders Fund. The roadshow culminated in a presentation to 140 attendees at the Westin Hotel in Perth on Monday, 29 July 2019.
EFGAM’s New Capital Funds are a series of high conviction strategies designed to produce long-term and sustainable alpha opportunities. The goal of the US Future Leaders Strategy is to identify the next Facebook, Apple or Starbucks; discovering companies that are poised to dominate multi-billion dollar markets over the next decade.
Shaw and Partners’ CIO Martin Crabb gave a comprehensive equity market outlook touching on topical themes including the impact of all time low interest rates, the slowing economy and the China Growth Pulse on domestic markets. Donald Klotter, Global Head of Institutional Sales at EFG International then spoke about the New Capital Funds’ investment philosophy, the EFG Future Leaders scholars panel and how they identify rapidly-growing businesses with the opportunity to develop into future mid/large cap companies, primarily via organic growth.
If you are interested in further information about the US Future Leaders Fund, Shaw and Partners or EFGAM please contact your DJ Carmichael Investment Adviser on 08 9263 5200.
Recce Pharmaceuticals Ltd (RCE) – ASX Release

Recce to give Opening R&D Address at 2019 World Antibiotic Resistance Congress

Dr John Prendergast will showcase the potential of New Synthetic Antibiotics

SYDNEY, Australia, 1 August 2019: Recce Pharmaceuticals Ltd (ASX: RCE) (Company), the Company pioneering the development of a new class of synthetic antibiotics, today announced that it will be delivering an Opening R&D Address at the World Anti-Microbial Resistance (AMR) Congress in Washington D.C., 7-8 November 2019.

The two-day World AMR Congress is the largest commercially focused conference with AMR at its centre, engaging more than 600 attendees from over 40 countries. It attracts key stakeholders from the pharma and biotech industry who are involved in the development of antimicrobial drugs and diagnostics, including healthcare payers, regulators and partners.

André Singer, General Manager, World Anti-Microbial Resistance Congress says: “We are proud to provide this platform for promising antibiotic programs to be introduced to the AMR community, such as Recce Pharmaceuticals’ synthetic polymer program which has the potential of transforming the way superbugs are targeted, through a new class of broad-spectrum antibiotics.”

Recce Chairman Dr. John Prendergast will give the 20-minute Opening Address, during which he will highlight the urgent need for new antibiotics to address AMR. The presentation will also afford the opportunity to provide an overview and update of Recce’s antibiotics pipeline as well as answer “How synthetic antibiotic development can change the antibiotic treatment model”.

“While addressing the key hurdles in antibiotic R&D such as push and pull incentives needed to reignite the sector, it is crucial to showcase ground-breaking antibiotic programs targeting a critical unmet medical need despite the current challenges to bring these therapies to the market” says Singer.

CLICK HERE to view the full announcement
Finance News Network
DJC has recently partnered with the Finance News Network to bring the latest market news, company updates, interviews and more to our website.

The tabs are updated throughout the day and can be found on our home page or by clicking on the following link:

CLICK HERE to view the most recent research articles and DJC news
DJ Carmichael Pty Limited ACN 003 058 857 is a wholly owned subsidiary of DJ Carmichael Group Pty Limited ACN 114 921 247. DJ Carmichael Pty Limited is the holder of (Australian Financial Service Licence Number 232571). In accordance with Section 949A of the Corporations Act 2001 DJ Carmichael Pty Limited advises this email contains general financial advice only. In preparing this document DJ Carmichael Pty Limited did not take into account the investment objectives, financial situation and particular needs (‘financial circumstances’) of any particular person. Accordingly, before acting on any advice contained in this document, you should assess whether the advice is appropriate in light of your own financial circumstances or contact your DJ Carmichael Pty Limited adviser. DJ Carmichael Pty Limited, its Directors, employees and advisers may earn brokerage or commission from any transactions undertaken on your behalf as a result of acting upon this information. DJ Carmichael Pty Limited, its Directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly, from client transactions. The information contained herein relies on information obtained from third parties. DJ Carmichael Pty Limited believes that the advice herein is accurate however no warranty of accuracy or reliability is given in relation to any advice or information contained in this publication and no responsibility for any loss or damage whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any persons by reason of negligence), is accepted by DJ Carmichael Pty Limited or any officer, agent or employee of DJ Carmichael Pty Limited. This message is intended only for the use of the individual or entity to which it is addressed and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient or employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication and its attachments is strictly prohibited.

The information contained has been prepared by third parties. No warranty of accuracy or reliability is given in relation to any advice or information contained in this document and no responsibility for any loss or damage whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any persons by reason of negligence), is given by DJ Carmichael Pty Limited or any officer, agent or employee of DJ Carmichael Pty Limited.

This Research Report expresses the personal view of the Author. DJ Carmichael Pty Limited, including authors of this report, its directors and employees advise that at the time of publication they hold or may become entitled to securities of the issued capital of the company and/or earn brokerage and other benefits or advantages, either directly or indirectly from client transactions in stocks mentioned in this report.

DJC acted as Lead Manager $1.8m Placement in February 2019 for Recce Pharmaceuticals Ltd., and it was paid fees for those services. Recce Pharmaceuticals Ltd. DJC and or its advisers hold an interest of 106,429 in Recce Pharmaceuticals Ltd. DJ Carmichael Pty Limited and its staff hold 1,800,000 Recce Pharmaceuticals Ltd. unlisted options exercisable at $0.168 expiring 15/02/2023.
Recommendation Definitions:

SPECULATIVE BUY – Potential 10% or more outperformance, high risk
BUY – Potential 10% or more outperformance
ACCUMULATE - 10% or more out-performance, buy on share price weakness
HOLD – Potential 10% underperformance to 10% over performance
SELL – Potential 10% or more underperformance
Period: During the forthcoming 12 months, at any time during that period and not necessarily just at the end of those 12 months.

Stocks included in this report have their expected performance measured relative to the ASX All Ordinaries index. DJ Carmichael Pty Limited’s recommendation is made on the basis of absolute performance. Recommendations are adjusted accordingly as and when the index changes.

To elect not to receive any further direct marketing communications from us, please reply to this email and type 'opt out ' in the subject line. Please allow five business days for the request to be processed.

© 2019 No part of this report may be reproduced or distributed in any manner without permission of DJ Carmichael Pty Limited.

DJ Carmichael Pty Limited Level 14, Parmelia House 191 St Georges Terrace Perth, WA 6000 Australia

<<Email Address>>
Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list