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26/08/19
       
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The Australian share market surprised with a modest move higher on Friday, despite a negative lead from Wall Street.

The benchmark S&P/ASX200 index closed up 21.3 points, or 0.33 per cent, to 6,523.1 points, while the broader All Ordinaries finished up 21.3 points, or 0.32 per cent, to 6,614.3 points.

Investors were buying defensive shares ahead of a key speech later on Friday by US Federal Reserve chairman Jerome Powell.

The property sector was up 2.5 per cent and the telecom sector up 1.0 per cent.

Goodman Group climbed 4.4 per cent to a seven week high of $15.50, leading the property shares higher, after the warehouse and logistics centre owner reported its statutory profit was up 48 per cent.

Elsewhere in the sector, Dexus rose 3.0 per cent, Stockland was up 2.8 per cent and Mirvac climbed 2.6 per cent.

Among telecom shares, Telstra climbed 1.4 per cent to $3.74 while Spark New Zealand was up 2.8 per cent to a 13-year high of $4.10.

Diversified miner South32 dropped for a third day, by 6.5 per cent to a fresh three-year low of $2.46 following Thursday's earnings results.

Lithium miner Pilbara Minerals was down 7.2 per cent to a two-year low of 38.5 cents after reporting its a full-year loss of $28.9 million, up from $19.4 million.

BHP was up 0.6 per cent to $35.42, Rio Tinto gained 0.9 per cent to $85 and Fortescue gained 2.9 per cent to $7.57 after the price of iron ore rose 2.5 per cent to $US82.75.

Gold miners were under pressure after the price of the precious metal dropped back below $US1,500, with Newcrest and Evolution both down 1.0 per cent and Northern Star down 1.6 per cent.

NAB dropped 0.2 per cent to $27.34 after the Australian Securities and Investments Commission said it would take Australia's fourth-largest bank to court over its home loan "introducer" scheme.

The other big four banks were higher, with ANZ climbing 0.2 per cent to $26.64, Westpac up 0.2 per cent to $27.81 and Commonwealth up 0.4 per cent to $77.40.

Energy shares were higher after the price of Brent crude climbed back above $US60, with Santos rising 1.6 per cent and Oil Search up 0.8 per cent.

Costa Group plunged 16.4 per cent to a two and a half year low of $3.17 after the fruit and vegetable grower said its earnings had been marred by low mushroom demand, poor raspberry quality, citrus water costs and fruit fly.

BWX shot up 28.8 per cent to hit a nine-month high of $3 after the trouble skincare company met its earnings guidance, with traders who had bet the stock would fall apparently forced to buy shares to close out their positions in what's called a short squeeze.

The ASX200 finished the week up 117.5 points, or 1.8 per cent, following three weeks of declines.


International Markets
 

Wall Street has tumbled after the US-China trade war escalated in dramatic fashion, with President Donald Trump demanding American companies seek alternatives to doing business with China after Beijing announced its own slate of retaliatory measures.

All three major US stock indexes ended the session sharply lower, posting their fourth consecutive weekly declines.

The latest exchanges in the long-running tariff row triggered a broad-based sell-off that hit shares of companies with high exposure to China the hardest, such as chipmakers and other top technology names.

Dow Jones Industrials components Intel and Apple dropped 3.9 per cent and 4.6 per cent respectively on Friday.

The developments overshadowed a highly anticipated speech from US Federal Reserve Chair Jerome Powell, in which he reiterated a pledge the central bank would "act as appropriate" to support the economy.

Powell stopped short of committing to the series of rapid-fire rate cuts Trump has been demanding.

Trump's tweeted response to the speech labelled Powell an "enemy".

The escalating US-China trade dispute has emerged as a major tripping point for the market in recent weeks.

Friday marked the third decline of more than two per cent for the S&P 500 so far in August, and the benchmark index has now shed 5.8 per cent in the last four weeks.

Yields for two-year and 10-year US Treasuries entered inversion territory, a classic recessionary red flag. The curve has traded in and out of inversion for the past three days.

The Dow Jones Industrial Average fell 623.34 points, or 2.37 per cent, to 25,628.9, the S&P 500 lost 75.84 points, or 2.59 per cent, to 2847.11 and the Nasdaq Composite dropped 239.62 points, or three per cent, to 7751.77.

All 11 major sectors in the S&P 500 ended the session in negative territory. Energy and technology were the biggest percentage losers, both sliding more than three per cent.

Trade-sensitive chipmakers dropped on the bellicose trade rhetoric, with the Philadelphia SE Semiconductor index dipping 4.4 per cent.

Specialty retailer Foot Locker plummeted 18.9 per cent on the heels of disappointing second-quarter results.

Computer hardware company HP announced the departure of chief executive Dion Weisler and forecast lower-than-expected fourth quarter profit, sending its shares down 5.9 per cent.

Source: Morningstar

Davide Bosio’s ‘Coffee with Samso’
Emergence of a giant in the Australian stockbroking industry

By Noel Ong

"DJ Carmichael was founded in 1896 and has had its fair share of ups and downs. Recently it was bought by Shaw and Partners, which itself had new owners earlier this year with the Swiss private bank, EFG International taking a 51% stake. On the surface, this is may appear to be just a transaction but when you view the Patersons Securities and Canaccord Genuity partnership in June 2019 at the same time, there is a trend appearing. The quiet nature in the way DJ Carmichael and Shaw did the deal gives me the impression a sense of urgency to get the consolidation of the broking industry completed."
 
"Coffee with Samso sensed that there is more to learn and invited Davide Bosio to have a coffee. I have known Davide for several years. I have seen his progress from the early days at CK Locke, which was followed by a move to his own firm at Pareto Capital in 2008. Finally, there was the move to drivers role at DJ Carmichael. The times I have spoken to Davide, he has given me a great breath of fresh air in this industry in Perth."
CLICK HERE to watch the full video
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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.
 

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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
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