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12/08/19
       
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The Australian share market finished with modest gains to close out its worst week since November.

The benchmark S&P/ASX200 index closed Friday up 16.3 points, or 0.25 per cent, to 6,584.4 points, while the broader All Ordinaries finished up 21.1 points, or 0.32 per cent, to 6,663.4 points.

For the week, the ASX200 ended down 184 points, making for its worst week since 191-point loss in mid-November.

The tech sector was the only one to move more than a percentage point, posting an overall gain of 1.3 per cent.

Afterpay rose 6.1 per cent to $24.17 after the buy-now, pay-later company said it now had more than two million US customers, up from 1.5 million in early June.

Wealth management software company Praemium was up 13.3 per cent, Wisetech Global rose 2.7 per cent and Altium was up two per cent.

James Hardie was the biggest ASX200 gainer, up 13.7 per cent to an 11-month high of $21.62 after the building materials company said it expected to make more profit this year than analysts had forecast.

AMP shot up 11.6 per cent to a three-week high of $1.93 after the fallen banking and wealth giant completed a $650 million capital raising to fund its three-year turnaround.

The big banks were mostly up, with Commonwealth gaining 0.6 per cent to $79.42, Westpac up 0.5 per cent to $28.21 and ANZ up 0.7 per cent to $27.

NAB was the outlier, declining 0.3 per cent to $27.65.

The mining sector was mixed despite a rise in the price of iron ore, with BHP down a single cent to $37.29, Rio Tinto down 0.9 per cent to $87.69 but South32 up 1.8 per cent to $2.88.

Brisbane-headquartered Argentinian lithium producer Orocobre was up 10.3 per cent to $3.01 after ground was broken on a lithium hydroxide plant in Japan it holds a 75 per cent stake in.

Goldminers were mostly down after several days of strong gains, even as the price of the precious metal stayed firm above $US1,500 an ounce.

Newcrest fell 0.6 per cent, Northern Star was down 2.4 per cent and Saracen dipped 2.6 per cent.

News Corp was up 1.3 per cent to $19.90 after the media company said it had achieved a $US228 million ($A423 million) full-year profit.

REA Group was up 5.6 per cent to $96.64 after announcing underlying profit rose 5.5 per cent to $295.5 million.

A number of companies will be reporting earnings include CSL, JH Hi-Fi, Challenger, Vicinity Centres, Evolution Mining, Orora and Pact Group.

International Markets

US stocks have fallen following renewed jitters over the US-China trade war, capping a week of trading that saw big swings and high volume.

President Donald Trump said on Friday the US and China were pursuing trade talks but he was not ready to make a deal, fanning fears over the impact of the trade war on the global economy.

Trump also said the US would continue to refrain from doing business with Chinese telecoms equipment giant Huawei Technologies.

The week was marked by wild swings, but indexes finished nearly flat on the week. This week's volume on US exchanges was also the biggest weekly total of the year, exceeding 41 billion shares.

On Friday, all three indexes were down more than 1 per cent in early trading and rebounded later in the session, with the Dow briefly turning positive at one point. This left a 315-point swing between the blue-chip index's high and low of the day.

Shares of chipmakers and other tariff-sensitive technology companies fell, with the Philadelphia SE Semiconductor index down 1.8 per cent.

The Dow Jones Industrial Average on Friday fell 90.75 points, or 0.34 per cent, to 26,287.44; the S&P 500 lost 19.44 points, or 0.66 per cent, to 2,918.65; and the Nasdaq Composite dropped 80.02 points, or 1 per cent, to 7,959.14.

Shares of Amgen jumped 5.9 per cent after news that a US judge said patents relating to the Amgen's blockbuster rheumatoid arthritis drug Enbrel were valid, denying a challenge by Novartis.

Uber Technologies shed 6.8 per cent after the ride-hailing company reported a record $US5.2 billion ($7.7 billion) quarterly loss and revenue that fell short of Wall Street targets.

Nektar Therapeutics shares also plunged, a day after the drug developer flagged manufacturing issues with its experimental cancer drug bempeg.

Source: Morningstar

CEO/MD Weekly Update
Davide Bosio updates us on the program for this year’s annual Diggers and Dealers conference in WA.
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.
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: https://www.djcarmichael.com.au/stockbroking/fnn

 
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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
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