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21/08/19
       
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The Australian share market enjoyed strong gains for a second straight day, with every sector advancing.

The benchmark S&P/ASX200 index finished Tuesday up 77.6 points, or 1.2 per cent, to 6,545 points, while the broader All Ordinaries was up 76.9 points, or 1.17 per cent, to 6,627.4 points.

It was the ASX's best day since a 78-point rise on June 19.

As opposed to Monday's rally, where the Australian share market underperformed its regional rivals, the ASX on Tuesday was the best-performing market in the region aside from Korea.

The energy sector led gains, up 2.4 per cent, while the industrial, consumer, health care, tech, utilities and property sectors were all up between 1.6 and 2.2 per cent.

Eleven 11 major companies reported earnings on one of the busier days of confession season.

IPH led gainers with a 10.4 per cent rise to an all-time high of $9.45 after the intellectual property firm announced full-year profit was up 31 per cent to $53.1 million.

Estia Health rose 8.4 per cent after the nursing home operator kept its profit flat at $41.3 million amid what its chief executive described as one of the most difficult periods ever for the aged care sector.

Oil Search was up 1.1 per cent to $6.57 after independent oil and gas producer said half-year profit had more than doubled to $US161.9 million ($A239 million).

Beach Energy gained another nine per cent to $2.18, on top of Monday's 10.8 per cent gains following news the oil and gas producer had tripled its profit to $198.8 million.

Bluescope Steel gained 8.2 per cent to $12.10, making up most of Monday's losses after it reported earnings.

Seek gained 4.8 per cent to $20.03 after the online jobs listing giant more than tripled its full-year profit to $180.3 million despite a dip in jobs ads.

Altium gained 6.5 per cent to a two-week high of $35.86 after the circuit board design software firm reported a 41 per cent increase in profit, to $52.9 million.

The mining sector posted the least gains, 0.4 per cent, dragged lower by gold miners as the price of the precious metal dropped below $US1,500 an ounce.

Newcrest was down 0.8 per cent, Saracen down 3.5 per cent and Regis Resource down 2.2 per cent.

Elsewhere it the sector, diversified mining giant BHP rose 0.1 per cent to $36.30 after tripling its full-year net profit to $US8.31 billion ($A12.27 billion) on the back of strong iron ore prices.

Rio Tinto gained 1.0 per cent to $85.83 and South32 was up 0.4 per cent to $2.83 but Fortescue Metals fell 1.0 per cent to $7.58.

The big banks were mixed, with ANZ down 0.2 per cent to $26.68, NAB up 0.4 per cent to $27.34, Westpac flat at $28.03 and Commonwealth up 1.1 per cent to $77.13.

Pharma giant CSL was up 2.2 per cent to $234.45.

International Markets

Financial shares led US stocks lower on Tuesday to end a three-day rally as investors awaited comments from Federal Reserve Chair Jerome Powell at the end of the week.

The S&P 500 financial index dropped 1.4 per cent and the group weighed most heavily on the benchmark index among its major sectors, which all registered losses.

Prior to Tuesday's session, US stocks had recovered most of their losses from a steep sell-off last Wednesday, which was triggered by a brief inversion of the yield curve between 2-year and 10-year Treasuries, widely considered a harbinger of a recession.

Reports of stimulus efforts in China and Germany, along with the subsequent steepening of the yield curve, helped assuage recession fears.

The S&P 500 is now 4.1 per cent shy of its record closing high in July after having fallen as much as 6.2 per cent below that level.

The Fed's moves have drawn close attention as US economic growth has moderated and the US-China trade dispute has weighed on business confidence. On Tuesday, President Donald Trump said his administration was looking at cuts to payroll and capital gains taxes.

The Dow Jones Industrial Average fell 173.35 points, or 0.66 per cent, to 25,962.44, the S&P 500 lost 23.14 points, or 0.79 per cent, to 2,900.51 and the Nasdaq Composite dropped 54.25 points, or 0.68 per cent, to 7,948.56.

Shares of Netflix fell 3.4 per cent after Walt Disney Co announced its streaming service would launch in Canada and the Netherlands in November.

Facebook shares dropped 1.3 per cent as the company said it was tweaking its policies to allow users to see and control the data that other websites and apps share with the social network to improve targeted advertising. A Bloomberg report that Facebook's Libra digital currency faces an anti-trust probe by the European Union also weighed on the shares.

Home Depot Inc shares climbed 4.4 per cent to lead in percentage gains on the S&P 500 after the home improvement retailer's quarterly earnings beat estimates. Shares of rival Lowe's Companies Inc also rose, up 3.0 per cent.

Medtronic Plc shares rose 2.6 per cent, also among the biggest percentage gains on the S&P 500, after the medical device maker raised its full-year adjusted profit forecast.

Source: Morningstar

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

By Noel Ong

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"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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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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