Australia…1 Hour In…ASX Down 28 Points

By Scott Phillips | More Articles by Scott Phillips

Reserve Bank Governor Lowe is making a speech as I write. Here are some of the headlines so far;

– would like a lower $A to help lift inflation.
– hard to argue the $A overvalued
– now isn’t the time to change monetary policy framework
– likely to see interest rates at current level for years
– The speech is still going.

– A2Milk (-2%); press speculation A2M is looking to acquire NZ’s Mataura Valley Milk co. Co has said it is holding “various discussions with a number of parties”.

– Altium (-10%); has warned its FY result will miss market expectations due to you know what. Has closed its Beijing office.

– Challenger (TH); has announced a $300m capital raising @ $4.89 a share.

– James Hardie (+3.7%); has lifted its guidance for the June Q after improved market activity.

– Metcash (-2.8%); has posted a $56.8m FY loss on the back of a non-cash impairment against goodwill and other assets in the 1H.

– National Aust Bank (-1.1%); press speculation Apollo Global Management has joined Carlyle Group, Blackstone and KKR as potential buyers for NAB wealth unit MLC.

– Northern Star (+4%); has sold its Ashburton Project to Kalamazoo Resources

– Oz Minerals (+0.4%); has agreed to buy Cassini Resources for $68m to gain full ownership of the West Musgrave copper-nickel project.

– Ramelius (+13%); said it is on track for a record Q and upgrades its FY20 guidance.

– Seek (-0.3%); said it will report a FY loss due to coronavirus-related impairment charges of up to $230m for its employment ads businesses in Brazil and Mexico. Last year’s profit was $180m.

– Stockland (-2.2%); estimated a lower 2H distribution (10.6c vs guidance of 14.1c) as it absorbs the impact of the coronavirus, including a forecast 6% drop in valuation of its commercial property portfolio.

– Transurban (-2.3%); said it would pay a distribution of 16c for the 1H vs original forecast of 31c.

Some great words sent to me this morning from the old and wise Tim McGowen (CEO of Informed Investor);

If you can sit quietly after difficult news,
If in financial downturn you remain calm,
If you can see your neighbours travel to fantastic places without any jealousy,
If you can happily eat whatever’s put on your plate,
If you can fall asleep after a day of running around without a pill or drink,
If you can find contentment just where you are,
You are probably a dog.

Scott Phillips

About Scott Phillips

Scott has over 35 years experience in Australian equities, starting as a “chalkie” and trader on the Stock Exchange Trading Floor and spending the last 25 years advising and trading for International Institutions. He has been an Executive Director at JPMorgan and Nomura, a Governor of the Australian Stock Exchange and was recently awarded a Lifetime Achievment award by the Australian Stockbrokers Association. Now at Ascot Securities, Scott focuses on advising Family Offices, offshore Soveriegn Funds as well as a growing book of domestic Professional Investors.

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