The ASX 200 is down 40 points in mid-morning trade despite positive o/n trade developments. Gold sector the only +ve. Results mixed SDA, CTX +ve, APT, EHE not so. Divs have impact WES $2 takes 8 pts off AORD, WOR 12.5c, DMP 62.7c, CGF 17.5c, IFL 25.3c #ausbiz


  • Ex-dividend – Alumina (AWC)19.7c, Coca-Cola Amatil (CCL) 26.0c, Codan (CDA) 6.5c, Challenger (CGF) 17.5c, Domino’s Pizza Enterprises (DMP) 62.7c, IOOF (IFL) 25.5c, Pengana Capital Group (PCG) 4.0c, The Star Entertainment Group (SGR) 10.5c, Santos (STO) 8.7c, Wesfarmers (WES) 200.0c, WorleyParsons (WOR) 12.5c


  • UK – UK Finance Mortgage Approvals, BofE FPC Meeting, Inflation Report Hearings, PM May Statement on Brexit
  • US data – S&P Case-Shiller Home Price Index, Housing Starts, Building Permits, FHFA Housing Price Index, Consumer Confidence


  • Incitec Pivot (IPL) – Update on impact of Queensland weather events. Expects the rail line between Phosphate Hill and Townsville to reopen between late April and mid May 2019. Also estimates that the outage will give rise to aggregate lost EBIT of approximately $100-120m.
  • Estia Health 9EHE) – BITDA up 3.1% to $46.9m; NPAT of $21.1m up 4.1%; Revenue up 6.6% to $289.7m; Average period occupancy of 93.9%; Net bank debt of $64.8m, gearing reduced to 0.7x EBITDA, undrawn bank facilities in excess of $250m; Reduced RAD inflows resulting from preference changes, lower occupancy and probate repayment; $43.4m of capital investment undertaken in expansion and portfolio improvement; Fully franked interim dividend of 8.0 cents/share declared; Full year FY19 EBITDA Guidance revised to low to mid single digit percentage increase on FY18; EBITDA from the existing portfolio of homes subject to no further material changes in market or regulatory conditions. Costs arising directly from the Royal Commission and the initial costs of opening new homes at Southport and Maroochydore in May and August will be reported separately and are not reflected in Guidance. Guidance does not assume any potential contribution from the recent Government announcement regarding increased funding.
  • Speedcast (SDA) Group revenue up 21% to US$623m; Underlying EBITDA +7% to US$132m; EBITDA margin reduced by 280bp to 21.2% (CY2017: 24.0%) due to dilution from the UltiSat acquisition closed in November 2017, phase 1 of the NBN contract, and the mix effect of reduced earnings in the Energy division; Underlying NPATA grew 5% to US$48m; Strong operating cash flows with cash conversion of 91% of Underlying EBITDA – lower than in CY2017 primarily due to a temporary working capital investment in the NBN project; Net debt increased from US$388 million at 31 December 2017 to US$581 million at 31 December 2018 primarily as a result of the additional debt incurred in connection with the Globecomm acquisition in December 2018, as well as the US$20 million payment for the UltiSat acquisition earnout in 2018; Div 4.8c. Outllook – Expects to deliver moderate organic revenue growth and Underlying EBITDA US$160-US$171 million
  • Caltex (CTX) – NPAT of $558m is above guidance provided in December 2018 ($533-553m). Also off-market Buy-back of approximately $260m. Dividend 61c.
  • TPG Telecom (TPM) – Accounting implications arising from its decision to cease its Australian mobile network rollout. Will reduce the value of its spectrum licences by ~$92m. Also write-down of the mobile network capital expenditure incurred to-date of ~$76m. Also write down of capitalised interest of ~$60m. Results to be released on 19 March – EBITDA guidance for FY19 is unaffected and operating comfortable within banking covenants
  • Afterpay Touch (APT) – Revenue increase 85% but EBITDA fell 20% to $11.5m and the company moved to a loss. No dividend


  • Blackmores (BKL) – Chief Executive Officer, Richard Henfrey has resigned.
  • Wisetech (WTC) – Has acquired Containerchain, a leading container optimisation solutions provider to the container shipping and landside container logistics communities in Asia Pacific, Europe and the United States. Has revised guidance – FY19 Revenue of $326m – 339m (growth of 47%-53%) and FY19 EBITDA of $100m – $105m (growth of 28%-35%)




US EQUITIES – S&P 500 +3 (+0.12), Dow +60 (+0.23%), NASDAQ +27 (+0.36%)

Main themes

  • US-China trade relief – President Trump says tariffs on China will be delayed, but no details or new deadline not provided

EUROPEAN MARKETS – All higher. STOXX500 +0.26%, UK FTSE +0.07%, German DAX +0.42%, French CAC +0.31%.


  • The USD is little changed at 96.43.
  • The Aussie dollar is stronger at US71.73c.

BONDS – 2-yr: +3 bps to 2.51%, 3-yr: +3 bps to 2.48%, 5-yr: +2 bps to 2.49%, 10-yr: +2 bps to 2.67%, 30-yr: +1 bp to 3.03%


  • Oil – WTI futures were down US$1.78 or 3.1% at US$55.48 after Trump tweeted that OPEC should lower the price of oil.
  • Iron Ore – IRESS reports iron ore down US$1.00 to US$87.50 a tonne. CommSec reports iron ore fell 2.5% to US$84.55 a tonne.
  • LME metals – All a bit weaker. Copper -0.06%, nickel -0.12%, aluminium -0.26%


  • US economic data – December Wholesale Inventories 1.1% (consensus 0.4%; prior 0.4%)
  • Trump meets with North Korea’s Chairman Kim Jong-un on Wednesday and Thursday in Vietnam.
  • Europe – Fitch affirmed Italy’s BBB rating with a Negative outlook.
  • Brexit – There was continued speculation that British Prime Minister Theresa May would lobby for a Brexit delay, but May said today she remains focused on leaving the EU on March 29.

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