CBA to resume trading today, US markets makes small gains on Friday, ASX futures up 9 points

Commonwealth Bank of Australia (CBA) closed its institutional entitlement offer and conducted the short-fall book build late last week, which to you and me means that there's nothing left to do in order to open up the stock and its new rights to trading on the ASX today. Investors should remember that the stock will trade 'ex rights' today, meaning the seller will keep the right to the 1 for 23 right to buy stock at $71.50, today's buyers will not get that right. The retail rights will trade under the ASX code CBAR on a deferred settlement basis and will be listed up until 1 September, after which the new shares will trade as CBAN before being folded into the regular CBA stock on 21 September. Rivkin holds CBA in some of its Blue Chip Strategy releases, and we will advise the model will be doing in due course with regard to either selling the rights on market or exercising them.

Market's haven't been given a strong lead today - the ASX 200 (first chart) remains in a zone where it has very little buying support so it will be relying upon improved sentiment to reverse part of the August 341 drop that will have been felt by all. The market falling 341 points is not highly unusual, but in the context of the last couple of years it is unusual for it to fall that far in just 10 calendar days without seeing at least some sort of rally re-trace part of the impulsive nature of the fall. The Aussie dollar (second chart) is taking a breather from its May-July down trend and I'll once again note that crude oil prices (WTI crude featured in today's last chart) combined with China's intolerance for the stronger US dollar associated with rising interest rates in the US will play into the hands of central bankers who are inclined to leave rates where they are

A note to all those interested in the Future Generation Global Investment Company (FGG) offer: Rivkin's offer ends this Friday, so get in touch now if you wish to apply. Instructions at the bottom of this article. If you're not familiar with the offer, get to know it by clicking here.


Source: Rivkin, Saxo Bank

To view the Rivkin economic calendar and Global Markets matrix, members can click here.

How to apply for the FGG IPO

As was the case with Future Generation Investment Company (FGX), Rivkin will be working with its broking partner CMC Markets in donating the broker stamping fees to charities associated with the investment company’s cause – in this case, youth mental health and homelessness.

With this in mind, we strongly urge you to follow the following steps accurately so Rivkin can add to the philanthropic nature of this IPO.

  1. Visit http://www.futuregeninvest.com.au/Global/prospectus.pdf to download and read the prospectus
  2. IMPORTANT: complete the Broker Firm Application Form on page 87 of the prospectus, this way we can donate the stamping fees
  3. Ensure you have sufficient funds in your Rivkin Securities stockbroking account to pay for the stock
  4. Enter the Broker Code 02662
  5. Enter the Adviser Code 0001
  6. Email your application to customerservice@rivkin.com.au or post it to:

Rivkin Securities FGG Offer
Po Box 1524
Double Bay 1360

Don’t have a Rivkin Securities stockbroking account? Open one now by emailing customerservice@rivkin.com.au (your Relationship Manager will call you back and pre-fill forms etc.) or phoning 1300 748 546. Our online brokerage is $11.00 or 0.11%, $9.90 or 0.11% for SMSFs that use Rivkin Super. PLUS we go the extra mile and donate non-core earnings like broking fees from this IPO to charity. You’re doing yourselves a favour and doing those in need a favour by getting involved.

This article was written by Scott Schuberg, CEO of Rivkin Securities Pty Ltd. Enquiries can be made via info@rivkin.com.au or by phoning +612 8302 3600.

Complex product warning

This article contains information about foreign exchange contracts, which are considered complex financial products. Please click here to read ASIC's foreign exchange trading article before considering an investment in foreign exchange contracts. 

This article contains information about CFDs, which are considered complex financial products. Please click here to read ASIC's "Thinking of trading contracts for difference?" document before considering an investment in CFDs.
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