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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 12/09/2017
VIEW MORE ARTICLES BY HENRY JENNINGS

 Market summary

  • ASX 200 rises another 33 points to 5746 as big banks lead.
  • High 5765, Low 5721.
  • Banks back in demand as insurers also rise. REITs in demand.
  • Big miners rise on commodity price rises. ILU upgrades reference price.
  • Gold miners under pressure. Energy falls.
  • Telcos slip on 5G auction and investment.
  • QBE CEO resigns.
  • AUD slips slightly to 80.25c.
  • US Futures up 18 points.
  • Asian markets firmer with China CSI up 0.00% and Japan up 0.94%.

MT Stuff

  • TRADING PORTFOLIOS – 2 stop losses raised. 2 new trades.
  • INSIDERS CLUB - One new insight today.

Ex Dividends today

  • ASB -1.49%.
  • CIM -1.82%.
  • CSL +0.08%.
  • ING -2.89%.
  • NWS +0.36%.
  • RRL -5.04%.

Movers and Shakers

  • AGL -1.49% after government agreement to do something with Liddell. Just what.
  • MOE - trading halt – looking to raise $59.7m in a placement at 500c.
  • MEA -7.59% block trade sold at 65c as escrow shares unloaded.
  • CLI -22.50% first day trading for IoT in farms.
  • MFG -0.21% Magellan Global Trust now open.
  • GXY +11.81% lithium rally continues as director resigns.
  • BWX +5.66% market warms to acquisition.
  • LYC -4.76% profit taking.
  • BLY -10.00% director sales.
  • AAD +2.02% US Main Event CEO quits.
  • KDR +8.50% executes a US$110m Mt Holland Lithium JV agreement.
  • Speculative stocks of the day: CNQ +37.50% after an ASX speeding ticket and the Chinese have moved to restrict tungsten production and prices have risen 50% in recent months.
  • Biggest risers – GXY, RCR, CLQ, PNI, BWX and SYR.
  • Biggest fallers – WGX, SAR, HLO, SBM, VOC and APO.

POINTS

FUTURES AND HIGHS AND LOWS

BEST AND WORST

TODAY

  • Iluka Resources (ILU) +1.36% The company has increased its reference price for Zircon by US$130 to US$1230 per tonne. They say this an attempt to balance customer needs with shareholder returns whilst maintaining sustainable operations. The reference rice is the benchmark which Zircon products are priced from and received prices often do vary from this.
  • CSL Limited (CSL) +0.08% Says its new Phase III study shows a significantly greater efficacy in children 6-24 months when receiving its adjuvanted influenza vaccine.
  • Evolution Mining (EVN) -2.69% has received a number of offers for its Edna May gold mine and is looking into whether to sell the asset. The company say they will consider all offers and keep shareholders updated regarding its actions. The mine accounted for 8% of the company’s total gold production in FY17 producing 20,188 ounces.
  • Cimic Group (CIM) -1.82% a subsidiary of the group has won a contract for the design and construction of a Deep Tunnel Sewage System in Singapore predicted to produce revenues of $470m. The project is expected to be completed by mid-2023.
  • Sunland Group (SDG) -0.58% The property group has acquired a new 2.29 ha site in Chapel Hill, 7km from Brisbane CBD. The site was acquired for $5.9m and will be used for a boutique residential development valued at $30m.
  • QBE Insurance Group (QBE) +2.54% The current CEO John Neal is stepping down and being replaced by the CEO of Australian and New Zealand operations Pat Regan. John steps down after 5 years at the helm and will be helping Pat transition into his new role over a 4-month period. Pat Regan was previously the groups CFO and before that he was the CFO at Aviva PLC.

ECONOMIC NEWS

  • ANZ Roy Morgan consumer confidence fell 3.8% this week, offsetting the previous two weeks’ gains. Last week’s solid 2Q GDP data wasn’t enough to stop the fall that was underpinned by concerns on lower wage growth amid moderate house price growth and high household debt. Views towards current and future economic conditions fell 8.1% and 7.2% respectively.

  • NAB's monthly survey of more than 400 firms showed confidence took a big hit in August to track at two-year lows.

 

  • Business conditions firmed 1 point to 15 in August, triple its long-run average of 5m while the more volatile confidence reading dropped 7 points to 5.
  • Never mind the confidence look at the rest of the numbers from Greg McKenna.

BOND MARKET UPDATE

ASIAN NEWS

In China:

  • A private consumer confidence index, compiled by Nielsen Holdings Plc, climbed to 112 in the second quarter, the best reading since at least 2009.
  • The consumer confidence index climbed to 114.6 in July. That’s up from last May when it dipped below 100.

  • Chinese per capita disposable income rose 7.3% on year in the first half.
  • United Nations Security Council approved new sanctions aimed at punishing North Korea for its latest missile and nuclear tests. Representatives of China and Russia attempted to prod the U.S. toward a diplomatic solution, emphasising that the resolution calls for negotiations.

EUROPE AND US MORNING HEADLINES

Image result for funny fake iphones 8

  • Apple unveils its new iPhone 8 tonight. Great chart from Bloomberg on the rise and fall of its peers in the last ten years.

   

  • Not all ‘brie and croissants’ for Macron as strikes spread across France in response to proposed labour market reforms. His comments in Bucharest last month have gone down well. He said the French detest reform. And then backed it up in Athens last week that he wouldn’t “give in to the lazy, the cynics or extremists,” in his effort to modernise France. Only 37% of voters have confidence in his leadership, down from 45% in July and five points below the level registered by his one-time mentor Hollande.
  • UK Government wins vote to push Brexit bill forward.

ANNOUNCEMENTS

MARKET MAP



View More Articles By Henry Jennings

Henry Jennings has been involved in financial markets for over 35 years as both a trader and a broker in London and Sydney.

Starting his career in London trading derivatives and moving to Australia in 1989, Henry eventually settled at Macquarie Group, rising to become a Divisional Director responsible for Equity Trading in Australia. For the last decade, Henry has been involved in private client broking and now writes exclusively for the renowned financial newsletter Marcus Today. Henry regularly appears on ABC TV and Sky Business as a market analyst, commentator and strategist and has presented at various conferences most recently for the AIA on the Gold Coast.

To gain further insights from Henry Jennings, Marcus Padley and the Marcus Today team of analysts, click here to register for a free trial of the Marcus Today daily newsletter.



Important note: Any financial product advice contained in this email is general financial product advice only and does not take into account any one person's objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.
 

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