Marcus Today End Of Day Report
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- ASX 200 finishes down 6 at 5739 as resources stagger.
- High 5749, Low 5726.
- Banks continue to rally as miners suffer.
- Energy stocks up on oil price recovery post hurricanes.
- TLS bounces with consumer and healthcare stocks weaker.
- Media stocks tread water on proposed reforms although PRT up 7.8%.
- North Korea threatens to ‘sink’ Japan over UN sanctions...and reduce US to ashes and darkness. Good luck with that.
- AUD firms slightly to 79.99c on jobs beat.
- US Futures down 9.
- Asian markets weaker: China CSI down 0.52% and Nikkei down 0.32%.
- TRADING PORTFOLIO - No new trades. One stop loss raised.
- INSIDERS CLUB - One new insight - UUV up 14.6% today.
Ex Dividends today
- BRG +1.33%.
- FLT -2.40%.
- MHJ -2.22%.
- S32 -0.93%.
- SEK -1.06%.
- VRT -1.46%.
Movers and Shakers
- MYR +1.4% on results.
- MGC -5.59% on a directors’ interest notice.
- KDR +9.25% buying continues.
- WLF -11.82% Tungsten inspired rally wilts.
- XRO +2.50% ‘Xerocon’ goodwill helps on thin volume.
- WTC -2.37% broker sell recommendation. Has run too hard.
- APT +5.22% flying high after Jetstar tie up yesterday.
- PLS +12.00% continues to rally on Insiders tip.
- GMA -0.33% Moody’s has downgraded to Baa1.
- RAP -8.24% MSF pulls field trials.
- VOC +0.41% faces a class action.
- Speculative stocks of the day: PAB +344.44% announced PAT-DX1 Active in Pre-clinical Cancer Models. PAX -DX1 triggers cell death in primary human cancer samples. 135m shares traded.
- Biggest risers – PLS, APT, BSL, XRO, ECX and LNK.
- Biggest fallers – SRX, WGX, CLQ, IGO and HSN.
FUTURES AND HIGHS AND LOWS
- Macquarie Atlas Roads Group (MQA) – unchanged- Has been placed in trading halt, with the company looking to lift its stake in the European motorway network (APRR) to 25%, from 20.14% via a $450m equity raising. The company has also lifted dividend guidance for FY18 to 23.5c from 22.5c.
- Myer (MYR) +1.39% Full year profit came in at $11.9m, down 80%. Sales were down 1.4% to $3.2bn, down 0.2% on a comparable store basis. Myer has said it won’t renew leases at Colonnades, Belconnen and Hornsby in an attempt to protect gross margins. The company has also noted sales in the first six weeks of FY18 have been below expectations. A dividend of 2c has been declared. The stock finished up 1.74% today as underlying net profit after a one off cost came in at $67.9m, above Bloomberg's consensus expectations of $64.3m. This was also towards the top end of Myer's guidance range of $66m-$70m. An executive, Richard Umbers made positive commentary on the future saying the company is looking to beat consensus net profit forecasts for FY18. Forecasts are currently around $66m.
- Unemployment held steady at 5.6%.
- Payrolls jumped by 54,200 in August, the ABS reported.
BOND MARKET UPDATE
- Factory output grew 6.0% in August from a year earlier, while fixed-asset investment expanded 7.8% in the first eight months, both well below economists' forecasts, data shows.
- Retail sales rose 10.1% in August from a year earlier, the statistics bureau said, cooling from July's 10.4% pace and below analysts' expectations for a 10.5% increase.
- Growth of private investment slowed to 6.4% in January-August from 6.9% in the first seven months of the year.
- Output of cement, coking coal fell by 3.7% and 5.3% respectively.
- Production of new-energy vehicles rose by 56.4% in August after climbing 48.6% in July.
EUROPE AND US MORNING HEADLINES
Trouble is the rate is 25% in China.
- North Korea faces food shortages. The regime still cannot feed its own people without external food aid, who rely on black markets to buy rice, produce, beer and other food. Chinese food exports have soared in the last year despite sanctions.
- BoE rates decision today. UK Retails sales.
- Volkswagen has promised to spend EUR20bn by 2030 to roll out new electric cars. By 2025, VW aims to have 50 purely battery-powered vehicles and 30 hybrid models in its line-up, with a goal of selling as many as 3m all-electric cars by then. A lot of lithium.
- Looks like the ARAMCO IPO may be delayed by a few months into 2019 as timetable starting to look tight. The Saudis have not even settled on where they will sell the business. The float is hoped to value AMAMCO at US$2 trillion and the 5% stake being touted for sale will raise US$100bn. Cue Dr Evil.
BEST AND WORST
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.
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