Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 shrugs off early losses as CBA cheers. Up 2 to 6016.
- High 6023 Low 5996.
- Banks strengthen on CBA results.
- REITs do well. Miners slip.
- Healthcare and telcos weak.
- AUD steady at 76.50c.
- US futures down 15.
- Asian markets higher with Japan up 0.14% and China CSI up 0.29%.
- MARCUS CALL – CBA results have been well received. ASX 200 through 6000 yesterday. Some big dividends coming up.
- STOCK OF THE DAY – ORA - a solid if unexciting stock which looks to be up with events.
- SMALL STOCK PORTFOLIO – Henry has been watching BRN for some price entry points and has decided to buy a 3% holding.
- INSIDERS – We have a couple of BUY recommendations. Henry checks out the virtues of 4DS.
- CONNECT WITH US - We invite you to send us your own stock ideas. We also have the facility for you to email us any questions. Click on the "Ask Marcus Today" button in the newsletter or below - Ask us anything:
Movers and Shakers
- CBA +2.70% on results.
- BTT -5.76% disappointing results.
- HVN +2.45% shorts covering
- WEB -3.07% Executive rights plan.
- VAH +12.82% AGM presentation.
- FXL +5.26% recovering.
- WBC +0.31% despite court stuff up.
- RIO -0.67% rumours of lithium purchase.
- PLS +4.49% lithium reigns supreme.
- KDR +8.00% SQM potential deal with RIO.
- CGC +3.87% favoured agri stock.
- A2M -1.03% milk prices fall in NZ.
- NCZ +7.41% environmental authority issued.
- SM1 -1.83% NZ milk prices.
- DMP +0.06% AGM comments on 20% NPAT growth.
- BIG -9.56% profit takers move in.
- Speculative stock of the day: TYX +50.00% after reporting high grade gold structures at Greenewood Gold project in WA. 22m @4.03g/t from 50m. More results pending.
- Biggest risers – PLS, FXL, BKL, CGC, MLX, CBA and WSA.
- Biggest fallers – BIG, COE, BTT, CLQ, MAH, SWM and CLQ.
FUTURES AND HIGHS AND LOWS
- James Hardie (JHX) -1.51% Has announced it will acquire German based building materials group Fermacell for (US$549m). The company has said the acquisition allows for a “robust growth platform for expanding its fibre cement business into the large and affluent European market."
- Ardent leisure (AAD) -2.13% CEO and Managing Director, Mr Simon Kelly has announced his resignation. CFO, Geoff Richardson to become interim CEO. The company has also said it is “trading broadly in line with expectations for FY18 Core EBITDA”.
- BT Investment (BTT) -5.76% FY18 Net profit came in up 3.8% to $147.5m. A final dividend of 26c was also declared.
- Telstra (TLS) -0.29% ACCC announced that the company will be offering 42,000 customers refunds, free exit contracts or new plans after admitting that maximum NBN speeds were promised but not delivered. The ACCC also found that many customers were affected by limitations on fibre-to-node connections, meaning they were paying more to get higher speeds but weren't receiving them. The telecommunications Industry Ombudsman said recently complaints about services under the NBN rose by 160% last month.
- Nufarm Limited (NUF) -1.47% Has announced it will acquire a European cereal broadleaf herbicide portfolio from FMC Corporation (FMC) for US$85m.
- Virgin Australia (VAH) +12.82% reported an $18m improvement in first quarter underlying pre-tax profit compared to the same period a year ago and said revenue increased 5.7%.
BEST AND WORST
- Morgan Stanley analysts have boosted their oil forecasts by 17% amid a massive rally in crude prices. The analysts now expect Brent crude to be at $US63/barrel by the middle of 2018.
- Nissan cut its annual profit forecast to 645bn yen from 685bn forecast earlier after announcing a recall of vehicles in Japan that went through an inspection process deemed faulty by the government. Nissan conducted vehicle inspections that don’t comply with Japanese regulations for almost four decades.
- Tongwei plans to spend 12 billion yuan (US$1.8 billion) to build two solar-cell factories that would make the Chinese firm the world’s biggest manufacturer of products that generate electricity from the sun.
- In China data today, exports increased 6.9% in dollar terms in October from a year earlier, the customs administration said Wednesday.
- Imports advanced 17.2%year-on-year.
- Trade surplus was 254.5 billion yuan (US$38.3 billion).
- Retail sales of cars, SUVs and multipurpose vehicles increased 2.7% to 2.3m units last month. Honda sold 132,807 cars in the same month, a gain of 14%, benefiting from new models including the Avancier.
- President Trump called on the world to abandon support for Kim Jong Un’s regime, saying the dictator has turned North Korea into “a hell that no person deserves.”
- Shares in Tencent’s e-book subsidiary, China Literature rocketed 81.8% after trading in Hong Kong opened in the biggest tech IPO in the market in ten years.
EUROPE AND US MORNING HEADLINES
- A year tomorrow Donald Trump was elected. Much has been achieved so far. How’s he done?
- Will/won't Theresa May make it until Christmas? Looks unlikely with yet another scandal hitting UK conservatives.
- Sky has warned it could close down Sky News if it proves a sticking point with regulators in its £11.7bn takeover by Murdoch-owned 21st Century Fox.
- UBS believes that global growth may already have peaked due to a slowdown in China and the US shale producers finishing. It forecasts global growth will stay at 3.8% per year in the years ahead, with the US picking up a touch to 2.3% in 2019, the UK slowing to 1.1% and the Eurozone slowing from 2.3% this year to 1.7% in two years’ time.
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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