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Marcus Today End Of Day Report

  • ASX 200 rallies hard, up 33 points to 6049 as cash put to work.
  • NAB ex dividend knocks 10 off index.
  • High 6052 Low 6018.
  • Banks and miners lead charge.
  • Industrials kick too. Telcos and energy struggle.
  • AUD firmer at 76.75c.
  • US futures down 13.
  • Asian markets mixed with Japan up 1.00% and China CSI down 0.10%.

MT Stuff

  • MARCUS CALL – Lots of interesting stuff today. Domain IPO, NAB XD, directors selling shares.
  • STOCK OF THE DAY – CBA – The resurrection has begun.
  • SMALL STOCK PORTFOLIO – Henry updates the portfolio performance.
  • INSIDERS – Henry picks a few stocks from our leaderboard. Insight into DTZ.
  • 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

  • VAH +9.09% on delisting hopes.
  • NUF +5.28% acquisition cheers/substantial holder.
  • PLS +5.38% GXY +1.55% ORE +5.18% KDR +9.09% lithium rally continues.
  • PNI +3.09% investor presentation.
  • BUD +9.59% another positive deal announced.
  • BIG +11.71% positive revenue update.
  • NAB -3.38% ex dividend.
  • STO -2.72% investor day.
  • DMP -3.47% AGM guidance underwhelms.
  • GSW -4.20% profit taking.
  • GMG +2.59% operational update.
  • NCZ -4.48% profit taking.
  • COH -0.66% Citi downgrades.
  • PMV +4.00% short squeeze.
  • WSA +3.34% higher nickel prices.
  • PTM -2.79% profit taking continues.
  • XRO -1.20% delists in NZ in January.
  • Speculative stock of the day: IAB -48.00% following a trading update with its Hostworks business performing well below expectations. Hostworks provides cloud hosting and cloud solutions. Will not contribute meaningful earnings.
  • Biggest risers – BIG, VAH, KDR, JHX, NVT and PLS.
  • Biggest fallers – YAL, SM1, DMP, PTM, APX and MLD.




  • Santos (STO) –2.72% Investor Day today, and an opportunity to brief on its Transform-Build-Grow strategy which was presented to the market last year. It said it focused on five core assets: Cooper Basin, Queensland, PNG, Northern Australia and Western Australia Gas – all of which are set to provide a stable base for production for the next decade, and deliver higher production in 2018 (allowing for planned plant shutdowns). Non-core assets and their natural field decline, are expected to offset the gains. Production guidance is expected to be towards the upper end of 58-60 mmboe and sales volumes guidance: 72-78 mmboe, due to lower forecast third party gas sales volumes and lower non-core asset volumes. rallied from 320c to 470c
  • James Hardie (JHX) +7.60% 2Q results this morning. NPAT US$73.9m and US$135.6m for the half year – a decrease of 1% and 4% on the pcp respectively. EBIT US$104.1m for the quarter and US$192.4m for the half, another decrease of 2% and 6% on the pcp respectively. Fibre cement volume decreased 2% and was flat for the half year, net sales were up 4% for the quarter and 5% for the half.
  • Domino’s Pizza (DMP) 3.47-% Sales in Europe grew 8.5%, and stopped going backwards in Japan, where they edged up 0.1% after falling 0.6% last financial year. Same-store sales worldwide increased by 5%. DMP has opened 32 new stores so far this financial year, and expects to open another 180 to 200 new stores by the end of the year. Affirmed guidance for Australian and New Zealand same-store sales growth of 7% to 9% and between 0 and 2% in Japan. It upgraded its guidance for Europe to 6% to 8% from 5 to 7%. It also affirmed guidance for its net profit to grow by about 20%.
  • Xero (XRO) -1.20% Net loss after tax for the six months to the end of September narrowed to NZ$21.1m ($14.7m), from NZ$43.9m for the same period the previous year. The company has also announced it will formally delist from the NZX on February 2nd. Last day of trading in NZ is 31st January.
  • Zipmoney (ZML) +1.42% Quest Payment Systems has made the ZML platform available on its payments terminal. Under the deal Quest will offer ZML across its entire Australian network.zipPay does not require any change to existing POS software either so integration should be no problem.
  • Flight Centre (FLT) +1.98% AGM today with forecasts from CEO that profit before tax for the full year would come in between $350m and $380m, which would represent growth of between 6.2% and 15.6% on the group's 2017 results. Flight Centre's international businesses is shaping up as key growth drivers for 2018, with its North American unit and its Europe, Middle East and Africa unit on track to beat their 2017 results. They were responsibly for 30% of group profit in 2016. Bullish outlook for its 2018 financial year earnings, tipping a strong first half could see profit rise by more than 15% in the full year.



Housing finance

  • The total value of dwelling commitments excluding alterations and additions (trend) fell 0.1% in September 2017 compared with August 2017, and the seasonally adjusted series fell 3.6% in September 2017.


  • The number of owner occupied housing commitments (trend) rose 0.7% in September 2017, following a rise of 0.8% in August 2017.
  • The number of commitments for owner occupied dwellings financed by banks (trend) rose 0.6% in September 2017, following a rise of 0.8% in August 2017. The seasonally adjusted series fell 2.5% in September 2017, after a rise of 1.3% in August 2017.
  • The value of outstanding housing loans financed by Authorised Deposit-taking Institutions (ADIs) was $1,616b, up $5b (0.3%) from the August 2017 closing balance.
  • New Zealand's central bank forecasts it may need to raise interest rates slightly earlier than previously expected as capacity pressures and a weaker currency stoke inflation. The central bank said inflation will reach its 2% target much sooner than previously expected, and it brought forward its forecast for a rate hike to the second quarter of 2019 from the third. The RBNZ also said new government's restrictions on foreign home buyers would likely help to moderate house price inflation.



  • The Chinese producer price index (PPI) rose 6.9% in October from a year earlier, in line with the growth rate in September when it hit a six-month high, data released by the National Bureau of Statistics.

  • China's consumer inflation which has stayed well within Beijing's 2017 target of 3% this year, also accelerated more than expected to 1.9% from 1.6%in September, due to higher food prices.
  • Food prices fell 0.4% on year versus a 1.4% drop the prior month.
  • Sectors including coal mining and iron and steel both saw price gains decelerate to the slowest paces since late last year.
  • A 26-year high in the Japanese market. But only a slight gain for a decade.

  • It’s only a few days away from Singles Day in China - 11th November. Analysts estimate US$24bn in sales with Alibaba dominating. It has a novel idea and has enlisted 10% of Chinese convenience stores to sell its goods and get parcels delivered.


  • Trump pledged to change a US-China trade and economic relationship that is “far out of kilter”. Massive Chinese love in. No sign of a trade war at all. Presidential Trump is doing well.
  • AT&T has been told by the US Department of Justice that it needs to sell CNN, Time Warner’s cable news channel, to get its US$84.5bn acquisition of the media company approved.
  • Chinese search engine company Sogou has priced its American depository shares at US$13, coming in at the top of the expected range and putting the size of its November 9 IPO at US$585m.
  • You think NAB was ‘visionary’ or 'courageous, Minister' but the Deutsche Bank chief  has forecast thousands of job losses. CEO, Cryan sees tech bringing lender into line with peers at ‘half’ its 97,000 headcount. Makes NAB look good.
  • Tencent has taken a 10% stake in Snapchat’s parent company Snap, a vote of confidence after the messaging app’s horror results this week. Tencent has a US$2bn stake.




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.

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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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