Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 down 34.5 points to 5934 on growth doubts.
- High 5959 Low 5934. Tight range. Modest volume.
- Four days of losses continue.
- SSM Vote gets up - wages don’t.
- Banks give up with miners sagging on commodity prices.
- Energy stocks whacked again. Lithium loses hot air.
- CSL holds. Small cap profit taking.
- AUD falls to 75.87c on disappointing wage data.
- Bitcoin US$6826 bouncing back.
- US futures down 53.
- Asian markets modestly weaker with Japan down 1.88% and China CSI 300 down 0.71%.
- Stopped out of one trade with one stop loss raised.
- Small stock focus on opportunities emerging as market falls.
Movers and Shakers
- ACX +5.11% bouncing back strongly on AGM comments last week.
- AJX +11.59% AGM presentation
- DLX +6.10% great result and painted a positive outlook.
- QAN +2.78% falling oil price.
- MOE +3.57% earnings upgrade.
- TLX +18.46% new IPO lists.
- KDR -6.19% profit taking.
- WSA -5.49% nickel price falls.
- FMG -2.94% iron ore price falls and grade issues.
- AOG +1.89% AGM Comments.
- MSB -8.96% results disappoint.
- AAC -7.40% facing headwinds/update.
- IXU +120.00% new IPO.
- BRN +10.81% buyers emerging.
- Speculative stock of the day: THC +75.24% (insiders tip days ago) - Distribution agreement in Europe with Endoca, a world leader in the supply of high quality CBD products. It has sales of over EUR50m pa.
- Biggest risers – DLX, ACX, XRO, SPL, BIN, ELD and MOE.
- Biggest fallers – PLS, MSB, KDR, WSA, MND, SXY and CLQ.
FUTURES AND HIGHS AND LOWS
- Dulux Group (DLX) +6.10% Reported a net profit of $142.9m up 9.6% on the previous year. A final dividend of 13.5c has been declared. Management said they “expect that 2018 net profit after tax will be higher than the 2017 equivalent of $142.9m.
- AWE limited (AWE) – Is set to raise around $48m via capital raising to help strengthen its balance sheet and fund part of its Waitsia natural-gas project in Western Australia. AWE said it would issue around 77m shares in an institutional placement which will be priced at 50c each, a discount of almost 11% to the last closing price. Following that, an offer limited to $10m will be offered to shareholders in Australia and New Zealand.
BEST AND WORST
- Wages data showing wage index growth of 2% in the third quarter from 1.9% in the second quarter. Hourly wage growth excluding bonuses rose 0.48% in the September quarter, missing forecasts for a larger increase of 0.7%.
- The Westpac-Melbourne Institute Consumer Sentiment Index fell 1.7% to 99.7 in November. Westpac chief economist Bill Evans cited "media coverage around the prospect of rising interest rates may be unnerving households."
- Fitch Ratings finds that mortgage arrears decreased by 15bps quarter-on-quarter to 1.02% at the end of September.
- The Dinkum RMBS Index borrower payment rate increased to 21.6%, from 21.2% in the previous quarter.
- The number of Australian millionaires in US dollar terms grew by 200,000 in Credit Suisse's latest global wealth report.
- Japan’s economy grew for a seventh straight quarter, its longest expansion since 2001, benefiting from government fiscal stimulus and massive Bank of Japan monetary easing. A recovery in exports and rising business confidence offset a decline in consumer spending to underpin a 1.4% increase in GDP in the third quarter from the previous three-month period.
- Chinese state-owned drug maker Shanghai Pharmaceuticals said on Wednesday it had agreed to pay for $557m for Cardinal Health China business, one of the country’s largest drug distributors.
- Iron ore down as much as 4.6% following a disappointing round of readings from closely-watched growth gauges on Tuesday.
EUROPE AND US MORNING HEADLINES
- The Zimbabwean army has seized power. Says Mugabe is ‘safe’ and his ‘security is guaranteed’.
- Negative yields are back. US$11 trillion with sub zero yields.
- Theresa May is not long in power as pressure mounts.
- The UK carbon tax has propelled Britain into the top 10 of a global low-carbon electricity league table faster than any other country. The amount of coal-fired power generation in Britain has fallen 80% between 2012 and 2016. The market-based measure is currently set at GBP23 a tonne of carbon until 2020 and is designed as a “top up” to the European emissions trading system, which has languished at GBP5 a tonne on the Continent over much of the year.
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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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