Marcus Today End Of Day Report
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Movers and Shakers
- ASX 200 finishes 9 points higher to 5944 thanks to some positive AGMs from the bluechips and acquisition rumours.
- High: 5954. Low: 5916.
- DHG – First day listed as separate entity. Fell 11c from its 380c listing price to 369c.
- FXJ +7.67% ex DHG shares.
- BIG +7.75% buys US video company for $4m.
- SEN +10.00% on AGM comments.
- STO +13.01% takeover rumours.
- HVN +3.71% positive sentiment on AGM.
- RHC +3.48% positive AGM comments.
- APT -5.01% profit taking.
- ORE -3.14% lithium eases.
- KDR -10.42% profit taking.
- A2M +2.63% back.
- EML -7.91% release of shares from escrow.
- BWX -2.44% entitlement offer documents.
- Speculative stock of the day: Reckon (RKN) +25.62% after selling its Accountant Group to MYOB for $180m. Market cap was just below that number prior to the deal.
- Biggest risers – TV2, WFE, ZEU, G88, VMS, FGF, GUL.
- Biggest fallers – TAG, RMG, AYM, SP1, FXJ, IPB, THC.
FUTURES AND HIGHS AND LOWS
- Murray Goulburn (MGC) -0.65% has agreed to contravening continuous disclosure rules and will pay a $650,000 penalty under a settlement reached with the corporate regulator. The company said in a statement that it was not alleged by ASIC that it deliberately contravened its continuous disclosure obligations. Good to clear the decks and get this issue behind it. Next it must get the deal with Saputo through the FIRB and others.
- Reckon (RKN) +25.62% has agreed to sell its Accounts Practice Management business to MYOB (MYO) for $180m cash pending ACCC approval. Reckon will use the cash to pay down its debt and a special dividend in 2H 2018. Reckon has said the book value of the net assets of the Accounts Practice Management Business at 31 October was $38m.
- Commonwealth Bank (CBA) +0.30% AGM Comments- Plenty of platitudes and motherhood statements including ‘Mea Culpa’ but nothing of financial significance or guidance. CEO’s address click here.
- BHP -0.29% AGM presentation. For full details click here. Andrew Mackenzie said the mining giant is confident that demand from China will remain strong despite a drop-off in housing and automotive. Mackenzie told BHP shareholders that China's so-called Belt and Road initiative will keep infrastructure spending high.
- Ramsay Health Care (RHC) +3.48% AGM. FY17 financial highlights included a 13% increase in the fully franked full year dividend to 134.5 cents, a 13% increase in EPS and a 5.2% increase in EBIT to $943.4m. Performance was backed by good volume growth in Australia that the company expects to continue to offset short term challenges in Europe. It has reaffirmed FY18 core EPS growth guidance of between 8%-10%.
- Santos (STO) +13.01% Notice received this morning with an update on the possible takeover. According to the report the company received a takeover approach on 14th August from Harbour Energy at 455c but the board decided to keep it quiet and reject the approach. The source of funds was uncertain, and the price was inadequate.
- ZipMoney (ZML) +4.62% One of Australia’s largest online retailers, Kogan (KGN) has joined the Zip platform. Kogan has over 1m online users that will now have access to ZipMoney platform just in time for Christmas shopping.
- New Hope Corporation (NHC) +7.24% 1Q FY18 unaudited results saw NPAT up 399.2% pcp to $52.32m and EBITDA up 147.3% pcp to $99.03m. Total coal sales were up 16% to 12.14mt and oil output up 60% on year to 92.4m barrels.
BEST AND WORST
- Employment rose 3,700 from September; (estimate 18,800 gain).
- Jobless rate fell to 5.4%, the lowest since February 2013 (estimate 5.5%).
- Full-time jobs increased by 24,300; part-time employment fell 20,700.
- Participation rate fell to 65.1% (estimate 65.2%).
- Amazon cuts prices on turkeys ahead of Thanksgiving.
- France will host the 2023 Rugby World Cup.
EUROPE AND US MORNING HEADLINES
- A rediscovered Da Vinci has broken records for an artwork in NY selling for US$450m at Christies. The 500-year-old “Christ as Salvator Mundi,” which had been estimated at $100m.
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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