Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 falls -4 points to 5984 after tipping over 6000 in intraday trade.
- High 6009 Low 5978.
- Banks weigh on RC fears.
- BHP shaves 8 points off index on a weak overnight lead and investor update.
- Telstra fell on fresh disappointment regarding NBN.
- Deutsche cut banks to neutral weight.
- AUD slipped to 76.08c on political woes.
- Bitcoin rallied 8.24% today to US$9826. It’s up more than 800% YoY.
- US futures down -21.
- Asian markets all lower. China down -0.50%. Japan down -0.28% and Hong Kong’s Hang Seng down -0.82%.
- MARCUS CALL – Timing the market to the last second - it can be done. The significance of the US tax bill reforms. And the impact of Fortescue’s hedging policies. Quick access link here
- TRADING PORTFOLIO – One new trade, and four stop losses raised today.
- SMALL STOCK PORTFOLIO – Henry adds Insentia Group and continues analysing the lithium narrative. Click here to read his latest blog.
- INSIDERS – Henry discusses Coca-Cola as a SELL. Click here for access.
- 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
- TLS -1.73% NBN issues.
- IFL +2.29% Morgan Stanley upgrades.
- BKW +1.75% positive earnings outlook on east coast.
- WEB +2.81% Goldman Sachs presentation.
- WES +0.97% WOW +% Deutsche preferred strategy picks.
- BYE +2.70% positive presentation.
- NSR +4.15% positive AGM commentary.
- PRY +2.53% substantial shareholder notice.
- ORG +2.44% Investor day.
- AGI -2.69% trading update not positive.
- CWN -0.72% whistle blower reports poker tampering.
- RCG -0.56% profit taking.
- ORL – TRADING HALT - pending strategic review.
- TWE -3.70% broker downgrades.
- FMG -2.98% iron ore discount weighs.
- BIG -11.72% bull run unravels on cost issues.
- NCZ +8.33% positive feasibility study results.
- Speculative stock of the day: Great Western Exploration (GTE) +42.11% following a Greenfields gold discovery at the Yandal West project. Significant widths of gold mineralisation over 2kms and open strike.
- Biggest risers – PCH, PPY, GTE, SGH, EYM, GMR, RRS, FMG.
- Biggest fallers – BML, MPE, MRR, ABL, EXO, AYR, BAS, MTB.
FUTURES AND HIGHS AND LOWS
- BHP Billiton (BHP) –2.40% Held its Investor Day today. Key takeaways – Said it plans to initiate more cost cutting in Australia. And option to expand Olympic Dam could lift capacity to 330,000t per year. Its Australian projects are well placed to compete for capital. And operations are set to deliver US$1.6bn in additional productivity gains over the next two years. It says large, low cost Australian assets underpin current margins. BHP says copper prices have been stronger than it expected in 2017, and the miner believes industrial disputes and regulation changes in China could ensure 2018 is also a strong year for prices. A slight positive for the stock especially the continued focus on cost cutting. The outlook for copper too is optimistic. The company is holding a tour of Olympic Dam later this week.
- Lynas (LYC) – UNCH - AGM update today plus some promising drilling results from Mt Weld. The company is talking reserve upgrades next year and the AGM presentation was also positive. We wrote about this in the Small Cap Portfolio blog today.
- Tatts Group (TTS) – UNCH - Announced a trading update. Strong start to the year with a 1Q up 14.8% in continuing NPAT. Group revenues were up 6.8% to $743.1m with lotteries revenue up 8.8%. Tatts wagering up 1.8%. It is all about the takeover though, but it looks like TAH is sealing the deal at the right time. Positive for both.
- Origin Energy (ORG) +2.44% Had its Investor Day today. Raised its guidance for output from its Eraring coal fired power plant in NSW as it taps into the soaring wholesale electricity market after the closure of the Hazelwood plant in Victoria. Output from the country's biggest power station is expected to be between 15.5 terawatt-hours and 16 terawatt-hours this financial year, up from a range of 14.6TWh-15.3TWh given in August, which was itself a 5-10% increase on last year.
- Mayne Pharma (MYX) –2.40% Had its AGM today. Revenue for the first four months of the financial year dropped 12% due to price deflation in the US generic marketplace. MYX would experience a soft first half but that a range of sales initiatives was already improving performance. No reason to be here until more signs of a turnaround in pricing pressures.
- Toray, the world’s largest producer of carbon fibre, fell as much as 8.5 % today after Kyodo News reported its subsidiary had falsified data, the latest in a series of scandals across Japanese manufacturers.
- SoftBank Group Corp. and a group of investors are said to be trying to buy a big stake in Uber Technologies Inc. at a sizable discount to the ride-hailing company’s $69 billion valuation, seeking to clinch what would be one of the largest ever purchases of stock in a private company.
EUROPE AND US MORNING HEADLINES
- Jerome Powell, President Donald Trump's nominee to head the Federal Reserve, said he expected the central bank to continue raising its benchmark interest rate and trimming its balance sheet under his leadership. "Our aim is to sustain a strong jobs market with inflation moving gradually up toward our target," Powell said in the text of remarks he'll deliver Tuesday in a confirmation hearing before the Senate Banking Committee. "We expect interest rates to rise somewhat further and the size of our balance sheet to gradually shrink."
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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