Marcus Today End Of Day Report
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- ASX 200 down 26 to 5946 in quiet thin trade.
- High 5965 Low 5939.
- Buyers emerge in banks.
- Miners fall on metal price falls.
- GDP disappoints slightly at 0.6%.
- Aussie dollar firms after retail numbers at 76.50c.
- US futures down 56.
- Bitcoin surging again to over US$12000.
- Asian markets weaker with China CSI 300 down 0.94%, Japan down 1.43% and HK down 1.69%
- MARCUS CALL – Big story in the last 24 hours: Amazon and the Australian retailers. And time to revisit Telstra.
- TRADING PORTFOLIO - One new trade. HVN and JBH up 6% yesterday. All looking good.
- SMALL STOCK PORTFOLIO – We update you on its latest performance.
- US STOCK BOX - We have put this in the "TOOLS" Tab. Covers the S&P 500 stocks.
- INSIDERS – We have a new insight today from ‘Bobbygee’. Downer EDI (DOW).
- 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
- CTD +4.05% positive sentiment returning.
- NXT +0.71% rally continues.
- KDR -3.23% lithium stocks under pressure.
- S32 -4.14% metal price falls and site visit.
- TLS +0.55% finding buyers still.
- GEM -3.91% selling continues.
- AU8 +10.45% as buyers return.
- DMP -1.17% change in substantial holder.
- WES +0.21% WOW +0.11% relief on Amazon fizzer.
- WGX -6.82% gold woes.
- EUR +10.34% placement at 22.5c to raise $4m with $1m over subscription allowed.
- LYCDA -8.95% consolidation has not been a positive.
- Speculative stock of the day: 4CE +80% after announcing a HOA for major lithium JV and capital raising.
- Biggest risers – CLW +4.5%, CTD +4%, MYO +2.6%, AAD +2.3%, FXL +2.2%.
- Biggest fallers – ORE -5.4%, WSA -5.3%, SYR -5.2%, IGO -4.9%, GXY -4.4%.
FUTURES AND HIGHS AND LOWS
- Magellan Funds Management (MFG) – (+1.24%) The company has announced FUM this morning. With now $58.563bn under management with net inflows of $717m. $20 to Global equities and net institutional inflows of $694m are a positive.
- De Grey Mining (DEG) - (-2.86%) has commenced its drilling program at Blue Moon Gold project with a minimum of 24 RC holes for around 2000m.
- Livehire (LVH) – (Trading halt pending the completion of a capital raising via a placement. We hold LVH in the trading portfolio. The stock should resume trading on Friday with more details to come. Raising is for $20m with a placement at 105c.
- Jumbo Interactive (JIN) – (-2.69%) Forecast TTV range of $82.2m - $84.8m an increase 19% to 22%. Forecast revenue range of $18.1m - $18.5m an increase of 13% to 16%. Positive result and follows in the wake of the TAH and TTS experience of higher jackpots driving online lottery business.
- Incitec Pivot (IPL) – (-1.76%) The company announced that the current contract with BHP will cease on 28th November 2019 but will have no material impact on FY18 FY19 results. It will have a one-off impact maximum of NPAT of $20m in FY20 and $21m in FY21.
- TPG (TPM) - (+1.33%) Estimates its launch into mobile will cost the telco between $1.9bn and $1.26bn for the spectrum, about $2.75 per MHz, and a further $600bn to build a network to cover 80% of the population in three years' time. The company is estimating it will need 500,000 subscribers to break even on an EBITDA basis. Company has first strike on its remuneration structure though. Guidance was reiterated at EBITDA between $800m-$815m.
- Wattle Health (WHA) – (0.0%) In a trading halt pending details of a deal to sell its formula through Priceline.
- According to Amazon it had its biggest first day launch ever.
BEST AND WORST
- GDP numbers from the ABS – The economy grew at 0.6% in the September quarter.
- Annual: 2.8% vs 3.0% forecast. The market was expecting 0.7%. The AUD has slipped slightly to 75.85c after the release. No reason for RBA to increase rates based on these numbers.
- Compensation of employees (COE) increased in all states and territories, resulting in a national quarterly growth of 1.2% and growth of 3.0% since the September quarter 2016.
- New engineering construction increased 6.3%.
- Household final consumption expenditure increased 0.1% for the quarter.
- Korean shipbuilder Samsung has lost around 27% after announcing plans to raise WON1.5 trillion next year amidst continuing losses.
EUROPE AND US MORNING HEADLINES
- The European Commission College of Commissioners discusses Brexit today and will likely make its recommendation on whether sufficient progress has been made to move negotiations onto the future relationship.
- Sky News reports plot to assassinate UK PM has been foiled. Two men arrested and Boris Johnson helping with inquiries.
- Most of the suspects detained in a major anti-corruption drive launched in Saudi Arabia last month have accepted settlements to avoid prosecution
- President Trump plans to recognise Jerusalem as the capital of Israel and will announce plans to move the US embassy there from Tel Aviv.
- US yield curve flattest in years.
Johnny Hallyday dies at 74. Christine Keeler has died aged 75.
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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