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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 12/12/2017
VIEW MORE ARTICLES BY HENRY JENNINGS

Market summary

  • ASX 200 up 15 to 5998 in quiet thin trade.
  • High 6015 Low 5990.
  • Dastyari quits Senate.
  • ANZ sells Life business.
  • TCL – Capital raise.
  • AUD steady at 75.33c
  • US futures up 21. Bitcoin CBOE futures kick off. System crashes.
  • Bitcoin surging in volatile trading again to over US$16,300. January futures +$3000.
  • Asian markets higher with China CSI -0.61% and Nikkei up 0.02%.

FUTURES AND HIGHS AND LOWS

MT Stuff

  • MARCUS CALL – FMG, WFD, TCL and a few predictions for 2018.
  • TRADING PORTFOLIO - No new trades. One stop loss raised. 10 trades left to Christmas.
  • SMALL STOCK PORTFOLIO – An update on the portfolio - notably MSB that has thankfully retraced some ground. And some pressure has come off the lithium stocks. Henry lists his stocks to watch.
  • SMALL CAP STOCK OF THE DAY – MOC. And what regulatory changes might affect it.
  • INSIDERS – On the watch list: Byron Energy.
  • 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:

ADVANCED EDUCATION COURSE - "Stock Picking for the Active Investor with Marcus Padley" - Click on the links below to book current events.

The BEGINNERS EDUCATION COURSE – An Introduction to financial concepts, your investment options, where you are with Super, and an introduction to the stock market.


Movers and Shakers

  • FXJ +1.96% after deal with Google.
  • RFG -5.23% slide continues.
  • PPH +5.28% Index rebalancing.
  • TNE +0.80% tech stock buying.
  • LOV +1.21% feeling the love.
  • AHY -5.03% profit downgrade.
  • TTS +2.41% TAH +2.11% sale of Odyssey Gaming.
  • DCC +4.35% Bitcoin fever as market making resumes.
  • CAN -5.19% placement weighs.
  • BXB -1.38% new CEO for US CHEP.
  • GSW -7.01% placement selling. YOJ -%.
  • MPL -1.21% KGN signs to develop Health platform.
  • RMD -1.49% after FPH files patent infringement.
  • CIM -1.20% new contract wins.
  • BFG -6.85% UBS sells stake at 13% discount.
  • WFD – Trading halt pending major corporate transaction.
  • Speculative stock of the day: Mithril Resources (MTH) +23.33% has identified a high-grade nickel-cobalt target at its 100%-owned tenement (EL28/2567) which is located at Kurnalpi, approximately 70 kms east of Kalgoorlie
  • Biggest risers – BPH, WCN, SUR, AIY, RBR, SDL, VIP, TOM.
  • Biggest fallers – SSN, SPB, AJC, GGX, VIG, EOR, SGQ, GBE.

BEST AND WORST

TODAY

  • Transurban (TCL) – Trading Halt - The company has announced a contractual close on the West Gate Tunnel project in Melbourne and will fund it with a $1.9bn non-renounceable entitlement offer at 1140c. The deal is an underwritten, pro-rata accelerated renounceable three-for-37 entitlement offer with retail entitlements trading, or a PAITREO as it is known in equity capital markets. The WGTP is due to complete in 2022. FY18 distribution guidance has been maintained and the company is forecasting a stronger performance by the business. Distribution will be 56c for FY18.
  • ANZ Bank (ANZ) +1.21% The bank has sold its life business for $2.85bn to Swiss company Zurich. The sale is made up of two transactions totalling $2.85bn, which includes $1bn of upfront reinsurance commission from Zurich. ANZ said the estimated accounting loss on the sale would be $520m after separation, with transaction costs of $75m post-tax. The deal will not complete until late 2018 so no hurry but certainly it adds to the attraction of the bank.
  • Asaleo (AHY) –5.03% Market update this morning. Downgraded full year guidance to around $124m-125m with NPAT of $59m-$60m. The underperformance is due to sales in the feminine care category due to extensive pricing pressures. The company had previously provided for a low single digit growth profile from last years $130.7m EBITDA.
  • Tabcorp (TAH) +2.11% Completed the disposal of Odyssey Gaming Services to Australian National Hotels.

ECONOMIC NEWS

  • NAB Business conditions survey index falls from 21 to 12 in October.
  • Trading conditions dived to 16 points from 30 points and profitability also dropped to 15 points from 26 points. However, the survey’s employment index remained firm at 7 points and forward orders doubled to 6 points.
  • The Residential Property Price Index (RPPI) for Sydney fell 1.4% in the September quarter 2017. Sydney established house prices fell 1.3% and attached dwellings prices fell 1.4% in the September quarter 2017. Falls in the RPPI were also seen in Perth (-1.0%), Darwin (-2.6%) and Canberra (-0.2%). These were offset by rises in Melbourne (+1.1 %), Brisbane (+0.7%), Adelaide (+0.7%) and Hobart (+3.4%).
  • The total value of owner occupied housing commitments excluding alterations and additions fell 0.1% in trend terms, and the seasonally adjusted series was flat.
  • Total personal finance commitments rose 1.3%. Fixed lending commitments rose 2.2%, while revolving credit commitments fell 0.1%.
  • The seasonally adjusted series for the value of total personal finance commitments rose 1.6%. Fixed lending commitments rose 3.6%, while revolving credit commitments fell 1.9%.

BOND MARKET

ASIAN NEWS

  • Tencent plans to buy a 5% stake in China’s Yonghui Superstores in the latest tie-up between Chinese technology companies and bricks-and-mortar retailers.
  • BAIC, one of China’s largest carmakers, plans to phase out production of non-electric or hybrid cars under its own brand by 2025

EUROPE AND US MORNING HEADLINES

  • Regulators warning once again on the dangers of the crypto frenzy. Lates is the SEC and the CFTC.
  • Trump has fired up NASA with plans to conquer the moon again. It has been 45 years and then to infinity and beyond.
  • The EU and the UK are crying foul over Trump tax plan as it could herald a trade war.
  • Comcast has bowed out of its bid for 21st Century Fox assets as a deal with Disney looms.

MARKET MAP



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.

To gain further insights from Henry Jennings, Marcus Padley and the Marcus Today team of analysts, click here to register for a free trial of the Marcus Today daily newsletter.



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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