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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 15/01/2018
VIEW MORE ARTICLES BY HENRY JENNINGS

 Market summary

  • ASX 200 up 7 to 6077.
  • High 6104 Low 6074. Low volume start to the week.
  • Optimism fades ahead of US holiday.
  • Banks becalmed. Rising bond yields taking their toll on bond proxies.
  • Gold miners enjoying bullion rise. Resources still in focus.
  • AUD knocks on door of 80c at 79.48c
  • Bitcoin $13,628.
  • US futures closed for Martin Luther King Jnr holiday.
  • Asian markets follow US higher with China CSI 300 up 0.52% and Nikkei up 0.34%. MSCI Asian Equities at record high (+0.25%).

FUTURES AND HIGHS AND LOWS

MT Stuff

  • MARCUS CALL – A round up of everything we've missed since Christmas Eve.
  • ALL ORDS UPDATE - Spreadsheet has been updated.
  • TRADING PORTFOLIO – We were stopped out of three trades. We have added one new trade.
  • SMALL STOCK PORTFOLIO – Henry recaps themes and how the portfolio has fared over the break.
  • BROKER STUFF - A downgrade on NXT.
  • 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:

https://marcustoday.com.au/webpages/images/report/20171016/askmarcusbutton.jpg  https://marcustoday.com.au/webpages/images/report/20171016/tellusyourstockideas.jpg

Advancers/Decliners

  • MLX -2.48% high grade cobalt confirmation at Wingellina.
  • MQA -2.23% bond proxy stocks turn negative.
  • SYD -1.33%, TCL -1.02% rising bond rates.
  • EVN +6.64% gold miners in demand on falling USD.

  • YAL +10.34% broker recommendation.
  • AD8 +8.46% fund manager buying recommendation.
  • AC8 +8.43% cannabis stocks continue to rise.
  • NXT -4.03% profit taking on broker downgrade.
  • ORG -1.78% STO -1.27% broker downgrades.
  • PPT +1.17% FUM increased to $32.8bn up $1.8bn due to asset growth and $0.2bn of net outflows.
  • MYQ +9.63% following a bullish investor presentation.
  • Speculative stock of the day: King River Copper (KRC) +33.33% after a placement of 40m shares at 3c to professional and sophisticated investors.
  • Biggest risers – YAL, CLQ, AVZ, OMH, MYX and EVN.
  • Biggest fallers – NXT, PPH, GSC, FXJ and BGA.

BEST AND WORST

MT Stuff

  • MARCUS CALL – A round up of everything we've missed since Christmas Eve.
  • ALL ORDS UPDATE - Spreadsheet has been updated.
  • TRADING PORTFOLIO – We were stopped out of three trades. We have added one new trade.
  • SMALL STOCK PORTFOLIO – Henry recaps themes and how the portfolio has fared over the break.
  • BROKER STUFF - A downgrade on NXT.
  • 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:

https://marcustoday.com.au/webpages/images/report/20171016/askmarcusbutton.jpg  https://marcustoday.com.au/webpages/images/report/20171016/tellusyourstockideas.jpg

TODAY

  • The ACCC has launched a formal inquiry into MYOB’s (MYO) +0.85% $180m acquisition of accounting software products from Reckon (RKN) -0.63%.
  • Experience Co (EXP) +3.95% has resumed operations after the incident last week at its Queenstown Sky Diving operation where a tourist drowned.
  • Wattle Health (WHA) +8.83% The company has secured a brand slot for CFDA accreditation. It is one of the first Australian companies to have two brand slots with a CNCA licensed manufacturer. The slots are for Goat Infant Formula. The market for Goat Infant Formula is expected to be around $1.9bn in 2018 up 43% from 2017. The company hopes that formal accreditation will occur in the second half of 2018. The company has also updated the Cow Formula accreditation process which is still continuing.
  • Woolworths (WOW) unchanged -Steve Donohue has been appointed the new MD of Endeavour Drinks effective April. Donohue is currently Director of Buying and Merchandising for Woolworths Supermarkets.
  • Vocus Communications (VOC) +0.93% The company is undergoing a restructure with the separation of its Enterprise and Wholesale segment into two operating entities, resulting in four reportable operating segments. These are Enterprise and Government, Wholesale and International, Consumer and NZ components. Interim results will be released February 20.
  • Perseus Mining (PRU) +11.39% announced initial gold production from its Ivory Coast, Sissingue operation ahead of schedule. It expects first gold this month, and commercial production by end-March; an announcement that comes after a timeline of over-promising and under-delivering thanks to disruptions at its Edikan mine in Ghana which previously had led to regular downgrades to annual production guidance.

ECONOMIC NEWS

  • Residential property values fell an average of 0.1% across Sydney, Melbourne, Brisbane, Perth and Adelaide in the seven days to January 14, but lifted 3.9% in the 12 months to Sunday. Values in Sydney, Brisbane, Adelaide and Perth each dropped 0.1%, while Melbourne’s prices were steady, according to property research group CoreLogic.

BOND MARKET

ASIAN NEWS

  • No bubble here, right? Hong Kong eye clinic operator, C-Mer Eye Care soared as much as 101% in its Hong Kong debut on Monday after its retail offering was more than 1,500 times oversubscribed.
  • The PBoC loaned out nearly Rmb400bn ($62.2bn) in response to what it described as a “relatively large” decrease in the banking system’s liquidity.

EUROPE AND US MORNING HEADLINES

  • Ford will double its spending on Electric Vehicles (EVs) to $11bn by 2022, Jim Farley, president of global markets, said during a presentation at the Detroit auto show. That’s up from the $4.5bn Ford announced in late 2015 it would invest through to the end of the decade. Ford plans to produce 40 electrified models in total, including 16 battery-only vehicles, executives said at the car show.
  • No good news for London house prices with asking prices dropping to the lowest since August 2015. New sellers cut prices 1.4% in January to an average of £600,926. Asking prices in London are down 3.5% from a year ago.

  • UK Construction company, Carillion, looks to be on the verge of failure as the UK Government held last-ditch talks on whether to help bail out the company on some of its low margin large contracts. It is the UK’s second-largest construction company, employing 43,000 people globally. Carillion is working on some of the UK’s largest building projects. The contractor is also sinking under the weight of more than £1.5bn of debt and a huge pension deficit of nearly £600m. The company share price has collapsed to 14p valuing the business at £61m.

 

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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