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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 24/01/2018
VIEW MORE ARTICLES BY HENRY JENNINGS

Market Summary

  • ASX 200 loses puff on close to finish up 18 to 6055.
  • High 6066 Low 6036 better volume.
  • TPP clinched as PM optimistic on jobs and growth.
  • Three banks rally slightly leaving CBA behind.
  • BHP, FMG and RIO miss out as iron ore slumps in Asia.
  • Energy firms. Telcos slip again.
  • Healthcare and infrastructure rallies.
  • AUD steady around 80.13c
  • Bitcoin US$10,600. Slide continues.
  • US futures up 20.
  • Asian markets mixed with CSI 300 up 0.57% and Japan down 0.50%.

FUTURES AND HIGHS AND LOWS

Mt Stuff

  • MARCUS CALL – The S&P 500 is overbought; the rising interest in uranium; US results season; and lots of other stuff.
  • TRADING PORTFOLIO - Two new trades. Three stop losses raised.
  • SMALL STOCK PORTFOLIO – We had a positive day yesterday thanks to a turnaround in lithium. Henry has added a couple more to the watch list too.
  • INSIDERS – Henry road tests gold stock, Nexus Minerals (NXM).
  • INSIDERS 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. 

Advancers and Decliners

  • COH +3.49% technical rally.
  • MQA +3.11% broker upgrades on traffic numbers.
  • RMD +2.76% positive broker comments after quarterly.
  • UPD +4.96% bounce back on technical buying.
  • QBE +5.37% decks cleared, and new CEO poised for action.
  • WTC +4.18% buyers just keep coming.
  • DHG +3.67% rebound continues.
  • MEA +1.96% broker downgrades but privatisation looms.
  • API +3.25% CEO address and presentation.
  • MLX -7.83% copper price falls weigh.
  • BRU -5.63% operational update.
  • YOJ -5.17% GSW woes perhaps.
  • GSW – remains in trading halt.
  • SWM -0.90% more redundancies.
  • PAN +11.69% entitlement offer and presentation.
  • BRN +15.00% traders jumping on story.
  • 4DS +8.06% open briefing invite and Jim Dorrian substantial shareholder.
  • Speculative stock of the day: Whitehawk (WHK) +32.50% oversubscribed IPO raises $4.5m for a cyber security exchange.
  • Biggest risers – FNP, EWC, UPD, QBE, PPH and WTC.
  • Biggest fallers – MLX, SBM, GWA, HT1, COE and PMC.

ASX 200 SECTOR SUMMARY

ASX 200 TOP MOVERS

ASX 200 BOTTOM MOVERS

ALL ORDINARIES SECTOR SUMMARY

ALL ORDINARIES TOP MOVERS

ALL ORDINARIES BOTTOM MOVERS

TODAY

  • Kathmandu (KMD) +0.45% NPAT now expected to be no less than $12m with total sales up to $204m compared to $196.3m. Balance sheet has continued to strengthen, and the CEO is pleased with the progress the group is making.
  • Michael Hill (MHJ) +6.53% Strategic repositioning of Emma and Roe plan. US market exit. Increased emphasis on omni channel offering.
  • Santos (STO) +1.16% 4Q report. Net debt reduced to US$2.7bn down from US$3.5bn. Costs reduced by 12% to US$32 a barrel from US$36 in 2016. Sales volume of 83.4mmboe at the upper end of guidance. Total sales revenue up 20% to US$3.1bn. Santos doing all the right things. Guidance on 2018 sales of 72-78mmboe and production to be in the range of 55-60mmboe. Capex around US$825-875m. Continues to offer good gearing to a higher oil price with some corporate appeal perhaps.
  • Ironbark Zinc (IBG) -0.40% Placement to raise $6m at 6.2c.
  • SomnoMed (SOM) -13.81% Revenue growth of 45% in Q2. This is an interesting alternative to RMD in the sleep apnoea space. Going particularly well in the US where revenue grew 75% in Q2 driven by the RSS business. The statement warns of rising costs in the RSS business as additional RSS centres are opened in the US. Group revenues are expected to be around $70m for the year and EBITDA of a loss of $3.5m-$4m.
  • Wattle Health (WHA) +4.77% Cash receipts in Q2 was $540,027 up 58%. The company expects increased sales after the recent initiatives with API for its infant formula and its successful CFDA application in China for its cow formula. Formal accreditation is expected soon. Bear in mind that this company is capitalised at $175m on sales of under $0.5m. Punters will read the headlines up 58%. Probably ignore the actual sales number.
  • Rio Tinto (RIO) -0.39% Mongolian government and RIO to explore win-win partnership solutions. The two are setting up a joint working group to explore developments in Mongolia.
  • HUB 24 (HUB) +1.91% Strong inflows of $554m with FUA now at $6.9bn. 14 new license agreements during the quarter and new JV with Agility initiative released in a pilot program.

ECONOMIC NEWS

  • The Westpac-Melbourne Institute Leading Index showed a six-month annualised growth rate reading of +1.41% in December, up from +0.66%  in November.
  • The index indicates the likely pace of economic activity relative to trend three to nine months into the future.
  • Government signs new TPP with US out of the deal. It’s a 'big deal' says ScoMo. Official signing in March.
  • Westpac has lifted its Australian dollar forecast to US72c from a previous forecast of US70c after revising its expectations for US interest rate hikes.

BOND UPDATE

ASIAN NEWS

  • Japanese export values rose 9.3%, slightly below forecast of 10%.

  • Imports increased 14.9% in December against forecast +12.4%.
  • Shipments to the U.S. increased 3% in December.
  • Shipments to the EU rose 11.4% in December.
  • Vietnam’s main stock exchange said it would suspend trading for a second full day on Wednesday following a technical issue that surfaced on Monday.
  • The Hong Kong-listed unit of Chinese developer Dalian Wanda has entered into an agreement to sell the rights and interests in certain Australian property projects.
  • Signs of more scrutiny of state owned enterprises in China as Regulator tells executives all SOEs will have to make profits. Novel approach.

EUROPE AND US MORNING HEADLINES

  • Jay Powell has been confirmed by the US Senate to serve as the next chairman of the Federal Reserve Board.
  • Davos continues. Plenty of nerves about next downturn. Complacency rife. Apparently.
  • World largest ETF hits US$300bn in assets. Happy 25th birthday.
  • France is trying to lure London bankers with free French lessons.
  • UK watchdog says Sky takeover by Murdoch’s Fox 'not in the public interest'.

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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