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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 30/01/2018
VIEW MORE ARTICLES BY HENRY JENNINGS

 Market summary

  • ASX 200 finishes 53 points lower to 6023 on weak leads.
  • High 6075 Low 6016. Light volumes.
  • Banks rally helps as mining stocks slip.
  • Energy falls on oil price falls. Golds slip again.
  • Healthcare under pressure on profit-taking.
  • AUD still robust at 80.74c
  • Bitcoin slips to US$10,933 on cyber heists.
  • US futures down 190.
  • Asian markets weaker with CSI 300 down 0.77% and Japan down -1.01%.

FUTURES AND HIGHS AND LOWS

Mt Stuff

  • MARCUS CALL – Making some portfolio changes. Wall Street falls but not too much to worry about, yet. More interesting is the US results season. We’re getting to the business end. Lots of interesting stuff.
  • TRADING PORTFOLIO – One new trade today. No stop losses raised.
  • SMALL STOCK PORTFOLIO – Henry models our performance against the ASX 200. We’ve done awfully well with Z1P, added MLX and reiterated our strategy on lithium.
  • INSIDERS – Henry recounts Luckypierre’s call on Phoslock. And on the back of recent government announcements about global arms exports, he discusses some potential defence plays.
  • 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. 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

Media tonight and tomorrow:

Marcus talks the day’s business and finance with Elysse Morgan tonight on ABC News 24 at 8.30pm (AEDT) and 11pm on the ABC. And from 8.30am tomorrow morning.

And tune into Henry today at Sky News Live from 4pm today and from 12pm tomorrow.

Advancers and Decliners

  • FMG -0.39% quarterly production data.
  • GEM +3.05% broker upgrade.
  • NVT -9.35% falls on HY results.
  • VRL –10.71% trading update
  • EOS – trading halt, large US contract win/ capital raising.
  • SRX – trading halt.
  • GSW – suspension remains.
  • UPD -0.41% quarterly report.
  • MLX -3.08% production report weighs.
  • PHK -1.79% profit-taking.
  • TCL -1.16% completes entitlement offer.
  • KDR - UNCH - lithium rally resumes.
  • WSA +2.38% strong nickel price.
  • EUR -4.00% quarterly report.
  • MDC -4.76% profit-taking.
  • Biggest risers – FCR, WCN, VIV, IMC, KTE, PNX, TGN.
  • Biggest fallers – AFT, TPW, CLZ, JKA, NEW, TAU, DLC, IEC, RBR.

TODAY

  • Newcrest Mining (NCM) –1.83% Quarterly production results today. Output increased 17% in the 2Q following a ramp-up in production after shutdowns at several sites. NCM reported it produced around 613,000oz of gold in the three months to December, in line with guidance and up from the 523,000oz result on the pcp. Lihir had some disruptions, but the company reported that all but one of its operations performed better in the prior quarter. Production guidance going forward was reaffirmed, forecasting further rises in the 2H.
  • Evolution Mining (EVN) +0.36% 2Q quarterly production results today showed a strong second quarter and forecast a beat on FY18 costs as a result. The company said it now expects all-in sustaining costs to be at the bottom end of the prior guidance range of A$820/oz. In the 2Q it reported an average record low of A$784/oz. Lower costs allowed the company to reduce debt by 32% to A$231.5m and lower gearing to 9.5%. EVN says it now has A$163.5m in cash end December. And it expects gold production for March to be similar to the prior quarter. Annual guidance is expected to be the same – in the range of 750,000 to 805,000 ounces.
  • Sandfire Resources (SFR) +1.81% 2Q quarterly production results today showed copper output of 16,263 tonnes and gold output of 8,130oz. SFR also reiterated FY18 production guidance.
  • Regis Resources (RRL) –1.22% Reported quarterly cash flow of A$83.8m and all in costs of A$855/oz. The company says its on track to meet the mid to upper end of its FY18 guidance for output. 2Q output for Duketon was 92,113oz.
  • Sirtex (SRX) - Trading halt this morning pending a material corporate transaction.
  • Fortescue Metals (FMG) -0.39% Total shipments of 40.5m tonnes with cash costs reduce again to a record US$12.08 wmt. Cash on hand is US$0.9bn and gross debt decreasing to US$4.2bn. Importantly the market will focus on the discount the company receives for its product coming in at 66% from previously 68%. FY guidance is maintained at a discount of 70-75% of the Platts 62% CFR price.

ANNOUNCEMENTS

ASX 200 today. At 2pm, the market booked further losses:

ALL ORDS SECTOR SUMMARY

ALL ORDS TOP MOVERS

ALL ORDS BOTTOM MOVERS

ASX 200 SECTOR SUMMARY

ASX 200 TOP MOVERS

ASX 200 BOTTOM MOVERS

ECONOMIC NEWS

  • NAB Business confidence highest since July 2017, up 4 pts to 11pts.

BOND UPDATE

ASIAN NEWS

  • New Zealand goods exports jumped 11% to $53.7bn in 2017, while imports increased 9.4% to $56.5bn, with both surpassing their previous highs.
  • New Zealand exports to China surged 27% to $12bn in 2017, accounting for 22% of the country's total exports, while imports from China advanced 5.7% to $10.9bn.
  • China’s first Bitcoin exchange, BTCC, said it has been acquired by an unnamed Hong Kong-based blockchain investment fund after a regulatory crackdown by Chinese officials.
  • Noble Group fell heavily today following the announcement of a debt-for-equity swap that would grant senior creditors a 70% stake in the debt-laden commodities trader.

EUROPE AND US MORNING HEADLINES

  • A Confederation of British Industry and PricewaterhouseCoopers LLP poll shows finance workers gloomiest since 2008 last quarter. Nine out of 10 firms see Brexit as risk to London’s dominance Confederation of British Industry and PricewaterhouseCoopers LLP poll.
  • Jamie Dimon to remain CEO of JP Morgan for another five years.
  • US chipmaker Maxim Integrated jumped to their highest level in more than 17 years following a media report the company was in talks to be acquired by Japanese rival Renesas Electronics in a deal that could be worth close to US$20bn.

 

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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