Marcus Today End Of Day Report
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- ASX 200 gains 15 points to 6038 on bargain hunting CPI and SOTU.
- High 6044 Low 5994. Good volumes.
- CPI disappoints. No risk of rate rise near term.
- Banks (Ex CBA) turn around with REITs in demand. Defensives shine.
- Miners still under pressure. Energy sinks though infrastructure better.
- AUD staying strong at 80.76c post CPI
- Bitcoin slips to US$9,809 on cyber heists and tax changes.
- US futures up 27 on SOTU.
- Asian markets mostly down with CSI 300 -0.28% and Japan -0.64%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – The sell off - I have lifted the cash levels in the MT SMAs just in case. Don't need much of an excuse.
- TRADING PORTFOLIO - Finally one of the trades has been stopped out. No new trades.
- SMALL STOCK PORTFOLIO – Henry is selling TNE. Sold half of Z1P and putting it elsewhere. Few extra stocks for our watchlist. Remember, you can tune into Henry at Sky Business every Wednesday at 12pm.
- INSIDERS – Lots of insights. Which delighted Henry. Thank you to ‘Optima’, ‘The Keeper’ and ‘Shanti’ for your thoughts.
- 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:
Click image above to see Marcus on ABC's the Business last night with Elysse Morgan.
Advancers and Decliners
- IGO +0.79% quarterly report.
- GUD -0.89% half yearly results.
- CBA -0.28% response to media on possible fines.
- SFH +9.09% in potential takeover talks.
- QBE -0.83% S&P reaffirms rating.
- SRX +45.78% cash bid at 2800c.
- API +4.17% bounces back.
- ORG -0.11% production report, job losses and Lattice Energy update.
- A2M +3.11% rally continues.
- KGN +3.77% broker upgrade.
- BIG +1.39% quarterly update.
- BPT -4.06% quarterly report and downgrade.
- TWE +0.71% profit beats expectations. No upgrade though.
- MLX -3.17% metal prices weigh.
- CCP -2.85% broker downgrades post result.
- BRN -6.98% quarterly report.
- DCC -9.84% bitcoin losses.
- GSW – still suspended but issues director’s holdings. Months late.
- Speculative stock of the day: Oliver’s Real Food (OLI) +17.39. Quarterly sales ahead of prospectus forecast up 5.7%. Gross margin at 75.6% with three new stores opened. Cash balance of $2.3m.
- Biggest risers – SRX. CSR, SKC, ANN, SIG and API.
- Biggest fallers – SXY, AVZ, BPT, CDD, SPL and MFF.
- Sirtex (SRX) +45.78% The faithful have been rewarded with a 2800c cash takeover bid by Varian Medical Systems. The board has unanimously grabbed the chance and recommended the offer to shareholders. Varian is a leader in delivering cancer care solutions. The acquisition will be by a scheme of arrangement and follows a number of unsolicited non-binding proposals.
- AWE (AWE) -0.51% The company has given Mineral Resources (MIN) three business days to match the 95c offer from Mitsui. In the absence of another offer, the board believes shareholders should accept it at 95c in cash.
- Treasury Wine Estates (TWE) +0.71% A 25% increase in earnings to $283.3m ahead of the forecast of $265m. Earnings in Asia jumped 48% with growing margins. This is a great result. However, it is a result the market was probably pricing in given the rally in the TWE share price. TWE has stuck with consensus earnings of $524m for the full year which may be a little negative. Expect to see profit taking on the back of these numbers. It also said that the US tax rate change would lift earnings by 2% - 4%.
- Patrick Delany has replaced Peter Tonagh as Foxtel's chief executive ahead of the merger of the two businesses later this year.
- Coca Cola Amatil (CCL) +0.96% Resignation of MD beverage division due to ill-health.
- Australian 4Q inflation rose +1.9% today, following a +1.8% rise in the previous quarter. The result was slightly below market consensus of a +2.0% rise. On a quarterly basis, consumer prices were unchanged; rising 0.6%, lower than estimates of a 0.7% increase.
- The RBA aims to keep inflation between 2% - 3%, so given the weak number, the Australian dollar fell as a result.
- The ABS said pricing pressures from imports continued to remain weak; and rising fuel, tobacco and travel prices were offset by declines in consumer goods.
- Non-tradeables, such as wages, increases slightly to 0.8%; as well as new-dwelling purchase costs, up 0.6%. Domestic holiday travel and accommodation were also up 6.3%. Last year, non-tradeables were up 3.1%.
- The official Chinese Purchasing Managers' Index (PMI) released today edged lower to 51.3 in January, compared with 51.6 in December. But it remained comfortably above the 50-point mark that separates growth from contraction.
- A separate PMI on the steel sector rose to 50.9 in January from 50.2 in December.
- South Korea has uncovered cryptocurrency crimes worth 637.5bn won ($594.35m) which includes illegal foreign exchange trading.
- Samsung Electronics shares rose on Wednesday after the company announced a 50:1 stock split as another step to enhance its shareholder value and broaden its investor base.
EUROPE AND US MORNING HEADLINES
- State of the Union brings out the President but no real details. Plenty of ‘Making America Great’ and heartstrings tugged. Infrastructure a focus and getting drug prices down.
- Blackstone is launching an attack on Bloomberg’s dominance of Wall Street and City trading floors via a US$17bn debt-fuelled deal for control of the Thomson Reuters financial data business. Under the deal, confirmed on Tuesday evening, the buyout firm will take a 55% stake in the Thomson Reuters Financial & Risk division, which has annual revenues of US$6.1bn.
ALL ORDS SECTOR SUMMARY
ALL ORDS TOP MOVERS
ALL ORDS BOTTOM MOVERS
ASX 200 SECTOR SUMMARY
ASX 200 TOP MOVERS
ASX 200 BOTTOM MOVERS
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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