Marcus Today End Of Day Report
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- ASX 200 gains 52 to 6090 as bulls grab the horns.
- High 6094 Low 6038. Good volumes. Futures buying.
- Banks and miners rally hard. Risk appetite back on.
- Energy stocks join the party. TLS and CSL miss out.
- AUD slips to 80.40c as rate rise hopes fall.
- Bitcoin firms to US$9,959.
- US futures up 62.
- Asian markets mixed with CSI 300 down 1.14% and Japan up 1.73%.
FUTURES AND HIGHS AND LOWS
- HENRY CALL – Marcus is touring Tasmania this week. So today Henry dissects SOTU and looks to see what local stocks might fare well on President’s Trump’s upgrades.
- TRADING PORTFOLIO – No new trades. No stop losses raised.
- SMALL STOCK PORTFOLIO – We’re up 7.3% since January. Planning to do a bit of trimming. Henry goes through the stock watch list.
- INSIDERS – ‘Optima’ advises us to buy OLI. Thanks for the insight!
- 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:
Advancers and Decliners
- BHP +1.521.45% talks up divestment plans for US business.
- XRO +10.55% on news National Bank will allow payments through XRO.
- CBA +1.45% responds to Prudential Panel inquiry.
- ASL +5.75% letter of intent for Wodinga project
- IVC +3.28% Lazarus rising.
- KGN +8.25% marches higher following Ticky interview.
- LYC -3.70% misses rally.
- TGR -6.36% heavy trade. Bad news ahead?
- API -1.33% resumes downtrend.
- VAH -3.70% broker downgrade.
- YOJ -8.16% falls on quarterly.
- WHA +10.62% first order from Macau.
- BRN +5.00% Luis Coello Director of Sales for EMEA.
- MSB +4.85% buyers return.
- BIG -2.19% new appointment to board.
- MDC -6.25% falls to recent placement price despite good news.
- Speculative stock of the day: Knosys (KNO) +61.62% an investor presentation has got the stock fired up again after the initial flurry of activity on the $6m Singtel deal announced the other day.
- Biggest risers – XRO, KGN, GUD, ASL, OMH and BPT.
- Biggest fallers – TGR, LYC, VAH, AHY, RFF and VRL.
ALL ORDS SECTOR SUMMARY
ALL ORDS TOP MOVERS
ALL ORDS BOTTOM MOVERS
ASX 200 SECTOR SUMMARY
ASX 200 TOP MOVERS
ASX BOTTOM MOVERS
- The AFR reports that there is a cloud over lithium production at Greenbushes in WA with tantalum being the issue impacting the doubling of capacity to 1.34m tonnes. Talison's owners, Chinese company Tianqi and US-based, Albemarle are counting on the $320m lithium mine expansion as they push ahead with building standalone lithium hydroxide plant in WA.
- Godfreys (GFY) -16.88% the vacuum cleaner retailer said sales were weak during the Christmas period, and warned impairments could lead to a half year loss of around $59m.
- The market currently implies around a 50-50 chance of a hike from the Reserve Bank of Australia by October and is not fully priced for a move to 1.75% until early next year.
- UBS has upgraded the growth outlook as real GDP accelerates to around a 4% annual rate in the fourth quarter of last year. Australian growth has been revised higher to 2.8% in 2018 and 2019 from 2.7%, snapping a downgrade cycle.
- Prices in Sydney and Melbourne fell 0.9% and 0.2% respectively in January mirroring the same decline according to Corelogic's latest Hedonic Home Value Index. Sydney house prices have now fallen 3.1% in a year.
- The Future fund reported an annual return for 2017 of 8.8% lifting its assets to $139bn. In the final quarter of 2018, the Future Fund's exposure to listed equities increased from 30 to 33% while the absolute exposure increased by $5.2bn to $45.5bn.
- The number of dwellings approved fell 1.7% in December 2017. In seasonally adjusted terms, dwelling approvals decreased by 20.0% in December, driven by a fall in private dwellings excluding houses (39.2%), while private house approvals rose 1.0%. The numbers are very volatile and economists were going for - 8%.
- More from the ABS - The Import Price Index rose 2.0% in the December quarter 2017. This follows a fall in the September quarter 2017 of 1.6%. The rise was driven by higher prices paid for Petroleum, petroleum products and related materials (+14.0%), reflecting tightening worldwide supply due to global production restrictions and capacity constraints. The Export Price Index rose 2.8% in the December quarter 2017. This follows a fall in the September quarter 2017 of 3.0%. Prices received for many of Australia's mineral fuel commodities rose in the December quarter 2017. Coal, coke and briquettes rose 9.0% driven by demand from China for higher quality coal and supply restrictions. Petroleum, petroleum products and related materials rose 19.7% reflecting tightening worldwide supply due to global production restrictions and capacity constraints.
- The Federal Government has unveiled restrictions on sales to international buyers on power and agricultural companies. The government will consider the cumulative level of ownership in a sector, the need for diversity and the asset’s critical importance. Agricultural properties and assets will have to be offered to Australians first.
BOND MARKET UPDATE
- The Caixin/Markit manufacturing PMI for January came in at 51.5. Expectations were around 51.3. The official PMI for the month missed expectations, coming in at 51.3.
- The official non-manufacturing PMI released on Wednesday expanded to 55.3 in January from 55 in December.
- Chinese stocks have had their worst week since 2016.
- Bitcoin has lost around US$44bn of its value in January.
EUROPE AND US MORNING HEADLINES
- Amazon is now the most valuable brand in the world knocking Google off the top spot. Apple is in second place followed by the search engine.
- Alan Greenspan is forever blowing bubbles or at least at 91 he still sees them, both in bonds and equities.
- Facebook says users spend less time browsing by a huge 50m hours a day, as the company announced a significant decline in usage of its service and what may be the first-ever drop in daily users in the United States.
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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