Marcus Today End Of Day Report
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- ASX 200 catches cold down 95 points to 6026.
- High 6099 Low 6013. Modest volumes. Worst fall in 18 months.
- Initial falls carry through as Asia opens down.
- Banks and miners sell off in unison.
- WES takes write off. Telcos slump.
- Energy shares fall. Bond proxies slide.
- Eagles win Superbowl.
- AUD slips to 79.28c as USD gains ground on rate rise fears.
- Bitcoin continues to fall to US$8,168.
- US futures down 112.
- Asian markets hit with CSI 300 down -0.23% and Japan -1.90%.
FUTURES AND HIGHS AND LOWS
- HENRY CALL – No time for panic. Henry talks about perspective and offers some strategies to stem the flow in a volatile market. Risk reduction and capital preservation the key.
- TRADING PORTFOLIO – Expecting stop losses to be triggered and cashing up in the MT Portfolios.
- SMALL STOCK PORTFOLIO – Henry is looking at repricing risk post Wall Street’s declines last week. Doing a bit of selling so our cash positions are healthy for opportunities as they arise.
- INSIDERS – Thank you kindly to ‘The Fib’ who invites us to buy SWF.
- 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
- SHL +0.85% bucks trend to go to an all-time high.
- SDA +1.82% NBN contract win.
- APT -6.62% high PE stocks falling.
- JHX +0.04% positive broker sentiment after results Friday.
- KGN -8.08% gravity strikes.
- KDR -4.47% lithium unwinds.
- MIN -6.47% misses out on AWE.
- MLX -5.18% metal price weakness.
- BIG -9.44% negative sentiment takes toll.
- UPD -5.39% speculative stocks hit hard.
- DCC -16.33% follows bitcon down.
- WSA -6.87% nickel price falls.
- WBC -1.23% taps market for $750m of Tier One Capital
- ARU -12.50%% rare earths update.
- FXJ -1.39% NZM +5.30% to appeal NZ government decision.
- BYE -12.90% completes drilling operations.
- YOJ -15.22% catches GSW bug.
- XRO -5.79% sole ASX listing begins.
- ARB +1.62% bucks selling but volume low.
- MEA -6.38% on John McGrath’s alleged gambling losses.
- Speculative stock of the day: Roots (ROO) +7.32% Exclusive distribution agreement for Chinese market signed with Dagan Agricultural with targeted minimum sales of $19m over 5 years.
- Biggest risers – IFN, SDA, CVW, ARB and CDD.
- Biggest fallers – KGN, SYR, RSG, ELD, ORE and BIG.
- Wesfarmers (WES) -4.51% New CEO has cleared the decks as its UK Bunnings (BUKI) business struggles. Wesfarmers will book non-cash impairment charges of £454m ($795m) before tax on BUKI, with £444m ($777m) to be recorded against goodwill on the acquisition of Homebase and £10m ($18 million) against the remaining book value of the Homebase brand name. BUKI was expected to report an underlying loss before interest and tax of £97m ($165m) for the December-half 2018. This compares with market forecasts for losses around $54m. The dividend will be determined off the group net profit and the write down will not affect that. More strategy updates to come with full year results.
- AWE (AWE) -3.05% The company has recommended the takeover by Mitsui for 95c in cash. Directors have unanimously told shareholders to take the cash. Obviously, the board has rejected the other two bids.
- Downer EDI (DOW) -3.78% Announced today it will impair the carrying value of the goodwill for its Mining business. A pre-tax charge of $77m will be recorded in its up and coming half year results and disclosed as a signficant non-recurring item; so no change to guidance. And no impact to cash flow, or the existing operations the company said in a statement.
- Greencross (GXL) -0.16% Announced Simon Hickey as CEO and MD to replace Martin Nicholas effective next month. Hickey comes from Qantas Loyalty and has over 10 years' experience in strategy and finance roles.
ALL ORDS SECTOR SUMMARY
ALL ORDS TOP MOVERS
ALL ORDS BOTTOM MOVERS
ASX 200 SECTOR SUMMARY
ASX 200 TOP MOVERS
ASX 200 BOTTOM MOVERS
- A monthly survey by ANZ showed total job advertisements jumped 6.2% in January from December, when they fell 2.7%. That was the largest monthly rise since February 2010.
- The number of home auctions rose to 779 in the week to February 4 - almost triple the number a week earlier but that was down on the 881 in the same period a year ago according to CoreLogic. Preliminary clearance rate of 67.7% across the combined capital cities well below the previous week's 72.8%, and lower than the 68.8% rate at the same time in 2017.
BOND MARKET UPDATE
- Growth in Japan’s service sector growth picked up in January as a gauge of industry activity remained in expansionary territory for a sixteenth consecutive month.
EUROPE AND US MORNING HEADLINES
- The Philadelphia Eagles (NFC team) have won their first Super Bowl, denying the New England Patriots (AFC) a sixth championship victory. This is a positive for markets as a NFC team is 80% more likely to result in a positive year for stocks. The ‘Superbowl Predictor’ has picked it correctly eight times out of ten since the first one in 1967. A high scoring game above 46 points is also good for markets (41-33). They need all the help they can get after Friday.
- The Fed has slapped extra sanctions on Wells Fargo after fake account scandal.
- Lloyds Bank in UK bans credit card buying in cryptos.
- Bank of England monetary policy decision Thursday.
- Italian elections next month and we may see Berlusconi back with a hung parliament tipped.
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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