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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 14/02/2018
VIEW MORE ARTICLES BY HENRY JENNINGS

Market summary

  • ASX 200 falls -15 points to 5841 in narrow range.
  • High 5868 Low 5830.
  • CBA ex dividend knocks off 12 points.
  • WPL taps shareholders for $2.5bn.
  • CSL marches ahead.
  • Results the focus. REITs caution ahead.
  • Banks struggle a little.
  • US CPI tonight. World waits.
  • AUD back to 78.74c
  • Bitcoin pushing higher to US$8788
  • AUD Bullion around $1334.
  • US futures finding support up +66.
  • Asian markets struggling with China CSI up +0.04% ahead on New Year. Japan down -0.68% on yen.

Mt Stuff

  • MARCUS CALL – The problem with the US market, a risky day today, the best performing Australian sectors.
  • TRADING PORTFOLIO - We added four trades yesterday. That's enough.
  • SMALL STOCK PORTFOLIO – We added MLX and Henry continues to look for bargains. Trying to exercise some patience.
  • INSIDERS – Henry discusses GXY with Insider, Tesla2.
  • 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

Stock Picking

If the market wobbles then Stock Picking will be a lot more important this year. Find out how to do it on one of my one day courses costing $750 - click on the button below - we are adding new dates all the time as they sell out:

http://marcustoday.com.au/webpages/images/dynamic/image(598).png

Advancers and Decliners

  • AOG +3.49% good results and broker upgrades.
  • MSB +2.88% bounces off lows.
  • COH +2.47% broker upgrades.
  • BLD +1.24% brokers warm to result.
  • FBU -7.13% resumes trading as Ralph Norris steps down.
  • GXY -2.91% lithium stocks unwind rally.
  • FXJ -3.10% Domain weighs DHG -1.72%.
  • TCL +2.21% broker upgrades.
  • CGF -4.06% broker downgrades.
  • WBC -0.13% acknowledges APRA papers on capital issues.
  • TLS -1.44% weakens ahead of results tomorrow.
  • CCV +5.80% closes ASIC enforceable undertaking.
  • BIG +7.89% rally resumes.
  • LVT – trading halt on $20m raising.
  • Speculative stock of the day: Holista CollTech (HCT) +42.86% signs US$6m MOU on low GI noodles.
  • Biggest risers – IFT, YAL, CSL, CPU, AOG, ORA and IAG.
  • Biggest fallers – FBU, NHC, DMP, CGF, PMC and EHE.

TODAY

  • Computershare (CPU) +4.85% 1H net profit US$171.2m, up 14% on year. The company upgraded FY18 management EPS guidance by 12.5% despite continuing tailwinds. The company declared a 19c dividend.
  • CSL Limited (CSL) +5.08% 1H net profit US$171.2m, up 14% on year. Revenue from continuing operations US$4.1bn, up 13%. 1H immunoglobulin sales rose 13% at constant currency and seasonal flu vaccine sales increased 43%, seeing cash profit up 35% on sales. Interim dividend of US79c. The company expects FY18 net profit of US$1.1bn, up 35
  • Domino’s Pizza (DMP) -6.06% 1H net profit A$59m, up 17%. Revenue A$568m, up 5%. Network sales up 7%, same store sales up 4%. Interim dividend of 58c. The company expects FY18 net profit growth of 20% but downgrades guidance on Australia and New Zealand same store sales to +6% - 8%, from +7%-9%.
  • Woodside Petroleum (WPL) – 1H net profit Us$171.2m, up 14% on year. Quarter on quarter sales revenue of $939m and production of 21.9MMboe. Strong result was underpinned by a record 4Q for Pluto LNG production and first shipment from Wheatstone LNG. Looking ahead to FY18, the company said it expects a significant increase in annual LNG production and expects to be cash flow neutral at $35 a barrel. FY18 production guidance is 85 – 90MMboe. Investment expenditure guidance is $1,550m - $1,600m. Final Dividend US49c. The company announced a $2.5bn rights issue to lift its interest in Scarborough.
  • Insurance Australia Group (IAG) +3.16% 1H net profit A$551m, up 24%. Revenue A$8.27bn, up 1.1%. Margins up 13.5% to 380bp. 1H gross written premiums A$5.83bn versus A$5.80bn. Insurance profit A$743m versus A$571m. EPS up 33.4% to 26.66. Interim dividend of 14c.
  • Villa World (VLW) -1.92% 1H net profit A$17.3m, down 12%. 1H net profit A$17.3m, down 12% on year. Interim dividend of 8c.
  • Lifestyle Communities (LIC) +1.91% said net profit after tax for the half-year ended December 31 rose to $15.8m from $12m a year ago, driven by 150 new home settlements.
  • Aveo's (AOG) +3.49% first-half profit rose to $149.3m from $121.2m a year ago thanks to revaluation uplifts in the retirement portfolio and the sale of Gasworks. Underlying profit after tax dropped 33% to $36.3m due to reduced sales volumes.
  • Vicinity Centres (VCX) -1.54% said its 1H net profit fell in the six months ended December 31 from $908.8m in the year-earlier period. Revenue rose 3.9% to $662.7m from the year-earlier $637.9m
  • Myer (MYR) +1.87% CEO Richard Umbers has stepped down. Solly Lew launches broadside at Chairman and board.

ECONOMIC NEWS

  • Australian consumer sentiment for February fell 2.3% to 102.7 today; the first decline in three months. The sub-index of personal finances fell 4.5% yoy and confidence for the next 12 months fell by 3.1%.
  • The declines came on the back of recent volatility in global financial markets and a modest fall in commodity prices. Westpac said, “extensive media coverage of these developments would have unnerved respondents on two fronts – the impact of their own financial position and concerns for general global stability”.
  • The Japanese economy grew 0.1% QOQ in Q4 2017, after a 0.6% expansion in Q3, below consensus of a 0.2% growth, preliminary estimates show. Growth was mainly supported by private consumption while business spending rose less.

BOND MARKETS

ALL ORDS SECTOR SUMMARY

ALL ORDS TOP MOVERS

ALL ORDS BOTTOM MOVERS

ASX 200 SECTOR SUMMARY

ASX 200 TOP MOVERS

ASX 200 BOTTOM MOVERS

ASIAN MARKETS

  • South Korea says it will take firm action against illegal and unfair acts in cryptocurrency trading after over a 280,000 signature petition was sent to the presidential Blue House.
  • Japan’s economic expansion slowed in the three months through December, according to an initial estimate, nonetheless ringing up an eighth consecutive quarter of growth and the longest streak since a 12-quarter stretch that ended in 1989.
  • Yen climbs to 15-month high.
  • Malaysian GDP grows by 5.9% beating estimates.
  • South Korea’s Lotte Group slumped today as the market reacted to news the company’s chairman was jailed for two and a half years for bribery.
  • India’s second-biggest state-run bank said it has detected a $1.8 billion fraud at a single branch in the nation’s financial hub. The fraudulent transactions are the equivalent of eight times the lender’s 2017 net income of about 13.2bn rupees (US$206 million).
  • Kung Hei Fat Choi .Chinese facing a baby crisis. The two child policy is not working as the costs of having children has risen. Could be a demographic time bomb.

EUROPE AND US MORNING HEADLINES

  • Bank of America Merrill Lynch's February survey of global fund managers showed a marginal increase in cash, back above the 10-year average, though cash levels haven't reached a level to trigger buying.
  • US Regulators are probing the role that VIX products have played in recent volatility. Washington law firm, Zuckerman Law said a whistleblower client had sent an anonymous letter to the Securities and Exchange Commission and the Commodity Futures Trading Commission, alleging volatility manipulation. A CBOE spokeswoman rejected the claims.

 

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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