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SHARECAFE COMMENTARY

Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 16/02/2018
VIEW MORE ARTICLES BY HENRY JENNINGS

Market Summary

  • ASX 200 limps to close down -5 at 5904 as politics takes focus.
  • High 5938 Low 5902. Strong volume again.
  • War breaks out in Coalition.
  • Results season continues.
  • Banks slip, resources take a breather.
  • Healthcare in focus.
  • AUD stronger at 79.68c
  • Bitcoin rallies hard to US$10,148.
  • AUD Bullion around $1356.
  • US futures up 71 points.
  • Asian markets better with Japan up 1.15%. China closed.

FUTURES AND HIGHS AND LOWS

Mt Stuff

  • MARCUS CALL – Buying back - some significant portfolio changes. Also taking this opportunity to harmonise the MT Portfolios with the MT SMAs.
  • TRADING PORTFOLIO – We’ve added three new trades and raised four stop losses.
  • SMALL STOCK PORTFOLIO – We’ve added AGY to the portfolio.
  • RETIREMENT TODAY – Prioritise your life with Harold.
  • INSIDERS – ‘Blowie’ recommends we buy OGX, and ‘JockoMa’ likes PNV.
  • 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

Advancers and Decliners

  • IPH -6.10% broker downgrades following results.
  • PME -6.76% results disappoint.
  • S32 -5.14% selling continues as brokers downgrade.
  • FXJ -4.69% goes from bad to worse.
  • HSO +6.46% positive broker comment.
  • SSM +6.21% rally continues.
  • BWX +3.50% gaining friends.
  • BRG +3.88% positive broker upgrades.
  • NCZ +11.86% zinc price rises.
  • JIN +4.24% good results. Again.
  • FMG -0.74% two billion opportunities milestone to aboriginal business.
  • FLN +12.12% rock bottom?
  • MEA -3.53% John has a betting account.
  • PRT -15.38% disappointing results.
  • BIG -3.06% profit taking.
  • BFC -4.00% merger with DataDot (DDT) +33.33%.
  • MOC +6.14% strange move.
  • Speculative stock of the day: New IPO Pearl Global (PG1) +35.00% after a successful listing for the tyre recycler.
  • Biggest risers – HSO, SSM, GSC, CDD, VRL and BWX.
  • Biggest fallers – IPH, PME, SGR, WHC, S32 and FXJ.

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:

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TODAY

  • IOOF (IFL) –2.19 1H net profit A$94.8m, down 39%. Underlying profit A$94.8m, up 19%. The company said the acquisition of ANZ Wealth Management is progressing as planned. Interim dividend of 27c, up 4%.
  • Medibank Private (MPL) +3.62% 1H net profit A$245.6m versus A$231.9m, up 5.9%. 1H income A$3.53bn, up 1.7%. Health insurance operating profit $277.3m, up 11.2%. Net claims up 2.5%. Interim dividend of 5.5c. Expects underlying revenue trends to continue for the FY, and management expenses to be slightly higher in the 2H, but less for the FY.
  • Primary Health Care (PRY) +3.40% 1H net profit A$22.1m, up 4.7%. Revenue A$856.5m, up 5.9%. EPS 4.2c versus 4.0c on the pcp. Interim dividend 5.1c. The company said its improved EBIT contributions from Pathology, Imaging and Corporate offset a decline in Medical Centres that were moving to a new operating model. Primary medical centres EBIT was down $4.9m; Imaging EBIT increased by 14.7%, and pathology EBIT up 3.1%. PRY said its results included $19.7m of non-underlying items which related to restructuring and investment in strategic initiatives. Profit guidance of A$92m – A$97m was confirmed.
  • Baby Bunting (BBN) +5.76% 1H net profit A$3.5m, down 33% on year. Interim dividend of 2.8c.
  • iSelect (ISU) +7.29% 1H net profit A$478,000, down 81% on year. Revenue up 7% to $83.3m. Dividend of 1.5c. Customer leads up 5% to 2.1m. Unique visitors down 500k to 4.1m. Conversions were underpinned by Energy and Telcos at 10.4%. Sales units up 6% to 224k.
  • Star Entertainment (SGR) –6.28% 1H net profit $32.9m, down 77%. EBITDA A$200m, down 34%. Revenue A$1.2bn, up 0.5%. Interim dividend of 7.5c. The results were impacted by low international VIP rebate business win rates, and significant items from debt restructuring. Domestic revenue up 4% for Sydney; and 8.7% for Queensland. The company said 1H trading for Sydney was softer than expected, and the start to the 2H has been mixed.
  • Sims Metal (SGM) +1.31% 1H revenue A$2.98bn, up 25%. Net profit A$8.2m, up 17%. Cash of A$390m. Interim dividend of 23c. The company said external market conditions are steadily improving and ferrous scrap prices have remained firm so far in the 2H. Underlying return on capital is on track to exceed FY targets.
  • Whitehaven Coal (WHC) -4.51% NPAT of $257.2m driven by a 32% increase in margins per tonne. Met coal average price of US$111/t and thermal coal at US$95/t. EBITDA of $460.6m. Interim dividend of 13c. Net debt down 4% to $146.9m. FOB costs at $60/t as previously announced.
  • Rio Tinto (RIO) +0.48%% could face higher costs on its $US5.3bn expansion of Mongolia's Oyu Tolgoi mine, after Mongolia ordered the miner to source power for the mine domestically within four years.
  • Citi upped its average gold price forecasts for 2018 by around 7% to $1355 an ounce.
  • Copper is on track for its biggest weekly gain since November 2016, up 6.3% so far on the back of optimism over global growth and weakness in the USD.

ECONOMIC NEWS

  • RBA governor Philip Lowe said he expected property price growth and debt to expand at a slower pace than incomes to help defuse a dangerous build-up in housing debt, reiterating that his next move was more likely to be a rate hike. "Above-trend growth at a time of low unemployment should be expected to see inflation lift, even if that lift is gradual because of factors that are affecting wage and price pressures globally," Dr Lowe told a hearing of the House of Representatives economics committee. Dr Lowe said an infrastructure construction surge was generating jobs and expanding the economy's future productive capacity.
  • Lowe also said that US tax cuts were 'very problematic' because they blow out the budget deficit and Australia should not go the same way. He says that over the next six years US budget deficits will average 5% of GDP even though unemployment is low and the economy is strong

BOND MARKET UPDATE

ASX 200 SECTOR SUMMARY

ASX 200 TOP MOVERS

ASX 200 BOTTOM MOVERS

ALL ORDS SECTOR SUMMARY

ALL ORDS TOP MOVERS

ALL ORDS BOTTOM MOVERS

ASIAN MARKETS

  • Prime Minister Abe nominated Haruhiko Kuroda to lead the BoJ for another five-year term.

EUROPE AND US MORNING HEADLINES

  • 5 days of US rallies best since 2011.
  • Investors withdrew US$6.3bn from U.S. high-yield junk bond funds in the past week, the second-biggest amount ever, as concern mounted that equity-market volatility was spreading.
  • U.S. regulators rejected a bid by a Chinese-linked consortium to take over the Chicago Stock Exchange.
  • HNA Group has further cut its stake in Deutsche Bank.
  • US Senate fails to approve immigration compromise.
  • Uber could be hit with tough new regulations under proposals from Transport for London (TfL) to improve passenger safety among private hire vehicle operators.
  • Who is the most miserable country? Stand up Venezuela. Take a bow South Africa.

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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