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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 01/03/2018
VIEW MORE ARTICLES BY HENRY JENNINGS

Market summary

  • ASX 200 finishes -43 points lower to 5973, following late US sell-off.
  • High 6006 Low 5957. Ex divs not helping.
  • Across the board losses with financials and resources leading falls.
  • Telstra continues to droop.
  • REITs hold up on defensive bias.
  • AUD falls slightly in capex numbers miss to 77.31c.
  • Bitcoin slips to US$10,335.
  • US futures down -69 after Wednesday’s late sell off.
  • Asian markets mixed with Japan -1.82% and China CSI up +0.43%.

FUTURES AND HIGHS AND LOWS

MT Stuff

  • MARCUS CALL – Wall Street has had a couple of bad days but Marcus can’t find anything to sell. All our stocks (bar FMG) are continuing their uptrends.
  • TRADING PORTFOLIO - WOW, RIO and FMG all ex-dividend and prices have adjusted for that. No new trades - "Don't trade with the wind in your face".
  • SMALL STOCK PORTFOLIO - Henry was pleased with yesterday’s announcements from PLS and MSB. And he’s looking to exit ISD at the right price. Also, the disconnect between company valuations and actual revenue is likely to end in tears. Henry discusses.
  • INSIDERS – The compulsory recall of airbags and the companies poised to potentially reap the rewards. Send us 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:

https://marcustoday.com.au/webpages/images/report/20171016/askmarcusbutton.jpg https://marcustoday.com.au/webpages/images/report/20171016/tellusyourstockideas.jpg

Advancers and Decliners

  • CLQ +15.88% broker upgrades.
  • MSB +9.27% positive broker comments.
  • BWX +3.82% bouncing back.
  • PPH +3.42% broker upgrades.
  • SPL +3.46% positive bio tech sentiment.
  • ISX +12.90% write up on livewire.
  • YAL +3.23% good profit report.
  • ORE -6.12% GXY -4.86% lithium turns negative.
  • MLX -5.11% copper price falls.
  • ABC +0.46% Barro creeps up share register.
  • DMP -1.04% continuing press speculation on margin loans.
  • HVN -2.99% brokers cool as milk sours.
  • BIN +1.95% broker upgrades.
  • MGC -1.78% facing ACCC issues.
  • ORI -3.49% profit downgrade.
  • ALU -2.92% downgraded by Bell Potter.
  • RHC -1.36% downgraded.
  • BVS +1.38% Ironbridge Capital sells stake.
  • Speculative stock of the day: Taruga Gold (TAR) +176.00% after the acquisition of a high-grade cobalt-copper project in the Congo. Looks pretty overdone considering it is the DRC. The company is raising $1.35m through a placement of 13.5m shares at 10c. Seems an excessive price rise for a small project acquisition.
  • Biggest risers – CLQ, MSB, WBA, DCN and GSC.
  • Biggest fallers – ORE, MLX, GMA, EWC and GXY.

TODAY

  • Mayne Pharma (MYX) – unchanged - Releases the first generic extended release form of Ritalin in the US in a 10mg dose. The product is used to treat attention deficit hyperactivity disorder, and compliments the existing product range in 20mg, 30mg, 40mg and 60mg dose strengths. The company says US brand sales of Ritalin were approximately US$20m for the 12 months ending 2017.
  • Murray Goulburn (MGC) -1.78% the ACCC says its has concerns about the Saputo deal. Its sole concern is in relation to its Koroit dairy plant and the affect it will have on competition for farmers’ milk in south-west Victoria and south-east Victoria. Anticipated date for the regulator’s final decision is 29 March.
  • Orica (ORI) -3.49% The company announced a profit downgrade this morning. ORI has blamed unplanned maintenance at Yarwun and Kooragang Island for a $17m hit. The company is also being impacted by extreme weather in North America. EBIT performance will be skewed to the second half. The company has also flagged a $300m provision in its Minova business.


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. We also have a Beginners half day course for $199:


ALL ORDS SECTOR SUMMARY

ALL ORDS TOP MOVERS

ALL ORDS BOTTOM MOVERS

ASX 200 SECTOR SUMMARY

ASX 200 TOP MOVERS

ASX 200 BOTTOM MOVERS

ECONOMIC NEWS

  • The trend volume estimate for total new capital expenditure rose by 0.8% in the December quarter 2017 while the seasonally adjusted estimate fell by 0.2%.

  • The trend volume estimate for buildings and structures fell by 0.2% in the December quarter 2017 while the seasonally adjusted estimate fell by 2.1%.
  • The trend volume estimate for equipment, plant and machinery rose by 2.1% in the December quarter 2017 while the seasonally adjusted estimate rose by 2.2%.

  • APRA has signalled it could ditch its 10% cap on lending to property investors as the measure is "probably reaching the end of its useful life". Chief Wayne Byres said the speed limit, introduced in 2014, might be becoming "redundant" as bank lending standards had improved, while credit growth had dropped sharply.
  • Sydney prices fell 0.6% and Melbourne and Brisbane prices fell 0.1% each in Corelogic's hedonic home value index for February. Across capital cities, prices fell 0.1%.

ASIAN MARKETS NEWS

  • The Caixin-Markit purchasing managers' index, which focuses on smaller and private businesses, edged up to 51.6 in February from 51.5 in January.
  • In a two-week session starting Monday, China’s parliament is expected to enact sweeping legislative changes that allows President Xi to rule indefinitely and give him greater control over the levers of money and power. Other items on the agenda include a plan to radically overhaul the finance and insurance industry.
  • Tencent Music Entertainment, the streaming unit due to be spun off by the Chinese tech titan later this year, has been valued at US$12.3bn based its reciprocal share swap with global peer Spotify.
  • India is now officially the world’s fastest growing major economy at 7.2%

EUROPE AND US MORNING HEADLINES

  • Trump looks like he will impose strict steel and aluminium tariffs. The President told aides he wants to announce tariffs of 25% on steel and 10% on aluminum from all countries. Not good for RIO or BSL.
  • Walmart has said it will end sales of guns and ammunition to people under 21 as calls for tougher gun controls continue in the wake of a Florida school shooting.
  • Hope did not spring eternal as Hicks quits as White House Communication Chief.
  • Getting messy in the UK as PM May attacks the Brexit draft as a threat to the UK. Northern Ireland emerging as a critical issue.
  • Italian elections this weekend.
  • According to one economist the signs of global interest rate stress are flashing amber. The Libor rate (London Interbank Offered Rate) has spiked to a 10-year high. Why is this important? Well a third of all; US business loans are linked to Libor. Theory is the US can stand higher rates, but the rest of the world? Maybe not.

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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