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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 02/03/2018
VIEW MORE ARTICLES BY HENRY JENNINGS

 Market Summary

  • ASX 200 closes 44 points lower following Trump tariff tantrum.
  • Post lunch rally saves blushes.
  • High 5965 Low 5902. Volume average.
  • Banks hold but big miners hit hard.
  • Gold stocks hold up on safe haven buying.
  • TLS continues to slide.
  • Healthcare in the spotlight.
  • AUD steady at 77.57c
  • Bitcoin continues to climb US$11,051.
  • US futures down -84 as sentiment sours.
  • Asian markets rattled on trade wars fears with Japan -1.48% and China CSI down -0.48%.

FUTURES AND HIGHS AND LOWS

Advancers and Decliners

  • BSL +0.80% shrugs off tariffs.
  • RIO -1.27% US trade sanctions and late breaking ASIC allegations.
  • WGX +2.90% broker upgrade and roadshow.
  • APE +1.50% airbag recall?
  • NEC -3.02% profit taking.
  • HVN -1.54% selling continues.
  • ALU -4.13% profit taking.
  • GXY -6.61% ORE -4.23% lithium unwinds.
  • SDA -4.59% TA associates sell 13.1% at 545c.
  • SGH +33.18% low volume. Low liquidity.
  • ISX +8.57% still in spotlight post livewire write up.
  • AYS -9.09% not so amazing.
  • BGA -1.19% broker upgrades.
  • Speculative stock of the day: Taruga Gold (TAR) -30.43% yesterday’s hero, today's villain. Positive Spec of the day Venus Metals (VMC) +12.50% after a thick cobalt nickel discovery at the Youanmi project (good name).
  • Biggest risers – DMP, WGX, SAR, DCN, GSC and SAR.
  • Biggest fallers – SYR, HUB, SDA, GXY, SXL and KGN.

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:


MT Stuff

  • MARCUS CALL – A great piece on the results season. All you ever wanted to know but were afraid to ask.
  • HENRY CALL Some macro events that are shaping the world and how that affects your stock picking. And what’s the deal with China.
  • TRADING PORTFOLIO – No new trades. No point in going against the tide. We were stopped out of ORG and RIO.
  • SMALL STOCK PORTFOLIO – We are sitting pretty for now and riding out the current tremors.
  • INSIDERS – ‘Bomber76’ likes REX. And in the rare earths space, ‘Nugget’ likes NTU.
  • RETIREMENT TODAY – Decision making is a fact of life and the last few weeks have tested us in this regard. Harold discusses the issue of ‘wicked problems’ and what to do about them.
  • 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

POINTS

TODAY

  • Atlas Iron (AGO) – unchanged - Announced it has signed an agreement with Sinosteel to export lithium from Pilbara Minerals' Pilgangoora project. It said it will use its logistics chain to handle the ore at a very low capital cost and without affecting current iron ore production. It will sell up to 1.5m tonnes over a 15-month period on a fixed price basis. And as part of the arrangement, SinoSteel will advance funds to cover prepayments due to Pilbara for mine development costs. Atlas says it expects to generate an operating margin of $15-20 per tonne and is on track to commence first exports in the June quarter.
  • Retail Food Group (RFG) – trading halt - The stock will return from its suspension on Monday. Underlying net result of NPAT of $24.7m down 31.8%. The company is making a non-cash impairment of $138m reporting a loss of $87.8m. Net debt was $259.7m and in the only good news is in compliance with its debt covenants. The company has called the outlook challenging.
  • Speedcast (SDA) -4.59% TA Associates has sold down its 13% stake in the company at 545c.

ANNOUNCEMENTS

ECONOMIC NEWS

  • HIA Housing data today showed sales of detached housing fell 2.1%. Now 14.9% below cyclical peak. HIA is forecasting detached housing completions to fall 5.1% this year. It expects a larger 15% drop for multi-unit construction.
  • Sales in NSW fell 5.7% leaving them -0.8% on a year earlier.
  • Victorian sales also slipped, falling 4.4% from December.

ALL ORDS SECTOR SUMMARY

ALL ORDS TOP MOVERS

ALL ORDS BOTTOM MOVERS

ASX 200 SECTOR SUMMARY

ASX 200 TOP MOVERS

ASX 200 BOTTOM MOVERS

BOND MARKETS

ASIAN MARKETS NEWS

  • Toyota Motor Corp said on Friday US tariffs on imported steel and aluminum would substantially raise costs and therefore prices of cars and trucks sold in America, Reuters reports. Toyota added that more than 90% of the steel and aluminum purchased for cars built in the United States is sourced from the country

.

  • The Chinese steel industry is furious, offering a powerful, early taste of the global antagonism that the curbs are likely to cause.
  • South Korea, home to steelmakers including POSCO, is going into lobbying mode.
  • The unemployment rate in Japan fell to the lowest level in nearly a quarter-century in January as the ratio of open jobs to applicants remained at the highest level since the early 1970s.

EUROPE AND US MORNING HEADLINES

  • Donald Trump's decision to impose a 10% tariff on imported aluminium and 25% on steel is "bad policy at a bad time and will only add to the risk of a trade war" according to Shane Oliver, chief economist at AMP Capital Investors.
  • Mexico will retaliate if Trump’s tariff plan includes them.
  • Italian elections this weekend. Another potential pinch point. Remember how the market got its knickers in a twist over Greece?
  • The rich are getting richer. No trickle down.

  • Qualcomm has got the backing of a large investor to reject the advances of Broadcom’s $142m hostile takeover.

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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