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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 05/03/2018
VIEW MORE ARTICLES BY HENRY JENNINGS

 Market summary

  • ASX 200 starts week down 34 to 5895.
  • Trade war threats weigh.
  • High 5927 Low 5890, volume low.
  • Risks grow and enthusiasm wanes.
  • RFG resumes trade.
  • Banks hit as CBA cops another ASIC breach.
  • BHP and miners suffer.
  • Iron ore futures fall in Asia.
  • Gold miners better on risk off.
  • AUD steady at 77.48c.
  • Bitcoin continues to climb US$11,549.
  • US futures down -112 as sentiment sours.
  • Asian markets fall on trade wars fears with Japan -1.10% and China CSI down -0.18%.

FUTURES AND HIGHS AND LOWS

MT Stuff

  • MARCUS CALL – Trade wars are tempering the markets, but is Trump’s commentary simply part of the negotiation preamble? And what will happen to Steel stocks. Read this before you start screaming for the door.
  • TRADING PORTFOLIO – Our portfolio is speaking to us….we were stopped out of four more trades. So we’ve decided to sit and wait.
  • SMALL STOCK PORTFOLIO – We didn’t have a great day Friday (but who did). LYC reported strong results today. A positive for the portfolio.
  • INSIDERS – Henry discusses WHA with subscriber, Paul. And we give you a heads up on our leaderboard.
  • 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

  • MSB +2.90% US interest.
  • MYR +15.00% strange move on big volume.
  • KGN -3.35% profit taking.
  • SGH +40.57% thin volume.
  • RFG -36.52% resumes trading on bad news.
  • PDN –15.38% ceasing to be a substantial shareholder.
  • ISD -6.00% sell off continues.
  • WHA -9.17% AFR article.
  • NEC +3.56% rally continues.
  • MGC -2.41% Saputo to sell assets to satisfy ACCC.
  • RRL +2.29% change in substantial shareholder.
  • WHC +3.87% broker upgrade.
  • NWL – unchanged - positive media comments.
  • PLS -5.68% profit taking.
  • CSL +0.64% quality defensive and broker upgrade.
  • BLA – trading halt - $100m equity raising.
  • TCL -0.86% bond proxy sell off.
  • CWN -2.31% Casino licence under threat according to media reports.
  • TLS +0.92% defensive buying and conference optimism on 5G.
  • Speculative stock of the day: Patrys (PAB) +60.61% investor interest following successful trials.
  • Biggest risers – VAH, LYC, DCN, WHC, RSG and NEC.
  • Biggest fallers – CLQ, SKI, GSC, ZEL, PLS and WGX.

POINTS

TODAY

  • Lynas (LYC) +4.76% 1H profit A$63m versus loss of $19.3m. Adjusted EBITDA increased to $85.5m versus $2.1m. Revenue growth of 75% to $200.9m due to higher sales volumes and higher selling prices. Operating costs were constant at $133.9m and debt was cut to $236.5m in January.
  • Oil Search (OSH) – 0.42% Released announcement today on the impact last week’s earthquake had on its PNG LNG Project. Operator ExxonMobil has said that it may take around eight weeks to repair and restore production caused by the magnitude 7.5 earthquake that struck the PNG highlands last week. There has been minimal impact on its Gobe production facilities and the liquids export pipeline and offshore facilities remain undamaged. Further, damage to OSH’s Central Processing Facility is less than feared and set to be operational again in one to two weeks.
  • Retail Food Group (RFG) -36.52% The stock returned from its suspension. A loss for the half of $87.8m, compared with a profit of $32.7m in the first half of the 2017 financial year. Closure of up to 200 stores. Non-cash impairments of $138m. RFG said on Friday that it was suspending dividend payments until further notice.
  • Aussie Framers Direct falls into administration.

ANNOUNCEMENTS


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:


ECONOMIC NEWS

  • The Australian Industry Group's Performance of Services Index (PSI) fell 0.9 points to 54 points in February, but remains above the 50-point expansion indicator which signifies an acceleration in expansion.
  • A survey by Australia and New Zealand Banking Group showed total job advertisements dipped 0.3% in February, from January when they jumped 6.2%
  • The average total number of ads per week was 177,284, up a brisk 13.3% compared to a year ago.

Australia Inc. ended 2017 on a high with companies reporting the second-largest surge in pre-tax profits for a fourth quarter on record, while wages rose faster than 1% for a third-straight quarter. Pre-tax profits rose 19 % in the final three months of the year from the previous quarter, the biggest increase in a year, while wages rose 1%, the ABS reported today.

More from the ABS

  • The number of dwellings approved rose 0.1% in January 2018, in trend terms, after falling for the previous three months.
  • The value of total building approved fell 1.4% in January, in trend terms, and has now fallen for four months. The value of residential building rose 0.5% while non-residential building fell 4.7%.

ALL ORDS SECTOR SUMMARY

ALL ORDS TOP MOVERS

ALL ORDS BOTTOM MOVERS

ASX 200SECTOR SUMMARY

ASX 200 TOP MOVERS

ASX 200 BOTTOM MOVERS

BOND MARKET UPDATE

ASIAN MARKETS NEWS

China sets a 2018 growth target of around 6.5% at National People's Congress in Beijing.

Other key economic objectives included:

  • Retail sales growth of about 10%.
  • Consumer prices will rise about 3%, the same as last year’s ceiling.
  • Creation of 11m new urban jobs, the same as last year.
  • Yuan exchange rate to remain stable at an equilibrium level.
  • Military outlays are expected to rise 8.1% to 1.11 trillion yuan (US$175 billion) this year, the Chinese Ministry of Finance said today. Aggressive moves.

EUROPE AND US MORNING HEADLINES

  • Italian elections – Looks like a hung parliament with Five Star and Northern League gaining votes.
  • No exemptions for US steel tariffs. Trade war risks grow on tweet escalation.
  • Merkel finally forms a government after four months.
  • Libya’s Sharara oil field has stopped pumping crude oil. The exact cause of the pipelines closure is unknown. Good for oil prices.

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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