Marcus Today End Of Day Report
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- ASX 200 closes 14 points higher to 5950 as banks regain some poise.
- High 5963 Low 5935.
- Banks breathing some sighs of relief.
- Energy stocks enjoy oil spike.
- Broad market still Waiting for Jerome Godot.
- Tax cuts edge closer.
- RIO sells coal assets. MYR sells little.
- Iron ore down 16% this month.
- AUD slips below 77c to 76.95c.
- Bitcoin rallies to US$9,070.
- US futures up +30.
- Asian markets had some closed in Japan, China CSI up +0.64%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – Marcus talks LICs. An alternative to running your own portfolio. All you need to do is make a couple of decisions a year to be in or out of the market. They make great presents for the grandchildren. But they are boring compared to stocks.
- TRADING PORTFOLIO - One new trade. Moving to ATR based stop losses. No stop losses hit.
- SMALL STOCK PORTFOLIO – When troubles come, they come not in single spies…we had a shocker yesterday. Lucky for our big cash position.
- INSIDERS – If you watched Henry on Sky Business yesterday you’ll know what stock of the day he’s covering. (no insights though. Feel free to offer your thoughts and insights).
- INVESTMENT FOR BEGINNERS – Marcus has been running the Marcus Today Education course for beginners. It is aimed at teaching basic concepts of finance but includes a section about “Your Super”, including: What is it; Where is it; How to manage it.
- 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:
Advancers and Decliners
- FSF -0.36% CEO resigns and first half loss.
- RIO -unchanged - rules out special dividend.
- MQG +0.74% continue to push up, avoiding RC a good thing.
- TPM +3.82% broker upgrade.
- BSL +4.39% daily share buy-back.
- BIN – unchanged - talks up Queensland numbers.
- DMP -1.49% sellers appear.
- SEK -0.05% broker downgrade.
- FNP -3.29% capital raise.
- WES -0.81% still sagging.
- IVX +7.41% good momentum after yesterday’s positive announcement.
- MOC -1.32% still under pressure.
- SIV +6.23% finally some bargain hunters.
- BYE +10.77% oil price helps as cashflow looms.
- NHC +2.38% coal asset valuations.
- WHC +8.79% misses out on RIO assets.
- IVC -2.49% sellers take the opportunity.
- Speculative stock of the day: CLV +23.44% after releasing very good results. Revenue up 60% to $31.0m Omega 3 gummies doing well. Tuna oil a big seller 71% of sales.
- Biggest risers – SM1, WHC, KDR, NUF, BSL and APX.
- Biggest fallers – CVW, NCZ, MSB, FNP and NGI.
- Crown Resorts (CWN) -0.92% James Packer has resigned from the company's board due to a battle with mental health. "We have appreciated James's contribution to the board and respect his decision to step down from his role as a director at this time," said Executive Chairman John Alexander in a statement. Crown said earlier this month that Mr Packer's investment vehicle, Consolidated Press Holdings, would seek to sell shares in Crown to maintain a 47% ownership stake in the company. The sale came as Crown was implementing a share buyback, which reduces the total shares outstanding. Crown also said earlier this month that it was under investigation by the Victoria gaming regulator for a trial involving the use of "blanking buttons" on electronic gaming machines.
- Nufarm (NUF) +5.45% 1H net profit of $12m down 40% on year. Group revenues increased by 7.4% to $41.46bn despite a period of little to no growth in the overall industry. The performance reflected sales growth in North America, Europe, Asia and the company’s seed business. Revenues were generally in line with the prior period in Australia/New Zealand, but lower in Latin America. 1H earnings were impacted by production interruptions due to the planned upgrade of its Laverton manufacturing plant and challenging operating conditions in Brazil. EBITDA was down 4% to $123.2m, and EBIT fell 11.8% to $75.0m, in line with guidance. FY18 underlying EBIT is expected to rise by 5 – 10%. The company announced it has completed its Century portfolio acquisition and will now be integrated into the business.
- Synlait (SM1) +14.59% The company has announced a record first-half result of $40.7m NPAT. This compares to $10.6m and shows the huge benefit of the deal with A2M as its exclusive partner in Australia, NZ and China. Net debt was $49.7m being a substantial reduction from $147m in FY17.
- Myer (MYR) -3.49% Results today show the bad news was somewhat in the price. Focus on the online market with news on a new selling technique on Instagram. Sales declined 3.6% to $1.7197bn. Online sales grew 48.9% to $105.2m. Margins declined by 5.5%. No dividend.
ALL ORDS SECTOR SUMMARY
ALL ORDS TOP MOVERS
ALL ORDS BOTTOM MOVERS
ASX 200 SECTOR SUMMARY
ASX 200 TOP MOVERS
ASX 200 BOTTOM MOVERS
- Australian home loan arrears rose in January according to the Standard & Poor's Performance Index for Australian prime mortgages, which increased to 1.30% from 1.07% versus December 2017.
- The Westpac-Melbourne Institute Leading Index rose from positive 0.68%in January to positive 1.30%in February.
- The growth proxy indicates the economy's prospects are improving for the first half of 2018. Westpac forecasts growth in 2018 of 2.7% and 2019 of 2.5%. The bank sees rates on hold in both 2018 and 2019.
BOND MARKET UPDATE
ASIAN MARKETS NEWS
- Thailand exports up 10.3% ahead of forecasts.
- Fitch reaffirms China A+ rating. Notes caution on possible trade wars.
- Tencent is now worth US$72bn more than Facebook.
EUROPE AND US MORNING HEADLINES
- FOMC report 5.00am our time.
- Facebook faces FTC probe. Like? No. Cambridge Analytics CEO suspended.
- Salesforce has confirmed it will acquire Mulesoft in a deal valuing the network software maker at US$6.5bn.
- Toyota has suspended trials of self-drive cars.
- Nick Sarkozy has been taken into custody in France over alleged Libyan funds scandal.
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.
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