Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 -3 to 6084.5 in quiet trade.
- High 6095 Low 6070.
- Low volume and narrow range again.
- Banks slip as RC cranks up for the last time.
- CSL higher after broker target price raises.
- Resources see profit taking. Iron ore lowest in two weeks.
- STO gets a final offer from Harbour.
- TLS network fails. 7-year low.
- AUD steady at to 75.14c number.
- Bitcoin rose to US$8505.
- AUD Gold rallies to $1286.
- US futures up 201.
- Asian markets mixed on trade talk success with Japan -0.08% and China up 0.77%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – A look at the current macro backdrop and some action in the energy sector - Holding WPL - BLD downgraded today.
- SMALL STOCK PORTFOLIO – A fresh week with the market looking brighter as we look at possible candidates to chop. Plus a suggestion for inclusion.
- INSIDERS – No new insights but the BIg W catalogue does raise a question on MYR and a tip for Scotch drinkers.
- TRADING PORTFOLIO – One new trade. Four stop losses raised.
- 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.
Movers and Shakers
- APX +6.15% continued buying after results.
- VOC +4.24% new CEO and MD.
- WTC +3.40% $100m placement to global institution.
- ORE +5.61% lithium back in fashion.
- UPD +3.42% New York presentation.
- LYC +2.16% rebounding.
- STO +1.76% sixth and final bid.
- TLS -1.75% network outage.
- BLD -3.84% broker downgrades.
- FMG -3.09% iron ore slips.
- ELD -2.95% ex-dividend.
- AHY -5.94% broker downgrade.
- WHA -24.12% capital raising and acquisition.
- SFH +7.14% change of directors interest.
- TTT +10.66% the bulls are back.
- TWE -1.81% change in substantial shareholding.
- Speculative stock of the day: Star Combo (S66) +45.45% after it began life as an ASX listed stock last week. S66 is an Australian nutritional products company which manufactures vitamins, dietary products and skincare products. It has a strategic agreement with Terry White Chemists to offer a new product line through the 450 chemist stores.
- Biggest risers – YAL, APX, PME, ORE, AJM and LOV.
- Biggest fallers – AHY, FNP, BLD, KMD, MGX and FMG.
- SkyCity Entertainment Group (SKC) +0.28% Has named Hansen Yuncken as its main contractor for its Adelaide Casino expansion. SkyCity said the project is on track to start next month and finish by 2020 whilst the budget remains in line with initial estimates of $330m.
- AGL Energy (AGL) +1.08% rejected the $250m Alinta Energy offer for its Liddell power station which it plans to decommission after 2022. AGL said the offer undervalues the future cash flows from the plant until 2022 and potential use of the site afterwards.
- Vocus (VOC) +4.24% Kevin Russell has been appointed the company’s new MD and CEO effective May 28. Kevin has previously been a Retail Group Executive at Telstra and the Consumer Country Chief Officer and CEO at Optus. The Vocus New Zealand CEO has also been appointed to the board.
- WiseTech Global (WTC) +3.40% issued $100m of shares to a single institutional investor, Capital Group’s Smallcap World Fund, at 1330c.
- Santos (STO) +1.76% Harbour Energy has outbid itself with a revised offer of US$521c up from US498c. Interestingly the bid has a number of conditions relating to the company hedging part of its oil production. The bidder has declared the bid its final offer.
- BWX – In a trading halt as a private equity buyer appears to be stalking the company.
- Here there and Everywhere (HT1) –0.87% Ooh!media (OML) +1.49% The company has engaged with a potential new bidder for its out of home advertising business (Adshell). It had now received multiple offers for the business including a $470m deal from oOh!media (OML).
BEST AND WORST
- National Bank has changed its cash rate call and is now predicting a 0.25% increase in mid-2019.
- Australian agriculture had a bumper year in 2016-17, according to data released today by the ABS which showed a 9% increase in value to $60.8bn. 2016-17 was a good year for agriculture with above average yields and record production for many broadacre crops such as wheat, barley and canola. The value of livestock products was largely steady with a strong result for wool (up 17% to $3.5bn) offsetting falls in milk (down 14% to $3.7bn).
ASIAN MARKETS NEWS
- President Xi Jinping reaffirmed the government’s battle against pollution. May explain why iron ore and coal prices eased.
- The value of Japan’s exports rose at the fastest pace in three months in April partly due to a boost in shipments to the US but still came up short against economist's expectations. April exports 7.8% yr/yr vs forecast +8.1%. Imports +5.9% yr/yr vs forecast +9.6%.
- Malaysian stock markets saw the biggest outflow in funds since August 2013 as overseas investors sold US$625m of stock last week.
- Chinese stocks are set to be included in the MSCI with 234 companies joining the index. Buying has accelerated in April with net inflows up 222% on March and 400% since the same time last year.
EUROPE AND US MORNING HEADLINES
- US-China trade war is now officially on hold. World breathes sigh of relief.
- Venezuelan president Nicolás Maduro won another six years in office on Sunday. Record low turnout from voters.
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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