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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 14/06/2018
VIEW MORE ARTICLES BY HENRY JENNINGS

Today’s Headlines

  • ASX 200 closes down 7 at 6017.
  • High 6034 Low 6007.5.
  • Jobs number fails to move the needle.
  • Banks fall into bear market as woes mount.
  • TLS gets an upgrade,investor day next week.
  • Healthcare under pressure as PRY hit.
  • Miners doing better though AGO suffers.
  • AUD eases to 75.54c.
  • Bitcoin steadies at US$6489.
  • AUD Gold mildly higher at $1299.
  • US futures -44.
  • Asian markets lower after Fed and soft China data with Japan down 0.92% and China CSI 300 down 0.41%.

FUTURES AND HIGHS AND LOWS

MT STUFF

  • MARCUS CALL – An overnight update, strength in the banks (?) and better ways to collect income, and the run down on Kogan.
  • SMALL STOCK PORTFOLIO – We have added a small holding in KGN following the sell down by two major shareholders. A look too at the macro-economic backdrop courtesy of Paul Dales from Capital Economics.
  • INSIDERS – A stock we struggle to understand but one that others may and a look at how to play the next 3-5 years after a question on Sky Business.
  • TRADING PORTFOLIO – No new trades, 4 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. 

STOCK STUFF

Movers and Shakers

  • TLS +5.07% JP Morgan upgrades.
  • APA -3.90% FIRB worries.
  • UPD +2.33% market update.
  • MLX +5.39% nickel and copper help.
  • VOC +4.48% telcos receive a boost on Huawei news.
  • KMD +1.33% cold snap in NSW.
  • GSC -5.62% completes placement.
  • BUB – Trading halt – Capital raising.
  • WHA -9.68% completes capital raising.
  • PRY -8.29% UBS downgrades. Sector follows.
  • SPZ -25.00% UK review finds no wrongdoings.
  • AGO -19.01% WA government clarifies expansion.
  • NTC +14.54% legal dispute settled.
  • BLA -8.67% the dips are getting bigger. Not looking good.
  • PDN +5.56% uranium attracting attention.
  • RCR +8.93% broker upgrade.
  • MWR +3.40% new bricks and mortar stores added for SpaceTalk.
  • Speculative stock of the day: Droneshield (DRO) +13.89% wins a Middle Eastern order for 70 drone guns. Largest order ever worth $3.2m.
  • Biggest risers – CLQ, IRE, ORE, BPT, APT and MLX.
  • Biggest fallers – PRY, GSC, APA, CGF, COH and AUB.

POINTS

TODAY

  • Bubs Australia (BUB) – placed in voluntary trading halt as they are conducting a capital raising for $40m through placement to institutional investors. They will issue 53,333,333m shares.
  • Orica (ORI) +0.40% confirm their contracted supply of explosives to Fortescue (FMG) until December 2019, although FMG may also source some ammonium nitrate from an external party from July 2019. Orica say this will not materially change the financial outlook for FY18 and FY19 and have a small impact from FY20 onwards.
  • Atlas Iron (AGO) –19.01% after the WA government said the company doesn’t have the priority right to develop valuable export infrastructure. This comes after the company climbing as much as 64% over the week since heavy investment inflow following a takeover bid by Mineral resources (MIN).

BEST AND WORST

ECONOMIC NEWS

The monthly trend unemployment rate remained steady at 5.5% in May 2018, according to latest figures released by the Australian Bureau of Statistics (ABS) today. Better than expected but participation fell to 65.5% from 65.6%. Jobs numbers saw a rise of 12,000 versus a forecast of 19,000.

The seasonally adjusted unemployment rate decreased to 5.4% and the labour force participation rate decreased to 65.5%. Fulltime jobs down 20k Part time up 32k. 

The details:

SEASONALLY ADJUSTED ESTIMATES (MONTHLY CHANGE)

  • Employment increased 12,000 to 12,518,300. Full-time employment decreased 20,600 to 8,521,400 and part-time employment increased 32,600 to 3,996,900.
  • Unemployment decreased 26,800 to 714,600. The number of unemployed persons looking for full-time work decreased 11,200 to 494,300 and the number of unemployed persons only looking for part-time work decreased 15,600 to 220,300.
  • The unemployment rate decreased by 0.2 pts to 5.4%.
  • Participation rate decreased by 0.2 pts to 65.5%.
  • Monthly hours worked in all jobs decreased 24.2 million hours (1.4%) to 1,738.8 million hours.

BOND MARKETS

ASIAN MARKETS NEWS

  • Under pressure ZTE has announced it will ask state banks for around US$10bn in a line of credit.
  • Hong Kong raises rates by 25bps in line with Fed.
  • China’s retail sales, investment growth and industrial output came in below forecasts in May, according to official figures.
  • Retail sales growth also slowed sharply, increasing at an annual pace of 8.5%, the lowest level in 15 years.
  • Industrial output grew by 6.8% from a year earlier, down from 7% in the 12 months to April and below the 6.9% level expected.
  • Retail sales grew by 8.5% over the year, down from 9.4% in April.

EUROPE AND US MORNING HEADLINES

  • ECB meeting tonight. Should be fun.
  • The UK housing market remained flat in May and an upturn is not yet on the horizon.
  • One Pub chain in the UK, JD Wetherspoon, has decided not to sell French champagne or German beer from July 9th in preparation for Brexit. Things just getting silly now. Labour party sees resignations on Brexit issues.
  • The worlds richest plumber, Charlie Mullins from Pimlico Plumbers, has lost his high court battle over the status of contractors and holiday pay. Big implications for the gig economy.

ANNOUNCEMENTS

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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