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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 22/06/2018
VIEW MORE ARTICLES BY HENRY JENNINGS

 Today’s Headlines

  • ASX 200 takes some profits, down 7 at 6225.
  • High 6243 Low 6218. Subdued volumes.
  • Big week up 131 points(2.15%). 200 for June.
  • Banks the bright spot after ANZ buyback increased.
  • Resources slide with Energy ahead of OPEC tonight.
  • USD earners take a hit.
  • Penn rings the wrong number at TLS.
  • AUD steadies to 73.99c.
  • Bitcoin lower at US$6653.
  • AUD Gold slightly lower to $1257.
  • US futures up 48.
  • Asian markets weaker, China down 0.14% and Japan down 0.33%.

FUTURES AND HIGHS AND LOWS

MT STUFF

  • MARCUS CALL – Why you don't sell yet. How to call the top. A lesson from RHC's profit warning.
  • SMALL STOCK PORTFOLIO – Feeling a little like a wallflower as the large caps rocket higher but some promise in MSB from Phase 3 Trials..
  • INSIDERS – Another look at MGM Wireless and a possible competitor to SpaceTalk. There is always an App for that.
  • TRADING PORTFOLIO – No new trades. Three stop losses raised. Overbought stocks and RSI buy and sell signals.
  • INSIDERS CONNECT WITH US - We invite you to send us your own stock ideas. 

STOCK STUFF

  • APO -2.44% HT1 +4.24% Adshel war heating up.
  • CCP -7.32% responds to negative research report.
  • HSN -28.28% comes unstuck with profit downgrade.
  • FBU -0.47% broker downgrade following investor day.
  • RHC -2.40% broker downgrades.
  • TLS -1.47% not getting any better.
  • WGB -unchanged- first day.
  • AMA -3.06% ATO scuppers deal.
  • BVS +2.46% deal with L&G.
  • AOG -3.29% profit upgrade.
  • BLA +12.97% pressure released.
  • PHK +2.53% kicking higher again.
  • TTT +9.25% buyers are back.
  • GFY -unchanged- hoovered up, done and dusted t/o at 90%.
  • GEM +3.00% finding friends.
  • BAL -6.51% profit taking and broker downgrade.
  • Speculative stock of the day: Thin volumes no standouts.
  • Biggest risers – OMH, WPP, HT1, JMS, AHY, GEM.
  • Biggest fallers – HSN, CCP, BAL, EHL, CKF and WTC.

POINTS

TODAY

  • Aveo (AOG) – 3.29% Upgrades FY18 EPS guidance to 21.6c from 20.4c on the back of better than expected development profits flowing from the Group’s flagship retirement community development in Brisbane.
  • APN Outdoor (APO) – 2.44% Has submitted a proposal to acquire 100% of the Adshel business from HT&T for $540m. APO reaffirms FY18 EBITDA guidance of between $92m and $96m.
  • ANZ +2.87% will increase its current on-market share buy-back, commenced on 15 January 2018, by a further $1.5bn to a total of $3.0bn ANZ’s reported Level 2 Common Equity Tier 1 capital (CET1) ratio as at 31 March 2018 was 11.04%. This would increase by ~56bps on a pro forma basis after adjusting for completion of the buy-back, receipt of the reinsurance proceeds and completion of announced asset sales.
  • Hansen Technologies (HSN) – 28.28% "For FY18, expectations are for operating revenue of approximately $230m and earnings before interest, tax, depreciation and amortisation (EBITDA1) of approximately $58 million, giving an EBITDA margin of around 25%. For FY19, notwithstanding that growth in underlying recurring revenue is anticipated, at this stage total revenue is expected to be slightly below FY18."
  • Credit Corp (CCP) -7.32% The company has learned from others in short sellers sights with a strong statement after being suspended yesterday following an anonymous report which raised some questions. It has strongly refuted the investment thesis and issued this statement regarding the outlook. "The Company is experiencing strong operational performance over the final quarter and re-affirms its FY2018 market guidance as summarised below. The guidance reflects NPAT growth in FY2018 of up to 16% and the company is on track for continued growth in FY2019.

BEST AND WORST

ECONOMIC NEWS

  • James Shipton, the new head of ASIC, has fronted the pollies and has warned the financial services industry to sort itself out, and quickly.
  • The DPP is looking at AMP and potential criminal charges.

BOND MARKETS

ASIAN MARKETS NEWS

  • Morgan Stanley slashed their 12-month target for the Hang Seng Index by about 10% this week. The new forecast implies a slump of 18% from the gauge's January peak.
  • Goldman Sachs is starting to back off its long-time bullish call on Asian stocks too, paring its 12-month target for the MSCI Asia Pacific excluding Japan index to 625 from 640.
  • Chinese markets are at their lowest since June 2016. It is the worst performing market this year. It is down nearly 20% from its peak in January. Seems moves to deleverage have taken their toll.
  • The early reading on Japan’s manufacturing sector in June showed a marked pick-up from May but export orders fell in the face of a looming US-China trade war.
  • Japanese core inflation holds steady.

EUROPE AND US MORNING HEADLINES

  • Euro markets expected to open slightly positive.
  • US Banks have passed the first round of Fed stress tests.
  • Greece has won a ten-year reprieve on EUR 100bn of bailout loans. Never ever ever gonna pay that back. Ever.

 

ANNOUNCEMENTS

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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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