Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 finished up just 14 to 6286. It topped 6300 at one point but faded.
- High 6301 Low 6277.
- Financials again attracting buyers.
- BHP cheers with news of shale sale.
- AUD stronger at 74.69c.
- Bitcoin eases to US$6696.
- Aussie Gold $1687.90.
- US futures rally again up 129.
- Asian markets rally despite trade tensions. Japan up 1.20% and China CSI 300 up 1.91%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL - The impacts the tariffs will have on Australia.
- TRADING IDEAS - Four stop losses raised and one new trade.
- SMALL COMPANIES - We revisit a company in transition and have a look at Hybrids, MOOO and the performance of our TINA basket.
Movers and Shakers
- DMP -3.77% stuffed crust.
- ELD +1.98% bounces back after Friday’s rout.
- VOC +3.78% retirement of non-executive directors.
- AOG +2.98% bargain hunting.
- PLS +5.88% lithium price rises.
- APT +3.02% US business gaining traction.
- JIN -8.28% profit taking.
- CLV +10.37% bargain hunters appear.
- ISD +4.46% new CEO and guidance reaffirmed.
- RIO +1.44% moves higher on iron ore price.
- BLA -1.05% water entitlement deal.
- SHV -5.94% sell off continues.
- CTX -2.68% broker downgrade.
- Speculative stock of the day: Benitec (BLT) +110.34% huge volume after announcing a global licensing agreement with Axovant for its treatment of OPMD.
- Biggest risers – PLS, API, VOC, MYO, GXY and WGX.
- Biggest fallers – SHV, FAR, DMP, YAL, GTK and CTX.
- Yancoal (YAL) –3.75% has started standing down the workforce at its Austar operation due to the legal proceedings there and relocating them to other Yancoal projects in an attempt to continue the employment of staff. Yancoal has said they do not have a date of when production at Austar will recommence and skeleton crews will remain to maintain the operation in the meantime.
- Independence Group (IGO) +2.85% preliminary production report. Nickle production at Nova was 3% below the low end of FY18 guidance, up 23% QoQ. This was due to SAG mill liner issues that have now been fixed. Copper and cobalt at Nova also were below the low end of FY18 guidance. Production at Tropicana and Long were both within FY18 guidance.
- Sandfire Resources (SFR) +1.44% the date of document completion has been extended an extra week regarding the deal for SFR to acquire Talisman Mining (TLM)’s 30% stake in the Springfield JV. Both parties are working to have the documents complete and have extended the date from the 7th of July to the 14th to do so.
- Village Roadshow (VRL) – is in a trading halt pending a capital raising.
- Wattle Health (WHA) -0.83% has signed a supply agreement for 12 months for its natural baby food range with Vasudevan and Sons Exim Private in India. The deal is for $1.5m, with extension agreements to be negotiated after the 12 months.
- Magellan Financial (MFG) +2.55% Funds under management from May to June grew 3.2% to $69,509m driven by increases in institutional funds. MFG will pay $755m in distributions and is entitled to a $40m performance fee for the last financial year.
- James Packer has resigned from the board of his private investment company CPH.
BEST AND WORST
- Nothing shaking but the trees.
ASIAN MARKET NEWS
- Tencent plans to spin off Tencent Music and Entertainment and list the music unit on a stock exchange in the US.
- Shares in Xiaomi dropped around 5% at the open in Hong Kong marking a disappointing start for one of the most highly-anticipated public offerings of 2018. It subsequently rallied back towards it's HK$17 issue price valuing the company at US$50bn. It is the third largest maker of mobile devices globally.
EUROPEAN AND US HEADLINES
- FTSE expected to open up 40 points-DAX up 64 points.
- David Davis (chief Brexit honcho) has resigned throwing the whole Brexit negotiations into more turmoil. More to come. Looks like the Brexit negotiations are coming home.
- The Rolling Stones sign up to fresh partnership with Universal Music. Universal said the “unprecedented” partnership with the band marks the beginning of “a new era of expanded collaboration”.
- Trump will visit the UK later this week and then on to the NATO summit. Focus will be on Angela Merkel and Germany. No love lost there. UK focus will be on World Cup. Putin Summit to come.
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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