Marcus Today End Of Day Report
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- ASX 200 rallies back on possible détente. Up 53 to 6268.
- High 6280 Low 6210. Same as yesterday!
- China hints at talks with Trump on tariffs.
- Banks back. All is forgiven on Byres speech.
- Healthcare/defensives rally hard led by CSL.
- CSL cracks $200 mark. Just.
- Energy stocks fall but could have been worse.
- BHP loses on oil price.
- AUD hit down to 73.81c.
- Bitcoin steady at US$6321.
- Aussie Gold $1685.10.
- US futures up 105.
- Asian markets firmer on China/US talks talk, Japan up 0.46% and China CSI 300 rallies hard +2.08%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL - The good, the bad and the ugly. Themes for the coming results season.
- TRADING IDEAS - No new trades. One stop loss raised. CBA - thought about it.
- SMALL COMPANIES - Trade wars bite as we lighten our PLS position and a look at one we have owned and want to again.
- SHL +5.33% broker upgrade.
- AGO – unchanged - production report. Still backs Gina.
- MOC +3.50% new deal for franchisees.
- HUB +6.00% thin volume.
- AGL +2.50% bargain hunting.
- ORG -3.08% swoons on oil and gas inquiry.
- ELD +4.86% bounced off support.
- NEA +5.71% rally continues.
- IVC +2.66% acquisition.
- CWY +1.45% JV with NSW government.
- PLS +4.25% sold a little early.
- APT +4.33% research report from Clime.
- FNP -7.33% profit guidance underwhelms.
- A2M -2.96% question marks on growth.
- VRL -10.96% capital raising weighs.
- ISD -5.29% rally over?
- PPS +14.53% FUM report.
- Z1P +5.73% following APT higher.
- CIM -0.38% contract win.
- AKP +4.93% on 700 shares.
- CVN +13.79% drilling update.
- XRO +3.11% add-ins helping sentiment.
- ATS -1.05% Appendix B.
- SYD -unchanged - marching to the Gonski beat.
- Speculative stock of the day: Orbital (OEC) +42.86% after delivering revenue guidance of $22m with NPAT of $1.8m.
- Biggest risers – HUB, WTC, NEA, SHL, ELD and APT
- Biggest fallers – FNP, FAR, SGF, SIG, BPT and ORG.
- A2 Milk (A2M) –2.96% Trading update. Group revenue for FY18 $NZ922m up 68% on year. A2M expects an EBITDA to sales ratio of 30% for FY19, consistent with the company’s expectations for FY18.
- Sydney Airport (SYD) – ANZ chairman David Gonski to join Sydney Airport board as a non-executive director from late September 2018.
- Praemium (PPS) +14.53% Record annual gross inflows of $3bn, up 50% on year. FUA up 35% on year to $8.3bn.
- Noni B (NBL) -+1.97% Trading update this morning with like-for-like sales up 4.5% with total sales $364m EBITDA now expected to be around $37m. Good progress being made too on the integration of recent acquisitions. A positive update and the market should take comfort from this.
- Mortgage Choice (MOC) +3.50% the board has approved a new broker remuneration model with the commission being raised to a 74% share from 65%. Guidance has been given to $23.2m - $23.4m. Mortgage Choice expects FY2019 cash and IFRS NPAT to be approximately $16.5m.
- Yojee (YOJ) - Fosters Stockbroking has launched a capital raising for $6m at 10c to "further build out Asia Pacific marketplaces, increase leadership in the company's industry-leading smart technologies such as AI, blockchain, and logistics network interconnectivity as well as expand geographical sales presence" according to the term sheet for the capital raising.
BEST AND WORST
- National Australia Bank has deepened the cut it expects on house prices this year to 1.8% from the 0.8% it forecast in April, and now expects a minor decline next year of 0.1%, in contrast to the 0.8% gain it was expecting in detached dwellings. NAB now expects more severe falls in unit prices this year and next than it was predicting, said any further tightening in credit - whether driven by financial regulation or governance concerns - could further worsen the outlook further.
- AMP raises mortgage rates by 17bps.
- Treasury Secretary John Fraser has resigned. Big surprise.
ASIAN MARKET NEWS
- Yuan sinks to its biggest loss since January 2016 with the PBoC setting the daily reference rate at 6.6726. Will policy makers defend the currency or use the devaluation as a weapon against the US and the tariffs.
- Bank of Korea holds rates at 1.5%
EUROPEAN AND US HEADLINES
- ZTE has cleared a hurdle towards resuming operations in the US, after signing an escrow deal with the US commerce department.
- Broadcom has announced it will buy CA Technologies for US$18.9bn.
- Here is the evidence of the oil shale boom in the US. Rents are through the roof in West Texas.
- Kylie Jenner could be the worlds youngest billionaire surpassing Mark Zuckerberg. Really.
- No longer coming home directly. Now via Zagreb.
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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