Marcus Today End Of Day Report

By Henry Jennings | More Articles by Henry Jennings

Today’s Headlines

  • ASX 200 finishes with a whimper down 21 to 6195.
  • High 6233 Low 6195.
  • For the financial year we have risen from 5721 to 6195 (8.3%).
  • CSL, MQG the FY18 stars. CBA, AMP and TLS the canines.
  • Resources rally as banks sag at the close.
  • CSL under pressure on year end selling.
  • ANZ slips on shareholder update.
  • AUD stronger at 73.87c.
  • Bitcoin falling to US$5856.
  • Gold slightly lower to $1251.
  • US futures up 107.
  • Asian markets stronger with Japan up 0.23% and China finding its feet up 1.83%.

FUTURES AND HIGHS AND LOWS

MT STUFF

  • MARCUS CALL – Swimming with the tide – Some of the themes for the new financial year.
  • SMALL STOCK PORTFOLIO – With the US economy powering, we search for USD exposed companies. Tough in the small cap space though. Plenty of large caps we own in MT SMA.
  • INSIDERS – A question today from a member on the takeover battle at Atlas Iron (AGO) and look at a new float Raiz (RZI) trading well below its issue price.
  • TRADING PORTFOLIO – No new trades – 5 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. Click on the "Ask Marcus Today" button in the newsletter or below – Ask us anything:

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POINTS

STOCK STUFF

Movers and Shakers

  • ANZ -1.47% shareholder update. ‘Challenging’ conditions still.
  • APT +8.85% end of year window dressing?
  • MYX +4.19% US action with Pill Pack takeover.
  • SYR +3.58% short covering.
  • CCP -3.63% change in substantial holding.
  • HSO -1.78% private health pressures.
  • BHP +0.27% Samarco update.
  • TLS – unchanged- steadies.
  • STO -0.16% S&P rating unaffected by dividend policy.
  • ALL +0.62% bargain hunting.
  • CIM +1.49% wins another QCOAL Northern hub contract worth $480m.
  • FMG -2.23% missing out on resource rally.
  • AGO -unchanged- recommends Hancock takeover.
  • WHA +31.46% Chinese sales deal.
  • CSL -1.14% profit taking.
  • ATS +6.98% oil price helping.
  • CAN +9.38% getting the good oil.
  • Speculative stock of the day: Retail Food Group (RFG) +27.06% – senior debt facility relief. Finally, some good news. Been a long time coming.
  • Biggest risers – APT, EHL, AX1, NWH, MYX and SEA.
  • Biggest fallers – CUV, FAR, CCP, SWM, CSR and GWA.

TODAY

  • Praemium (PPS) +3.53% signed a 5-year contract with CMC Markets to provide tax tools to clients. Existing clients will continue their current contract rate of $1m p.a. with room for additional revenue under the new agreement.
  • BHP Billiton (BHP) +0.27% has agreed to pay US$211m in financial support to the Renova Foundation set up on response to the tailings dam failure at Samarco’s operation. US$158m will be used to fund remediation and compensation programs whilst BHP has also provided a short-term US$58m facility to carry out ongoing repairs and support restart planning. The US$158m will be offset by BHP’s provisions for the failure of the dam.
  • Fletcher Building (FBU) –1.55% has sold its 50% stake to its JV partner Sims Metals Management in the Sims Pacific Metals JV. The sale was for NZ$42m and total proceeds are expected to be between NZ$55m-NZ$60m after adjusting for working capital.
  • Atlas Iron (AGO) – directors unanimously recommend Gina Rinehart’s Hancock offer but to take no action for now. They also provided an activity update that said AGO will not increase its production to 9mtpa at the Mt Webber mine as previously flagged, due to poorer market conditions. However, they reiterated FY18 production guidance and said FY19 cost and production guidance will be issued in August.
  • Wattle Health (WHA) +31.46% Have announced a supply deal with Shandong Weihai Port International for sales of a minimum of $34m over three years. Finalisation of the agreement with Shandong is subject to WHA receiving formal accreditation from State Administration for Market Regulation.
  • Retail Food Group (RFG) +27.06% The company have had a reprieve as lenders have waived testing financial covenants under the senior debt facility. As part of the waiver, the company will have to put in place additional reporting requirements and may sell some assets.
  • Panoramic Resources (PAN) +11.71% has entered into an agreement to supply nickel-copper-cobalt concentrate from its Savanah mine to Sino Nickel. The agreement covers 100% of the concentrate that may be produced from the mine, is for 4 years and according to Panoramic is highly competitive.

BEST AND WORST

ECONOMIC NEWS

  • Bill Shorten backflips on company tax. With a pike.
  • The state of the nation at year end.

BOND MARKETS

ASIAN MARKETS NEWS

  • China has reduced the number of industrial sectors restricted from foreign investment, as it sweetens its appeal to foreign businesses.
  • Xiaomi Corp has raised US$4.7bn in an IPO at the low end of the marketed range with a sale of 2.18bn shares at HK$17.

EUROPE AND US MORNING HEADLINES

  • BAE triumphs in frigate deal with Australia. Ads pay off.
  • Seems leaving the Dow Index has been good for GE. Not so for entrant Walgreen.

  • In Venezuela, a coffee now costs 1m Bolivars ($14). That is hyperinflation for you. Annual inflation rate over 43,000%.

  • When England beat Panama 6-1 pub chain Greene King sold an extra 500,000 pints in a day. Imagine if they won the World Cup. It’s coming home!


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Henry Jennings

About 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.

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