Marcus Today End Of Day Report

By Henry Jennings | More Articles by Henry Jennings

Today’s Headlines

  • ASX 200 on the up although fades to close up 41.5 at 6245
  • High 6257 Low 6219.
  • Trump adds an ‘N’T’.
  • BHP leads resources higher on the production report.
  • Banks back in favour.
  • CSL leads healthcare higher.
  • Energy wanes. Golds push higher despite bullion falls.
  • AUD steady at 73.52c.
  • Bitcoin much stronger at US$7443.
  • Aussie Gold weaker at $1663.13.
  • US futures up 5.
  • Asian markets mixed with Japan up 0.35% and China down 0.12%.

FUTURES AND HIGHS AND LOWS

POINTS

STOCK STUFF

Movers and Shakers

  • BHP +3.29% the big kahuna delivers.
  • MSB +10.00% deal with Chinese pharma.
  • TNE +6.33% brokers upgrade after guidance yesterday.
  • SXY +2.44% bargain hunters.
  • BGA +4.03% Victorian acquisition gives growth option.
  • ELD +3.25% picking up on tariff talk.
  • BWX -1.30% largest shareholder describes bid as ‘opportunistic’.
  • NVT -3.31% more write-offs.
  • NWH +9.55% BHP South Flank project.
  • ZEL -2.90% guidance revision.
  • PLS -1.46% lithium stocks souring.
  • CVN +57.14% positive drilling results.
  • Z1P +7.73% catching APT afterburn.
  • BYE +7.55% good to see.
  • WOW +0.26% benefits from pokie changes in Victoria.
  • AHY -6.47% heading down the toilet.
  • FXJ +3.25% deal with Newscorp.
  • Speculative stock of the day: Keytone Dairy (KTD) +80.00% IPO began trading today having raised $15m as a new Goat Milk provider into China. The company is using the funds to expand its NZ and Australian facilities. Plenty of bits of paper in the background though. The company had revenues of $1.5m in FY17. Market cap fully diluted of $83m.
  • Biggest risers – MSB, NWH, TNE, FXL, NWL and APT.
  • Biggest fallers – CLQ, NVT, ZEL, BPT and NCZ.

TODAY

  • BHP Billiton (BHP) +3.29% Production met or beat guidance for iron ore, copper, petroleum and energy coal. The company achieved its revised guidance for metallurgical coal. BHP expects to meet full-year unit cost guidance at all their major assets. It notes strong commodity prices are giving positive momentum into FY19.
  • Northern Star (NST) –0.83% FY18 production beat top end guidance, coming in at 575,121oz. Record June quarter gold output of 183,949oz. Record underlying free cash flow of $93m for the quarter. NST lifts its exploration budget by 33% to $60m and sees FY19 gold output at 600-640,000oz at an all in cost of $1,025-1,125/oz.
  • Z Energy (ZEL) –2.90% Cuts FY19 EBITDA guidance to NZ$420-455m from NZ$450-485m. First quarter results hit by supply chain disruptions and high pump prices.
  • Bega Cheese (BGA) +4.03% To buy Saputo Dairy Australia’s dairy processing facility in Koroit Western Victoria for $250m. The acquisition will be funded through new and existing debt facilities and is subject to ACCC approval.
  • Fairfax Media (FXJ) +3.25% Fairfax and News Corp have agreed to use each other’s printing networks. The deal will potentially save FXJ around $15m a year. The benefits are expected to begin towards the end of the first half in FY19.
  • Navitas (NVT) -3.31% The company is rationalising its careers and industry divisions and taking a $130m charge. The review will see the closure of two subscale SAE US colleges on the US west coast, closure or divestment of Health Skills Australia, closure of SAE Oxford and conversion of SAE Indonesia into a licensed operation.

BEST AND WORST

ECONOMIC NEWS

  • Westpac-Melbourne leading index flat in June, compared to a 0.2% fall in May. The six month annualised growth rate in the index, fell to -0.33% from +0.05% in May.

BOND MARKET

ASIAN MARKET NEWS

  • Singapore named World’s Best Airline.
  • Pinduoduo, the Chinese e-commerce operator backed by tech behemoth Tencent, plans to raise as much as $US1.6bn in a US IPO.

 EUROPEAN AND US HEADLINES

  • FTSE expected to open 35 pts higher DAX up 64 and CAC up 16.
  • Google is facing a record fine in Brussels over Android. And dominant position in its operating system.
  • Foreign investors maintained their appetite to buy Treasuries in May, adding a further US$27bn to portfolios, according to data released by the US Treasury.
  • Mark Carney has warned that no deal on Brexit would leave the EU worse off than UK. Seriously?
  • DJ Solomon is the new chief of Goldman Sachs. DJ D Sol is in da house.
  • AstraZeneca is building stockpiles in anticipation of a Hard Brexit.
  • Spain’s new PM has a cunning plan. Raise taxes and close loopholes. Won’t catch on.
  • The Carlyle Group is raising US$4bn to fund oil and gas assets outside of US.
  • Citigroup is predicting a decade of strong copper price growth. The bank believes that Dr Copper will hit US$8k a tonne in 2022 before hitting US$9k by 2028. Supply growth to slow. Long way to go from current US$6100 a tonne.
 

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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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