- ASX 200 up 30 to 6298 after early falls.
- China’s move drives turnaround to touch near 10-year high.
- High 6314 Low 6258. Fails to hold 6300 again.
- Royal Commission fails to dent financials.
- Banks and MFG lead the charge.
- Miners join in as RIO goes Ex.
- Energy rebounds after early losses.
- Gaming stocks hit jackpot. CWN at three-year high.
- AUD stronger at 74.44c.
- Bitcoin weaker again at US$6351.
- Aussie Gold steady at $1632.
- US futures up 11.
- Asian markets mixed as China bounces hard as yuan steadies. CSI up 1.92% whilst Japan down 0.26%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – Buy signals on AMP and CBA. My article on lazy financial planners. 8 conviction ideas.
- TRADING IDEAS – One trade stopped out. Three new trades – three attempts to strip a dividend.
- SMALL COMPANIES – CVN announced another promising drill report this morning following a return to trade yesterday and a soaring share price and a look at a favoured stock from mid-July, up 21% since as the cloud focussed telco continues to do well.
Movers and Shakers
- CVN -drilling results from Phoenix helping.
- MFG +14.33% results and div payout cheers. Shorts squeezed.
- CWN +6.68% good results.
- NCM +2.14% carrying value update.
- ECX -4.52% bounce over.
- LYC +5.31% buying continues after Diggers and Dealers.
- SDA +2.72% broker upgrade.
- PTM +2.91% catching the MFG updraught.
- AGL -4.09% runs out of gas.
- LOV -3.12% profit taking on broker move.
- QBE +0.98% follows SUN higher.
- BAL -5.14% still suffering.
- NGI -4.89% results underwhelm.
- LVT -11.26% placement weighs.
- STO -2.26% Beehive seismic program with MAY.
- RAP -11.11% broker presentation.
- FLC +8.05% South American contract.
- JIN +4.81% two big jackpots in a week.
- AJM +7.41% knocks back bid.
- TCL +0.42% agrees to hand over traffic data to ACCC.
- Speculative stock of the day: Canyon Resources (CAY) +36.00% after announcing the Government of Cameroon would grant CAY exploration permits to the Minim Martap project. Previous owners had identified a 550MT JORC resource of high grade, low impurity bauxite deposit.
- Biggest risers –MFG, CWN, SIG, SGR, LYC, SUN and HUB.
- Biggest fallers – BAL, NGI, ECX, AGL, ORA and SYR.
- Suncorp (SUN) +4.74% FY18 result. Revenue down 11% to $15.45bn, net profit took a hit, down 1.5% to $1.06bn. The company will sell its life insurance business to Tal Dai-Ichi Life Australia for around $725m, 80% of the proceeds are expected to be returned to shareholders. The sale is expected to result in a non-cash loss in FY19 of $880m. Special dividend of 8c declared with a final dividend of 40c per share.
- Orora (ORA) –3.62% FY18 Result. Net profit up 12% to $208.6m, sales revenue up 5.2% to $4.04bn and earnings per share 11.5% higher to 17.4c. A final of 6.5c has been declared. Total dividend for the FY18 year is up 13.6% to 12.5c.
- Newcrest Mining (NCM) +2.14% Update ahead of its FY18 results. The miner now expects a hit to the values of several assets in the range of $260-270m. NCM cuts the value of Telfer by around US$190m and Namosi by around US$70m.
- BHP Billiton (BHP) +0.06% To settle a class action over the 2015 dam disaster at Samarco, the miner has agreed to pay US$50m with no admission of liability.
- AGL Energy (AGL) –4.09% Underlying Profit up 28% to $1.023bn towards the top end of guidance of up to $1.04bn affirmed in February. Revenue up 1.8% to $12.816bn. A Final dividend of 63c per share has been declared bringing the total dividend for the year to 117c, up 29%. AGL forecasts underlying profit after tax for FY19 to be between $970m-1,070m.
- Mirvac Group (MGR) –0.42% FY18 result. Total revenue down 7% to $2.802bn, net profit down 6% to $1.09bn, a final dividend was declared at 6c per share. Earnings per share were 15.6c, in line with guidance provided in June. MGR expects EPS to lift around 2-4% in FY19.
- Crown Resorts (CWN) +6.68% Statutory net profit down 70% to $559m after significant items, statutory revenue up 4.5% to $3.5bn and normalised net profit attributable to parent 13% higher to $387m. A final dividend of 30c per share has been declared. Australian VIP program turnover up 54.5% to $51.5bn.
- Magellan Financial (MFG) +14.33% FY18 result. Net profit up 8% to $211.8m, revenue up 34% to $452.6m and average funds under management up 29% to $59bn. A final dividend has been declared at 90c per share. Good result and generous with the payout ratio.
BEST AND WORST
- The Reserve Bank of New Zealand left its key cash rate on hold at a record low 1.75%. Expect rates to be at these levels through 2019 and into 2020.
ASIAN MARKET NEWS
- Chinese CPI up 2.1% YoY, expectations 1.9% – July PPI 4.6% v 4.4%.
- CPI MoM +0.3% July PPI +0.1% MoM.
- Philippines GDP misses expectations after inflation rise.
- Mazda, Suzuki and Yamaha admit conducting ‘improper’ emission tests.
- Chinese investors are turning sour on HK stocks. Net sales last week amounted to about HK$7.5 billion, the third biggest weekly total on record.
EUROPEAN AND US HEADLINES
- A consortium is buying Dunn and Bradstreet for US$6.9bn.
- Puerto Rico has reached an agreement with creditors to restructure bonds backed by a portion of its sales tax.
- Pressure on Musk to ‘show me the money’ after day three of the ‘tweet’. Musk in trouble with SEC over twitter work.