Marcus Today End Of Day Report

By Henry Jennings | More Articles by Henry Jennings

Today’s Headlines

  • ASX 200 closed up 3 points.
  • Financials, gold & telcos down – gains in healthcare & retail.
  • Scott Morrison elected Prime Minister. Marcus opinion – awful opening statement – Bill Shorten odds shorten.
  • AUD firms to 72.76c on ScoMo election.  
  • Bitcoin at US$6,505.86.
  • Aussie Gold steady at 1,632.87.
  • Dow futures up 29 points as we write.
  • Asian markets firm, China up 0.57% and Japan up 0.65%.

FUTURES AND HIGHS AND LOWS

MT Stuff

  • MARCUS CALL – The leadership challenge and a complaint about the APT capital raising – our largest holding.
  • TRADING IDEAS – Two stocks stopped out. One stop loss raised.
  • SMALL COMPANIES – Henry is on holiday. He will be back in three weeks.

POINTS

STOCK STUFF

  • APO +0.30% Citi upgrade to Neutral.
  • APT +6.15% Morgans upgrade to add. Capital raising completed.
  • IPD +6.67% L-Dex suggested as a new standard of care.
  • SGR +6.00% net profit up by 20% after one-offs.
  • MYX +5.71% strong second-half performance.
  • BXB +6.43% statutory net profit up 293%.
  • PTM +1.51% on full-year results.
  • AGL +0.78% CEO transition.
  • OMH -3.57% half-year net profit of $106.4m.
  • MPL -2.21% results miss expectations.
  • NEC +1.67% UBS upgrade to Buy.
  • MYO -2.24% FY18 results. Guidance reaffirmed.
  • SKT -6.15% results hit by impairment charge.
  • AHG -0.84% net profit down 41%.
  • WBC -2.43% June Q update. NIM -11bps.
  • GPT -0.97% to acquire Parramatta’s Eclipse Tower.
  • Biggest gains: IEL, BXB, APT, SGR, MYX.
  • Biggest declines: WTC, CGC, ALU, SGM, FLT.

TODAY

  • Sky Network (SKT) – FY18 results hit by US$239m impairment charge. Excluding the one-off impairment charge, SKY said its profit rose by 2.6% to NZ$119.3m. A final dividend of 7.5 NZ cents was declared.
  • Automotive Holdings (AHG) – FY18 results. Net profit down 41% to $32.6m due to lower segment operating contributions and one-offs associated with the closure of underperforming businesses. A final dividend of 6.8c was declared. Operating NPAT was in line with guidance issued in May at $74.8m.
  • Medibank private (MPL) – FY18 results. Net profit down 1% to $445.1m, a final dividend of 7.2c was declared. Health insurance premium revenue was up 1.2% to $6.32bn and health revenue was 6.3% higher to $586.9m. MPL says they expect the dividend payout ratio to remain at the top end of guidance for FY19.
  • MYOB group (MYO) – Half year results. Revenue and underlying EBITDA up 7% and 3% to $218.5m and $92.7m respectively. MYO’s preferred measure of after-tax profit (NPATA) was down 6% on year to $45.6m. FY18 guidance was reaffirmed with full-year 2018 revenue growth expected to be greater than 8%.
  • Star entertainment group (SGR) – Net profit down 44% to $148.1m, removing win-rate volatility in the VIP business, as well as one-off items such as debt restructuring, net profit rose by 20% to $258.1m. Revenue rose more than 5% to nearly $2.5bn. A final dividend of 13c was declared. 
  • AGL Energy (AGL) – CEO Andy Vesey has stepped down with CFO Brett Redman appointed interim CEO effective today.
  • Westpac (WBC) – June quarter update. Net interest margin tapered 11bps from 2.17% to 2.06% in the first half of 2018. WBC said the decline reflects higher finding costs and a lower contribution from the group’s treasury. Tier-1 Capital ratio was also lower at 10.4%. Stressed assets to total committed exposures down 1bps. Australian home loans greater than 90 days overdue up 3bps.
  • Mayne Pharma (MYX) – FY18 results underpinned by strong second-half performance. Second half revenue up 18%, adjusted EBITDA up 35% to $95m, adjusted NPAT 171% higher and operating cash flow up 53% to $121.5m. A net loss of $134m was recorded for the year, revenue and gross profit were both down 7% and 19% respectively. MYX didn’t declare a final dividend.
  • GPT Group (GPT) – To acquire 100% interest in Parramatta’s Eclipse Tower for $277.6m. Settlement is expected to occur later this year in September.
  • Brambles (BXB) – FY18 result. Statutory profit after tax up 293% to US$747m on a constant-currency basis. Sales revenue up 6% to US$5,596.6m and operating profit from continuing operations was up 22% to US$986m. A final dividend was declared at 14.5c. CEO Graham Chipchase said FY19 underlying profit would continue to reflect ongoing input-cost inflation and other cost challenges.

RESULTS TODAY

BEST AND WORST

ECONOMIC NEWS

  • None.

BOND MARKETS

ASIAN MARKET NEWS

  • Japan’s inflation stalls, cuts in smartphone fees may threaten BOJ goal. Japan’s CPI rose to 0.9% year-on-year in July from 0.7% in the previous month and far above market consensus of 0.4%.
  • South Korean court raises ex-president Park’s jail term to 25 years.

EUROPEAN AND US HEADLINES

  • US-Mexico talks to form an agreement on new auto industry rules under the NAFTA trade pact are poised to continue onto next week.
  • US-China trade negotiations end with little progress.
  • Hawaii braces for Hurricane Lane, a Category 4 storm that could be the most powerful storm to hit the islands since 1992.
  • The Manhattan district attorney’s office is considering looking into whether the Trump Organisation falsified business records of a $130,000 reimbursement to Michael Cohen (Trump’s former lawyer).

ANNOUNCEMENTS

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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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