- 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
- 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.
- 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.
- 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.
BEST AND WORST
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).