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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 10/10/2017
VIEW MORE ARTICLES BY HENRY JENNINGS

Market summary

  • ASX 200 flatlines to close -1 at 5738.
  • High 5750, Low 5720. Light volumes again.
  • Business conditions steady.
  • CBA lower again, other banks hold steady.
  • Miners slip with energy fading.
  • Industrials drift lower.
  • AUD steadies at 77.86c.
  • US futures up 27.
  • Asian markets mixed with Japan up 0.30% though HK up 0.17% China down 0.31%.

MT stuff: No new trades. Some stop losses raised. Trading ideas in MSB again up 12% today.

Futures and Highs and Lows            

Movers and Shakers

  • AMP +3.55% on a broker upgrade.
  • A2M +2.98% continuing to run hard.
  • MTR -1.33% brokers suggest no other bidders.
  • MSB +14.14% bounces hard after falls yesterday.
  • MAH +4.26% following an investor presentation.
  • LOV +2.73% rally on broker recommendation.
  • NXT +2.40% despite a change in substantial shareholding.
  • MYR -1.32% no change in sentiment.
  • PLS -1.31% profit taking.
  • BAL +5.18% drawing strength from sector.
  • MFG -2.00% profit taking after IPO announcement.
  • BKL +3.37% on thin volume again.
  • Speculative stocks of the day: State Gas (GAS) +75.00% new float raised $5.25m at 20c. Operator of Queensland gas field.
  • Biggest risers – MSB, BAL, MAH, BKL, AMP and GXY.
  • Biggest fallers – ASL, ACX, BPT, SYR, PLS and MLX.

TODAY

  • Gold Road Resources (GOR) – unchanged - has entered into earn-in joint ventures with Cygnus Gold for new exploration projects in south-west of WA. The new projects are over a 3,400km square area of greenstone belts in WA’s Yilgarn Craton. The earn-in agreements will allow GOR to earn up to 75% interest in the two areas. The company is also subscribing to $750,000 in shares for Cygnus’ upcoming IPO.
  • HUB24 (HUB) -0.02% gave an update on its 1Q FY18 results. Funds under administration increased 11% since June 30th to $6.1bn. Net inflows are at $535m, the second best result for the company besides last quarter’s - so consequently down 36% QoQ.
  • Syrah Resources (SYR) -2.70% has completed its $110m equity raising. The retail component of the offer raised $36m for around 8.5m new shares and was completed on October 5, whilst the 1 for 10.5 entitlement offer concluded the capital raising today. 
  • Treasury Wine Estates (TWE) -1.41% has said most of its vineyards and wineries were not in the direct Californian fire zones. The company has recently gained limited access to some of its assets and said there is limited damage.
  • Praemium (PPS) +25.93% gave an update on its 1Q FY18 results. The company saw the strongest increase in Australian quarterly inflows of $587m and globally the company saw funds under administration grow by 31% YoY to $6.66bn.

ANNOUNCEMENTS

POINTS

BEST AND WORST

ECONOMIC NEWS

  • ANZ Roy Morgan consumer confidence rose 0.4% this week. Recent job growth is supporting households’ perspectives on current and future financial conditions, with indexes up 0.7% and 0.3% respectively. However, consumers still feel pressure as economic confidence fell, whilst low wage growth and high household debt persist.

https://marcustoday.com.au/webpages/images/report/20171010/vnejbceg4519762977398559719.png

  • The NAB business survey saw more strength in Australian business this month. Business conditions were up 0.2 to 14.4 points, whilst business confidence has offset some of last month’s 6-point fall, rising 2 points to 7.4 points for September. Most industries are pushing higher in terms of business conditions with the exception of the retail sector. Last week’s retail sales didn’t help.

https://marcustoday.com.au/webpages/images/report/20171010/uoyuudst5454209645360096514.png

BOND MARKET

ASIAN MARKETS

  • Looks like Japan’s very own Volkswagen diesel problem. Kobe Steel in Japan has said it falsified data relating to strength and durability of some aluminium and copper products. This latest saga follows Takata misleading car companies about the safety of its air bags. Kobe Steel said it discovered the falsification in inspections on products shipped from September 2016 to August 2017, adding there haven’t been any reports of safety issues.
  • Samsung shares rallied 4.5% on analysts’ expectations. The market is expecting the company to announce record quarterly profits later this week.

EUROPE AND US MORNING HEADLINES

  • 10 killed in forest fires in California. Disruptions for vineyards and cannabis farms.
  • Saudi has assigned 7.2m b/d for export in November.
  • US hospital operators slide amid reports of Trump executive order on health plans.
  • More from Spain as Catalan continues to threaten to leave the band. Spain’s biggest economic region.

  • In the UK, the Office for National Statistics (ONS) admitted it had stuffed up and had underestimated unit labour costs. Previously it was 1.6% now 2.4% Brings rate increases that bit closer.

MARKET MAP

 



View More Articles By 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.

To gain further insights from Henry Jennings, Marcus Padley and the Marcus Today team of analysts, click here to register for a free trial of the Marcus Today daily newsletter.



Important note: Any financial product advice contained in this email is general financial product advice only and does not take into account any one person's objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.
 

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