Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 loses momentum to close up 6 points to 5896.
- High 5910 Low 5885. Narrow trading range.
- Big miners slump. Banks the green on screen.
- REITs slip as gaming loses.
- Industrials find support.
- AUD steady at 78.57c.
- US futures down 4.
- Asian markets slightly mixed with Japan up 0.33% and China CSI down -0.45%.
- Some words of wisdom from lessons learnt 30 years ago.
- One trade stopped out. Stop losses raised.
- New stock added to small stock portfolio.
- Been a good October.
FUTURES AND HIGHS AND LOWS
Movers and Shakers
- RCR +6.13% awarded a power station contract in Indonesia.
- GXY +5.49% further drilling at James Bay project.
- BIN +2.63% responds to media talk of licensing issues.
- DMP +3.46% says ‘Ja’ to a German pizza.
- TWE +3.22% AGM draws buyers.
- APT +4.05% rally continues.
- BAL +7.02% broker flip flops to buy from sell.
- MLX +2.35% quarterly report.
- LYC -9.09% heavy volume.
- NUF +2.33% broker upgrade.
- AWC +1.31% Alcoa quarterly.
- PLS -3.75% profit taking.
- RIO -2.54% allegations and metal prices taking effect.
- Speculative stocks of the day: WGL +75.0% after announcing the launch of Wangle Family Insites commencing 23rd October. Apple has confirmed acceptance of Wi-Fi iOS version in app store.
- Biggest risers – RCR, BAL, GXY, BIN, PNI, API and TWE.
- Biggest fallers – LYC, PLS, S32, SBM, RSG and CWN.
BEST AND WORST
- Woodside Petroleum (WPL) -1.81% narrowed its full-year production guidance to between 84 and 86 million barrels of oil equivalent - from 84 to 90 mmboe, because its second Wheatstone LNG train is not expected to start up for another six to eight months. WPL reported a drop in production to 20.3 mmboe in the three months to September 30, from 25.2 mmboe a year earlier, due to scheduled maintenance. Total sales revenue down 7.5% to $US914 million ($A1.2 billion) in the quarter, compared to $US988 million in the prior corresponding period.
- Santos (STO) +1.18% 3Q report. Produced 15mmboe, up 2% on the prior quarter and 4% lower than the prior year. Sales were steady at 21.5mmboe; revenue was higher at US$793m. So far this year, sales are down 4% on the pcp but higher pricing saw revenue higher. Sales guidance lifted to 79m – 82mmboe, and production guidance to 58m – 60mmboe.
- Healthscope (HSO) +2.67% Held its AGM and declared that FY17 results were ‘below expectations’ in its hospital division. Overall hospital EBITDA was pressured by a softer private hospital market, a slower ramp up of patient volumes at its newer facilities, and higher wage costs. To remedy this in FY18, the company says it plans to accelerate top line growth; drive great operational efficiency via a business improvement program; undertake a review of its portfolio; and execute its brownfields expansion strategy successfully. HSO says it expects further softness in the private hospital sector to continue in the short term, and expects is operating EBITDA to be similar to that of FY17.
- Crown Limited (CWN) -2.85% Shares are down a further 1.82% today thanks to a parliamentary speech that included an accusation of poker machine tampering.
- Westpac (WBC) +0.57% will refund about $65m to 200,000 customers holding "packaged" accounts.
- South32 (S32) -2.48% warned that it may be facing cost pressures from rising raw material input costs and a weaker US dollar. It maintained its guidance but expect some downgrades to come. S32 posted a 2% increase in aluminium production to 249,000 tonnes for the September quarter, while nickel output jumped 34% to 11,700 tonnes. Manganese ore, production rose by 11% to 1.3 million tonnes.
- The unemployment rate fell to 5.5% for September from 5.6% in August, beating market expectations. Full-time employment rose by 6100, while the number of new part-time employees was up 13,700. The participation rate ticked down 0.1% to 65.2%.
- China’s economy grew 6.8% in the third quarter, slightly below the previous period but ahead of the government’s full-year target.
- Fixed asset investment for the year dipped more than anticipated to the lowest level in close to 18 years.
- New construction starts measured by floor area rose 6.8% in January-September, slowing from a 7.6% rise in the first eight months of the year.
- Factory output grew 6.6% in September from a year earlier, beating expectations, while fixed-asset investment expanded 7.5% in the first nine months of the year, missing forecasts.
- Retail sales rose 10.3% in September from a year earlier, compared with analysts' expectations for a 10.2% rise.
EUROPE AND US MORNING HEADLINES
- UK retail sales, Sweden unemployment.
- At least we know why the Dow is at a record.
- Mnuchin warns of equities fall without tax reforms.
- In the UK, the NHS has banned surgery for obese patients together with smokers. So far only the NHS in Hertfordshire has adopted this plan in the face of serious criticism.
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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