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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 07/12/2017
VIEW MORE ARTICLES BY HENRY JENNINGS

 Market Summary

  • ASX 200 finished +32 higher to 5978 in quiet thin trade.
  • Dow futures +43.
  • High 6019 Low 5977.
  • Banks rebounded post a weaker balance of trade number.
  • Aussie dollar fell after weaker trade balance at 75.45. Stocks like Treasury Wine Estate and Goodman Group rallied in turn.
  • Tassal Group fell on a broker downgrade to sell.
  • Nufarm fell on its half-year earnings after weak November trade and the shutdown of its Victorian facility.
  • Miners fell on a lacklustre lead from Wall Street overnight.
  • US futures up +43.
  • Bitcoin surging again to over US$14,000.
  • Asian markets weaker with China CSI 300 down 0.66%, Japan up 1.15% and HK up 0.63%.

MT Stuff

  • MARCUS CALL – Lots of stuff - GDP, High Conviction stocks, Medicinal Cannabis.
  • TRADING PORTFOLIO – No new trades. Stopped out of HVN. Five stop losses raised. Bottom feeding list.
  • SMALL STOCK PORTFOLIO – An update on performance.
  • SMALL CAP STOCK OF THE DAY – Yojee (YOJ).
  • INSIDERS – Uranium back in fashion? And Henry talks cannabis.
  • CONNECT WITH US - We invite you to send us your own stock ideas. We also have the facility for you to email us any questions. Click on the "Ask Marcus Today" button in the newsletter or below - Ask us anything:

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POINTS

MOVERS AND SHAKERS

  • SM1 - 0.94% on production update.
  • CLQ -8.14% on refinancing.
  • ASX on adopting blockchain.
  • WHA +3.55% returning to trade.
  • TLS +0.55% on ACCC announcement.
  • THC +8.16% on licensing agreement.
  • AC8 +12.50% on final licence in place for Tasmania.
  • BIG +2.44% on guidance update.
  • YOW +14.71% ↑ in US distribution.
  • NUF -1.03% after crop protection co. warned of lower profits due partly to sluggish Nov trade.
  • KGN +5.91% On Amazon's underwhelming debut.
  • Biggest risers - CTD  +4.7%, CSR +4.0%, NHF +3.6%, GNC +3.2%, ORI +3.2%
  • Biggest Fallers - TGR  -6.5%, VOC -4.4%, BTT -4.0%, BPT -3.7%, FXL -3.3%.

FUTURES AND HIGHS AND LOWS

BEST AND WORST

TODAY

  • Fonterra (FSF) +1.38% Announced the 2017/18 farm gate milk price reducing its forecast from 675c to 640c kgMS. It also updated the market on its financial results for the first quarter. Revenue came in up 4% to $4bn but sales volumes were down 20% to 3.9bn liquid milk equivalents and the gross margin of 16.7% which is also down. The company believes that it will still achieve its full year forecasts and performance will be weighted to the second half.
  • Synlait (SM1) –0.94%The company announced a big step up in production of Infant Formula with the opening of its new Wetmix Kitchen. This will double the production from 40k metric tonnes to 80k metric tonnes. The new production facility cost $37m.
  • CleanTeq (CLQ) -8.14% The company has appointed the Industrial and Commercial Bank of China as lead debt arranger for the financing of the Sunrise Project. ICBC will make best efforts to provide US$125m in credit facilities to help CLQ develop the nickel, cobalt and scandium project.
  • ASX (ASX) +6.7% The stock exchange has announced that it is replacing CHESS with a distributed ledger technology (think that means blockchain) developed with its partner Digital Asset. The ASX will work with stakeholders to finalise the scope of Day 1 functionality and proposed timing. Feedback from participants due at the end of March 2018.
  • Wattle Health (WHA) +3.55% The company is returning to trade following a deal with Australian Pharmaceutical Industries (API) to distribute its products through the API pharmacy network of Priceline and Soul Pattison.
  • Telstra (TLS) +0.55% The ACCC will NOT oppose the proposed merger of Fox Sports and Foxtel. Under the deal Foxtel and Fox Sports will be merged with News Corp holding 65% and TLS the remaining 35%.
  • The Hydroponics Company (THC) +8.16% Has announced a licensing agreement with National Access a Canadian clinic chain. The agreement provides for a transfer of technology knowledge and IP for 10 years into Australia.
  • Auscann (AC8) +12.50% Final operational licence now in place for Tasmanian Alkaloids by the Office of Drug Control to commence manufacturing in Tasmania. AC8 is the only ASX listed company to hold a licence to cultivate, harvest, manufacture and distribute final dose form cannaboid medicines in Australia.
  • BIG Un (BIG) +2.44% Market update with revenue guidance now up 10% from last update with more than $22m for Q2. The company will be increasing its sales teams in US and locally to leverage the market opportunities.

ECONOMIC NEWS

  • The Australian AIG/Housing Industry Association construction PMI was +4.3 to 57.5 for October. This is the highest reading in 4 months and the tenth straight month of expansion.

BOND MARKET

ASIAN NEWS

  • Gao Feng of China’s Commerce Ministry has accused the US of perpetuating negative information about its trade relationship that is impacting international business confidence and investment.

ANNOUNCEMENTS

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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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