Marcus Today End Of Day Report
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- ASX 200 finished 4 points higher after trading lower earlier in the day.
- US tax bill has just passed the Senate vote. Final approval the legislation must go back to the House on Wednesday for a procedural issue.
- High 6083 Low 6057.
- Sector performance was mixed – but it was miners that turned the index positive.
- BHP up 0.2%, RIO up 0.6%.
- Banks finished mixed. CBA up 0.2%.
- Ardent Leisure sold down its bowling division.
- Telstra fell 1.1%.
- Retail Food Group fell even further on its earlier profit downgrade.
- AUD traded 0.07% lower to 76.59c.
- Global dairy prices sank to a 15-month low at auction, which could see farmers take a hit to their incomes in the new year.
- US futures +50.
- Asian markets mixed – Nikkei +0.33%; Shanghai -0.04%; Hang Seng -0.04%
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – The Trump tax bill; Apple gets downgraded; and three sell recommendations from brokers.
- TRADING PORTFOLIO - Running into the buffers for Christmas - no new trades.
- SMALL STOCK PORTFOLIO – Updated.
- INSIDERS – Two new Insiders tips: BAT and CM8.
- 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:
ADVANCERS V DECLINERS
- CIM -0.46% on class action.
- ORI +0.22% on purchase of GroundProbe.
- AAD +11.85% on sale of its bowling division.
- SYD -1.34% on passenger numbers for November.
- PLS -0.42% on deal with AGO.
- AGO +10.00% on uptake deal with PLS.
- DOW +1.75% on five year contract with Gold Road Resources.
- VLW +4.35% on $400m contract.
- WEB +3.75% on broker upgrade.
- DMP +3.91% short covering.
- RFG -17.93% on further selling post profit warning.
- BIGGEST RISERS: CMC, BAS, OOK, WFE, YNB, CFE, FFG, KEY.
- BIGGEST FALLERS: MEM, SUR, AIY, ESI, MLS, GCE, WRG, GRV.
BEST AND WORST
- Cimic Group (CIM) –0.46% Is the focus of a class action which was filed in the Federal Court regarding disclosure issues surrounding its acquisition of UGL in December 2016. CIM has denied the allegations and plans to defend the class action.
- Orica (ORI) –0.46% Say it will buy GroundProbe from Crescent Capital for A$205m. GroundProbe is a provider of monitoring, measurement for the mining industry.
- Ardent Leisure (AAD) +11.85% In a bid to strengthen its balance sheet, AAD announced it will sell its bowling division for A$160m to Entertainment & Education Group, a company jointly owned by Quadrant Private Equity and the Steinberg family. The division sold operates AMF bowling centres, Kingpin bowling lanes, and Playtime arcades across the Australasian region. The sale comes on the back of the Dreamworld incident last year, that killed four people and weighed heavily on revenue right though to 2017; not to mention sentiment. The company has endured the resignation of two CEO’s in the last two years; and is still on the lookout for a successor.
- Sydney Airport (SYD) –1.34% Passenger numbers released today. Total passengers up +3.6% YoY. For the month of November, was up +4.5%.
- Downer EDI (DOW) +1.75% Signs five-year contract to undertake mining services for Gold Road Resources’ Gruyere gold project in a $400m deal.
- Villa World (VLW) +4.35% Earnings guidance. NPAT increased. Full year retained.
- Pilbara Minerals (PLS) –0.42% Deal to provide AGO with 1-1.5m tonnes of Lithium ore.
- Business confidence among Asian companies rose in October-December to the highest in almost seven years due to robust consumption and global trade. The six-month outlook of 94 firms rose to 78 for the December quarter from 69 three months before. The index reached its highest since January-March 2011. Improvement in sentiment in Australia, China and South Korea drove gains in the overall index. Sentiment in Indonesia and Thailand was also strong.
EUROPE AND US MORNING HEADLINES
- Britain's competition watchdog has given five banks extra time to comply with so-called open banking plans aimed at boosting competition in retail banking after the lenders said they would not be ready by a January deadline.
- The Bank of England will on Wednesday unveil plans to allow European banks to operate in UK as normal post-Brexit, even in a "no deal" scenario, the BBC reported.
- British home prices are set to extend a slow march higher next year, in part from a cut in housing transaction tax for new buyers, but London prices will fall for the first time in eight years as Britain prepares to leave the European Union.
- Fewer British employers plan to hire extra staff next year due to one of the gloomiest economic outlooks since Britain voted to leave the European Union in June 2016, a monthly recruitment industry survey showed on Wednesday.
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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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