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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 13/02/2018
VIEW MORE ARTICLES BY HENRY JENNINGS

Market summary

  • ASX 200 up +35 to 5856 as confidence grows.
  • High 5860; Low 5814.
  • Results were the focus today. Headliners included COH, BLD, CGF and TCL.
  • Banks recover poise, as miners lead rally.
  • Energy stocks remain under pressure.
  • REITs going ex-dividend.
  • AUD back to 78.67c
  • Bitcoin pushing higher to US$8730.
  • AUD Bullion around $1323.
  • US futures falls away to -75.
  • Asian markets mixed with China up +1.49% and Japan down -0.52%. HK up +1.85%.

FUTURES AND HIGHS AND LOWS

Mt Stuff

  • MARCUS CALL – Marcus gives you a technical view of the market as he focuses on the timing the moment to buy back in.
  • TRADING PORTFOLIO - On the back of some minor technical buy signals we've hedged our bets and bought three stocks.
  • SMALL STOCK PORTFOLIO – Henry continues to watch former market darling, BIG after all the negative press.
  • INSIDERS – Henry takes a look at Argosy Minerals. Many thanks to ‘Wall Street 2’ for this recommendation.
  • INSIDERS 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:

https://marcustoday.com.au/webpages/images/report/20171016/askmarcusbutton.jpg https://marcustoday.com.au/webpages/images/report/20171016/tellusyourstockideas.jpg

Media tonight and tomorrow:

Marcus talks the day’s business and finance with Elysse Morgan tonight on ABC News 24 at 8.30pm (AEDT) and 11pm on the ABC.

And tune into Henry today at Sky News Live from 4pm today and on the ABC tomorrow morning from 8.30am.

Advancers and Decliners:

  • PLS +9.43% positive announcement on PFS 5Mtpa expansion.
  • MLX +5.45% cobalt expansion at Wingellina.
  • ORE +6.92% lithium stocks in demand. GXY +7.17% joins in.
  • JBH +2.17% bounces on broker downgrades.
  • ANN +2.18% bounces on broker downgrades.
  • BLD -2.02% on results.
  • LYC +1.93% bouncing back.
  • SBM +4.92% Macquarie upgrades outlook.
  • CLQ +4.58% appointment of operation director.
  • SGF -6.59% Ex dividend.
  • IGO +4.63% exploration update at Lake Mackay.
  • WTC +3.70% finds its mojo.
  • DNA -8.62% results preview and impairment.
  • MYR -2.73% broker downgrades to PT of 20c.
  • BAL +4.03% sentiment changes.
  • MWR +31.87% positive announcement yesterday driving optimism.
  • Biggest risers – DM1, ARO, IPB, PMY, PCH, CAE, NWE.
  • Biggest fallers – LKO, DN8, WLC, EMP, ITL, MRD, AIB.

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TODAY

  • Challenger (CGF) –0.16% 1H interim results. Net profit A$195.4m versus A$201.5m, down 3%. 1H revenue A$1.13bn, up 20%. Assets under management A$76.5bn, up 18%. The company said it’s on track for FY normalised profit of A$545m – A$565m. Dividend of 1.75c. The company is on track to achieve guidance and the Japanese market represents a significant opportunity. The company is still waiting for government direction on its policy in comprehensive retirement income products.
  • GBST (GBT) +1.38% 1H interim results. Net profit A$2.5m, down 43% on year. Operating EBITDA $4.9m, up 16% on preceding half. Operating cash flow $5.4m up 64% on the half. The company has $15m cash and no debt. Guidance reaffirmed with FY18 operating EBITDA to remain on track at $20m-25m. A 2.5c interim dividend was declared.
  • Boral (BLD) –2.02% 1H net profit A$173m, up 13%. EBITDA $500m, up 50%. EPS 18.2c, up 6%. Operating cash flow up 37% to $216m. CAPEX up 14% to $164m. Dividend of 12.5c declared. The increase in earnings was driven by its Headwaters acquisition in the US, and Boral Australia. Boral North America generated revenue of A$1.1bn for the half. The company expects to see high single-digit EBITDA growth for its Australian business, and continued growth across all businesses in FY18.
  • Cochlear (COH) –0.03% 1H sales revenue up 6% to A$640m. Net profit fell 1% to A$111m. Interim dividend of 140c declared. Implant units were down 2% to 15,972 due to a reduction in emerging market units and timing of the number of tenders. 1H result included a one-off tax expense surrounding its Nucleus 7 launch costs. The company maintained guidance of $240m-250m, up 7-12% on year.
  • Transurban (TCL) –0.18% 1H net profit more than tripled to A$338m. Toll revenue growth up 10.5%. EBITDA A$850m, up 11% on year. Average traffic growth of 1.4% was impacted by ongoing works. The company says it has $11bn in the development pipeline and all projects under construction are currently on time and on budget.
  • Macquarie Group (MQG) +1.14% The bank is joining with local pension funds to buy TDC for $40.3bn Danish Crowns. TDC's business is now focused in Denmark, reducing the scope for selling off assets.
  • GPT Group (GPT) –0.14% Results today showed a 4.4% like for like income growth. After tax profit of $1.269bn up by 10.1%. Income growth from tenants and heated competition among property investors delivered the group a $717.7m lift in the valuation of its portfolio. Guidance for growth of 3% in distributions.

ECONOMIC NEWS

  • The business confidence index rose by 2pts to +12 index points, its highest level since April 2017, beating the estimate of 10.00 according to National Australia Bank (NAB) business survey 2018.
  • The business conditions index jumped 6pts to a strong +19 index points in January compared to an expected drop to 12 index points.
  • Across industry groups, conditions are strong everywhere except retail, led by a buoyant construction industry, which is helping support employment growth.
  • RBA assistant governor, Luci Ellis says a long-awaited pick-up in wages growth is likely to be "gradual" because employers are reluctant to raise pay packets for fear of becoming uncompetitive. Dr Ellis says that business surveys show there are some signs that the labour market is tightening as skilled workers become increasingly difficult to find.
  • NZ former PM, Bill English quits politics.

BOND MARKET UPDATE

ALL ORDS MARKET SUMMARY

ALL ORDS TOP MOVERS

ALL ORDS BOTTOM MOVERS

ASX 200 MARKET SUMMARY

ASX 200 TOP MOVERS

ASX 200 BOTTOM MOVERS

ASIAN MARKETS

  • 5G is powering the Winter Olympics. Fifth-generation wireless networks are designed to be wicked fast, about 100 times faster than 4G. At 10 gigabits a second, 5G can send a full-length high-definition movie in seconds. About 1bn people worldwide are likely to be 5G-enabled within five years, and that will lead to $12.3 trillion in global economic output by the mid-2030s, according to researchers from Ericsson and IHS Markit.
  • Lunar new year celebrations for the Year of the Dog begin, affecting China, Hong Kong, Taiwan, Singapore, Malaysia and Indonesia. Chinese mainland markets are closed Feb. 15-21. India is out Tuesday for a public holiday.

EUROPE AND US MORNING HEADLINES

  • Soyabean and soya meal prices jumped on worries about drought in Argentina, a key producer and exporter, as rains last week fell short of expectations.
  • In the US, Remington has filed for bankruptcy. Remington has been around for over 200 years, dating back to 1816 when Eliphalet Remington II worked with a local gunsmith to create a flintlock rifle. The rest is history. The Chapter 11 bankruptcy filing will let Remington stay in business while it works out a plan to turn around the company and pay its creditors.
  • Wynn Resorts’ board is expanding its investigation of sexual harassment allegations against its founder, Steve Wynn.

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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