Marcus Today End Of Day Report
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- ASX 200 down 28 points to 5829.
- High 5864 Low 5825.
- Narrow range modest volume.
- Banks hit the skids. NAB fraud not helping.
- Staples unwind too. TLS back in dog house.
- Miners improve on metal prices. Energy stock enjoy crude gains.
- Iron ore futures at one week high to US$65.85 on restocking.
- AUD falls -0.12% to 77.48c.
- Bitcoin rallies to US$6860.
- US futures down 69 on realistic trade view.
- Asian markets mixed with Japan down -0.38% and China CSI up +0.58%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – Marcus evaluates the benefits of China’s President Xi’s speech yesterday. And we take a quick look at a stock that is showing some long-term potential.
- SMALL STOCK PORTFOLIO – Henry attended a tech conference and has added a new stock to the portfolio.
- INSIDERS – The tech conference roundup. The Good, The Bad and the Ugly.
- INVESTMENT FOR BEGINNERS – Marcus has been running the Marcus Today Education course for beginners. It is aimed at teaching basic concepts of finance but includes a section about “Your Super”, including: What is it; Where is it; How to manage it.
- 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.
Advancers and Decliners
- RFG +8.51% shorts scrambling as bargain hunters strike.
- FNP +8.69% broker upgrade.
- MSB +5.07% positive support.
- WSA +3.43% nickel price rises.
- WBC -1.39% crack down on liar loans.
- COE +3.17% oil price rise.
- WPL +1.23% crude rise.
- GMA +3.93% broker upgrade.
- AGL -0.66% Vesey talks tough on Liddell.
- NVT -4.10% remains under pressure.
- WTC -5.43% rally unwinds.
- PLS -4.17% profit taking.
- ERA -6.31% AGM address.
- NOX -4.27% low volume sell down.
- BBN +6.87% competitors in administration.
- IVX +5.26% finding support again.
- Speculative stock of the day: Clancy Exploration (CLY) +66.67% the company has secured a key cobalt licence next to the famous Bou Azzer mine in Morocco. The mine has been in operation since the 1930’s. Bear in mind that the 32km2 project is adjacent to the Bou Azzer mine. ‘Nearolog’y works it seems.
- Biggest risers – FNP, NCZ, MSB, SXY, WOR and GMA.
- Biggest fallers – PPH, APT, WTC, NVT and ORE.
- Afterpay (APT) -5.72% The company's sales and revenue update this morning showed revenue up 400% on pcp. While this is clearly very positive the devil was in the detail. Q3 FY18 underlying sales approximately 3.8% lower than Q2 FY18 sales (which includes Christmas peak season trading uplift) on an absolute basis but is less than 2% lower from an average daily underlying sales perspective (fewer days in Q3 versus Q2).
- Pushpay (PPH) -5.31% a revenue update this morning. The company has doubled revenue to US$70m in payments annually. It is now processing over US$3bn in volume annualised. It also announced margin improvements growing from 54% to over 60%.
- Blue Sky Alternative Investments (BLA) -5.35% Corrected media reports that its private equity investment in Wild Bread is struggling. BLA has appointed McGrathNicol to evaluate its growth strategy and capital structure. Not as suggested that it has appointed its insolvency arm and that Wild Bread continues to meet all its commitments.
- South 32 (S32) -2.30% To appeal Colombian court decision in relation to alleged health & environmental impacts on the community surrounding its Cerro Matoso operation.
- Qantas (QAN) +0.16% Has sold its catering business to an Emirates owned company for an undisclosed amount.
- QBE Insurance (QBE) +0.21% Announced changes to its management. Inder Singh appointed as group CFO.
ALL ORDINARIES SECTOR SUMMARY
ALL ORDINARIES TOP MOVERS
ALL ORDINARIES BOTTOM MOVERS
ASX 200 SECTOR SUMMARY
ASX 200 TOP MOVERS
ASX 200 BOTTOM MOVERS
- The Westpac Melbourne Institute Index of Consumer Sentiment declined 0.6% to 102.4 in April, down from 103.0 in March. Sentiment continues to remain optimistic with the index staying above the 100 level for a fifth consecutive month. While the number is an improvement on much of 2017, the index is still well below the strong 105 – 115 levels.
- RBA governor speaking in Perth this afternoon. “A serious escalation of trade tensions would put the health of the global economy at risk and damage the Australian economy.”
- A high level of household debt remains a source of vulnerability for Australia’s economy, though risks in this area are no longer building, following a recent tightening of bank lending standards, he said.
- The risks in the economy, and the prospect of only a slow return to higher inflation, and stronger growth, mean the RBA is under no pressure to raise interest rates near-term.
ASIAN MARKET NEWS
- Chinese CPI data out with March CPI up 2.1% in food and non-food. March PPI +3.1%. Both look a little below forecast.
- China’s securities regulator has said the daily quota for trading schemes linking Shanghai and Shenzhen with Hong Kong will be increased from May 1.
- Japanese core machine orders rose in February beating estimates on an improvement for the manufacturing sector.
EUROPE AND US MORNING HEADLINES
- Murdoch’s empire has been raided by European watchdogs over a sports rights cartel.
- Trump has cancelled his Peru trip to respond to Syria. Paddington misses out.
- Saudi Arabia raises US$11bn in the biggest emerging market bond sale of 2018.
- This could be big for the FTSE. China is aiming to start a stock trading tie-up between Shanghai and London this year, according to a top official, creating a system that would give investors direct access to shares listed in the UK.
- PM Theresa May looks like backing Trump in a strike against Syria.
- VW set to axe Mathias Mueller.
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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