Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 up 36 to 5922.
- High 5910 Low 5880.
- Narrow range and modest volumes.
- Miners hit as sanctions in doubt.
- Oil and gas stocks higher.
- Banks finding buyers.
- Healthcare recovers dragging consumer stocks better.
- CPI at 0.4% fails to inspire. AUD slips to 76.06c
- Consumer sentiment positive.
- Bitcoin rallies hard to US$9192
- US futures up 70.
- Asian markets positive with China CSI up 1.85% and Japan up 1.08%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – Technical look at our market and the US, and our view on the Royal Commission.
- SMALL STOCK PORTFOLIO – We look for an entry into KGN after a big fall yesterday on underwhelming numbers. Maybe this is an opportunity?
- INSIDERS – We take a look at the best resource analyst in the market and his pick for the sector. We also look at some microcaps and half price honey.
- TRADING PORTFOLIO – Two new trades in high-income stocks.
- 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.
- AMP -2.64% RC fall out.
- KGN -2.63% disappointment continues.
- SDA +4.01% broker upgrade.
- BLA +1.94% searching for a bottom.
- S32 -9.60% commodity price falls.
- AWC -6.76% end of sanctions?
- COE +1.54% oil price rise.
- CYB +2.59% brokers warm to story.
- WEB +3.64% broker upgrade.
- DMP +2.21% bargain hunting.
- BLD -8.63% US earnings concerns.
- FMG -2.35% disappointing production report and rising cost pressures.
- PTM +2.78% fund managers starting to attract interest.
- The speculative stock of the day: Sabre Resources (SBR) +50.00% after an oversubscribed placement and vanadium acquisition completed. The company has raised $1.588m at an issue price of 1.5c with a free option.
- Biggest risers –SDA, WEB, ALU, ALL, IAG.
- Biggest fallers – S32, BLD, RSG, API, AWC.
- Macquarie Atlas Roads (MQA +1.86%) – First quarter weighted average toll revenue up 5.4%, traffic up 3.4%.
- Fortescue (FMG -2.35%) – Third quarter iron ore shipments came in at 38.7m tons. Shipments were down 2% on year and 4% on the previous quarter. Iron ore cash costs up 9% to US1314c per ton. Net debt of US$3.1bn reported. Construction of ore carriers remains on schedule. C1 costs increased to US$13.14/wmt, 9% higher than the prior quarter reflecting production volumes, maintenance, a higher Australian dollar and fuel prices, partially offset by Fortescue’s productivity and efficiency initiative. The average realised price of FMG ore was 62% of Platts FE 62 price. Year to date it has been 64% with guidance still for 65% of the headline price over the year.
- Beach Energy (BPT +0.00%) – Third quarter production of 6.58m barrels of oil equivalent, up 150% on quarter. Sales up 143% on quarter to 6.81m barrels. Revenue up 89% to $393m. FY production guidance tightened, and CapEx forecast lowered.
- Boral (BLD -8.63%) - Property update and earnings downgrade for Boral North America. March quarter earnings numbers in the US are below expectations after significant rain in Texas and the Midwest. Operational issues appear to be getting resolved but earnings are now expected to lift by 10-25% in the second half compared to the first. Boral Australia experienced lower earnings in the March quarter due to a kiln issue in NSW.
- Blackmores (BKL -1.75%) - has acquired a $43m tablet and soft gel capsule making plant in Melbourne from a US seller. Net profit lifted to $17.4m up by 18% in the quarter with NPAT up 19% to $51.6m in the nine months. The new plant, Catalent has been a supplier to Blackmores for about 30 years. But it currently only supplies about 15% of its products.
- Crown Resorts (CWN 0.39%) - Has been hit with allegations that its poker machines underwent illegal modifications to lift gambling turnover.
ALL ORDINARIES SECTOR SUMMARY
ALL ORDINARIES TOP MOVERS
ALL ORDINARIES BOTTOM MOVERS
ASX 200 SECTOR SUMMARY
ASX 200 TOP MOVERS
ASX 200 BOTTOM MOVERS
- CPI rose 1.9% through the year to the March quarter 2018, having increased 1.9% through the year to the December quarter 2017.
- The Consumer Price Index (CPI) rose 0.4% in the March quarter 2018. In line with forecasts. AUD has eased slightly. Some economists were expecting a headline rate of 2%. No rate rise in the air for some time judging by these numbers. 2019 at the earliest.
- The most significant price rises this quarter are secondary education (+3.3%), gas and other household fuels (+6.0%), pharmaceutical products (+5.6%), vegetables (+3.7%) and medical and hospital services (+1.5%).
ANZ Roy Morgan Consumer Survey
ASIAN MARKET NEWS
- Apple’s five largest device assemblers reported a sharp slowdown after peaking at the end of last year, suggesting demand for the high-end device may have faded just a quarter after its release.
- Indonesia’s currency pulled back from its weakest level in more than two years on Tuesday after the country’s central bank announced it had intervened to bolster the rupiah against a strengthening dollar.
EUROPE AND US MORNING HEADLINES
- Rusal shares are up 33% in Hong Kong as Trump walks back on sanctions.
- Mike Pompeo has been voted in as Secretary of State. Tea Leoni move over.
- US shale groups are finally generating enough cash flow to cover the cost of new wells.
- British pound has slipped this week on the back of data that showed inflation was at its weakest level in a year.
- Lest we forget.
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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