Marcus Today End Of Report
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- ASX 200 down 2.5 to 6116 rally fades yet again.
- High 6141 Low 6116. Six weeks in a row in the positive.
- Narrow range. Looks tired. Low volume.
- Weekly gain of around 0.87%.
- Banks continue to flop ahead of ex-dividends. Miners still the focus.
- TLS bounces. Infrastructure slips.
- Oil slips in Asia.
- AUD higher at 75.45c.
- Bitcoin slips to US$8974.
- AUD Gold $1320.
- US futures up 33.
- Asian markets mixed with Japan up 0.98% and China CSI 300 down 0.06%
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – Buying two stocks for the SMA. AMP following its AGM yesterday.
- ARE YOU A FINANCIAL ADVISER/PLANNER? - If you are in or own a financial planning business, have integrity and put your clients ahead of the dollar, give me a ring. We are also very keen to take on individual financial advisers/planners.
- SMALL STOCK PORTFOLIO – We added some energy exposure yesterday and revisit LYC in the wake of the Malaysian elections.
- INSIDERS – A insight from one subscriber on the current market coupled with some scary revelations from Google recently on the AI-enhanced future Required reading. Orwell would have been worried.
- TRADING PORTFOLIO – One new trade. Three stop losses raised.
- 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.
- BHP +1.25% marches ahead.
- WPL -1.41% profit-taking.
- UPD +5.48% thin volume.
- GNC -1.02% reaffirms guidance. No rain. No grain.
- LYC +0.74% bounce fades.
- PPT +3.90% signs new CEO.
- MLX +5.65% copper price rises.
- JMS +5.71% commodity price rises.
- IVC +2.96% cold snap helps.
- SGR +0.37% broker upgrade.
- KDR -2.27% profit-taking.
- SGR +0.37% grinding higher.
- NUF +3.73% some rain brings relief.
- AMP -5.81% the hits are getting bigger.
- LNK -3.59% budget fall out continues.
- TTT +10.23% building on gains.
- ISD +3.85% new substantial shareholders.
- BLA -6.73% reverse thrust.
- Speculative stock of the day: IPB Petroleum (IPB) +36.36% the company significantly upgraded its Idris oil resource in NW Australia. IPB owns 100% of the project now with prospective resource of 69MMBBLS up from 33MMBBLS. Market cap $4m.
- Biggest risers –UPD, MLX, REA, PDL, PPT, and NWL.
- Biggest fallers –AMP, IFL, IMD, SEA, LNK and MIN.
- News Corp (NWS) +0.81% a 6% lift in revenue to $2.1bn, above Reuters' forecasts of $1.99bn for the March quarter. NWS reported a net loss of $1.1bn due to noncash write-downs and an impairment charge, excluding those, the company recorded EPS of 6c. News Corp Chief Executive Robert Thomson said, "the digital ecosystem is clearly evolving and regulators in many countries are grappling with the profound impact of unprecedentedly powerful digital platforms."
- GrainCorp (GNC) –1.02% Reaffirms earnings guidance, but cautioned the dry conditions would present headwinds. 1H profit fell 97% to $36.1m, revenue was 19% lower coming in at $1.99bn. The dividend for the half year of $0.08 a share, almost half the $0.15 payout of last year. GNC expects an underlying net profit for the full year between $50-70m, and underlying EBITDA of $240-265m
- Oil Search (OSH)-0.24% Maintains lowered 2018 production forecast at 23 Mln-26 Mln barrels for 2018.
- REA Group (REA) +5.23% Results showed revenue up 20% to $592m and EBITDA growth of 21% to $345m. These results were driven by the strength of the Company’s residential and commercial businesses and the inclusion of the financial services business, which was not included in the prior comparative period. The financial services segment, which launched in the first half, remains on track to deliver the previous FY18 revenue guidance of between $26m - $30m and EBITDA between $7m - $11m.
- Caltex (CTX) +1.91%First quarter trading update. Profit after tax was $155m on a replacement cost basis. 1Q profit after tax was $172m. Refiner margins were US$9.40 per barrel down US$2.82 compared with US$12.22.
- Perpetual (PPT) +3.90% Rob Adams (former of Janus Henderson) has been appointed CEO from 24 September. He was previously Chief Executive at Challenger Funds Management and First State Investments (UK). He has also held senior positions in Wealth Management at Challenger and in Marketing and Distribution at Colonial First State
- Orora (ORA) +0.60% Update. Orora expects to continue to drive organic growth and invest in innovation and growth during FY18, with constant currency earnings expected to be higher than reported in 2017, subject to global economic conditions.
- Telstra (TLS) +0.95% is taking rival Optus to court over what it alleges are misleading and deceptive advertisements stating the rival telecommunications provider has the best mobile network across Australia.
- Housing finance falls in March. Home-loan approvals fell by a seasonally adjusted 2.2%, 0.4% more than expected. The value of loans for investment housing fell by 9.0% from February.
More from the ABS today
- If you are one of the more than six million mums in Australia or countless more mother figures, Happy Mother’s Day.
- The median age of first-time mums in 2016 was 30.5 – up from 29 in 2011 – with women aged 30-34 having the highest fertility rate of 123 babies per 1,000 women. The teenage fertility rate continued to decline.
- The total fertility rate in 2016 was 1.789 babies per woman, down from 1.875 in 2006 and 1.805 in 1996. Since 1976, Australia’s fertility rate has been below the replacement level of 2.1.
ASIAN MARKETS NEWS
- Shares in Rusal were flat on Friday despite first-quarter profit rising more than a fifth from a year ago at the Russian aluminium producer, which warned that US sanctions imposed in April made earlier forecasts unreliable.
- There is a global pilot shortage with the expansion of Chinese airlines.
- Mahathir Mohamad, Malaysia's new prime minister, has said that the country’s king would grant a full pardon to Anwar Ibrahim.
EUROPE AND US MORNING HEADLINES
- Trump is heading to Raffles in Singapore to meet with Kim on June 12th. Kim will be wearing a red rose. Gangnam style.
- POTUS is opening up another front in the trade wars with a focus on measures to bring down prices taking aim at foreign countries that benefit from innovation.
- Apple has abandoned plans to build a US$1bn data centre in Ireland citing ‘delays in the approvals process’.
- The UK Pensions Regulator (TPR) said on Thursday that it would spend an extra £4.3m over the next year as it fights to safeguard pensions following the collapse of retail giant BHS as well as the more recent collapse of Carilion. The watchdog said it would increase staff numbers by 22pc over the next three years. Unlike ASIC which is cutting staff and budgets. Fail.
- Saint-Gobain, the French building materials company, has given up its fight for control of Swiss rival Sika in return for a pay-off, ending one of Europe’s most contentious takeover battles.
- Israel to win Eurovision.
Happy Mother's Day
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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