Marcus Today End Of Report
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- ASX 200 down 13 to 6094, late rally saves blushes.
- High 6120 Low 6078.
- WBC ex-div and more. CSL eases.
- Resources see late rally. Energy stocks steady but STO slips on the unchanged bid.
- REITs slip and infrastructure eases.
- Unemployment rises to 5.6%. Participation at a record.
- AUD rallies slightly to 75.28c on jobs number.
- Bitcoin rises to US$8363.
- AUD Gold steady at $1294.
- US futures down 12.
- Asian markets drift with Japan up 0.45% and China down 0.45%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – Interest rate trends, TWE in trouble, selling BWX and a look at a few other stocks.
- SMALL STOCK PORTFOLIO – A blast from the past for a wearables stock with a twist.
- INSIDERS – Market still focussed on Top 50 with small energy stocks starting to pick up. A list of stocks under threat of being sold.
- TRADING PORTFOLIO – No new trades. The market just rolling over the top.
- 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:
Movers and Shakers
- SYD -1.00% broker downgrade.
- AMP +0.51% chief risk officer for financial advice has resigned via LinkedIn.
- TCL -1.65% ACCC concerns on WestConnex.
- A2M +1.99% slight bounce.
- TWE -6.22% media reports of supply glut.
- PPH -5.53% disappointing update.
- LYC -2.94% Malaysia continues to weigh.
- CWN -2.35% broker downgrade as SGR -0.56% attracts VIPs.
- LOV -2.41% profit taking.
- MQG -1.05% internal restructure of wealth business.
- SYR +3.66% AGM address.
- DMP -2.64% bears are back.
- SRV +6.65% buyback update.
- CRD +5.00% finally trades.
- AAC +2.27% live exports get a reprieve.
- AVZ +6.45% bargain hunting.
- AX1 +6.23% not all retail is dead.
- AKP +9.59% rallying strongly on tiny volumes.
- ORE +7.07% GXY +8.36% lithium deals help.
- KDR +2.78% signs Tesla up.
- SPZ -42.22% UK business update shows breaches of corporate policies.
- Speculative stock of the day: Corazon Mining (CZN) +20.00% the company has announced it has produced battery grade cobalt from its Ridge deposit in NSW. Concentrate of up to 7.38% co-produced from conventional flotation.
- Biggest risers – AJM, GXY, CLQ, ORE, AX1 and EHL.
- Biggest fallers – TWE, PPH, PME, BAL, ALQ and CCL.
- Push Pay (PPH) –5.53%FY18 result. Net loss improved 8% to US$23.3m, total revenue more than doubled +104.7% to US$70.2m, beating guidance of USA$70m, and operating costs decreased from 130.6% of operating revenue to 92.5%. The company will not pay a final dividend.
- DuluxGroup (DLX) –2.24% 1H earnings and management changes. The chairman has retired effective 30 June to be replaced by non-executive director Graeme Liebelt. Graeme is the Chairman of Amcor, Director of ANZ Banking Group and Director of the Australian Foundation Investment company. For the first half, the company saw net profit +9% YoY to $79.2m, revenue +4.2% YoY to $918.1m, NTA per share up 13.7% for the half and it will pay an interim dividend of 14c. The company flagged higher raw material costs, particularly latex and titanium dioxide but says it is implementing strategies.
- BlueScope Steel (BSL) +1.07% Have priced a new US$300m bond to refinance US unsecured notes and reduce financing costs.
- Adelaide Brighton (ABC) +0.45% The chairman Leslie Hosking has today stepped down from the position and board to be succeeded by Zlatko Todorcevski, who has been a non-executive director since March last year. The CEO has also signalled he intends to retire and the company has commenced the search process for a replacement.
- Kidman Resources (KDR) +2.78% has entered into a binding agreement with Tesla for its lithium hydroxide which will be used to power the electric vehicles. The deal is for 3 years at a fixed price equates to less than 25% of Kidman’s portion of initial nameplate production for the first three years from the refinery.
- Treasury Wines Estates (TWE) –6.22% Responding to media speculation, saying it’s comfortable with the sustainability of its operating model in China, to build a portfolio of brands, and of its disciplined approach to managing inventory levels with its customers. Separately commenting on a slowing on clearance on imports, TWE confirms it is “also experiencing delays for some of its Australian Country of Origin shipments being cleared by the General Administration of Customs China (GACC) to replenish its inventory levels.”
- Santos (STO) –1.90% Revised proposal at US$4.98. No change in price but number of changes to the transaction structure previously announced. These changes include: a US dollar offer of cash consideration for shareholders other than ENN and Hony, with no fixed Australian dollar component; and an offer to ENN and Hony to roll-over their existing Santos shares into a Harbour investment vehicle and subscribe for new shares. STO shareholders will consider the proposal and update shareholders.
- Transurban (TCL) –1.65% The ACCC has concerns about Sydney Transport Partners’ (consortium led by TCL) proposed acquisition of a majority interest in the WestConnex project. TCL controls 15 of 19 road toll concessions in Australia, and 7 of the 9 existing concessions in New South Wales (including the M1, M2, M5 and M7 motorways).
BEST AND WORST
- Unemployment data - the headline rate has ticked up to 5.6% as participation rose to 65.6%.9 month high. Employers added an extra 22,600 jobs from March, according to the Australian Bureau of Statistics. Across February and March employment shrank by a revised 8100 jobs.
- The ASIC will ramp up its surveillance of the wealth management arms of Australia's major banks.
- Budget day in New Zealand.
ASIAN MARKETS NEWS
- Tencent has surged after announcing a record profit 61% higher in net income terms beating estimates by nearly a third. Up 45,180% (that's right) in 14 years. Even better than CSL.
- Hong Kong has intervened again to support the weak local currency, buying nearly HK$16bn in the past two days.
- Singapore exports rebound with nearly 12% rise in April.
EUROPE AND US MORNING HEADLINES
- Blue Sky (BLA) killer company Glaucus is setting up separate short selling fund operation called Blue Orca Capital. Very Captain Ahab. Hong Kong company is next in their sights.
- A stormy in a teacup as Trump concedes he paid his lawyer back. Now that is a truly bad deal.
- Plenty of politics being played in Italy as a coalition looks closer to fruition although there will be push back on EU debt and immigration.
- UK gripped by Royal Wedding fever. Some have called the bride’s family, the 'Markle debacle'.
- BHP in the UK press as investors are looking to sue the company over the Samarco dam collapse.
- The Big Four accountancy firms have drawn up contingency plans for a break-up of their UK businesses, an option politicians and regulators are increasingly pushing to solve conflicts of interest embedded in the industry.
- Wal Mart to report tonight in US.
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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