Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 closes up 32 at 6057.
- High 6071 Low 6034.
- Low volume ahead as long weekend.
- Banks and resources lift.
- BHP leads miners higher on commodity prices.
- Consumer stocks push ahead.
- Shanghai rebar at highest since March 1.
- AUD steady at 76.54c.
- Bitcoin higher at US$7712.
- Gold steady at $1297.
- US futures up 39.
- Asian markets mixed with Japan up 0.64% and China CSI 300 down 0.08%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – How to trick yourself into buying good stocks. Putting some cash back in. Examples of small investors getting rooted.
- SMALL STOCK PORTFOLIO – An opportunist addition of a uranium stock and better news from MLX this morning.
- INSIDERS – One new insight today on a biotech plus an in-depth dive into yellow cake and an emerging theme of an overlooked commodity.
- TRADING PORTFOLIO – No new trades, nothing that sparks interest. Two stop losses raised.
- INSIDERS CONNECT WITH US - We invite you to send us your own stock ideas.
Movers and Shakers
- WES +1.77% strategy and demerger of Coles.
- MYX +5.49% US regulatory changes.
- AVZ -20.83% director selling.
- WTP -5.73% scheme of arrangement falls short.
- KGN +2.30% finding support.
- ING -9.05% CEO moves on.
- STO +3.81% better oil prices in Asia.
- GSC -3.19% senior executives appointed.
- IDX +3.39% presentation.
- MSB +2.72% biotechs attracting some attention.
- HIG +7.41% change in substantial shareholding.
- AMP -2.95% another class action. 7-year low.
- LVH +3.08% investor presentation.
- GFY -unchanged- another serious profit downgrade to come.
- OLI – unchanged- director buying.
- MTS -1.85% broker downgrades.
- CIM +5.72% contract wins.
- Speculative stock of the day: Stemcell United (SCU) +52.17% after the company announced an industrial hemp licence in China. Yunnan Hua Fang Industrial Hemp (HFIH) is now licenced to engage in planting, processing and selling of industrial hemp products. SCU has the right to invest $760,000 for a 51% interest in HFIH.
- Biggest risers – CIM, MYX, A2M, STO, SFR and WGN.
- Biggest fallers – ING, ORE, IRI, AJM, NRW and GSC.
- Wesfarmers (WES) +1.77% Strategy Briefing. The company expects to demerge Coles during FY19 however there will be no change to the dividend policy.
- Inghams Group (ING) –9.05% CEO Mick McMahon will step down after the results in August after 4 years in the role. A search for a replacement has commenced, in the meantime Chief Commercial Officer Quinton Hildebrand will step in as acting CEO until the role has been filled.
- Investa Office (IOF) –0.39% Signed an 11-year lease commitment with a law firm for its Barack place in Sydney, representing 26% of the lettable space. Net lettable space is now 83% committed.
- AMP (AMP) -2.95% has been hit by a fourth class action over the scandal revealed by the Royal Commission. Slater and Gordon announced they will be filling the action for investors who acquired shares in AMP between June 7, 2012, and April 15, 2018, on a no win, no fee basis.
- Fortescue Metals (FMG) -1.25% the company has crashed the Mineral Resource (MIN) -0.59% party by buying 15% of takeover target Atlas Iron (AGO) -12.5% at 4c bringing their shareholding up to 19.9% and will not vote in favour of the takeover.
BEST AND WORST
- The AiG performance of construction index fell 1.8 points in April to 55.4 however marked the 15th consecutive month of expansion (readings above 50). A key take-away was that business employment grew at the fastest pace in 3.5 years to 59.5.
- In seasonally adjusted terms the balance of trade fell by 44% or $754m to $977m in April. Exports fell 2% to $34,188m led by falls in non-rural goods and non-monetary gold. Imports fell by $9m to $33,211m with pretty similar falls across the sub-categories of consumption goods, non-monetary gold, capital goods and other merchandise.
CREDITS (EXPORTS OF GOODS AND SERVICES)
- In seasonally adjusted terms, goods and services credits fell $763m (2%) to $34,188m. Non-rural goods fell $544m (2%), non-monetary gold fell $294m (16%) and rural goods fell $8m. Net exports of goods under merchanting rose $5m (83%). Services credits rose $78m (1%).
DEBITS (IMPORTS OF GOODS AND SERVICES)
- In seasonally adjusted terms, goods and services debits fell $9m to $33,211m. Consumption goods fell $202m (2%) and non-monetary gold fell $104m (15%). Capital goods rose $114m (2%) and intermediate and other merchandise goods rose $111m (1%). Services debits rose $71m (1%).
ASIAN MARKETS NEWS
- Malaysian central bank governor has resigned.
EUROPE AND US MORNING HEADLINES
- Google looks set to face an EU penalty over 'abuse of dominance'.
- A ‘Sonic Attack’ is suspected on a number of US staff in China.
- The EU is pressing ahead with extra trade tariffs for EUR2.8bn worth of 'Made in USA' products.
- Volvo aims for 50% of its sales to be electric by 2025.
- G7 meeting is shaping up as a G6 plus 1 in Quebec. Macron warns Trump it will not sign a joint statement at the meeting. Same with Germany. Macron wants the G6 to stand up to the US. Few shorts building at 7.
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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