Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 closes up 9 at 6054
- North Korea/US talks the focus.
- Trump and Kim have a ‘terrific’ relationship.
- Banks fight back as resources slip.
- Defensives find buyers again.
- AUD eases to 76.05c.
- Bitcoin weaker at US$6852.
- AUD Gold steady at $1297.
- US futures up 25.
- Asian markets stronger, China +0.78% and Japan +0.33%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – The week ahead and a look at broker recommendations.
- SMALL STOCK PORTFOLIO – A couple of stocks cut and we are keeping an eye on KGN still.
- INSIDERS – A member gives some insight on GGG and we look at a healthcare stock that has made a significant acquisition as a BUY.
- TRADING PORTFOLIO – Three new trades. Two stop losses raised.
- INSIDERS CONNECT WITH US - We invite you to send us your own stock ideas.
- GMA +7.29% broker upgrade.
- CTX +2.79% profit upgrade.
- WTC +5.95% a freight train.
- CGC +4.11% rain helps.
- RCR -7.40% becoming a substantial shareholder.
- ASL -20.17% contract update disappointing.
- AGO +5.00% FMG substantial shareholding.
- SMR +6.34% acquisition of coking coal deposit.
- CLV +4.64% broker upgrades.
- Biggest risers – GMA, WTC, DHG, CGC, SFR.
- Biggest fallers – ASL, RFG, MIN, SYR, CSR.
- Virgin Australia (VAH +2.33%) – CEO John Borghetti to step down before 2020. VAH said it would begin searching for a successor to Chief Executive John Borghetti after he decided not to continue in the role beyond 2019.
- Wesfarmers (WES +1.29%) - Has completed the sale of the Homebase business in the UK. The deal will result in a loss of between $352-404m in its FY18 results.
- Caltex (CTX +2.79%) - 1H 2018 historic cost profit after tax (HCOP) outlook of $385 million to $405 million, an increase of approximately 49% vs 1H 2017. Convenience Retail EBIT outlook of between $150 million and $160 million, a decrease of around 17% vs 1H 2017, due to lower retail margins
- Westpac Bank (WBC -0.36%) has ended its referral relationship with Prospa.
- Wattle Health (WHA ) - Trading halt as its brokers kicked off a bookbuild for up to 17.9m shares worth $22.4m. New shares were being offered at 125c which was a 10.4% discount to the last close and a 38.2% discount to the theoretical ex-rights price.
- Blue Sky (BLA -21.21%) - Trading halt on strategic business update.
- Ausdrill (ASL 20.17%) - Market update - The company has announced its Wodgina project is likely to be half what was originally envisaged. There has also been a wall failure at the Super Pit in Kalgoorlie where work has been reduced by 35% while the company reviews operations.
BEST AND WORST
- Business conditions pulled back in May from record highs in April, according to the NAB monthly business survey.
- NAB said that business conditions remained at a relatively high level, despite the monthly business conditions index losing 6bps to +15 points.
- Confidence was lowest in recreation and personal services, wholesale and transport & utilities.
- According to the Australian Bureau of Statistics (ABS), the value of housing finance fell 0.2% to $31.742bn in seasonally adjusted terms, leaving the decline on a year earlier at 3.2%, slightly smaller than the 4.4% drop reported in the 12 months to March.
- The employment index decreased five points to +8, while wage and inflation variables suggested low wage and price growth, the survey found.
- April Value of Investment Housing lending slumped by 15%, reflecting the impact of tighter lending standards from Australia’s banking regulator, APRA. Owner occupier finance -1.4% M/M
- The total value of owner-occupied housing commitments excluding alterations and additions fell 0.1% in trend terms, while the seasonally adjusted series rose 0.2%.
- The number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 17.6% in April 2018 from 17.4% in March 2018.
ASIAN MARKETS NEWS
- All about Singapore.
EUROPE AND US MORNING HEADLINES
- Trump’s economic advisor has heart attack moments before the historic handshake. Saw the hotel bill.
- IMF Chief Christine Lagarde says clouds over global economy are ‘darker by the days’.
- Jaguar has announced it is moving Land Rover production of the Discovery to Slovakia as it upgrades its UK plant to build electric vehicles.
- Rolls Royce expected to cut 4000 jobs as the problems with the new Trent 1000 Jet Engine continue. Poundland goes into administration with 5000 jobs to go.
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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