Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 closes down 31 at 6023.5.
- High 6053 Low 6011.
- RBA Governor talks up wages growth.
- Across the board losses with banks and BHP leading.
- Energy stocks weaken as staples fall away finally.
- Infrastructure stocks catch a bid from APA takeover.
- AUD eases to 75.68c.
- Bitcoin under serious pressure at US$6578.
- AUD Gold steady at $1295.
- US futures up 36.
- Asian markets mixed with Japan up 0.42% and China CSI 300 down 0.65%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – Singapore, Oil price and the problem with Warren Buffett.
- SMALL STOCK PORTFOLIO – We have added KGN this morning after the two directors sold a part of their holding. The overhang is removed for the time being.
- INSIDERS – We take a look at the new Unibailrodawestfield stock and whether it will go the way of the T Rex.
- TRADING PORTFOLIO – Two new trades. Four stop losses raised. A bunch of buy signals.
- INSIDERS CONNECT WITH US - We invite you to send us your own stock ideas.
- KGN -6.88% after Kogan and Shafer sell 6m at 700c.
- BLA -1.98% more woes on cash position.
- AGO -trading halt- getting weirder as Gina joins the Atlas Club.
- APA +20.92% takeover from CKI.
- WGN +5.28% finding good support.
- IRI +3.55% broker upgrade.
- BAL -6.57% ceasing to be substantial shareholder.
- NAN -3.23% broker downgrade.
- GTY +14.75% takeover approach at 210c cash.
- LIC +2.68% follows Gateway higher.
- MIN -5.15% acquisition and plans scuppered.
- WTC -4.83% gloss wearing off.
- GXY -4.75% KDR -4.13% US car makers after local supply.
- AU1 -23.08% large trade triggers steep sell-off.
- WBC -0.29% restructuring loan book.
- AGL +2.52% broker upgrades.
- Speculative stock of the day: Nothing special.
- Biggest risers – APA, GTY, WGN, OMH, YAL and IRI.
- Biggest fallers – CUV, KGN, BAL, MIN, WTC and GXY.
- APA Group (APA) +20.92% Has reported this morning they have received an unsolicited takeover offer worth $13B from Consortium led by Hong Kong's CKI Group. Cash deal $11 per share.
- Investa Office Fund (IOF) +0.19% Has entered into an agreement with Blackstone to acquire all units in IOF for $3.08B.
- Challenger (CGF) -1.32% Has lifted FY18 guidance 8-12%, normalised net profit before tax is now expected to be around $545-565m.
- Kogan (KGN) -6.88% The two directors Ruslan Kogan and David Shafer have reluctantly accepted a lower bid for 6m shares this morning at 700c and have committed to no more share sales until at least September 2018.
BEST AND WORST
- Consumer confidence lifted 5.6% last week. All sub-indices posted gains. The jump in confidence is likely driven by the strong 1Q GDP result last Wednesday.
- The Westpac Melbourne Institute consumer-sentiment index edged up to 102.1 from 101.8 in May.
- Philip Lowe (the Gov) has warned the current pace of wages growth is not compatible with his goal of keeping inflation at 2.5%, and is eroding the nation's "sense of shared prosperity," and makes much-needed productivity enhancing economic reforms more difficult to achieve. Whistling in the dark.
ASIAN MARKETS NEWS
- North Korea says Trump will lift sanctions. China claims victory in negotiations. Lost in translation.
- ZTE hit hard after US fine down 39% to a 1-year low.
- Toyota will invest US$1bn in Grab a ride sharing app.
EUROPE AND US MORNING HEADLINES
- US Judge says yes to AT&T/Time Warner deal. Administration warned not to challenge the decision.
- Glencore has written off US$5.6bn with its JV in the Congo. Cobalt country.
- Tesla is sacking 9% of its workforce in major restructuring.
- More Brexit unrest in the UK with stories of three ministers talking about a second referendum.
- Stuffed crust as UK Domino’s finance chief quits suddenly. Another one who cannot cope with the fast pace of fast food. The UK business has a number of JVs with the Australian arm.
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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