Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 rises to a decade high again up 57 to 6272.
- High 6273 Low 6219. Volume lighter ahead of the weekend.
- Trade tariffs kick in as expected. The world doesn’t end. Sellers take a holiday.
- Big four lead advances as RC finishes.
- Resources join the party. Energy solid.
- Even TLS catches a bid.
- AUD stronger at 74.05c.
- Bitcoin eases to US$6511.
- Aussie Gold $1695.
- US futures celebrate opening salvo up 51.
- Asian markets rally as war kicks off. Japan up 0.92% and China CSI 300 up 1.12%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL - Trade War begins to bore. BUY HOLD SELL - CWP as an income stock.
- TRADING IDEAS - No new trades. Two stop losses raised.
- SMALL COMPANIES -Resource stocks taking their toll as 2 pm tariff deadline looms. Chinese deleveraging hurting commodity prices. We also have an industry insight on Fund Managers and PPT in particular.
Movers and Shakers
- ELD -15.35% the ongoing drought surprises. Not sure why.
- COE +8.45% Sole - 3 report.
- AAC +2.45% ELD comments cheer.
- PLS +3.31% bargain hunters.
- MSB +2.98% buyers snap up.
- ISD +12.14% reaffirms guidance and new CEO.
- WHA -1.64% profit-taking.
- CSL -0.07% can’t quite make it.
- ALL -0.96% profit-taking.
- WES +1.55% the beat goes on.
- ASX -1.97% broker downgrades.
- NEC +4.08% analogue is back.
- BSL +3.17% broker upgrade.
- Speculative stock of the day: Symbol Mining (SL1) +24.14% huge volume as mining lease approved and commenced at Macy Zinc project in Nigeria.
- Biggest risers – COE, SBM, DCN, AJM, NWL and NEC.
- Biggest fallers – ELD, SHV, CLQ, NHC, WBA, WGX and ING.
- St Barbra (SBM) +7.53% achieved record quarterly production in 4Q to 119,436oz taking full-year production to 403,089oz, beating the top end of FY18 guidance of 392,000oz and cracking 400,000oz for the first time. SBM also highlighted its strong balance sheet with $344m cash on hand and no debt.
- Elders (ELD) –15.35% reiterated its FY18 guidance after market commentary on dry weather and cattle price declines. FY18 EBIT to be between $70-$74m ($71m in FY17), NPAT to be between $59m-$63m ($58.4m in FY17). The results are driven by maintained high levels of sheep and wool demand and prices.
- iSentia (ISD) +12.14% A new CEO has been announced in Ed Harrison. The company has also reaffirmed guidance given recently of $32-$36m EBITDA with results on August 23rd.
BEST AND WORST
- UBS economists have joined the list of analysts forecasting that the RBA will keep rates on hold until 2020. Welcome to the pack.
- The borrowing capacity of Australian property investors has contracted 20% over the past three years, according to more research by UBS. Borrowing capacity could shrink by 30% if the royal commission recommends a "more strict" responsible lending regime.
ASIAN MARKET NEWS
- HNA has announced that co-chairman Chen Feng will absorb the duties of his colleague Wang Jian, who died in a fall in France this week.
- Xiaomi’s highly-anticipated IPO in Hong Kong drew nearly ten times more applications for share purchases than what it made available for retail investors. Priced cheap but looks a struggle.
- Shanghai-listed energy and petrochemical group Wintime Energy defaulted on a bond payment on Thursday, putting US$3.9bn in outstanding bonds at risk.
EUROPEAN AND US HEADLINES
- Trump does what it says on the box. Tariffs rise and more to come perhaps, with threats of $500bn more.
- Merkel winds back talk of car tariff agreement. Must conform to WTO.
- "The world has never been so indebted - even more than before the 2007 crisis - and this debt has never been so risky," said the Autorité des Marchés Financiers (AMF) in its annual report. The AMF is France’s Chien de Garde.
- UK Brexit showdown again this weekend at Chequers. Euro-sceptics not happy with proposed rules on goods. 266 days to go.
- Next on the list of US products under threat in EU, Heinz Tomato Ketchup. Is there no end to this horror?
- Smart TVs are monitoring what people watch to send targeted ads to other devices in their homes, it has emerged. Time to reread George Orwell.
- It’s coming home. England plays Sweden on Saturday at midnight. Never have so many, hoped for so much, from so few.
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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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