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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 10/07/2018
VIEW MORE ARTICLES BY HENRY JENNINGS

Today’s Headlines

  • ASX 200 tops 6300 but wilts to close down 28 to 6258.
  • High 6306 Low 6272.
  • Banks sell-off as profit taking kicks in.
  • CSL stumbles again.
  • BHP and RIO better on commodity prices.
  • Energy shares stronger.
  • AUD stronger at 74.59c.
  • Bitcoin eases to US$6696.
  • Aussie Gold $1687.90.
  • US futures rally again up 44.
  • Asian markets mixed over trade woes. Japan up 0.25% and China CSI 300 down 0.46%.

FUTURES AND HIGHS AND LOWS

MT STUFF

  • MARCUS CALL - The lead up to earnings season, some stocks you have to hold and a bit of useful hindsight.
  • TRADING IDEAS - One new trade. Four stop losses raised.
  • SMALL COMPANIES - We have added an old friend as a new chapter hopefully dawns and look at ELD after the recent sell down. Insiders looks at the Viva Energy float and Henry is on Sky Business at 4pm.

POINTS

STOCK STUFF

Movers and Shakers

  • TLS -1.07% 5G head honcho leaves unexpectedly.
  • BAL +9.92% trying to find support.
  • PLS +6.06% rally continues.
  • APT +1.46% US hopes cheer.
  • HVN +2.36% update on dairy exit.
  • BIN -4.48% shorts winning.
  • NXT -3.67% broker downgrade to sell.
  • TWE -2.44% USD strengthens.
  • PDL -7.45% FUM disappoints.
  • WES -1.28% profit taking.
  • NEA +21.08% great result.
  • IAG -1.22% general counsel resigns.
  • YOW +27.63% fourth quarter update.
  • SGP +2.49% tightens guidance range.
  • BWX -3.88% US advisor sues company. Deal off?
  • TCL -1.33% potential overhaul of fees and charges.
  • MQG -0.90% lifts mortgage rates.
  • AYS -10.29% not so Amazing.
  • BYE +1.69% buyers return.
  • Speculative stock of the day: Jayex (JHL) +130.00% after forming a new cannabis technology agreement with Medicann NZ. Ross Smith is the colourful character who was behind MMJ and now behind CannMed.
  • Biggest risers – BAL, IPH, PLS, SIG and WAS.
  • Biggest fallers – PDL, NXT, VOC, MTS and TWE.

TODAY

  • Stockland (SGP) +2.49% tightens its FY18 earnings guidance range to circa 6.5% growth in ‘Funds From Operations’ (FFO), previously it was 5%-6.5%. It also reaffirms a 2H distribution of 13.8c.
  • Summerset (SNZ) –1.28% sales volumes in 1H18 were lower than the previous corresponding period with 299 total sales for 1H18 compared to 323 for 1H17. The CEO has said that despite this disappointment ‘the company is seeing high levels of sales contracts and presales on homes which will be delivered in the second half of the year’ and has provided full-year underlying profit guidance of between NZ$43m and NZ$45m. This would reflect profit growth of between 21% to 26% from FY17.
  • Village Roadshow (VRL) -UNCH- Announced a $51m share entitlement offer at 165c per share, a 24.3% discount to its pre-trading-halt closing price. Adding this to the recent sale of its Sydney Wet ‘n’ Wild business, the company is looking to raise $87m to pay down debts. FY18 EBITDA guidance revised to between $88m-$92m, FY18 NPAT to be between -$10m to -$6m and Capital Expenditure to be $87m. The company says the Dreamworld incident is still impacting theme parks.
  • Nearmap (NEA) +21.08% FY18 preliminary results saw record Group Annualised Contract Value growth of $19.2m or 41% to $66.2m which exceeded guidance given with the half year results. The US portfolio ACV more than doubled +143% to 12.9m.
  • Fast Bricks (FBR) +3.03% Steve Pierz, a long-time employee at Caterpillar in the US who worked in engineering and leadership roles has been appointed Chief of Innovation at Fast Bricks.
  • Regis Resources Limited (RRL) –0.78% saw a record full year gold production at 361,473oz, driven by a strong 4Q production. Cash and bullion balance at year end rose 24% QoQ to 208.8m
  • Pendal Group (PDL) -7.45% Formerly known as BT - FUM have come in at $100bn for the quarter, up only $1bn.

BEST AND WORST

ECONOMIC NEWS

  • ANZ Roy Morgan consumer confidence came in -0.2% to 120.1 last week.

  • NAB's business conditions index ticked up by 1 point to +15 index points in June, after easing in the previous month. Business confidence edged down 1 point to +6 index points, the lowest in 20 months.

BOND MARKETS

ASIAN MARKET NEWS

  • China's June PPI up 4.7% YoY, estimates were for +4.5%. CPI up 1.9% YoY, estimate was for +1.9%.
  • SoftBank’s mobile unit will invest $2bn to increase its stake in Yahoo Japan.

EUROPEAN AND US HEADLINES

  • President Trump has nominated a conservative, Brett Kavanaugh, to the Supreme Court.
  • Trump takes aim at Germany. Macron now focussing on ‘inequalities of destiny’ as his popularity crumbles.
  • Football success and good weather is a good combination for the UK economy. Total spending was up 5.1% in the month compared to June 2017 and spending in pubs was up 9.5% in a month. It’s coming home.

 ANNOUNCEMENTS

MARKET MAP




View More Articles By Henry Jennings

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.

To gain further insights from Henry Jennings, Marcus Padley and the Marcus Today team of analysts, click here to register for a free trial of the Marcus Today daily newsletter.



Important note: Any financial product advice contained in this email is general financial product advice only and does not take into account any one person's objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.
 

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