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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 09/08/2018 | VIEW MORE ARTICLES BY HUGH DIVE

Today’s Headlines

  • ASX 200 up 30 to 6298 after early falls.
  • China's move drives turnaround to touch near 10-year high.
  • High 6314 Low 6258. Fails to hold 6300 again.
  • Royal Commission fails to dent financials.
  • Banks and MFG lead the charge.
  • Miners join in as RIO goes Ex.
  • Energy rebounds after early losses.
  • Gaming stocks hit jackpot. CWN at three-year high.
  • AUD stronger at 74.44c.
  • Bitcoin weaker again at US$6351.
  • Aussie Gold steady at $1632.
  • US futures up 11.
  • Asian markets mixed as China bounces hard as yuan steadies. CSI up 1.92% whilst Japan down 0.26%.

FUTURES AND HIGHS AND LOWS

MT STUFF

  • MARCUS CALL - Buy signals on AMP and CBA. My article on lazy financial planners. 8 conviction ideas.
  • TRADING IDEAS - One trade stopped out. Three new trades - three attempts to strip a dividend.
  • SMALL COMPANIES - CVN announced another promising drill report this morning following a return to trade yesterday and a soaring share price and a look at a favoured stock from mid-July, up 21% since as the cloud focussed telco continues to do well.

POINTS

STOCK STUFF

Movers and Shakers

  • CVN -drilling results from Phoenix helping.
  • MFG +14.33% results and div payout cheers. Shorts squeezed.
  • CWN +6.68% good results.
  • NCM +2.14% carrying value update.
  • ECX -4.52% bounce over.
  • LYC +5.31% buying continues after Diggers and Dealers.
  • SDA +2.72% broker upgrade.
  • PTM +2.91% catching the MFG updraught.
  • AGL -4.09% runs out of gas.
  • LOV -3.12% profit taking on broker move.
  • QBE +0.98% follows SUN higher.
  • BAL -5.14% still suffering.
  • NGI -4.89% results underwhelm.
  • LVT -11.26% placement weighs.
  • STO -2.26% Beehive seismic program with MAY.
  • RAP -11.11% broker presentation.
  • FLC +8.05% South American contract.
  • JIN +4.81% two big jackpots in a week.
  • AJM +7.41% knocks back bid.
  • TCL +0.42% agrees to hand over traffic data to ACCC.
  • Speculative stock of the day: Canyon Resources (CAY) +36.00% after announcing the Government of Cameroon would grant CAY exploration permits to the Minim Martap project. Previous owners had identified a 550MT JORC resource of high grade, low impurity bauxite deposit.   
  • Biggest risers –MFG, CWN, SIG, SGR, LYC, SUN and HUB.
  • Biggest fallers – BAL, NGI, ECX, AGL, ORA and SYR.

RESULTS TODAY

TODAY

  • Suncorp (SUN) +4.74% FY18 result. Revenue down 11% to $15.45bn, net profit took a hit, down 1.5% to $1.06bn. The company will sell its life insurance business to Tal Dai-Ichi Life Australia for around $725m, 80% of the proceeds are expected to be returned to shareholders. The sale is expected to result in a non-cash loss in FY19 of $880m. Special dividend of 8c declared with a final dividend of 40c per share.
  • Orora (ORA) –3.62% FY18 Result. Net profit up 12% to $208.6m, sales revenue up 5.2% to $4.04bn and earnings per share 11.5% higher to 17.4c. A final of 6.5c has been declared. Total dividend for the FY18 year is up 13.6% to 12.5c.
  • Newcrest Mining (NCM) +2.14% Update ahead of its FY18 results. The miner now expects a hit to the values of several assets in the range of $260-270m. NCM cuts the value of Telfer by around US$190m and Namosi by around US$70m.
  • BHP Billiton (BHP) +0.06% To settle a class action over the 2015 dam disaster at Samarco, the miner has agreed to pay US$50m with no admission of liability.
  • AGL Energy (AGL) –4.09% Underlying Profit up 28% to $1.023bn towards the top end of guidance of up to $1.04bn affirmed in February. Revenue up 1.8% to $12.816bn. A Final dividend of 63c per share has been declared bringing the total dividend for the year to 117c, up 29%. AGL forecasts underlying profit after tax for FY19 to be between $970m-1,070m.
  • Mirvac Group (MGR) –0.42% FY18 result. Total revenue down 7% to $2.802bn, net profit down 6% to $1.09bn, a final dividend was declared at 6c per share. Earnings per share were 15.6c, in line with guidance provided in June. MGR expects EPS to lift around 2-4% in FY19.
  • Crown Resorts (CWN) +6.68% Statutory net profit down 70% to $559m after significant items, statutory revenue up 4.5% to $3.5bn and normalised net profit attributable to parent 13% higher to $387m. A final dividend of 30c per share has been declared. Australian VIP program turnover up 54.5% to $51.5bn.
  • Magellan Financial (MFG) +14.33% FY18 result. Net profit up 8% to $211.8m, revenue up 34% to $452.6m and average funds under management up 29% to $59bn. A final dividend has been declared at 90c per share. Good result and generous with the payout ratio.

BEST AND WORST

ECONOMIC NEWS

  • The Reserve Bank of New Zealand left its key cash rate on hold at a record low 1.75%. Expect rates to be at these levels through 2019 and into 2020.

BOND MARKETS

ASIAN MARKET NEWS

  • Chinese CPI up 2.1% YoY, expectations 1.9% - July PPI 4.6% v 4.4%.
  • CPI MoM +0.3% July PPI +0.1% MoM.

  • Philippines GDP misses expectations after inflation rise.
  • Mazda, Suzuki and Yamaha admit conducting 'improper' emission tests.
  • Chinese investors are turning sour on HK stocks. Net sales last week amounted to about HK$7.5 billion, the third biggest weekly total on record.

EUROPEAN AND US HEADLINES

  • A consortium is buying Dunn and Bradstreet for US$6.9bn.
  • Puerto Rico has reached an agreement with creditors to restructure bonds backed by a portion of its sales tax.
  • Pressure on Musk to 'show me the money' after day three of the ‘tweet’. Musk in trouble with SEC over twitter work.

ANNOUNCEMENTS

MARKET MAP

 

  

 



View More Articles By Hugh Dive

Hugh is the Chief Investment Officer at Atlas Funds Management, a boutique a boutique investment manager offering innovative listed alternative investments that offer consistent high income paid quarterly.

Prior to Atlas, Hugh was a Senior Portfolio Manager at Aurora Funds Management focusing on the Aurora Dividend Income Trust and Aurora Property Buy-Write Income Trust. Earlier, Hugh was Head of Listed Securities at Philo Capital where he was responsible for managing over A$1 billion. Hugh has also previously been Head of Basic Materials at Citigroup Investment Research. In this role he covered the chemicals, building materials and steel sectors. In the 2011 Reuters StarMine Equity Analyst Awards, he was rated 5th overall in Australia for stock picking and first in the Diversified Industrials and Chemicals sectors.

Hugh has extensive portfolio management experience gained at Investors Mutual, with a successful track record managing both small and large capitalisation value funds. Hugh started in funds management with CC&L Investment Management in Vancouver, Canada’s largest independent fund manager with C$60B under management. At CC&L he focused on asset allocation and Canadian equity analysis.

Hugh holds bachelor degrees in both Economics and Law from the University of Sydney, Canadian Securities Course (Honours) and is a CFA charter holder.



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