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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 13/04/2018

Today's Headlines

  • ASX 200 up 14 points to 5829.
  • High 5845 Low 5821.
  • Modest volumes again.
  • Banks mixed. Healthcare in focus.
  • Resource stocks rally led by BHP.
  • Iron ore futures higher in Asia.
  • Oil at 3 year high.
  • AUD rallies to 77.92c.
  • Bitcoin bounces hard to US$7,824.
  • US futures down 2 as rally fades.
  • Asian markets mixed with China CSI down 0.61% and Japan up 0.63%.

FUTURES AND HIGHS AND LOWS

MT Stuff

  • HENRY CALL – Up and coming US Earnings. Interest rates. And the constantly revolving cast in the White House.
  • SMALL STOCK PORTFOLIO – Part of the issue on the ASX is finding suitable stocks to fit the macro themes. We are attempting to find the macro themes that will drive the market in the next few years. Henry has a few up his sleeve.
  • INSIDERS – Is Kogan the Australian Amazon?
  • TRADING PORTFOLIO – Stopped out of one stock. No trades.
  • INVESTMENT FOR BEGINNERS – Marcus has been running the Marcus Today Education course for beginners. It is aimed at teaching basic concepts of finance but includes a section about “Your Super”, including: What is it; Where is it; How to manage it.
  • INSIDERS CONNECT WITH US - We invite you to send us your own stock ideas. We also have the facility for you to email us any questions.

Advancers and Decliners

  • CBA -0.15% hit with ASIC enforceable undertaking.
  • PRY +7.67% HSO talk helping sentiment.
  • IFN +6.87% Macquarie upgrades.
  • TWE +0.23% new CFO appointed
  • RIO +1.97% after broker upgrade.
  • NWL -5.55% business update.
  • AMA -3.81% reorganisation overview
  • UPD +6.47% recovering well.
  • MOC +1.86% oversold. Thin volume.
  • FBU +8.47% bid rumours from WES.
  • AWC +2.78% results in focus.
  • SHV +4.83% positive broker comments following crop forecast.
  • NEC - UNCH - loses Cricket rights.
  • SIG +3.57% annual review.
  • APT +4.49% positive AFR article.
  • RHC +1.55% technical buying.
  • Speculative stock of the day: Nothing significant.
  • Biggest risers (with volume) –SWM, FBU, PRY, IFN, BWX and APT.
  • Biggest fallers (with volume) – NWL, CDD, BAL, AMA, FLT and A2M.

POINTS

TODAY

  • Cimic (CIM) +2.31% The company at its AGM this morning said it was in a strong position to deliver growth and sustainable returns. Economic strength domestically and in Asia is helping demand for infrastructure spending and providing a positive outlook for commodities. NPAT guidance for 2018 was reiterated, expected to be in the range of $720m to $780m. The stock is down 16% from the start of the year.
  • Seven West Media (SWM) +12.62% Seven West Media (SWM) and Foxtel have secured the cricket broadcast rights for the next six years in a $1.08 billion deal. Seven will pay $75m annually and broadcast all cricket test matches and 43 Big Bash League games.

ECONOMIC NEWS

The RBA Financial Stability Review released this morning: Full details here

  • Global economic conditions have remained strong over the past six months, which has helped to further improve the health of the global banking system.
  • On the domestic front, concerns about riskier types of new housing borrowing have eased. The prudential measures implemented over recent years have led to a general strengthening in lending standards, and the regulatory limits on investor loans and interest-only lending have reduced the build-up of macro-financial concerns.
  • The high level of household indebtedness increases the risk of a rise in household financial stress amplifying a shock to the economy.
  • Some banks have reported that payment arrears have increased for some borrowers transitioning to principal-and-interest repayments at the end of an interest-only period. This partly reflects borrowers taking some time to adjust, though for a small share of borrowers this has reflected difficulty in making the higher repayments.
  • Conditions in commercial property remain an area to watch.
  • Conditions in the rest of the business sector continue to strengthen, with profits generally high and leverage contained, including for most firms in the mining-related sectors.
  • The resilience and overall financial performance of Australian banks have continued to improve. Profits in the second half of 2017 grew from an already high level, in part because of the increase in lending rates implemented by banks following the regulatory measures.

BOND MARKET UPDATE

ASIAN MARKETS NEWS

  • Exports fell 2.7% in March after a 44.5% gain the previous month, the customs administration said Friday, compared with a projected 11.8% increase in Bloomberg’s survey of economists. Imports increased 14.4%, leaving a surprise trade deficit of $4.9bn, the first since February 2017.

  • The yuan increased 3.7% in the first three months for the biggest gain in a decade.
  • HK billionaire Stanley Ho to step down from business empire. He is 96 after all.

EUROPE AND US MORNING HEADLINES

  • Trump has set up a task force to study the United States Postal Service in a sign that his criticism of the agency’s deal with Amazon is turning into action.
  • British Airways-owner IAG has taken a near-5pc stake in Norwegian Air Shuttle with a view to buying the budget carrier, paving the way to create one of the world's largest airlines. Shares in Norwegian surged almost 40%. Norwegian had a market value of £630m before news of the holding emerged.

MARKET MAP





 

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