End Of Day Report

MT DATABASE
Monday, 20 March 2017
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END OF DAY SUMMARY MARCH 20 2017

Welcome to the Marcus Today End of Day Report.


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ASX 200 started in the red and showed no sign of recovery, closing down 21 points to 5778 in quiet trade led by Telstra (TLS) and consumer stocks. Asian markets mixed with Japan down 0.43% and China up 0.07%. Hong Kong rose 0.57% to highest since 2015. AUD 77.25c and US Futures down 25.

FUTURES AND HIGHS AND LOWS

STOCKS AND SECTORS

  • Miners gave back some of the recent gains although Syrah Resources (SYR) +6.32%, Western Areas (WSA) +1.67% and Kidman Resources (KDR) +7.50% bucked the trend after announcing an expansion of a lithium project in a farm-in deal. Big miners marked time or weakened with South32 (S32) -0.71% starting its exploration program with AusQuest (AQD) unchanged.
  • Gold stocks weaker with Newcrest (NCM) -0.18% and Evolution Mining (EVN) -3.11%.
  • Energy stocks all weaker except Whitehaven (WHC) +1.45%. Santos (STO) -1.07% and Origin Energy (ORG) -0.75% after an update on Silver-Star 1 exploration well.
  • Banks and financials eased with the Big Bank Basket $182.64. Insurers also in the sellers’ sights with Insurance Australia (IAG) -0.99% and Suncorp (SUN) -0.60%.
  • Industrials led down by Telstra (TLS) -2.10% together with Vocus Group (VOC) -1.42%, TPG Telecom (TPM) -1.05%. Chorus Limited (CNU) -1.54% as the stock went ex-dividend. Consumer stocks weaker with Harvey Norman (HVN) -8.21% down heavily after media reports at the weekend on accounting issues with franchisee and a note from CommSec highlighting the risks to HVN, JB HiFi (JBH) -2.84% and Myer (MYR) -3.08% from the Amazon assault later this year.
  • Healthcare stocks one of the few bright spots today with CSL +1.39%, Primary Health Care (PRY) +3.65% and Estia Health (EHE) +1.33%.
  • Consumer staples eased as Wesfarmers (WES) -0.45% and Metcash (MTS) -1.33%. Information technology fell with Nearmap (NEA) -8.26% and Link Administration (LNK) -3.25% ex-dividend.
  • Speculative stock of the day: Zyber (ZYB) +37.50% after the company had turned down two material transactions and will now focus on its MyZyber Enterprise application and Windows Desktop application.

BEST AND WORST

CORPORATE NEWS

  • Pro Medicus (PME) +9.26% announced that the Mercy has successfully installed the Visage 7 technology in record time. Mercy is the fifth largest Catholic health system in the US. Technology installed in less than 6 months.
  • MetalsX (MLX) +5.44% has received a number of inquiries on its cobalt exposure. The company owns Wingellina in the Central Musgrave Project, one of the largest nickel-cobalt-scandium deposits in the world containing over 1.9m tonnes of nickel and 154,000 tonnes of cobalt.
  • Fletcher Building (FBU) -9.95% after downgrading expectations by around 15% with earnings guidance of $610m-$650m down from previous $720m-$760m. The company blamed contracts in the building and interiors unit. Looks like the problems stem from its Justice Centre project.

BOND CORNER

ECONOMIC NEWS

  • The chairman of ASIC has once again warned of a housing bubble in Sydney and Melbourne. ASIC also revealed it was also still considering action against Commonwealth Bank over the alleged rigging of interest rates. The chair also warned about the potential impact of cyber-attacks on the stability of the financial system, Medcraft called them another 'Black Swan' event for financial markets.
  • Treasurer Scott Morrison has telegraphed restrictions on interest-only loans for investment properties. The budget would be an opportunity to trigger a fresh regulatory crackdown on banks as part of the government's efforts to boost affordability for actual home buyers.

ASIAN NEWS

  • In China, new home prices rose 0.3%, up from January's 0.2% increase, according to Reuters calculations from data issued by the National Bureau of Statistics (NBS) on Saturday. On Friday, Beijing's municipal government announced new steps to rein in its housing market, increasing the minimum down-payment for second home purchases in the city to at least 60% from 50%.
  • Korean gamemaker, Netmarble is looking to raise US$2.4bn in an IPO. Netmarble is the 9th largest game publisher in the world, according to App Annie.

EUROPE AND US

  • Mexican builders have been told to 'look to their conscience' before tendering to build the new wall.
  • Bullish bets on the crude price have been cut by the most ever. Wagers on a further price drop doubled as oil remained below $50 a barrel.

  • President Trump is giving another speech this evening. Usually market moving.
  • Deutsche Bank said it will raise EUR8bn by selling stock at a 35% discount to Friday's closing price in a rights offering. The TERP (Theoretical ex-right price) of EUR15.79 is based on the last closing price of EUR17.86. The transaction subscription price is EUR11.65. The subscription price represents a 26% discount to TERP based on the March 17 closing price.

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