END OF DAY SUMMARY FEBRUARY 17 2017
Welcome to the Marcus Today End of Day report.
ASX 200 slips 10.5 points to close at 5806 holding the psychological level at least for now. Pockets of resistance as miners sag, with industrials and healthcare sold off too. Asian markets take profits with Japan down 0.54% and China down 0.71%. AUD Holds at 77.07c with US Futures down 8.
AMP ‘s Dr Shane Oliver has done the numbers. First real week of results season is now behind us, with 53% of companies beating expectations. 70% have seen profit increases. 69% have increased dividends though only 44% have seen outperformance.
For the week, the ASX 200 has risen from 5720 to the close today of 5806 for a 86-point rise. US markets closed Monday for Presidents Day.
Subscribe here at these 'Special' prices by entering Promotional Code MTDEAL on THIS PAGE
ASX 200 INDEX and SECTOR PERFORMANCE
STOCKS AND SECTORS
- Miners slipped today as the iron ore and other commodity prices gave back some of the recent gains. BHP -1.11%, RIO -2.14% and Fortescue Metals (FMG) -2.41%. In Base metals South32(S32) +2.67% was one of the few winners as brokers turned a little more positive post the results. Other winners included Mt Gibson Iron (MGX) +3.00% and surprisingly Lynas Corp (LYC) +12.50%. Base metal stocks though generally were weaker with Oz Minerals (OZL) -1.70%, Alumina (AWC) -2.00% and Western Areas (WSA) -4.38%.
- Gold stocks back in favour given a higher bullion price with Evolution Mining (EVN) +1.70%, Resolute Mining (RSG) +3.18%, St Barbara (SBM) +2.19% and Gold Road (GOR) +1.79%.
- Energy stocks were weaker despite a turnaround in Santos (STO) +0.50% on better than expected numbers. Origin Energy (ORG) -3.10%, Whitehaven Coal (WHC) -2.38%, Yancoal (YAL) -5.19% continue to suffer with WorleyParsons (WOR) -2.57%. Some bright spots though with Senex (SXY) +4.29% and Liquefied Natural (LNG) +1.21%.
- Banks and financials were mixed with ANZ Bank (ANZ) +1.85% posting a good result. The other four saw some book squaring and profit taking before a late run with the Big Bank Basket up to $181.75. Insurance stocks weaker with QBE Insurance (QBE) -2.61%, Medibank Private (MPL) -3.91% and Insurance Group Australia (IAG) -1.00%. Wealth managers continue to see selling pressure with Macquarie Group (MQG) -1.28%, Magellan Financial (MFG) -1.37% and ASF Group (AFA) -20.00%. Countplus Limited (CUP) -14.91% following the results of an ASIC investigation.
- Industrials once again under pressure. Seek (SEK) +5.69% one of the few seeing buyers on news of a proposed transaction in Zhaopin to privatise the company at US$18 per ADR. Domino’s Pizza (DMP) -2.77% back failing to deliver after a torrid week with travel companies hurting too as Virgin reported ‘challenging times’. Corporate Travel (CTD) -2.22%, Flight Centre (FLT) -0.89% and Skydive the Beach (SKB) -2.56%.
- Healthcare stocks led down by CSL -1.74% as Sigma Pharma (SIP)-4.02% upgraded the profit outlook by 12%, which failed to impress. Healthscope (HSO) -1.69%, Cochlear (COH) -2.16% and Pro Medicus (PME) -4.31% also down on results.
- In telco land, the jury is out on Telstra (TLS) -0.21%. Most brokers appear to have a 500c target and the yield now becomes the major attraction. Doubts have spilled over to the rest of the sector with Macquarie Telecom (MAQ)-3.51%, Vocus Group (VOC) -0.49%and Chorus (CNU) -0.51%.
- Speculative stock of the day: Magnetic Resources (MAU) +31.11% on an update on exploration at Mt Jumbo East. Not huge volume so will wait to see if the rise stocks before getting excited.
- ANZ Bank ++1.85% reported a cash profit of $2bn, up 31% on a revenue increase of 7%. CEO Shayne Elliott was pretty upbeat on the future and comments helped sentiment on the bank restructure strategy. Bad debts were 40% better than consensus expectations. Net interest margin declined by several basis points in the quarter which was slightly weaker than consensus expectations.
- Village Roadshow (VRL) -5.57% after reporting a loss of $6.7m, from $3.5m last year. Revenue climbed 4% to $542.5m. Village said the tragedy at Dreamworld had had an impact, with its Gold Coast theme park attendance dropping 8.4%.
- Pharmaxis (PXS) -3.45% said its loss narrowed slightly in the December half to $11.035m from $11.185m a year ago, on revenue of $6.9m, down 26%.
- Santos (STO) -0.50% said its net loss for the full year ended December 31 narrowed to $US1.047bn from $US1.953bn a year ago. Revenue rose 6% to $US2.63bn and underlying profit climbed 29% to $US63m. It will not be paying a final dividend
- Mantra (MTR) -5..63% has seen profits rise $6.3m to $30.5m. Revenue rose by $48.8 million to $356.2 million and profit before income tax rose to $44.2 million from $34.9 million a year ago. It will pay an interim dividend of 5c.
- Whitehaven Coal (WHC) -2.38% said its first-half net profit jumped to $157.5 million from $7.84 million. Revenue in the six months ended December 31 rose 43% to $823.46 million from $574.25 million in the year-earlier period.
- Virgin Australia (VAH) -2.56% has reported a first half loss of $21.5m after a profit of $62.5m last year. Revenue fell by $24.5m to $2.63bn due to ongoing subdued trading in the domestic market.
- Baby Bunting (BBN) -6.85% Baby Bunting said its net profit more than doubled to $5.223m from $2.26m in the year-earlier period. The cpmpany will pay a 2.98c dividend.
- Fleetwood Corp (FWD) -0.51% reported a profit up 165% to $3.33m although will not pay a dividend.
- Link Group (LNK) +4.17% followed on from the good result from registrar Computershare (CPU) with a good result of its own. First-half net profit after tax of $41.6m, compared with a loss of $4m the previous year. Revenue was up 1% to $395.8m and a dividend of 6c.
- ASX -0.50% profits rose 3% to $219.4m. EBITDA jumped 1.9%to $296.5. Interim dividend of 102c.
- Duet Group (DUE) -0.36% profits fell to $71.6m from $108.5m. Revenue roise to $853m from $809.7m. Interim dividend.
- Medibank Private (MPL) -3.91% after reporting a mere 1.9% lift in profits to $231.9m. Revenue has risen 0.5% to $3.397bn. Interim dividend of 5.25c up 5% on last year.
BEST AND WORST
- Declining rates of home ownership aren't necessarily a bad thing, according to the Reserve Bank head of economics Luci Ellis talking at a conference in Melbourne.
- Anna Bligh, former leader of Queensland has been appointed as the new head of the Australian Bankers Association (ABA)
- Pimco keeps warning there’s a US inflation risk; the bond market is signaling there’s no cause for alarm. Consumer price growth reached the highest since 2012 at 2.5%.
- Shanghai rebar steel futures have climbed more than 1% today to trade near a two-month high. The most-active rebar on the Shanghai Futures Exchange was up 1.5% at 3471 yuan ($US506) a tonne by midday. The contract has risen 5.4% this week after hitting 3509 yuan on Thursday, its strongest since December 12th.
- The Samsung heir has been arrested for embezzlement and bribery with more scandals to come in South Korea for President Park. Prosecutors have accused Lee Jae-yong of handing bribes to President Park Geun-hye and friend Choi Soon-sil to win government favours for a smooth leadership transition.
EUROPE AND US
- Populist French presidential candidate Marine Le Pen has explained how she will smash the European order with an Entente Cordiale with the UK, offering a bilateral alliance on new foundations.
If you are reading this email but are not a Member of Marcus Today then see below why you should become one - Why subscribe to Marcus Today - It's all here:
Testimonials – For any of you who haven’t seen them…they are unsolicited. "Could you pass onto Marcus & his team and tell them that they have been an invaluable source of information, honesty, & integrity, their guidance is beyond question". GMcD 09/07/2016