Marcus Today Market Updates

End of Day – Tue 24 May

May 24, 2022 Marcus Today
Marcus Today Market Updates
End of Day – Tue 24 May
Show Notes Transcript
  • The ASX 200 drifted around in a tight range today before sliding to close down 20 at 7129 (0.3%). Overnight optimism was snapped shut as social media stocks in the US tumbled after hours. Banks were a bright shining light with the Big Bank Basket up to $185.09 as CBA rose 0.6% and NAB up 1.0%. Insurers drifted lower, MQG down 0.6% and fund managers giving it all away, MFG down 3.4% and GQG off 2.0%. Industrials slipped slightly as tech wrecked again with Snap the culprit this time. WTC lost 3.0%, XRO down 2.3% and the All-Tech Index down 3.0%. BNPL continues to implode with ZIP off 5.4% and SZL down 10.5%. PPH managed to get private equity interested, wing and a prayer and the stock rose 15.6%. Telcos slid with TLS down 1.3% and SEK and REA back in the red. Resources held firm but some selling crept into iron ore stocks with BHP flat and golds off slightly. NCM down 1.6%. Lithium back in favour, PLS up 3.2% and MIN up 1.7% with LTR doing ok, up 2.7%. Oil and gas going nowhere. 
  • In corporate news, TAH had its first day as a demerged business with new lottery business TLC kicking off life. NUF had a shocker down 14.6% as Sumitomo exited left after 12 years, CHN in a halt as it raises $100m for Gonneville PFS, and nothing exciting on the economic front today. Meanwhile in Asia markets pushed lower on US futures falling, China down 1.2%, HK down 1.6% and Japan down 0.8%. !0-year yields at 3.32% 


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SPEAKERS

Henry Jennings

 

Henry Jennings  00:00

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Henry Jennings  00:55

Good afternoon and welcome to the Marcus Today End of Day Report. My name is Henry Jennings and it is Tuesday the 24th of may and for the day we closed down 20.1 points or point two 8% 7,128.8 We had an open of 7,154.7 a high of 71 65.8. All was looking okay but a low of 7114. Those snap numbers from the US with social media companies tumbling infecting us futures prices took the wind out of our sails today but the banks were a solid performer today. Once again. 

 

Henry Jennings  01:35

We saw the big bank basket up around point six of a percent to 185 own nine a and Zed was point two 4% better but CBA up point six and NAB still attracting a lot of fresh brains there they were up just over 1% Macquarie slid point six ASX down 1.3 And we did see the fund managers which had a good day yesterday coming off again Magellan down 3.4 And we had G Qg partners down nearly 2% insurers not doing much apart from IAG which was down at one and a half percent. 

 

Henry Jennings  02:13

But it was industrials where we did see some red on the screen today. We had Tabcorp down at point 2%. Now before you will freak out tab caught when x the demerger of the lotteries group today. So tablet fell $4.28 and the lottery is caught TLC is the stock code was up $4.70. So if you add the two together, you've had a pretty good day as a tab Corp. Investor, now that you have tab and the lottery called 9.7 million shares trades a day in the lottery Corp, so I'd be interested to see how that one behaves. We also saw aristocrat down nearly 4% today, and James Hardy still under a lot of pressure on those US housing problems 4.9% down telcos also easier Telstra down 1.3 old platform stocks Rei group down 3.6 Seek down 4.2 and car sales, down three and a half. And we also saw brambles down at 1.1% today with some of the discretionary and consumer spending stocks Cole's down point six and Willie's down point seven.

 

Henry Jennings  03:30

But we did see damage once again in the tech sector that was on the back of those snap numbers. No doubt Computershare Down 1.90 Down 2.3 wisetech, down 3% And as hip to be square block down to 7.3%. So really taking the ball and running with it on the downside there for block. In healthcare. We

 

Henry Jennings  03:55

had CSL up a point 4% And in the mining stocks, BHP, Rio and Fortescue were all slightly better than today. Although bhp did give back those gains this afternoon and it closed down a mere three cents to 4780 but Rios up point nine of a percent Fortescue up point three lithium stocks not doing too badly base metal stocks not doing too badly ij IG o up 1.8 And we had our cam up 3.7 and Pilbara up 3.2% gold miners slipping slightly 1.6% down for new crest and Northern Star 1.8% down energy stocks doing zip really would say that point three and we did see a little bit of strength still coming through in those coal stocks, Whitehaven up around 1% And yet yancoal up around 2.4% today.

 

Henry Jennings  04:50

On the corporate news. We didn't have that Tabcorp TLC and D merger now in place. nufarm had a shocker today their 12 year old relationship with Sumitomo. Not that it's come to an end but Sumitomo sold 15.9% of the stock. Finishing that 12 year shareholding that they have and the stock was down 14.6% Today down below five bucks. So big, big full. The new farm steak I think was done at $5.38. So a lot of people underwater on that steak. We also saw Chalice, one that we wrote up and it's sprung to life recently. Today in a trading halt, they're raising $100 million for the Bonneville PFS. That's the preliminary feasibility study. And that will bring their total cash in the kitty $249 million. So plenty of money, and we'll see how that one's gone Macquarie and Belle pada doing the business there. Of course McCrory has been a big supporter of chalice and they've got their awards by having a placement no SP P and no entitlement for retail shareholders. So we'll see how that one goes. 

 

Henry Jennings  06:05

Major Movers today let's have a look. We saw pushpay Up 15.6% Bg H A private equity company has taken a 20% Odds stake in it and is talking to them about a potential takeover PPH pushpay They are involved in the US church donation business 15.6% up te R Terracom a stock we talked about quite a lot actually. On the the the webinar on Friday night on the Ask the analysts session up another seven and a half percent today they're a coal exposed company panoramic phn also doing well today 5.8% grains resources G double are good at 5.6% they are that high cost. high margin iron ore producer Red Five doing well our EDI 5.5% Better cinelike milk as well. 5.3% better maybe we're seeing a little bit of that US infant formula helping that one didn't help Bubs today didn't help a to milk Regis healthcare at 4% aka got an upgrade from Baron Joey and initiate an A by 3.7% Better as Pilbara with 3.2% better.

 

Henry Jennings  07:21

In the naughty corner today. Well Tabcorp obviously down 80% But don't forget, there is the TLC to compensate for that the lots of love and care there nufarm Those shufflers shuddering down 14.5% Saona mining continue to fall and flop down 12.8% Another big volume day 143 point 6 million shares traded in Saona and we saw a bit of a coming back down to Earth for brain ship but a fried brain there btrn down at 9.5% had a good day yesterday I am you was up eight sorry was down 8.9% again a good day yesterday but not today city Shakedowns nearly 8% and blocked down 7.3% there and jumbo interactive and interesting move from them today they were down 6% JI en is the stock code there. Bear in mind that jumbo has a contract with TLC, I guess it is now for supplying their online lottery business.

 

Henry Jennings  08:27

 Positive sectors today, well, the banks CSL was okay. We did see a little bit of buying in some of the REITs and the mining sector generally was okay with the exception of the gold. 

 

Henry Jennings  08:40

Negative sectors tech telcos consumer stocks. 

 

Henry Jennings  08:43

The old tech index fell 3% today.

 

Henry Jennings  08:47

Gold in Aussie dollar terms was up a smidge 2621 Bitcoin falling back under $30,000 per fun token down to 29,294. Us the Aussie dollar drifting slipped a smidge lower 70.79 and the 10 year yield steady at 3.32. 

 

Henry Jennings  09:08

Over in Asia, we saw China down around 1.2% Hong Kong down 1.6 And Japan down point eight. 

 

Henry Jennings  09:18

Currently Dow futures are down around 250 and Nasdaq futures down a similar amount so that is not a good start. But we are seeing European markets as well. Showing a point five 2.8% fall this morning too. So that will be a bit of a soggy start for Europe. Stocks On The Move today. We did see the Phoenix Rising like a phoenix today write them up this morning. Unfortunately didn't get set. My price was 30 cents. They did try that 31 cents. So some of you may well have got set they're just coming up now. Dow futures day And 234 Some of you may have got set there at 31 They closed at 33 Up 10% Today, v e, which is a stock that made them and I talked about on OSBI. Yesterday I was quite keen on this one but it is very thin was up 22% Today, panoramic also doing well Macquarie had some research out on base metals this morning. 

 

Henry Jennings  10:24

As Nasdaq futures as we go down 214 Just come across my screen but Macquarie had some research on on base metals, panoramic still their preferred play they're up 5.8% and zip and sessile. The race to the bottom continues. Zip was down 5.4% and sezzle. Now at 51 cents down 10 and a half percent and Tyro no books for them today down 5.2 And O L y which is Olympio metals. reconstructed return to trade today they used to be called crop logic in a former life 95.97% down today ama also in the frame today a little bit of a bingo there for them down 6% and Galileo also falling 10% today but a profit taking creeping in to that one. 

 

Henry Jennings  11:21

Speculative stock of the day was another day for reducer minerals, which had a good day yesterday. As we talked about inspecting the stock of the day that I put on a 10% Today only one cent to 11 cents but still, we'll take it in the news today and a little bit more detail technology one  underlying net profit of $33.2 million. reiterated is on track to achieve 500 million plus in AR that's annual recurring revenue by fy 26 fy 26. Good luck with that predicting out to them good guide into FY 22. estimate a PBT profit before tax growth of 10 to 15%. Interim dividend of 4.2 cents down at 1.6%. Today, and Qantas has purchased a majority stake in online travel business trip a deal and Challenger was out with an investor today today says it's expects FY 20 to normalise net profit to be in the upper end of the guidance between 480 and 500 million.

 

Henry Jennings  12:26

Not much. Today on economic news retail sales in New Zealand fell half a percent in March quarter after an 8.3% increase in the last December quarter. And this is a biggie Australian dividend payments reached 97 point 9 billion in the last 12 months and one in every $2 came from mining in those dividends. Asian markets today we saw UBS and JP Morgan downgrade their forecasts for China's economic growth and Japan's inflation will stay above the central bank's 2% target level in the final three quarters of the year. According to survey the economist by Bloomberg and in US and European headlines not an awful lot out. As yet de vos continues European markets opening around 1.5 2.8% lower and of course the talk was of snap and its effect on other social media advertising companies and lugarde once again is reiterated the Eurozone to end negative rates within months. It's about that one. 

 

Henry Jennings  13:23

That's it for me today. Thanks very much for listening. Have a great evening.