Marcus Today Market Updates

End of Day – Mon 23 May

May 23, 2022 Marcus Today
Marcus Today Market Updates
End of Day – Mon 23 May
Show Notes Transcript
  •  The ASX 200 rose 3 points to 7149 in cautious trade. After a post -election bump early we saw Asian markets weaken and selling hit banks with the Big Bank Basket down to $184.00 (0.4%) with CBA off 0.1% and NAB down 0.9%. MQG fell 0.8% and insurers dropped slightly, QBE down 1.8%. Fund managers were firm GQG up 8.1%, MFG up 3.0% and AEF rising 3.5%. Healthcare fell slightly as CSL drifted 0.7% lower. REITs were better as rates drifted slightly lower, GMG bucked the trend falling 1.1%. Industrials flat, WOW and COL fell with WES off 1.2% but SEK, CAR and REA firmed slightly. Tech stocks mixed, SQ2 down 2.4% with ZIP down 1.1%, the All-Tech Index up 0.9%. Resources firm but not spectacular, BHP up 1.4%, FMG up 2.8% and lithium stocks mixed. Oil and gas firmed with WPL up 0.5% and WHC sliding 2.1%. 
  • In corporate news, great numbers from ELD up 8.9%, IPL is splitting into explosives and fertiliser, down 3.7% and CDA rose 14.5% on reaffirmation of guidance. SGR has a new chair and KAR rose % as it broke off its acquisition talks in Brazil. 
  • Nothing on the economic front. Asian markets mixed with China down 1.0%, HK down 1.9% and Japan up 0.7%. 10-year yields steady at 3.30%. 


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SPEAKERS

Henry Jennings

 

Henry Jennings  00:00

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Henry Jennings  00:53

Good afternoon and welcome to the Marcus Today End of Day Report. My name is Henry Jennings and it is Monday the 23rd of May. And for the day we closed up a massive 3.3 points or point oh 5% to 7,148.9. We opened at 71 60.6. We had a high of 7196 and a low of 71 35.8. So a pretty narrow range today, but we did open better and push better, but unfortunately couldn't hold that as we saw the banks and the industrials just getting a little bit sloppy as the day wore on. And a little bit of caution creeping in to the markets. Nothing too sinister and Dow futures and Nasdaq futures currently showing a very positive showing Nasdaq futures up 188 points on a bounce there and we have s&p futures also doing well today up 51 points in Europe looking to open firm so maybe we are starting to see a little bit of stability creeping in and a return to more normal conditions.

 

Henry Jennings  02:07

But the big bank basket was a little sloppy today. We did see the big four dropped to $184 which is only off point four of a percent. Commonwealth down point one NABS down point nine a and Zed down point eight and Westpac down point seven Macquarie also slipped back as well today down point eight of a percent with insurers under a little bit of pressure QB II, down 1.8% But fund managers, slightly better GQ G partners having a really good day up 8.1% Magellan up nearly 3% and net worth at 1.2 with the ANZ and a s x at point seven of percent. 

 

Henry Jennings  02:07

Looking across industrials, it was a pretty mixed session we did have some winners, aristocrat continue to push higher 1.8% Higher Tabcorp was down at point 933 of a percent today ahead of the demerger, which is now that scheme is effective forthwith, and the documents will love today, and the scheme of arrangement has now become effective with that demerger of the lotteries business from the gaming business. In terms of other industrial CSL slipped point seven of a percent and we saw Ramsey up point for Sonic up point eight and cochlea 1.6 But of course healthcare CSL is the Big Daddy there. Wesfarmers also falling 1.2% and Williams and Kohl's as well down woollies down 1.9 And Kohl's down point 7%. Today Qantas also slipped a little bit down 1.8% and Telstra down just over 1% today. Resources though slightly better day to day especially in the iron ore stocks. We had bhp at 1.4% which is nearly 10 points on its own. We have Fortescue up 2.8% Rio at 1.1% and Iluka. Up point nine mineral resources not doing much down point three and South 32. Down 1.1 Will Linus down 1.3 Oil and Gas slightly better Santos at 1.2 and Woodside up half a percent. But coal stocks eased back with Whitehaven down 2.1% gold's not doing too much at all. Very little change in the gold sector today. 

 

Henry Jennings  04:37

In corporate news all let's no let's not do corporate let's do the tech sector. wisetech point 6% Better zero having a good day up 2.2% That was on the call today on AWS biz. We also had of course squared down 2.4% And the Alltech index, rose point nine of a percent Today, in corporate news, we have some fantastic numbers from elders and a big upgrade. Expect more to come in that one up 8.9% Today, so a really good result for them. IPL, Intertek pivot looked good to begin with, but they're a little faded with the stock closing down 3.7% on its plans to split the company into two explosive So on one hand and fertiliser on the other hand Coenen mo finally reaffirmed yet again, guidance. I think that's about the third time it's done it but this time it did the trick at 14 and a half percent rising back up to $7.73. This one really has been sold off dramatically. We saw at star also entertainment put in a new chair and we saw karoun up as well today. On the back of abandoning its plans for an acquisition in Brazil they were up 4.3% Not much on the economic front today. 

 

Henry Jennings  05:59

Asian markets mixed China and Hong Kong ease but Japan up point seven of a percent ahead of the quad. China down 1% Hong Kong down 1.9% 10 year yields steady at 3.3%. 

 

Henry Jennings  06:14

In the winner's enclosure today on the podium. CDA Codan doing very well 14 and a half percent better. I am you also doing well that's in Eugene they were up 12 and a half percent today. They reiterated that things have never looked so good with the letter to shareholders elders as good results there are 8.9% brain chip had a good day today Chris pointed that one out on the technical side of things. We have been holding it in the small cap portfolio since 90 Odd cents, or up to $1.27 out of 8.5% GQ GE also doing well are 8.1% and Australian agriculture, the beef producers they have another good day heading towards that I think that is an all time high 5.1% better and Terracom a stock that popped up on our Ask the analysts session on Friday a number of times people very interested in Terracom up 5% today so that one was doing well to finally ardent leisure up 4.8% .

 

Henry Jennings  07:18

In the naughty corner today we saw Saona mining down 16.1% S Y A the stock code their massive volume there today 170 1 million shares traded. So that's a huge, huge volume $43 million worth of stock. They did report today, their pre feasibility study which enhances the n a l value, which is this pre fees is the one in Canada and that's the North American lithium valuation they're talking about, but the net present value pre tax estimated approximately 1 billion Ozzy now the company unfortunately is trading with a market cap of around 1.5 million billion Ozzie so maybe some disappointment there that the project wasn't valued at a higher price Polly Novo also falling today PNV the stock code there they were down 7.6% venti a services bn t down 5.1 Judo cap down nearly 5% Today JD Oh Nova next down 4.4% And VX Regis healthcare are eg down 4.3 And Bowen Cole health stocks a little on the nose today Boeing cold down 4.1% today. 

 

Henry Jennings  08:41

Positive sectors today pretty much well it was the iron ore sectors. Tech in places but not across the board. Treasury wine estates had a good day up 4% But oil and gas also in the positive today. 

 

Henry Jennings  08:55

Negative sectors, pretty much banks and insurers and those consumer stocks with Wesfarmers Coles and Woollies under a little bit of pressure there today. 

 

Henry Jennings  09:06

Big Bang basket as I said earlier down to $184 down point four of a percent. They will take index up point nine gold slipping slightly 2613 in Ozzie dollar terms, Bitcoin 30,183 US dollars per fun token and the Aussie dollar slightly higher on the back of the election results 70.9 to 10 year yield study at 3.30. Dow futures doing well up around 120 and NASDAQ up around 183 points. So all good news there and Europe opening half to 1% Fermat. Across the board as well. 

 

Henry Jennings  09:45

Stocks On The Move today. Well we had Codan that one was the winner today 14 and a half percent up we also saw Bubs doing well today one broker coming out and saying they are likely winners from the US infant formula shortage is a two milk benefiting from that as well up three and a half percent for that one. And the first plane load of infant formula landed in the US from Europe today on a very large plane with lots of pallets of baby formula but certainly this is an opportunity for both Bubs and a to milk to cement their positions there in the US if they get their marketing and distribution rights so we could see more upside for those two branches had a good day. Chris identified that very beautifully this morning, as one with potential upside probably didn't close quite as much as he would like. But still eight and a half percent today karoon pulled the plug on his acquisition 4.3% and Megaport n p one and other stock we talked about on Ask the analyst on Friday up 3.9% Looks like the worm has turned there perhaps in that one. 

 

Henry Jennings  10:57

Similarly in a lot of these tech stocks, we are starting to see some buying across the board and satire a stock that we highlighted last week at around 50 cents as a speculative buy for members closed up 25 and a half percent today at 69 cents. So that's up 38% Since we wrote up that one last week, so good buying there. That one really has had a pretty good bounce our chat materials as well. Having a good day today up 11% They had a patent granted for their quantum chip that was an Australian patient and AI s Eris resources, which we've talked about on the call today as a buy up nearly 8% Maybe someone was watching the call today Saona not having a great day we've talked about that 170 1 million shares traded today big big volumes, big volumes down 16.1% and a V IVZ down 9.1%. They're raising 12 million bucks to support drilling gal Galileo was down today as well down 9.1% profit taking sorry I can't help myself. 

 

Henry Jennings  12:06

Dow Jones now up 310 points NASDAQ up 180. So we certainly could see a market kick tomorrow as well. If that continues.

 

Henry Jennings  12:18

Speculative stock of the day today it was reducer minerals are a 's was up 25% transformational new lithium project acquired in Northern Territory. 

 

Henry Jennings  12:30

In the news today and a little more detailed gentleman by the name of Jeff Smith has joined the ANZ board karoun energy given notice to an OTA and a GM to terminate the exclusivity agreement entered into to undertake due diligence and Stein Entertainment Group was appointed Ben heap.

 

Henry Jennings  12:49

It's going to be plenty of sub editor jokes about that one as interim chair and Jeff Hogg as acting CEO effective during the first elders half year profit 91.2 versus consensus 78.3 revenue 1.5 1 billion consensus 1.42 Expecting upgrades tomorrow for that one upgraded its full yet underlying EBIT guidance to be in the range of 30 to 40% above its full year 2120 21 EBIT da and parentally global PR and the stock code there has confirmed that it expects to deliver FY 22 revenue of 2.4 billion and EBIT of between 170 and 175. Codan expects first half profit of 50 million to be matched in second half 2022. So it was always a second half story for Colton, and it looks like it's coming through and Intertek pivot to implement structural separation of the fertilisers and dyno Nobel business which is the explosives business. 

 

Henry Jennings  13:52

Nothing much on the economic front today although Christopher Clark Kent has talked about the RBA is bond buying programme one of the key takeaways was the pressure on the Aussie dollar would start to ease I think the pressure on the Aussie dollar is mainly because there's a lot of buying of the US dollar rather than anything else. Commonwealth Bank has kept its economic forecast the same despite Australia's change of government over the weekend, was all a bit of a yearn for the market the election on Saturday not so for the rest of the country, but not for the markets. 

 

Henry Jennings  14:23

China's level of financial support pledge so far in Asian news is around 35 point 5,000,000,000,001 stimulus is smaller than 2020 when the pandemic first hit, and Beijing having a few COVID cases which did put the Chinese market into a little bit of a splutter. They reported that 99 infections for Sunday shows up from 61 on Saturday, and there's 802 infections reported China wide for Sunday. There's probably more than that in Mona Vale at the moment. And Chinese have tripled investment in solar power projects in the first four months over in Europe, DevOps kicks off where the elite gather this time in the spring no snow in sight. So plenty of noise will come out of there. And chipmaker. Broadcom is in talks to buy VMware for up to $50 billion US.

 

Henry Jennings  15:19

European markets expected to open pretty good, especially with those Dow futures looking pretty good, so maybe we've got a bit of a better bounce tomorrow. But that's it for me today. Thanks very much for listening and have a great evening.