The Market Edges Higher (NCK, ANZ)
The ASX200 brushed off a poor lead from overseas markets today to close in the black after being down 20pts in early trade. ANZ was weak today after the FY17 result came out this morning – more on that later. The tech names were strongest while industrials were marginally weaker. The ASX will look to test the 5910-5950 resistance again tomorrow after today’s session had a range of +/- 31points, a high of 5916, a low of 5884 and a close of 5916, up 10pts or 0.18%.
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
ANZ reported FY17 results today and although being broadly in line, the market questioned the quality of earnings after being saved by low bad debts. It is no secret that bad debts have been very supportive of bank profits recent times, and at some point that will change, but for now they have helped ANZ post profit within guidance. Despite this, ANZ fell on the back of the result, closing down 1.2% to $30.13. NAB, WBC (FY17) and CBA (1Q18) all report in 2 weeks’ time.
ANZ Bank (ANZ) Daily Chart
Nick Scali (NCK) held their AGM today and commentary for management regarding 1Q18 is very positive, despite competing in tough retail condition. Consensus FY18 NPAT was forecast to be flat year on year, however NCK has guided to growth of 10-15% over the first quarter. Clearly positive, NCK closed 6.8% higher to $6.62. We own NCK in the Income Portfolio.
Nick Scali (NCK) Daily Chart
Have a great night
The Market Matters Team
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