Market Matters Afternoon Report Thursday 18th August 2016
Good Afternoon everyone
Market Data
What Mattered Today
A soft session for stocks today with the banks a drag, the typical yields plays likes infrastructure & property under pressure while the resources were the relative performers. Seems offense has now become defence….(sort of).
We had a range of +/- 48 points, a high of 5546, a low of 5507 and a close of 5507, down -27points or -0.49%.
ASX 200 Intra-Day Chart
Reporting continues to be the main game in town – some good – some not so good.
Origin (ORG) reported full year numbers which were OK – but guidance for FY17 was a touch soft. Their previous guidance for FY17 was $1,900m - $2,100m EBITDA “pre APLNG” – from the numbers today it seems the range is now $1,790m to $1,940m – so mid point of $1,865m implies a small downgrade to future numbers but nothing huge.
The market was split about whether or not they would pay a 10c dividend. They didn’t, which is a good move considering debt levels. All up, an OK result, the key to the stock remains the oil price – which we think goes higher.
Origin (ORG) Daily Chart
To that end, Woodside (WPL) which we added to the MM portfolio earlier this week continues to look good. We like seeing a stock bid up before results as a sign of confidence….
Woodside (WPL) Daily Chart
Brambles (BXB) released FY16 numbers today, which were inline + they announced the retirement of their CEO. Tom Gorman to leave 28 February 2017. To be replaced by Graham Chipchase, CEO of Rexam. Given the CFO, Zlatko Todorcevski, is also leaving the firm in early 2017, we expect to experience a period of change at BXB…a quality stock but expensive….Not for us at current levels.
Brambles (BXB) Daily Chart
Soft numbers for AMP today and the stock dropped -4.66% to close at $5.52. Underlying cash profits of $513m – v consensus of $519m – so about a 1%miss. The pain is being felt in the Wealth Protection division – similar to what we’ve seen in results from CBA/WBC. Elsewhere, Wealth Management, New Zealand, and AMP Capital all performing pretty well, however, the challenge is clearly around growth. Not a stock we like.,
AMP Limited (AMP) Daily Chart
Sectors
Source; Bloomberg
ASX 200 Movers
Reporting this week
NPAT = net profit after tax (consensus numbers)
EPS = earnings per share (consensus numbers)
DPS = dividend per share (consensus numbers)
Select Economic Data – This week; Stuff that really Matters in Green
What Matters Overseas
FUTURES pointing to a reasonable start overseas…
All figures contained from sources believed to be accurate. Market Matters does not make any representation of warranty as to the accuracy of the figures and disclaims any liability resulting from any inaccuracy. Prices as at 18/08/2016. 5:00PM.
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