Why is Macquarie (ASX: MQG) rallying today
Stock
Macquarie Group (ASX: MQG) $121.64 as at 16/11/2018
Santos (ASX: STO) $6.23 as at 16/11/2018
Event
The bank is outperforming today following an upgrade to FY19 earning’s guidance out this morning
The upgrade relates to the sale of Australian oil & gas company Quadrant Energy to Santos, which Macquarie holds a significant stake in.
The Quadrant sale was approved by the ACCC this morning and Macquarie confirmed the transaction will be completed in the current financial year, and as result changed profit guidance to 15% above FY18, up from 10%.
Obviously this is a one off injection to Macquarie’s bottom line, and it has been well flagged with most expecting the deal to be approved by the ACCC so today’s jump does come as a surprise.
On the other side of the transaction, Santos is trading slightly higher, more-or-less in line with peers.
Macquarie Group (ASX: MQG) Chart
Market Matters Take/Outlook
