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Friday 17

August, 2018 5:41 PM



CommSec Daily Report Wednesday

CommSec Daily Report Wednesday

The Aussie market is climbing on Wednesday with the ASX 200 up 12 points or 0.2% to 6267 towards lunch.

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08.08.2018 12:26 PM

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The Aussie market is climbing on Wednesday with the ASX 200 up 12 points or 0.2% to 6267 towards lunch. There are several factors for this, with a strong overnight lead from US and European markets and positive movements for major companies releasing earnings results.

Most sectors are higher with only the healthcare and utilities in the red. Financials have been among the biggest improvers following the announcement of the Commonwealth Bank’s (CBA) FY18 result and AMP Ltd’s (AMP) 1H18 result. Both companies had flagged impairments to results earlier in the year.

CBA is up 2.1% even with a 4.8% decline in cash profit to $9.2 billion. Revenue still lifted by 3% to $26.1 billion and net interest margins (NIM) improved 5bps over the 12 months to 30 June 2018. CBA will pay a 2H div of $2.31 per share.

AMP’s half year result saw 1H net profit slump 74% to $115 million on remediation and associated costs. The wealth manager saw earnings lift in several business units but its Australian wealth protection arm saw a decline of 98% to $1 million for the half. AMP will pay an interim dividend of $0.10. AMP shares are up 4.9%.

Tabcorp (TAH) shares have jumped 7% on the wagering company’s FY18 announcement. TAH notched a net profit of $28.7 million from a $20.8 million loss in the prior year following the merger with Tatts Group in December 2017, sale of UK Sun Bets and closure of Luxbet. Revenue also surged 71% to $3.8 billion with the Tatts merger expected to create earnings synergies of up to $130 million by 2021.

In other news, lithium miner Altura Mining (AJM) has announced that it has started trucking lithium spodumene concentrate in readiness for shipment from Port Headland, WA. AJM was up by 7% at its best levels but has since come back to a 1.9% gain at lunch.

On the local economic front, housing finance data for June saw the number of home loans fall 1.1% with values down 1.6%. Later today, headline Chinese international trade data is released. The Aussie dollar is lifting against the greenback and currently buys 74.3 US cents.

So far, 1.1B units have traded worth $2.2B with 494 stocks higher, 496 lower and 364 unchanged.

Published by James Tao - Media & Capital Markets Analyst (Author) CommSec
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