The Overnight Report: Act Local

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This story features LENDLEASE GROUP, and other companies.
For more info SHARE ANALYSIS: LLC
The company is included in ASX200, ASX300 and ALL-ORDS

By Greg Peel

Results in Focus

The fact the S&P500 fell -0.5% on Friday night and the ASX200 was up 25 points at midday yesterday underscores a current trend of brushing aside Wall Street movements that are primarily driven by the Mega Techs, up and down, and have little to do with us.

Wider macro developments may wash across the Pacific but for now, the local market is able to focus more specifically on earnings results and other local news. It should be the same today, given Wall Street was closed last night and the number of daily reporters takes a step-jump from today.

There were once again some big moves on result yesterday but from an index perspective they cancelled each other out. It was bit different among sectors nonetheless.

The standout sector move was that of real estate (-2.6%), which had nothing to do with bond yields (tens down -2) and all to do with Lendlease ((LLC)), after it fell -14.0% on result.

Unrelated to results, healthcare fell -1.0% on a dip from CSL ((CSL)) and energy was -0.6% lower thanks to a -7.9% drop in New Hope Corp ((NHC)) on soft coal prices.

Offsets were provided by financials (+0.7%), thanks to a well-received quarterly update from Westpac ((WBC)), and materials (+0.5%), as hope springs eternal for further stimulus from Beijing post the new year break.

Lithium miners were also on the move up again, while Boral ((BLD)) gained 4.6% after Seven Group ((SVW)) proposed an off-market takeover.

BlueScope Steel ((BSL)) announced it was taking Colorbond to America and it fell -2.3%, which rather sums up Colorbond.

Speaking of takeovers, APM Human Services ((APM)) received an offer from private equity and jumped 47.6%.

A2 Milk ((A2M)) otherwise starred among the day’s reporters with a 12.5% pop, although staples rose only 0.2%.

Industrials managed a 0.4% gain despite a -6.5% response to Orora’s ((ORA)) result. Elsewhere, Reliance Worldwide ((RWC)) gained 6.6% on its result.

The day’s follow-on victim was Inghams Group ((ING)), which dropped another -5.0% having reported on Friday.

Technology was arguably the one sector that blindly followed Wall Street, as is typical, given it fell -1.0%,

In other news, embattled Star Entertainment ((SGR)) entered a trading halt ahead of yet another inquiry into the Sydney casino.

Among a longer list of reporters today BHP Group ((BHP)) is in the frame, with the market having already adjusted to previously announced write-downs.

With Wall Street closed, our futures are up 2 points this morning.

Commodities

China has not exactly returned with a vengeance, presumably holding out for any new stimulus news. Chinese Premier Li Qiang called yesterday for “pragmatic and forceful” action to boost the nation’s confidence in the economy.

Show me the money.

There was good news in the latest data showing Australian barley sales to China have soared in the six months since China scrapped tariffs. Now it's fingers crossed for wine next month.

The Aussie is up at tad at US$0.6540.

Today

The SPI Overnight closed up 2 points.

The minutes of the February RBA meeting are out today.

Aside from BHP, Ansell ((ANN)), ARB Corp ((ARB)), Megaport ((MP1)), Netwealth Group ((NWL)) and Hub24 ((HUB)) are just a few of today’s reporters.

There are also a number of ex-divs today, including Challenger ((CGF)), Computershare ((CPU)) and Wesfarmers ((WES)).

FNArena's Corporate Results Monitor: https://fnarena.com/index.php/reporting_season/ (with calendar).

The Australian share market over the past thirty days…

For more detail go to FNArena's Australian Broker Call Report, which is updated each morning, Mon-Fri.

All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available on the FNArena website.  Click here. (Subscribers can access prices on the website.)

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