Morning Report APAC: US closed for Presidents' Day; Le Pen gains
- US markets closed for Presidents' Day
- US Vice-President Mike Pence meets with European leaders
- French polls show Marine Le Pen gaining in popularity
- GBP is the best-performing currency in the G10 on a quiet day
- Unilever's share price collapses as Kraft Heinz withdraws $143bn takeover bid
By Saxo APAC Sales Trading
Economic data of the day (Singapore Time)
0830: AU –RBA February meeting minutes
1800: UK – Bank of England Governor Mark Carney speaks in UK parliament
2150: US – US Federal Reserve’s Neel Kashkari speaks on economy in Golden Valley
0100: US – Fed’s Patrick Harker to speak on economic outlook
0530: AU – RBA’s Philip Lowe speech in Sydney
US: A quiet overnight session with both the US and Canada closed yesterday.
USD: A quiet session in tight ranges with little news flow to excite traders.
GBP: The best-performing currency in the G10 space on a quiet day, driven by what looks like an easier path than expected as Brexit is debated in the House of Lords.
Emerging markets: RUB was the best-performing EM currency. It was interesting to see the move in the PHP, where spot broke above the key 50 level and weakened nearly 0.5%. The move prompted the central bank to comment on the currency, stating it is watching volatility and comparisons to regional peers.
Foreign exchange movements
- APT Satellite (1045 HK): Raised to neutral at Haitong
- Belle Intl (1880 HK): Raised to outperform at Credit Suisse
- HKEx (388 HK): Raised to buy at CICC
- StanChart (2888 HK): Cut to underweight at Santander
- Sun Art Retail (6808 HK): Cut to underweight at JPMorgan
- Nuclear power: China reactor faced emergency in 2008: Radio
- China Hi-Tech Group (600730 CH) says chairman resigns
- China Unicom (762 HK): End January subscribers 407.1m
- Do-Fluoride (002407 CH): Terminates share sale plan after CSRC tightens rules
- Guotai Junan Securities (601211 CH): FY net 9.84bn yuan vs 15.7bn yuan year ago
- Shandong Gold Mining (600547 HK): Said to plan up to $1bn Hong Kong share sale
- Shuangliang Eco-Energy (600481 CH): To remain suspended
- Sino Hydro (601669 CH): Wins Pakistan $400m power dam bid with Sapphire Electric
- Tencent (700 HK): Chinese game site said to seek funds at $1.2bn valuation
- Nippo Corp. (1881): Cut to neutral from buy at Ichiyoshi Research
- Yorozu Corp. (7294): Raised to neutral from sell at Ichiyoshi Research
- Tsumura & Co. (4540): Raised to strong buy from buy at SBI Securities
- Dai-ichi Life Holdings (8750): To form pact with Nihon Chouzai (3341)
- Denso (6902): To reduce the number of members on its board of directors
- Don Quijote Holdings (7532): Registers to sell up to 100bn yen of bonds
- Honda Motor (7267), Yamaha Motor (7272): Indonesia’s antitrust commission, or KPPU, says Astra Honda Motor and Yamaha Indonesia Motor Manufacturing guilty of cartel activity in automatic-scooter sales, imposes fines
- JX Holdings (5020): Lowers February crude processing volume to 4.75m kls from previously planned 4.97m kls, due to malfunction at refinery, Rim Intelligence says
- Konica Minolta (4902): Downgraded to underperform from neutral at SMBC Nikko Securities
- Mitsui & Co. (8031): To invest between $450m and $550m in LA- based real estate and infrastructure fund management company CIM Group
- Ogaki Kyoritsu Bank (8361): To sell shares to public; seeks about 30.2bn yen from share sale
- Orix JREIT (8954): To sell shares to public for 168,850 yen each; expects net proceeds of as much as 25.4bn yen
- Shikoku Electric Power (9507): Lifts full-year operating profit forecast by 67% to 17.5bn yen
- Sumitomo Mitsui Financial Group Inc. (8316): Is considering selling its stakes in two Japanese regional banks to Resona Holdings Inc., according to people with knowledge of the situation
- Takagi Securities (8625): Tokai Tokyo offers 21% premium from Monday closing price for Takagi Securities in tender
- Toshiba (6502): Sale of Toshiba’s chip business would be an issue of national interest, Nikkei reports, citing Japan business lobby Keidanren head Sadayuki Sakakibara
- Sakura Internet (3778): Seeks to raise 3.21bn yen from public share sale
- Taisei Lamick (4994): Seeks to raise 2.12bn yen from public share sale
- Solasia Pharma (4597): To list on Tokyo’s Mothers Market March 24; Itochu (8001) is Solasia’s largest shareholder
- Beach Energy (BPT): Raised to buy at Canaccord, PT A$0.83
- Bluescope (BSL): Raised to outperform at Credit Suisse, PT A$13.30; Cut to neutral at JPMorgan, PT A$13
- Brambles (BXB): Cut to neutral at Macquarie, PT A$10.25; Cut to hold at Morgans Financial, PT A$9.72
- Cabcharge (CAB): Cut to neutral at UBS, PT A$3.95
- GWA Group (GWA): Cut to underperform at Macquarie, PT A$2.60
- Mantra Group (MTR): Raised to buy at UBS, PT A$3.15
- NIB Holdings (NHF): Raised to neutral at Credit Suisse, PT A$5.50
- Northern Star (NST): Cut to hold at Canaccord, PT A$4.40
- Ooh!Media (OML): Cut to hold at Canaccord, PT A$5
- WorleyParsons (WOR): Cut to underperform at Macquarie, PT A$8.28; Cut to neutral at Credit Suisse, PT A$8.50
- Aconex (ACX): 1H results expected; NOTE: Co. last month forecast 1H Ebitda A$6.3m-A$7.3m; rev. A$76.5m-A$77.5m
- Altium (ALU): 1H results expected; NOTE: Co. in November forecast FY17 sales, rev. growth more than 10%; oper margin over 30%
- ANZ Bank (ANZ), Commonwealth Bank (CBA), National Australia Bank (NAB), Westpac (WBC): Australian banks pick a number to present earnings: Gadfly
- BHP Billiton (BHP): 1H results expected after market closes; NOTE: Adj. net income est. $2..943b (6 analysts); Preview; Escondida union to attend mediation with strike in 12th day
- Boral (BLD): Trades ex-div.
- Caltex (CTX): FY results expected; NOTE: Co. in December forecast RCOP NPAT A$500m-A$520m; Historical cost profit A$560m-A$580m
- Cromwell Property Group (CMW): Sees value in Investa up to A$4.75 per IOF share
- Domino’s Pizza (DMP): Trades ex-div.
- Fairfax media (FXJ), REA Group (REA): Fairfax seriously considering IPO of online real estate business Domain; NOTE: Fairfax scheduled to release results Feb. 22
- Flexigroup (FXL): 1H results; NOTE: Co. in November forecast FY17 cash NPAT A$90-$97m
- Fortescue (FMG), Rio Tinto Ltd (RIO): Iron may swap fireworks for slow decline as supply in focus
- Greencross (GXL): 1H results expected; NOTE: Co. in August forecast FY17 NPAT, underlying Ebitda growth at similar levels to FY16
- Growthpoint (GOZ): 1H results expected; NOTE: 2-analyst adj. net income est. A$70.2m
- Independence Group (IGO): 1H results expected; NOTE: Rev. est. A$230.3m (3 analysts)
- IPH (IPH): Trades ex-dividend
- Magellan Financial (MFG): Trades ex-dividend
- Monadelphous Group (MND): 1H results expected; NOTE: 2-analyst rev. est. A$613m
- Oil Search (OSH): FY results expected; NOTE: Adj. net income est. A$107.3m (16 analysts)
- Sandfire Resources (SFR): 1H results expected; NOTE: Adj. net income est. A$39m (3 analysts)
- Scentre Group (SCG): FY results expected; NOTE: FFO/share est. A$0.232 (8 analysts)
- Seek (SEK): 1H results expected; NOTE: 2-analyst rev. est. A$499.5m
- Star Entertainment (SGR): Trades ex-dividend
- Suncorp (SUN): Trades ex-dividend
- Terracom (TER): Gets indicative approval for Blair Athol Mine transfer
- Virtus Health (VRT): 1H results expected; NOTE: Co. last month warned volume decline may have material effect on results
EUR volatility remains bid and will continue to be should polls show further Le Pen advance. Photo: Shutterstock
– Edited by Susan McDonald
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