CommSec Daily Report s

Mid-Session Report | 23 August 2017

Latest news Latest Prices 12.10pm (AEST) Indices Level Previous % chg  The local sharemarket is erasing early gains, with losses All Ords 5,785.7 5,804.8 -0.33 from the big four banks and insurers easily offsetting gains ASX 200 5,729.6 5,750.1 -0.36 in energy and telco stocks. The ASX 200 index is down 0.35 Shanghai 3,291.2 3,290.2 0.00 Japan Nikkei 19,473.2 19,383.8 -0.20 per cent at lunch, with disappointing results from Insurance Group (IAG) pushing its shares down 7 per cent US Nasdaq 6,297.5 6,213.1 1.36 and dragging the other major players lower as well. UK FTSE 7,381.7 7,318.9 0.86 DOW Futures 21,860.0 21,886.0 -0.10  It has been another busy day on the earnings calendar, with more than a dozen companies releasing results. These Sectors Last Previous % chg include A2 Milk (A2M), APA Group (APA), Consumer Discretionary 2,184.1 2,187.4 -0.15 (BGA), Coca-Cola Amatil (CCL), Charter Hall Group (CHC), Consumer Staples 9,433.5 9,433.2 0.00 Healthscope (HSO), Insurance Australia Group (IAG), Energy 9,073.0 8,978.2 1.06 (QUB), The Financials 6,449.5 6,485.7 -0.56 (SGR), Sirtex Medical (SRX), Tassal Group (TGR), The Financial-x-A-REIT 7,193.4 7,233.8 -0.56 Reject Shop (TRS) and Vocus Communications (VOC). Health Care 22,532.1 22,745.1 -0.94 Industrials 5,762.2 5,752.4 0.17  IAG shares have sunk 7 per cent after the insurer’s margins Information Tech 847.7 859.4 -1.36 were hit by rising natural peril costs. IAG reported a 49 per Materials 10,282.4 10,316.2 -0.33 cent rise in FY17 net profit to $929m. Revenue though ASX200 A-REIT 1,335.2 1,342.2 -0.52 Telecommunications 1,362.2 0.24 slipped 1.6 per cent to $16.5b. The company’s underlying 1,358.9 Utilities 8,014.5 8,134.2 -1.47 insurance margin missed forecasts, falling 2.1 per cent to

11.9% - hit by last year’s quake in NZ and Cyclone Debbie. Stocks Last Day Move % chg BHP $26.15 $0.17 0.65  A2 Milk shares are soaring 5.2 per cent after its full year net RIO $64.60 -$0.17 -0.26 profit almost tripled to NZ$90.6m – helped by strong demand CBA $78.21 -$0.45 -0.57 for its infant formula, which now generates 72% of its total ANZ $29.84 -$0.06 -0.20 revenue – up from 61% in the prior year. NAB $30.79 -$0.05 -0.15 WBC $32.51 $0.04 0.11  Sirtex Medical (SRX) shares have dropped 11 per cent after TLS $3.88 $0.04 0.91 the cancer treatment developer was hit by a (previously WES $41.48 $0.13 0.31 announced) write-down in the value of its clinical and WPL $29.60 $0.11 0.37 research and development assets. SRX reported a full-year CSL $128.05 -$0.01 0.00 loss of $26.3m. WDC $10.84 $0.00 0.00 NCM $21.68 -$0.21 -0.94  (VOC) has also reported a loss for the year and has decided not to declare a final dividend. VOC Other Current Aust 4pm % chg reported a net loss of $1.46b after making heavy write downs AUD/USD 0.7899 0.7910 0.0 on goodwill for some of its recent acquisitions. VOC says AUD/EUR 0.6715 0.6726 -0.16 instead of paying a dividend, it will use the money to reduce AUD/JPY 86.499 86.670 -0.20

debt and fund projects. 11am Official Cash 1.50 1.50 0.00 Aust 90 day futures 1.71 1.71 0.0  Woolworths (WOW) returned to profitability, making $1.5bn Oil Nymex ($US/b)* 47.63 47.53 0.0 over the 12 months to June thanks to strong sales growth in Gold futures($US/oz) 1245.80 1296.70 0.2 its core supermarkets business while being held back by losses at BIG W.

 1.9bn shares have been traded, worth $3.6bn. 452 stocks are stronger, 513 are weaker, while 364 are unchanged.

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