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AGL Energy recorded a solid FY17 NPAT.  

However, the market has reacted negatively to the board de-prioritised capital management. This has happened less than 12 months after launching its buy-back program.

AGL provided FY18 Underlying NPAT guidance in the range of $940-$1,040m. Earnings growth forecast is driven predominantly by higher wholesale electricity prices.

FY18 EPS increases from $1.20 in FY17 to $1.40, placing AGL on a forward yield of 4.6%

We have previously expressed our concerns with regards to AGL being overvalued and we continue to maintain our $22 price target.

AGL

Recent Algo Engine buy signals in ANN and SHL are now finding buying support.

We maintain our medium-term price targets near the June 29th high of $24.00 in ANN, and the July 4th high of $24.50 in SHL .

The spot Gold price posted a low of $1204.50 on July 10th.

Since then, the yellow metal has rallied almost 6.5% and hit an intra-day high of $1281.20 in last night’s New York trade.

This marks a two-month high for Spot Gold. Internal momentum indicators, combined with increasing geopolitical risks, now suggest the $1300.00 resistance level is within reach.

The share prices of local gold miners NCM and EVN have finally commenced participating in the positive uptrend in the spot Gold price.

We expect both names will break out their recent ranges to the topside and have medium-term price targets of $22.10 for NCM and $2.60 for EVN.

Investors have been showing keen interest in buying both the outright shares, as well as, trading the CFDs listed on the SAXO Trader GO platform.

In addition to the larger-cap mining stocks, the SAXO GO platform offers direct access, tight spreads and deep liquidity in some of the smaller-cap mining names.

These include NST and SAR. Call in to the office for more detail about how to trade CFDs on the SAXO GO platform.

Newcrest

Evolution Mining

Saracen Mineral Holdings

Northern Star Resources

Shares of CBA have jumped over 1% to $81.50 in early trade as the bank’s earnings report was slightly ahead of expectations, with no surprises, and with no mention of their current AML issues.

The bank announced a net profit of $9.9 billion with operating income up 3.8% and bad debt provisions down to a 9-year low of 15 basis points.

A final dividend of $2.30 per share  was announced, which lifted the total annual dividend to $4.29, compared to $4.20 last year. The EPS came in at $5.74 versus $5.55 a year ago.

The return on equity dropped 50 basis points to 16%, as net interest margins fell 3 basis points to 2.10%. CBA also announced plans to sell their capital-intensive life insurance business.

On balance, this was a positive report which will likely be overshadowed by the AUSTRAC allegations of wide scale  AML and counter-terrorist financing breaches.

Technically, we still advise caution to the downside risk as the “lower high” pattern dating back to early May is still the dominant chart feature. We still see scope for a test of the June 7th low of $77.65 as a reasonable price target.

  Commonwealth Bank