Stocks of the Hour: Magellan, James Hardie & GrainCorp

Company News

by Lauren Evans

Hamish Douglass has revealed his plans to step down from his duties as chairman, director and chief investment officer from Magellan Financial Group (ASX:MFG). The co-founder is set to take a period of medical leave after a period of “intense pressure and focus” on both his personal and professional life. Co-founder Chris Mackay is slated to return to the investment team and oversee portfolio management for the interim, while Nikki Thomas will rejoin the business as a co-portfolio manager. Meanwhile, the board will continue its search to appoint an additional independent director. Shares are trading 10.4 per cent lower at $16.58.

Building material giant James Hardie (ASX:JHX) has raised its income guidance by 6 per cent to up to $890 million (US$630 million), from their previous guidance after a strong third quarter in which sales increased across the board. The company said its third quarter global net sales increased more than 22 per cent due to continued residential and market growth. Shares are trading 2.9 per cent higher at $49.

GrainCorp (ASX:GNC) said that strong harvest, coupled with supply shortages and adverse weather conditions in the northern hemisphere, has contributed to “excellent” global demand. Strong supply chain margins for grain exports has also buoyed its results. The company expects to report full year EBITDA of $480 to $540 million which is above market expectations of $368 million. Shares are trading 16.2 per cent higher at $8.38.

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