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Archive for April, 2011
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Stock Market Analysis: Macro and Technical Analysis of ASX Top 20
Friday, April 29th, 2011Stock Market Analysis: Marktets Higher Led By Financials
Friday, April 29th, 2011 * U.S. stock markets continued to rise extending their multi-year highs overnight.
* European stock markets closed in positive territory overnight, led by the financials.
* Asian share markets ended mixed yesterday.
* In commodities Crude-oil hit $US114 and Gold futures again hit an all-time high above $US1,534 an ounce.
The SPI Futures is trading below the key level of 4930, as the SPI Futures up 0.2% (or 9 pts) at 4,882. The key levels for our index today are 4920 and 4840. The ASX is set to open higher as we saw markets rise in the U.S. and European markets.
Trading activity will be brisk this morning as options trades settle. The U.S. earnings reporting season continues this week. Investors still need to monitor the Aussie dollar which has again reached post-float highs above $US1.094.
See below for ASX listed companies in the news today.
Economics News Today
* Financial Aggregates for March, including Private Sector Credit.
U.S. Markets
U.S. stock markets continued to rise extending their multi-year highs overnight. Investors reacted to positive earnings reports, looking past uninspiring economic data, as they pushed stocks higher again. The Dow Jones Index is approaching the 3-year highs, while the tech-heavy Nasdaq is a 10-year highs.
Key indicators point to a sustainable rally including: the Dow Jones Transportation Average, which is often seen as important evidence of an active economy, reached a new all-time closing high (previous high was 6 June, 2008); and the Small capitalisation stocks in the Russell 2000 index again participated extending recent gains.
In corporate earnings news: ExxonMobil reported strong quarterly profits of nearly $US11 billion as the energy giant benefited from a politically sensitive surge in oil prices, 1Q Net income surged 69 percent hitting $US10.65 billion. Procter & Gamble reported 3Q net profit rose 11 percent as sales increased in all its regions around the world.
In economic data: the U.S. pending home sales climbed more than expected last month, but gross domestic product (GDP) showed a significant slowing from the previous quarter, while jobs data showed U.S. jobless claims unexpectedly rose last week. GDP data from the Commerce Department showed a slowdown in growth in the first quarter to 1.8 per cent from 3.1 per cent in the fourth quarter of 2010. The Labor Department reported new claims for unemployment insurance benefits surged more than expected last week to 429,000, the highest level since January.
The US dollar to new 3-year lows, after weak U.S. growth and unemployment data was released during the session. Commodities rose on the weaker US dollar. Spot gold rose to an all-time high of $US1,538.35 an ounce, breaking records for the ninth time in 10 sessions. Oil rose to nearly $US114 a barrel in volatile trading, but gave up most of its early gains, while Copper erased earlier gains to end easier, weighed down by the slowing economic conditions in the US.
The Dow closed up 0.6% (or 72 points) at 12,763, while in the broader market the S&P 500 index closed up 0.4% (or 5 points) at 1,360 and the tech-heavy Nasdaq ended up 0.1% (or 3 points) at 2,873.
All 10 company groups that make up the S&P index traded higher, with out-performers including: Financials up 0.8%, Consumer Staples sector was 0.6%, Healthcare was up 0.5%, Industrials sectors was up 0.3%, while Materials and Energy sectors were flat.
European Markets
European stock markets advanced Thursday, led by financials which were boosted by some strong results from key banks. The Stoxx Europe 600 index closed up 0.3%, led by the insurance and utility sectors.
Investors welcomed the US Fed commitment to keep interest rates low, and also shrugged off US growth figures showing a sharp deceleration in the first quarter to a 1.8 percent pace as governments slashed spending.
In London the FTSE 100 index finished flat ahead of a four-day break, as U.K. markets will be closed Friday for the Royal wedding and Monday for a holiday.
In Germany the market rose led by financials as official data showed that German unemployment dropped slightly in April, and is around the lowest level for about 20 years, Deutsche Bank rose 4.8% after reporting a 17% increase in net profit as a string of recent acquisitions helped drive growth; this offset weakness in the Technology sector after SAP AG disappointed.
In London the FTSE 100 index closed flat (or 2 points) at 6,069, the German DAX was up 0.9% (or 70 points) at 7,475, while in France the CAC was up 0.9% (or 37 points) at 4,105.
Asian Markets
Asian share markets ended mixed yesterday, as investors took profits from early gains spurred by a Wall Street rally after US Fed said the bank had no timetable for raising interest rates and will remain accomodative “for an extended period”.
In Japan the Nikkei Index was the best performer for the day, despite data showing industrial production was down a record 15.3% in March from the previous month, having been hit worst than expected by the earthquake and tsunami.
Chinese and Hong Kong markets were dragged down for a fifth trading sessions due to concerns that government could tighten monetary policy in the near term.
In China the SSE Composite down -1.3% (or -39 points) at 3,025, while in Hong Kong the Hang Seng Index was down -0.4% (or -87 points) at 23,805 and in Japan the Nikkei 225 Index was up 1.6% (or 157 points) at 9,849. The South Korean Kospi Composite ended flat once again.
Commodities
The Dollar Index was lower at 73.12 on a higher Euro, while the Australian Dollar last traded around record levels at 109.26. Commodities were generally higher.
For the session the Benchmark crude NYMEX for April delivery was up 0.1% (or $US0.10) to settle at $US112.76. Copper prices are sells-off from 2-year highs as Copper for April delivery was up 0.4% (or 1.7 cents) at $US4.2530. April gold was up 0.9% (or $US14.20) at $US1,534.80.
ASX Market News
AFL – The AFL is set to pocket a cool $1.25 billion from a 5-year broadcast deal with Seven Group Holdings (SVW) and pay TV broadcasters Foxtel (NWS & TLS) and Austar (AUN).
AQP – Aquarius Platinum may review the restart date of its Blue Ridge mine in South Africa, after the miner reported that higher production and prices led to a rise in March quarter net profit.
BPT – Beach Energy has downgraded its full year oil and gas production guidance due to operational issues, after heavy rain affected its March quarter output, when production in the March quarter fell 9 percent.
BTA – Biota Holdings the Relenza developer, says indicative royalties from sales of the Relenza flu drug were $1.0 million for the three months to 31 March.
CPU – Computershare has made its largest acquisition yet, agreeing to a $US550 million purchase of the shareowner services business of The Bank of New York Mellon Corporation.
GDO – Gold One International will buy Rand Uranium Ltd for $US250 million in cash to get the South African miner’s gold and uranium reserves.
GFF – Goodman Fielder slumped after the food manufacturer downgraded its full year profit guidance, its share price plunged 9 percent.
KGL – Kagara says the Chinese are likely to be a JV partner for its Admiral Bay base metals mining project in WA.
MCC – Macarthur Coal has lifted its force majeure over its mines in Queensland’s Bowen Basin where wet weather has abated and is reviewing its production guidance.
ORG – Origin Energy’s majority-owned by NZ’s Contact Energy, is aiming to raise around $NZ350million in a rights offer.
OSH – Oil Search reported a fall in operating revenue in the March quarter on lower oil and gas production, and despite a jump in the oil price.
VPG – Valad Property Group is in a trading halt on the ASX as the company says it’s talking with a third party about selling the business.
WHC – Whitehaven Coal earnings have been hit by a series of natural disasters this year with the miner forced to reduce its underlying profit guidance.
Local Corporate Reporting
Australian Worldwide Exploration (AWE) March Quarterly Report
Foster’s Group Ltd (FGL) EGM re spin-off of wine business
Macarthur Coal March Quarterly Report
Macquarie Group Ltd (MQG) Full year 2011 Results
Murchison Metals Ltd (MMX) Q3 2011 Activities Report
Oceanagold (OGC) Q1 2011 Earnings conference call
Origin Energy Ltd (ORG) Quarterly Production Report
Westfield Retail Trust (WRT) Full year 2011 AGM
West Australian Newspaper (WAN) Q3 2011 Activities Report
Foster’s Group Ltd (FGL) EGM re spin-off of wine business
Macarthur Coal March Quarterly Report
Macquarie Group Ltd (MQG) Full year 2011 Results
Murchison Metals Ltd (MMX) Q3 2011 Activities Report
Oceanagold (OGC) Q1 2011 Earnings conference call
Origin Energy Ltd (ORG) Quarterly Production Report
Westfield Retail Trust (WRT) Full year 2011 AGM
West Australian Newspaper (WAN) Q3 2011 Activities Report
Ex-dividend Date
IGF – ING Office Fund
CAB – Cabcharge Australia Ltd
WOW – Woolworths Ltd
Market Summary
ASX – to open higher
US & UK/Europe – Higher
US ADRs – Broadly Mixed!!…
BHP down -0.1% & RIO down -0.7%; AWC down -1.6%
ANZ up 1.6% & NAB up 1.7%
NEM down -0.3%, JHX down -3.4% , NWS up 0.3%
Commodities Stock Index up 0.2%
Gold Stocks Index down -0.6%
Oil Stocks Index up 0.6%
By Michael Hevern
Head of Research
For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.
ASX Company News: Gold One International To Acquire Rand Uranium
Friday, April 29th, 2011Gold One International Limited (GDO) is pleased to announce that it has made a binding offer to acquire 100% of Rand Uranium (Proprietary) Limited for a total consideration of US$ 250 million (ZAR 1,685 million1). The binding offer has been accepted by the Rand Uranium shareholders, Pamodzi Uranium (Proprietary) Limited, Pamodzi Cooke (Proprietary) Limited and Armgold/Harmony Joint Investment Company (Proprietary) Limited. Rand Uranium is a private company that was established in 2008 when Harmony Gold Mining Company Limited, among the world’s top ten gold producers, sold the Cooke 1, 2 and 3 underground operations and the surface assets of Randfontein Estates Gold Mine (excluding the Doornkop Section) to the Sellers. Rand Uranium’s assets and operations are situated in the West Rand, 30 kilometers from Johannesburg, South Africa and has a net asset value of over US$ 500 million.
Rand Uranium is a shallow gold mining operation with a profile that fits Gold One’s stated strategy of mining shallow low technical risk gold resources. Gold One’s primary focus is Rand Uranium’s gold operations which principally include the shallow (typically 600 meters – 800 meters below surface) Cooke Operations.. Gold One’s immediate focus will be on enhancing the profitability of these existing gold operations. Gold One’s aim is to achieve this primarily by increasing recovered grades and reducing operating costs. Enhanced mining efficiencies and optimised mining mix practices will contribute to an increase in mined grades, while cost reductions are envisaged through cost synergies between existing Gold One structures and the three operating Cooke shafts. In addition, Gold One will apply its mining experience, techniques and, where appropriate, technologies successfully implemented at Modder East. Although Gold One’s short term focus is on increasing the profitability and efficiencies of the existing gold business, it recognises a substantial medium term opportunity to reduce operational risk and costs through co-product mining and optimisation.
Mr Froneman comments: “The acquisition of Rand Uranium represents a rare opportunity to purchase a well established gold business that can be commercially optimised through the implementation of uranium co-product mining. In addition, the associated surface and historic gold resources present a substantial opportunity for future production growth. The Gold One team, with its significant gold, uranium and shallow mining experience, is well placed to bring the Rand Uranium assets to account”.
Gold One is a gold producer listed on the financial markets operated by ASX Limited and the JSELimited. Its flagship operation is the newly built shallow Modder East mine on the East Rand, some 30 kilometres from Johannesburg. Modder East is the first new mine to be built in the region in 28 years and distinguishes itself from most of the other gold mines in South Africa owing to its shallow nature (300 metres to 500 metres below surface).
http://www.traderdealer.com.au/fundamentals/gdo
ASX Company News: NRW Holdings Awarded $160 million Rio Tinto Project
Friday, April 29th, 2011NRW Holdings Ltd (NWH) is pleased to announce that it has been awarded the Western Turner Brockman Project Earthworks and Primary Civil Works for Rio Tinto Iron Ore (RTIO). Worth approximately $160 million, with twelve months duration, this contract represents another significant win for NRW’s civil division and will be undertaken in joint venture with Eastern Guruma Pty Ltd. The contract award comprises two distinct sections which will be undertaken simultaneously –the Brockman 4 Project Phase II (B4P2) and the Western Turner Syncline – Stage 1 Project. NRW expects to mobilise its workforce within four weeks of contract award, and the peak workforce is expected to be approximately 550 people.
NRW chief executive officer, Jules Pemberton welcomed the award – “Rio Tinto Iron Ore is one of NRW’s long term clients and in addition to other recently awarded contracts, this represents further expansion of our civil division. Having worked for RTIO on Brockman 4 previously and currently undertaking mining operations at Western Turner Syncline, we understand the Projects and look forward to performing the works in the timely and quality manner that RTIO have come to expect from NRW.” Eastern Guruma Board Member, Tania Stevens thanked RTIO for the opportunity saying “Rio Tinto understands the need for sustainable opportunities to be provided to Indigenous Australians, and I am confident both Rio Tinto and NRW would agree this contract symbolises the success of our joint venture to date. We look forward to continuing our strong partnership with NRW into the future as we continue to expand our capability.”
http://www.traderdealer.com.au/fundamentals/nwh
ASX Company News: Computershare Acquires US Shareholder Services
Friday, April 29th, 2011Computershare Limited (CPU) announced that it has agreed to acquire The Bank of New York Mellon Corporation’s Shareowner Services Business for a total value of USD 550 million in an all cash transaction. The transaction will be funded from available cash resources and new credit lines. The Business is a leading provider of Transfer Agency and Employee Equity Plan services to US publicly listed companies. It has about 950 Transfer Agent clients and about 200 Employee Equity Plan clients. The Business has operations at a range of locations, with its major processing centre and headquarters in Jersey City, New Jersey.
Stuart Crosby, CEO and President of Computershare Limited said, “This is the largest acquisition in Computershare’s history. It provides a wonderful opportunity to further demonstrate our technology and processing capabilities to a new group of clients. It also provides Computershare with additional opportunities to participate in the inevitable upturn in corporate actions and global interest rate cycles. “Our transfer agency and employee share plan services businesses provide excellent services for issuers and investors. We look forward to maintaining and building on our current service levels for existing clients, and to introducing the Business’s issuers and investors to our offering once regulatory approval has been obtained.”
Computershare (CPU) is a global market leader in transfer agency and share registration, employee equity plans, proxy solicitation and stakeholder communications. It also specialises in corporate trust services, tax voucher solutions, bankruptcy administration and a range of other diversified financial and governance services. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team.
http://www.traderdealer.com.au/fundamentals/cpu
ASX Company News: Koon Holdings Secures $16 million Precast Concrete
Thursday, April 28th, 2011Koon Holdings Limited (KNH) is pleased to announce that its subsidiaries, Econ Precast Pte. Ltd. and Contech Precast Pte. Ltd. have recently been awarded several new projects amounting to approximately S$16.3 million. The contract is a subcontract for design, supply and delivery of precast components for the public housing projects with a total value of approximately S$16.3 million secured under Econ and Contech for a duration of 15 months to 18 months. With the inclusion of these contracts, the Group currently has an outstanding precast order book of approximately S$53.2 million.
http://www.traderdealer.com.au/Fundamentals/knh
ASX Company News: Tox Free Acquires Waste Solutions In Darwin
Thursday, April 28th, 2011The board of Tox Free Solutions Ltd (TOX) is pleased to announce it has entered into an agreement to acquire Waste Solutions (NT) Pty Ltd based in Darwin, Australia. The purchase price for the Waste Solutions business is $18 million, comprising $10 million in cash and 3,832,904 fully paid ordinary shares in Tox Free.
Waste Solutions is a leading provider of total waste management services in the Northern Territory, particularly Darwin. Services include solid waste management, liquid waste treatment and industrial and hazardous waste management. Waste Solutions operate a liquid waste treatment plant and has a number of long term contracts serving the defence industry and the Territory’s largest private enterprises. Over half of Waste Solutions revenue is secured by annual or long term contracts. Tox Free is well positioned to provide total waste management and industrial services for the oil, gas and mining sector in the region through its operating divisions in Karratha, Port Hedland, Broome, Derby and now Darwin.
The value of Waste Solutions assets is approximately $4 million which are included in the sale price. Tox Free expect to improve the financial performance of the business through organic growth of the region, introduction of further services including industrial services and hazardous waste treatment and synergies with Tox Free’s Kimberley and Pilbara facilities. Tox Free is the dominant waste management provider in the North West Region providing industrial services, solid, liquid and hazardous waste management. Tox Free expects to significantly grow the services offered in the Darwin region in the medium term through its expertise in servicing the resource sector. This is a significant acquisition for Tox Free that will further position the Group as a leading national provider of industrial and waste management services.
Tox Free Solutions Ltd (TOX) is one of the largest integrated waste management, industrial service and environmental businesses in Australia. The Company offers a full range of waste management services through its national network of licensed waste treatment facilities. In addition, Tox Free are fast becoming the leaders in onsite industrial services, waste minimization, resource recovery and total waste management services.
http://www.traderdealer.com.au/fundamentals/tox
ASX Company News: Worley Parsons Awarded Fortescue Contract
Thursday, April 28th, 2011WorleyParsons (WOR) has been awarded an engineer, procure and construction management (EPCM) services contract for the expansion of Fortescue Metal Group’s (FMG) Anderson Point port facilities in Port Hedland Western Australia. The project will increase iron ore throughput from approximately 55mtpa to 155mtpa. The development includes second and third outloading and inloading circuits, three new berths, two shiploaders, two reclaimers, one stacker, two train unloaders, conveyor systems, transfer stations, sample stations, power and control systems and associated infrastructure. Completion will be staged, with the first phase scheduled for completion at the end of 2011 and the final phase targeting completion at the end of 2012. To execute this fast track, construction-driven project, teams will be established in Perth and onsite at Port Hedland. WorleyParsons’ business units in China, Thailand and Canada will also assist with the project. The estimated revenue to be received by WorleyParsons under this contract is $250million.
Chief Executive Officer of WorleyParsons, John Grill commented; “WorleyParsons has had a strong mutually beneficial relationship with FMG through all phases, including EPCM, of the Cloudbreak pit to port development. Our ‘pit to port’ business is, as a result, one of our key capabilities. We are pleased to be able to be involved with FMG’s large Anderson Point port expansion”.
http://www.traderdealer.com.au/fundamentals/wor
Stock Market Analysis: QE2 to End But U.S. Marktets Boosted By The Fed’s Remarks
Thursday, April 28th, 2011* U.S. markets closed higher overnight, boosted by comments from the Fed.
* European stock markets closed in positive territory overnight, led by the financials.
* Asian stocks ended mostly lower yesterday, with investors cautious ahead of a U.S. decision on monetary policy.
* In commodities Gold futures again hit an all-time high above $US1,500 an ounce.
The SPI Futures is trading above the key level of 4930, as the SPI Futures up 0.7% (or 33 pts) at 4,906*. The key levels for our index today are 4960 and 4880. The ASX is set to trade higher as we saw markets rise in the U.S. and European markets.
We have options expiry today, which will add to the trading activity throughout the day. The inflation data yesterday was higher than expected. The U.S. earnings reporting season continues this week. Investors still need to monitor the Aussie dollar which has again reached post-float highs above $US1.085.
See below for ASX listed companies in the news today.
U.S. Markets
U.S. stocks markets rose to fresh multi-year, highs boosted by comments from the Fed which confirmed the goal of keeping policy easing steady and interest rates accommodative. The Federal Reserve Chairman Ben Bernanke said the central bank would continue to reinvest proceeds from maturing securities and added that there was no specific time frame to begin tightening interest rates.
Stocks again pushed higher after the Fed confirmed that it will “complete” its purchases of its $600 billion program of bond buying, known as quantitative easing (QE2), on schedule at the end of June, and also signaled that it was in no rush to raise interest rates and will remain accomodative for an “extended period”.
Investors who were scared off when the Fed initially implied in its March 15 FOMC statement that the latest round of quantitative easing would end on schedule, have lived to regret their selling on March 16 which marked the absolute bottom of the market’s mini pullback. The markets have since rallied around 9% since then and look to hold into the end of the month.
The Dow closed up 0.8% (or 95 points) at 12,691, while in the broader market the S&P 500 index closed up 0.6% (or 8 points) at 1,356 and the tech-heavy Nasdaq ended up 0.8% (or 22 points) at 2,870.
All 10 company groups that make up the S&P index traded higher, with out-performers including: Consumer Staples sector was 1.2%, Industrials sectors was up 0.4%, Healthcare was up 1.1%, Materials was up 0.3%, Energy sector was flat, Technology sector was up 0.6%, while the Financials was up 0.6%.
European Markets
European stock markets closed in positive territory overnight, led by the financials. The Stoxx 600 index rose 0.3%. European stocks traded higher following the comment from the U.S. Fed Chairman. In London the FTSE 100 finished flat ahead of its long weekend and the Royal Wedding. In Germany the market continues to outperform and it up 7.1% for the year.
In London the FTSE 100 index closed flat (or -1 points) at 6,068, the German DAX was up 0.6% (or 48 points) at 7,405, while in France the CAC was up 0.6% (or 22 points) at 4,068.
Asian Markets
Asian stocks ended mostly lower yesterday, with investors cautious ahead of a U.S. decision on monetary policy.
The Australian stocks traded lower on news of higher-than-expected inflation in Australia. Data showed the 1Q consumer price index (CPI) was higher-than-expected up 1.6% from the previous quarter and 3.3% from a year earlier, due to soaring oil prices and a flood induced food price spike. The Aussie dollar rose to fresh 29-year highs, touching $1.085 against the U.S. dollar, as expectations of an interest-rate increase by Reserve Bank of Australia rose.
In Japan the Standard & Poor’s ratings agency warned on Japanese debt, but the Nikkei bucket the trend rising on the session, as the market shrugged off S&P’s lowering of its long-term rating debt to negative from stable; as the S&P ratings firm cited the risk of a downgrade if the recent earthquake causes the fiscal situation to deteriorate substantially more than expected. Sony shares shed 2% after news that hackers had stolen the names, birthdates and possibly credit-card numbers of 77 million people who play online video games through the company’s PlayStation console. The BoJ meets today.
In China the market ended lower, amid concern the next round of tightening measures may be announced ahead of the coming Labor Day long weekend. The Shanghai Composite Index ended lower at its lowest close in five weeks, while Hong Kong’s Hang Seng Index also finished down. Chinese property stocks were weaker after the government criticised some local governments for ineffective price controls, according to reports.
In China the SSE Composite down -0.5% (or -13 points) at 2,925, while in Hong Kong the Hang Seng Index was down -0.5% (or -114 points) at 23,893
and in Japan the Nikkei 225 Index was up 1.4% (or 133 points) at 9,691. The South Korean Kospi Composite ended flat while the Indian Sensex fell 0.5%.
Commodities
The Dollar Index was lower at 73.29 on a higher Euro, while the Australian Dollar last traded around record levels at 108.85. Commodities were generally lower.
For the session the Benchmark crude NYMEX for April delivery was up 1.0% (or $US1.15) to settle at $US11337. Copper prices are sells-off from 2-year highs as Copper for April delivery was down -2.0% (or -9 cents) at $US4.2520. April gold was up 0.9% (or $US13.70) at $US1,512.60.
ASX Market News
AGO – Atlas Iron Ltd reported a slight fall in iron ore production and exports in the 3Q due to the weather in what has been an otherwise buoyant period for the miner
AHE – Automotive Holdings Group the Car retailer and logistics group is in talks with several automotive groups about a possible transaction.
APK – Regional energy supplier, Australian Power and Gas Company, says underlying profit will nearly quadruuple FY12 as a result of expansion into NSW and Queensland.
AZX – Auzex Resources Ltd the Australian gold explorer, says the federal government has given the green light to a London based company’s planned takeover of its joint venture partner.
BKN – Bradken Ltd the Mining products supplier, has refinanced all its loans at lower interest payments and reduced restrictions, to provide for future growth.
BRM – Brockman Resources Ltd will make a final investment decision on its WA-based Marillana iron ore project next quarter.
CSV – QGC the Coal seam gas company, has defended its plans for the disposal of mineralised water and salt brought to the surface during mining operations.
CTX – Caltex remains committed to its local refining business, despite collapsing refiner margins and a slump in first quarter profit
EQN – The Chinese Minmetals Resources has withdrawn its offer to buy Equinox Minerals Ltd after it was gazumped by a $US7.7 billion bid by mining company Barrick Gold Corp.
LEI – Leighton Holdings Ltd’s 45 percent subsidary held Middle East division has won two new contracts in Abu Dhabi worth more than $150 million.
LYC – Lynas Corporation the rare earths developer, has postponed its extraordinary general meeting to consider a development deal with Forge Resources until mid-June.
MCC – Macarthur Coal Ltd’s March quarter production and sales volumes fell sharply after wet weather in Queensland’s Bowen Basin hampered its operations.
ORG – Origin Energy shares were up after announcing its multi-billion dollar liquefied natural gas (LNG) sales deal with state-owned China Petrochemical Corporation (Sinopec) last week.
SDL – Sundance Resources Ltd says its share placement with international institutional investors to raise $60 million has been significantly oversubscribed.
SGM – Sims Metal Management the Metal recycler expects net profit of $123 million in the first nine months of FY11, up 74 percent, following a resurgence in profitability in the company’s U.S. operations.
WHC – The Chinese Yanzhou Coal Mining is among parties seeking to take over, or buy assets from, the NSW-focused miner Whitehaven Coal Ltd.
WOR – WorleyParsons has won a $250 million contract with Fortescue Metals Group to provide engineering services to expand port facilities in WA.
WOW – The ACCC says it will not oppose Woolworths proposed takeover of The Cellarmasters Group, a direct marketer of wine.
Local Corporate Reporting
Beach Energy (BPT) Q3 2011 Activities Report
Mount Gibson Iron (MGX) Q3 2011 Activities Report
Oceanagold (OCANF) Q1 2011 Results
Whitehaven Coal (WHC) March Activities Report
Kingsgate Consolidated (KCN) March Quarterly Report
Mount Gibson Iron (MGX) Q3 2011 Activities Report
Oceanagold (OCANF) Q1 2011 Results
Whitehaven Coal (WHC) March Activities Report
Kingsgate Consolidated (KCN) March Quarterly Report
Ex-dividend Date
* None
Market Summary
ASX – to open higher
US & UK/Europe – Higher
US ADRs – Broadly Mixed!!…
BHP down -1.0% & RIO up 0.6%; AWC down -1.1%
ANZ up 0.9% & NAB up 0.7%
NEM up 1.9%, JHX down -1.4% , NWS up 0.3%
Commodities Stock Index up 0.3%
Gold Stocks Index up 1.9%
Oil Stocks Index up 0.5%
By Michael Hevern
Head of Research
For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.
Stock Market Analysis: Earnings Push U.S. Markets to Multi-Year Highs
Wednesday, April 27th, 2011* U.S. markets closed at fresh multi-year highs overnight, boosted by consumer confidence figures and strong earnings from industrial bellwethers.
* European stock markets recovered from early losses to end in positive territory overnight after the long holiday weekend, led by the financials.
* Asian stock markets fell yesterday, in line with a sharp pullback in commodities prices.
* In commodities Gold futures again hit an all-time high above $US1,500 an ounce.
The SPI Futures is trading above the key level of 4930, as the SPI Futures up 0.4% (or 21 pts) at 4,936. The key levels for our index today are 4960 and 4880. The ASX is set to trade higher as we saw markets rise in the U.S. and European markets. Protection is still cheap through options.
The local market is set to trade ahead in a shortened week, with The Australian Bureau of Statistics (ABS) will report the consumer price index for the March quarter today.
The U.S. earnings reporting season continues this week. Investors still need to monitor the Aussie dollar which has again reached post-float highs just shy of $US1.08.
See below for ASX listed companies in the news today
Economics News Today
* The Australian Bureau of Statistics (ABS) will report the consumer price index for the March quarter today.
U.S. Markets
U.S. markets closed at fresh multi-year highs overnight, boosted by consumer confidence figures and strong earnings from industrial bellwethers.
In the broader market the S&P 500 closed at a fresh high since June 2008, while the Nasdaq Composite is just 12 points off a 10-year high, while in the smaller caps, the Russell 2000 index rose to just a few points off its record close in July 2007.
Investor sentient was boosted by improving U.S. consumer sentiment, with the Conference Board’s index of consumer confidence registering its second-highest reading since the downturn in 2008, while a decline in U.S. home prices in February was also largely in line with expectations.
Industrial stocks led the way after strong earnings numbers from 3M Co., Cummins Inc. and Ford Motor Co. Caterpillar Inc. and GE. Ford gained 0.8% after the auto maker reported its largest 1Q profit in 13 years, while Cummins, the maker of truck engines, jumped 7.6% after 1Q profit more than doubled amid strength in key international markets.
The US dollar traded closer to two and a half year lows due to growing expectations that the Federal Reserve will give no indication of when it might end its loose monetary policies. The U.S. Federal Reserve convenes for its monetary policy decision on Wednesday.
The Dow closed up 0.9% (or 116 points) at 12,595, while in the broader market the S&P 500 index closed up 0.9% (or 12 points) at 1,347 and the tech-heavy Nasdaq ended up 0.8% (or 22 points) at 2,847.
All 10 company groups that make up the S&P index traded higher, with out-performers including: Consumer Staples sector was 1.8%, Industrials sectors was up 1.9%, Healthcare was up 1.2%, Materials was up 1.1%, Energy sector was up 1.0%, Technology sector was up 0.8%, while the Financials was up 0.6%.
European Markets
European stock markets recovered from early losses to end in positive territory overnight after the long holiday weekend, led by the financials. The Stoxx 600 index rose 0.3%.
Miners traded around 1% lower after precious metals prices pulled back from recent highs and amid worries about further tightening in China’s monetary policy. Financial stocks rose after UBS AG jumped 3.9% after it reported 1Q net income fell 18%, but the inflow of cash from wealthy clients rebounded to the highest levels since 2007, while Aegon rose 3.3% after the financial services group said it will sell its Transamerica Reinsurance unit to Scor SE.
In London the FTSE 100 index rose to remain above 6,000, and will be closed on Friday for the Royal Wedding. Miners traded lower. In Germany the DAX 30 index also rose.
In London the FTSE 100 index closed up 0.9% (or 51 points) at 6,069, the German DAX was up 0.8% (or 61 points) at 7,356, while in France the CAC was up 0.6% (or 23 points) at 4,063.
Asian Markets
Asian stock markets fell yesterday, in line with a sharp pullback in commodities prices. The mood is set to be positive today following the US trading session. Japanese shares were dragged down as weak earnings reports from corporations such as Nintendo weighed.
In China and Hong Kong the markets were hurt by a decline in resource shares and concerns that China’s policy tightening is set to continue. Resource sector stocks fell as gold and silver, crude oil and base metals pulled back on caution ahead of the US Fed FOMC decision, but gold miners continue to shine.
In China the SSE Composite down -0.9% (or -26 points) at 2,939, while in Hong Kong the Hang Seng Index was down -0.5% (or 131 points) at 24,007
and in Japan the Nikkei 225 Index was down -1.2% (or -113 points) at 9,559.
Commodities
The Dollar Index was lower at 73.75 on a higher Euro, while the Australian Dollar last traded around record levels at 107.85. Commodities were generally lower.
For the session the Benchmark crude NYMEX for April delivery was up 0.7% (or $US0.80) to settle at $US112.21. Copper prices are sells-off from 2-year highs as Copper for April delivery was down -0.3% (or -1.15 cents) at $US4.3185. April gold was up 0.3% (or $US3.00) at $US1,503.00.
ASX Market News
AGO – Atlas Iron Ltd reported a slight fall in iron ore production and exports in the 3Q due to the weather in what has been an otherwise buoyant period for the miner
AZX – Auzex Resources Ltd the Australian gold explorer, says the federal government has given the green light to a London based company’s planned takeover of its joint venture partner.
BRM – Brockman Resources Ltd will make a final investment decision on its WA-based Marillana iron ore project next quarter.
CSV – QGC the Coal seam gas company, has defended its plans for the disposal of mineralised water and salt brought to the surface during mining operations.
CTX – Caltex remains committed to its local refining business, despite collapsing refiner margins and a slump in first quarter profit
EQN – Equinox Minerals Ltd has postponed a meeting of shareholders to vote on its takeover offer for a Canadian base metals miner following a Chinese group’s informal bid to acquire Equinox.
HVN – Harvey Norman Holdings Ltd has been hit by continued subdued consumer spending and the stronger Australian dollar.
MAQ – Macquarie Atlas Roads says toll revenue in the March quarter rose 7 percent across its portfolio as the toll road operator increased charges.
NAB – Macquarie Group Ltd is reviewing whether it will continue its contract with National Australia Bank Ltd for the settlement of its transactions, after thousands of customers were hit by NAB’s IT shutdown.
ORG – Origin Energy Ltd and ConocoPhillips have sealed the nation’s biggest single liquefied natural gas sale, in a $90 billion deal with the state-owned China Petrochemical Corporation (Sinopec).
WHC – The Chinese Yanzhou Coal Mining is among parties seeking to take over, or buy assets from, the NSW-focused miner Whitehaven Coal Ltd.
WOW – The ACCC says it will not oppose Woolworths proposed takeover of The Cellarmasters Group, a direct marketer of wine.
Market Summary
ASX – to open higher
US & UK/Europe – Higher
US ADRs – Broadly Higher!!…
BHP up 0.5% & RIO up 0.2%; AWC up 1.8%
ANZ up 0.8% & NAB up 0.9%
NEM up 0.1%, JHX up 1.7% , NWS up 1.0%
Commodities Stock Index up 0.6%
Gold Stocks Index down -1.1%
Oil Stocks Index up 1.3%�
By Michael Hevern
Head of Research
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