Posts Tagged ‘BHP’

    • ASX Company News: Asciano Secures Coal Haulage Contract In Queensland

    Thursday, June 16th, 2011

    Asciano (AIO) announced that it has entered into a long term, take or pay contract with BHP Mitsui Coal Pty Ltd for the annual movement of up to 4.2 million tonnes of coal in Queensland commencing on 1 January 2013. This new contract will see Asciano haul up to 4.2 million tonnes per annum. The coal will be hauled via the northern missing link (GAPE Project) which will connect the Newlands and Goonyella coal systems when the project is completed in early 2012.

    Asciano Managing Director and Chief Executive Officer, John Mullen said, “We are extremely pleased to welcome BHP Mitsui Coal as a valued customer of our Pacific National coal haulage business in Queensland. Asciano is offering an innovative and flexible rail haulage approach A key objective was to maximise the opportunity for tonnage through the newly expanded port of Abbot Point. The result is an innovative operational solution and contract that drives the efficient behaviour of both rail and coal operator.

    www.asciano.com

    http://www.traderdealer.com.au/fundamentals/aio

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    Stock Market Analysis: Caution Ahead of US Employment Report

    Friday, June 3rd, 2011

    * U.S. stock markets dropped for a second straight session overnight, after another round of soft economic data.
    * Asian share markets sold-off sharply yesterday, as the U.S. market had suffered heavy losses.  Concerns of a faltering global economic recovery raised fears about the future demand for Asian exports.
    * Commodities prices traded generally lower.

    The SPI Futures is trading below the key level of 4800, ending flat at 4,605.  The key levels for our index today are 4630 and 4550.  Australian shares will likely trade flat today after mixed leads from key markets in the U.S. and Europe.

    Yesterday investors were pessimistic after the release of data showing GDP fell by -1.2% last quarter, as the economy was hit by a series of natural disasters over last summer, and giving the worst quarterly performance since 1974.  This triggered a sharp sell-off where more than $33 billion was wiped from the value of the Australian share market, which fell in line with other global markets due to renewed concerns about a global economic slowdown. 

    We still have headwinds the mining tax and potential carbon tax. Expect investors to exhibit caution today, ahead of the U.S. Non-Farm Payrolls Report due out tonight.

    See below for ASX listed companies in the news today.

    U.S. Markets

    U.S. stock markets dropped for a second straight session overnight, after another round of soft economic data worried investors, and there also was caution ahead of tonight’s Non-Farm jobs report.  The tech-heavy Nasdaq managed modest gains though. 

    Moody’s Raings Agency dampened the mood further after warning that the United States faces a credit review and potentially crippling downgrade if the $US14.3 trillion national debt limit is not raised soon.  Moody’s also warned that the credit ratings at Bank of America, Citigroup and Wells Fargo could be downgraded.

    Goldman Sachs shares were under pressure after reports it had received a subpoena from the Manhattan District Attorney’s office as part of a probe of the firm’s activities leading up to the GFC. 

    U.S. crude oil inventories unexpectedly rose last week, showing softer demand and pushing prices below $US100 a barrel.  Gold prices held above $US1500, but copper prices fell again. 

    In economic news factory orders fell in April due in part to weaker sales of big-ticket items such as motor vehicles, machinery and computers.

    The Dow Jones closed down -0.3% (or -42 points) at 12,248, the S&P 500 index closed down -0.1% (or -2 points) at 1,313, the Nasdaq ended up 0.2% (or 4 points) at 2,773, and the smaller cap Russell 2000 was down -0.1%.

    The ten company groups that make up the S&P index traded mixed:  Materials were up 0.2%, Industrials were up 0.5%, the Technology sector was up 0.1%, the Financials sector was up 0.1%, while Consumer Staples were down -0.2% and the Energy sector was down -0.1%.

    European Markets

    European stock markets suffered heavy losses overnight, mirroring their U.S. counterparts.  Investors savaged stocks as they reacted to the latest downgrade on Greek sovereign debt, and to global data showing the economic recovery is faltering.  The Stoxx Europe 600 index closed down 1.3%. 

    Energy stocks fell as crude oil prices traded below $US100 a barrel.  Moody’s Investors Service cut the Greek sovereign rating from B1 to Caa1, assigning a negative outlook.  Greece is reported to be going to present a new austerity plan tonight as talks between it and the European Union, International Monetary Fund and European Central Bank officials wind down.

    In London the FTSE 100 index was down -1.4% (or -81 points) at 5,847, as losses were driven by resources, retail and financials stocks. The German DAX was down -2.0% (or -143 points) at 7,074, with losses widespread across all sectors. In France the CAC was down -1.9% (or -75 points) at 3,890. 

    Asian Markets

    Asian share markets sold-off sharply yesterday, following the heavy losses in the U.S. markets.  Concerns of a faltering economic recovery raised fears about the future demand for Asian exports. 

    Mid-week PMI manufacturing data across Asia pointed to easing of activity across the region.  Stocks fell across the board after U.S. ADP jobs data for May fell far short of market expectations, sparking concern about the U.S. Non-Farm Employment Report due out tonight. In Japan stocks sold-off in the face of political uncertainty as Prime Minister Naoto Kan faced a vote of no-confidence, further testing investor nerves about their struggling economy. 

    The Shanghai Composite index and the Hang Seng Index gave up over 1.4%.  The sell-off was broad with miners, banks, and technology stocks all lower in the session.

    The SSE Composite was down -1.4% at 2,705, the Hang Seng Index was down -1.6% (or -372 points) at 23,254, and in Japan the Nikkei 225 Index was down -1.7% (or -164 points) at 9,555. The South Korean KOSPI closed down -0.4%, while the Indian market was down -0.6%. 

    Commodities

    The Dollar Index was lower at 74.23 on a higher Euro, while the Australian Dollar last traded lower at 105.85. Commodities prices were generally lower.

    For the session the benchmark crude NYMEX for June delivery was up 0.5% (or $US0.46) to settle at $98.46. Copper for June delivery was down -0.6% (or -2.3 cents) at $US4.0950.  June gold was down -0.7% (or -$US10.40) at $US1,534.20.

    ASX News Today

    ANZ – ANZ says the Australian mortgage arrears is a concern, Fitch ratings agency last week said arrears on mortgage repayments spiked to a record high 1.8 percent in the first three months of 2011, as more Australians struggled with rising costs.

    AUT – Aurora Oil & Gas Ltd notes the Marathon Oil Corp’s $3.5 billion purchase of Hilcorp Energy and KKR’s Eagle Ford acreage.

    CCV – Cash Converters International says there is no imminent threat to its business from a potential cap on interest rates charged by payday lenders.

    CDD – Cardno the consultant engineer says it expects to report a record annual profit in FY11, up by as much as 57 percent on the prior year.

    EQN – Equinox Minerals says the acquisition of Australia’s Equinox Minerals by Canada’s Barrick Gold has cleared a hurdle with authorities in Zambia, where its major copper projects are located.

    FMG – Fortescue Metals Group’s Andrew Forrest will retire as chief executive and become chairman.  Fortescue also announced that it plans to ramp up annual iron ore output to 155 million metric tons by mid-2013, a year earlier than previously estimated.

    NAB – National Australia Bank plunged over five per cent in opening trade after the stock paid a dividend, as investors worried over the bank’s European exposures.

    ORD – Ord River Resources has signed a memorandum of understanding (MoU) with its Chinese construction partner to develop a $US600 million alumina refinery in Laos.

    QAN – Qantas Airways carried 7 percent more passengers in April compared with the prior corresponding month.

    RIO – Rio Tinto says a venture with Chinalco, China’s largest alumina producer, will give it unprecedented access to explore resource-hungry China for copper and other minerals.

    TAP – BHP Billiton has exercised its right to buy a gas exploration permit offshore Western Australia from Tap Oil, ahead of a Japanese consortium.

    WBC – Westpac plans to open two more branches in China after receiving final regulatory approval to open a branch in Beijing.

    WES – Wesfarmers says heavy rainfall during the April quarter at its Curragh metallurgical coal mine in Queensland has delayed recovery efforts, forcing the company to downgrade sales guidance.

    Local Corporate Reporting

    Oceanagold (OGC) Full year 2010 AGM & Special Meeting 

    Ex-dividend Date

    None

    Market Summary

    ASX – to open flat
    US & UK/Europe – EU closed sharply lower
    US ADRs – Broadly Lower

    BHP down -0.2% & RIO down -0.3%; AWC down -1.2%
    ANZ down -0.2% & NAB down -1.6%
    NEM  down -0.9%, JHX down -1.1% , NWS down -0.4%

    Commodities Stock Index down -0.2%
    Gold Stocks Index up 0.1%
    Oil Stocks Index down -0.3% 

    By Michael Hevern
    Head of Research

    For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

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    Stock Market Analysis: Global Markets Down For A Fourth Week

    Monday, May 30th, 2011

    * U.S. stock markets declined for a fourth straight week, giving the U.S the first month of consecutive weekly losses since the GFC in June 2008.
    * European stock markets closed lower for a fourth week as sovereign debt concerns escalated.  Resources stocks offered support as commodities prices rose.
    * Asian markets have fallen for a fourth week, due to concerns over a faltering global recovery. Many markets have had their biggest string of consecutive losses in two years.
    * Commodities prices continued to recover.  

    The SPI Futures is trading below the key level of 4800, rising 0.1% (or 5 pts) to 4,695. The key levels for our index this week are 4780 and 4600.

    Australian shares are expected to trade flat today as markets fell for a fourth week across the world, with China leading the declines.  Banks were the worst hit in our ASX Top 20 stocks last week.  The mining tax will be in focus again this week after the WA Government sharply increased the state iron ore royalities from the miners by $2 billion.  The spectre of the carbon tax is also weighing on sentiment.

    The Australian GDP figures are due out this week and comments from the Treasurer are not very reassuring, as he said the natural disasters in Australia probably cut more than 1 percent from economic growth in the first quarter.  He went on to say “… 85 percent of Queensland’s 57 coal mines suffered production losses in the early part of the year”.  The OECD has forecast the Australian economy will advance 2.9 percent this year and accelerate to 4.5 percent by 2012.

    See below for ASX listed companies in the news today.

    Economic News Today

    * Q1 Business Indicators Company Profits  &  Inventories.

    US Markets

    U.S. stock markets declined for a fourth straight week, giving the U.S the first month of consecutive weekly losses since the GFC in June 2008.  To date the pullback has been measured with stocks down only 2.4% during the four-week sell-off. 

    The U.S. markets appear to be following the same script as this time last year. Despite the Japanese earthquake disaster thowing a spanner in the works, the other issues that are impacting the markets are similar to that of this time last year.  The jury is out as to whether the Fed will still hold to its commitment to turn off the QE2 tap in June. 

    Economic data continues to disappoint with the latest data showing weekly jobless claims exceeding 400,000 for a seventh straight week.  Consumer spending growth has been revised down from 2.7% to 2.2%, while economic growth for the first quarter remained at 1.8%. 

    A recent survey from the American Association of Individual Investors showed the bullish numbers shrinking to less than 26%, the smallest since last August, as investors have withdawn nearly $US5.8 billion from U.S. stock mutual funds so far in May, while redeploying funds into more defensive positions with more than $US16.5 billion invested in bond funds even as yields are miserable.  This could be setting up for another bullish run in the next quarter, as the VIX volatility index remains at 3-year lows showing investors are not actively buying put options to protect their positions, ie. the fear gauge is currently running low. 

    Commodity prices have supported the markets recently with crude oil prices hovering around $US100 after having slumped 12% in May, copper rebounding 5.5% over the past three weeks, and gold has bouncing above the $US1,500 level again.

    The Dow Jones closed up 0.3% (or 39 points) at 12,441, the S&P 500 index closed up 0.4% (or 5 points) at 1,331, the Nasdaq ended up 0.5% (or 14 points) at 2,797, and the smaller cap Russell 2000 was up 0.6%.  The U.S. market in on holiday tonight.

    All ten company groups that make up the S&P index traded higher: the Financials sector was higher by 0.7%, Materials were up 1.1%, Industrials were up 0.5%, Consumer Staples were up 0.3%, Technology was up 0.5%, while the Energy sector was up 0.3%.

    European Markets

    European stock markets closed lower for a fourth week as sovereign debt concerns escalate.  The Stoxx Europe 600 index ended down -0.2% for the week. The debt issues are most problematic in the PIIGS economies in particular Greece, Portugal and Spain. 

    Resource stocks were among the best performing of the 19 industry sectors in the Stoxx 600 last week, while Russia has announced it will cease its ban on wheat exports on 1 July. 

    The European Central Bank is signaling that it remains on track to raise interest rates further despite the continent’s debt crisis. 

    In London the FTSE 100 managed to finish in the green on Friday, as the miners and energy majors again provided support, making up some ground after losses of the past few weeks.  In Germany markets recovered on Friday as the sentiment for banks improved as the Fitch Ratings credit ratings agency said it does not foresee any rating action on German banks as a direct result of their exposure to Greek sovereign debt.

    The FTSE 100 index closed up 1.0% (or 58 points) at 5,939, the German DAX was up 0.7% (or 49 points) at 7,163, and the French CAC was up 0.9% (or 4 points) at 4,062.

    Asian Markets

    Asian markets have fallen for a fourth week, due to concerns over a faltering global recovery as many markets have experienced their biggest string of consecutive losses in two years.

    Resource stocks have provided support in the region on the back of the recent rising commodities prices, with crude oil holding around $US100 after Goldman Sachs and Morgan Stanley raised their 2011 and 2012 forecasts earlier in the week.  There have been pockets of investor bagain hunting for stocks that have been sold-off recently, but the broader markets continued their falls. 

    In the course of the week the Japanese Nikkei Index fell 0.9%, South Korea fell 0.5% and the Aussie S&P/ASX 200 dropped 1%.  Hong Kong finshed 0.4% lower, while the Chinese Shanghai market plunged 5.8% for the week, its fifth loss in six weeks and is 11.4% off its mid-April high. 

    Credit Suisse the investment house noted that the Shanghai Composite Index is now well below its 200-day average and is trading at 15.3 times profits, below the average 16.9 multiple seen over its last three troughs in 1996, 2005 and 2008.

    However Chinese data continues to point to slow growth in the world’s second largest economy, as data showed a preliminary HSBC Purchasing Managers Index had slipped to a 10-month low, pointing to a slowdown in manufacturing.

    In China the SSE Composite was down -1.0% (or -27 points) at 2,710, while in Hong Kong the Hang Seng Index was closed up 0.9% (or 217 points) at 23,118 and in Japan the Nikkei 225 Index was down -0.4% (or  -40 points) at 9,522.  The South Korean KOSPI was up 0.4%, while Indian market was up 1.2%.  

    Commodities

    The Dollar Index was lower at 74.95 on a higher Euro, while the Australian Dollar last traded lower at 106.96. Commodities prices rose.

    For the session the benchmark crude NYMEX for June delivery was up 0.4% to settle at $100.75. Copper prices are higher but still below 2-year highs as Copper for June delivery was up 1.7% (or 7.3 cents) at $US4.1760.  June gold was up 0.9% (or $US13.50) at $US1,536.50.

    ASX Market News

    AJL – AJ Lucas Group, the resources services provider, has downgraded its full year earnings guidance, and flagged asset sales to reduce its debilitating debt.

    ALL – Aristocrat Leisure Ltd our largest poker machine maker is business as usual after governments from around the country failed to reach a consensus on reforms to limit problem gambling.

    AUN – Austar United Communications the Pay-TV provider has had a takeover bid from Foxtel, valuing the company at $1.93 billion.

    CIL – Centrebet International the internet gaming and wagering company has agreed on a scheme by which the London-based online gaming company Sportingbet Plc will acquire the company for $183 million.

    CTX – Caltex says refiner margins continued to contract in April, as the price of crude oil rose on tight supply after the Japanese earthquake and Libyan conflict.

    CXY – Cougar Energy will open an office in Beijing to help support the growth its underground coal gasification (UCG) projects in China and Asia.

    FPA – Fisher & Paykel returned to profit in the year to March, but its revenue for the latest 12 months fell 3.7 per cent from the year before to $NZ1.12 billion ($A850.84 million).

    GNC – Graincorp, the grain handler and marketer, has posted half year net profit up 66 percent, and has lifted guidance for earnings and profit for the full year.

    ILU – Iluka Resources Ltd, the mineral sands producer, plans to boost production of zircon and high grade titanium ore after achieving price increases in the first half of calendar 2011.

    LLC – Lend Lease Group the construction company and property developer, is on track to deliver its target full year return on equity (ROE) of 15 percent.

    NHC – New Hope Corp has updated its JORC compliant reserves and resources statement, increasing coal resources by 56% to 1,539Mt while coal reserves increased by 12.4% to 544Mt.

    ORG – The Origin majority-owned Contact Energy has welcomed the granting of resource consents for 168 wind turbines and transmission lines to its proposed Hauauru ma raki wind farm in Waikato.

    OZL – OZ Minerals, the single-mine gold and copper producer, will trade on a post consolidation basis from Monday 30 May until 10 June. The number of shares on issue will reduce by a factor of 10 to 324 million.

    TWR – Tower, the insurer and fund manager, says 1H11 net profit fell 54 percent to $A9.7 million, with the result including the impact of earthquakes in Christchurch and a loss due to changes in the global investment market.

    VBA – Virgin Australia has to wait until June for final approval of its proposed partnership with Delta Air Lines on trans-Pacific routes after the US government extended the comment period by a week. While locally Virgin Blue Holdings has suffered a fall in domestic and international passenger numbers in April.

    Local Corporate Reporting

    None

    Ex-dividend Date

    None

    Market Summary

    ASX – to open higher
    US & UK/Europe – higher but down again for the week

    US ADRs – Generally Higher

    BHP up 0.8% & RIO  up 1.3%; AWC up 0.1%
    ANZ up 0.1% & NAB up 1.4%
    NEM  up 1.0%, JHX up 2.4% , NWS up 1.3%

    Commodities Stock Index up 0.3%
    Gold Stocks Index up 1.9%
    Oil Stocks Index up 0.3% 

    By Michael Hevern
    Head of Research

    For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

    Written on 30 May, 7:15am

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    Stock Market Analysis: Higher Commodities Prices Offer Markets Support

    Wednesday, May 25th, 2011

    * U.S. stock markets closed lower overnight for third straight session, despite buying in the energy sector.
    * European stock markets rebounded modestly overnight.  Resources stocks offered support as commodities prices rose.
    * Asian stock markets ended modestly higher yesterday, as investors went bargain hunting after a steep falls in global equities this month.
    * Commodities prices recovered.  

    The SPI Futures is trading below the key level of 4800, closing up 0.2% (or 10 pts) at 4,640. The key levels for our index today are 4680 and 4600.

    Australian shares are expected to start to recover today as investors look for “bargains” as we run up into the end of the month.  Stocks have been battered this month with the index down 4.6% for May and down 7.4% since the April peak.

    Expect the miners, energy and mining services companies to see some buying and even the banks are starting to look attractive on a yield basis.  However the mining tax is again in focus again this week after the Western Australian government sharply increased the state iron ore royalities from the miners by $2 billion, and the spectre of the carbon tax is also weighing on sentiment.

    See below for ASX listed companies in the news today.

    Economic News Today

    * Westpac-Melbourne Institute Indexes of Economic Activity Leading Index for April
    * Q1 Construction Work Done

    US Markets

    US stock markets closed lower overnight for the third straight session, despite early buying which was led by the miners and the energy sectors as commodities recovered on a weaker US dollar. 

    US markets have lost 2% in the past few days, with the Dow Jones down six of the past eight sessions, and the S&P 500 had its largest 1-day decline in two months yesterday.  These falls are setting up for a possible rally into the end of the month, though we would expect further weakness next month as the FED turns off the QE2 tap. 

    The Dow Jones finished lower for its lowest close since mid-April. The S&P 500 stock index falls were led by industrial and consumer discretionary stocks, however the energy sector offered support as a Goldman Sachs report boosted crude-oil price forecasts for the rest of the year. 

    In economic news the Federal Reserve Bank of Richmond said manufacturing activity in the central Atlantic region is contracting this month after seven months of expansion, while the service sector also slowed but remained in expansion. This data follows that of the Philly Fed and New York Fed from last week, both of which showed slowing manufacturing growth. New home sales increased 7.3% in April from a month earlier, more than economists expected, however sales still are down 23% from a year ago.

    Commodities recovered overnight helped by a US dollar.  The US dollar is running into a key resistance and any pullback will help commodities prices further.

    The Dow Jones closed down -0.2% (or -25 points) at 12,356, the S&P 500 index closed down -0.1% (or -1 points) at 1,317, the Nasdaq ended down -0.5% (or -44 points) at 2,746, and the smaller cap Russell 2000 was down -0.5%.

    The ten company groups that make up the S&P index had mixed results: the energy sector was up 1.4%, Materials were up 0.5%, the Financials sector was down -0.1%, Industrials were down -0.5%, Consumer Staples were down -0.5%, the Technology sector was down -0.3%.

    European Markets

    European stock markets rebounded modestly overnight.  Resources stocks offered support as commodities prices rose, while airlines across Europe were hit by news of a volcanic eruption in Iceland.  The Stoxx Europe 600 index rose 0.2%, recovering a from a 1.7% slump in the previous session. 

    Investor sentiment was buoyed as Greece, having accepted an international bailout, confirmed it had reached a preliminary agreement with the International Monetary Fund (IMF) and European Union (EU) for a new economic adjustment plan. However the Greece’s main opposition party has rejected the austerity measures. 

    In the UK the FTSE 100 rose, as the market sets up for some support into month’s end. Glencore International, the commodities trader, gained 2.1% ahead of its expected entry into the FTSE 100. 

    In Germany the DAX gained led by industrial and technology sectors, as a key German business confidence survey was stronger than expected, the Ifo Institute’s index of German business confidence was unchanged in May at a reading of 114.2 (analysts were expecting a fall to 113.7). 

    The FTSE 100 index closed up 0.4% (or 23 points) at 5,858, the German DAX was up 0.4% (or 29 points) at 7,150, while in France the CAC was up 0.2% (or 10 points) at 3,917.

    Asian Markets

    Asian stock markets ended modestly higher yesterday, as investors went “bargain” hunting after a steep falls in global equities this month. 

    In Japan the Nikkei Index finished higher, as manufacturing companies such as Komatsu climbed and Hitachi Construction Machinery added over 1.1%. Sony Corp. rose 2.7%, despite forecasting a huge loss for the fiscal year ending 31 March and warning that it expected a loss in the current financial year. 

    In China the Shanghai Composite index fell but finished off its lows, as Chinese stocks extended the previous session’s sharp decline on concerns about an economic slowdown in China.

    The SSE Composite was down -0.3% (or -7 points) at 2,767, while in Hong Kong the Hang Seng Index closed moderately higher, up 0.1% (or -20 points) at 22,730 and in Japan the Nikkei 225 Index was up 0.2% (or 16 points) at 9,477.  The South Korean KOSPI was up 0.2%, while the Indian market was up 0.1%.  

    Commodities

    The Dollar Index was lower at 75.92 on a lower Euro, while the Australian Dollar last traded flat at 104.75. Commodities prices were higher.

    For the session the benchmark crude NYMEX for June delivery was up 1.6% (or $US1.53) to settle at $99.22. Copper for June delivery was 0.6% (or 7.9 cents) at $US4.1085, and June gold was up 0.5% (or $US7.90) at $US1,524.50.

    ASX Market News

    BXB – Brambles the pallets supplier and documents manager is still targeting an annual operating profit from $US740 and $US780 million, after sales in the nine months to the end of March lifted 5%.

    CPB – Campbell Brothers, the global testing services group, has reported a 75.7% rise in full year net profit and says it expects further growth in its business in the current year.
    GDO  – Gold One International has signed a deal to acquire the South Africa-based Rand Uranium for $US250 ($A235.66) million.

    LLC – Lend Lease Group has agreed to sell its half interest in the King of Prussia shopping mall in the US for net proceeds of $US545 million and will use the money to repay debt in the UK.

    LYC – Lynas the rare earth miner expects demand from Europe and the U.S. to double, and increase by 50% in S.E. Asia within the next five years.

    MAK – Minemakers Ltd the phosphate explorer last week confirmed reports it was in talks with a state-owned Indian enterprise about jointly developing its Northern Territory project.

    PNA – PanAust the copper and gold producer is on track to commission a second mine in Laos in December 2011, with first production expected in the March quarter of 2012.
    RCR – RCR Tomlinson the engineering firm says it will acquire thermal power generator AE&E Australia, which went into administration late last year.
    RHL – Ruralco Holdings the rural supplier, has increased 1H11 profit by 31.5% and says the growth in new businesses provides a cautiously optimistic outlook for the next six months.
    RKN – Reckon, the accounting software provider, is seeing improved business conditions in 2011 as demand for its products recovers.

    RIO – Rio Tinto has seen a major investor express disappointment over increased pay packets for the miner’s senior management.

    SPL – Starpharma Holdings says a clinical trial has shown that its VivaGel product is effective in the treatment of bacterial vaginosis (BV).

    TEL – Telecom NZ says the New Zealand government has signed deals with Telecom and Christchurch City Council-owned Enable Networks to roll out an ultra fast broadband (UFB) network.

    TGA – Thorn Group says net profit increased 13 per cent for the year to 31 March, as it predicted a “substantial” increase in earnings in the current year.
    WES – Wesfarmers has downgraded its sales forecast for its Curragh mine in Queensland due to recent rainfall and a mechanical failure. 

    Local Corporate Reporting

    Iluka Resources Ltd (ILU)         Full year 2010 AGM
    Treasury Wine Estates (TWE)   Q4 2011 Results
    Westfield Group (WDC)               Full year 2010 AGM
    Programmed Maintenance Services (PRG)        Full year 2011 Results

    Ex-dividend Date

    Marbletrend Group (MBD)

    Market Summary

    ASX – to open higher
    US & UK/Europe – mixed

    US ADRs – Broadly Lower

    BHP up 1.5% & RIO  up 1.5%; AWC up 1.2%
    ANZ down -0.1% & NAB up 0.6%
    NEM  up 1.7%, JHX up 1.3% , NWS down -0.4%

    Commodities Stock Index up 1.2%
    Gold Stocks Index up 2.2%
    Oil Stocks Index up 1.4% 

    By Michael Hevern
    Head of Research
     
    For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

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    Stock Market Analysis: Markets Consolidate

    Friday, May 20th, 2011

    * US stock market indices staged their second straight gain overnight, as commmodities prices consolidated.
    * European stock markets ended higher, helped by continuing gains in the U.S. markets.
    * Asian stock markets ended mixed yesterday.
    * In commodities prices consolidated.  

    The SPI Futures is trading below the key level of 4800, closing down -0.2% (or -11 pts) at 4,749. The key levels for our index today are 4760 and 4680. The ASX is set to consolidate as we have positive leads for markets in the U.S. and European markets. 

    Australian shares higher traded higher yesterday, led by resources stocks. BHP Billiton rose 1.2%, Rio Tinto rose 1.3%, Newcrest rose 2.3%, Fortescue Metals rose 1.6% and OZ Minerals rose 5.2%. Expect these stocks to consolidate today, while the banking sector appears to have shrugged off the Moody’s downgrade and commodities prices consolidated overnight.  The mining tax will be in focus again today after the WA Government sharply increased the state iron ore royalties from the miners by $2 billion.

    See below for ASX listed companies in the news today.

    Economics News Today

    * AOFM auctions $750 million of Oct 2014 bonds.

    U.S. Markets

    US stock market indices staged their second straight gain overnight, as corporate news outweighed disappointing economic news. 

    The Dow Jones finished higher led by Amex and McDonalds up over 1.2%, while the S&P 500 index rose, led by the industrial and telecommunications sectors, and the tech-heavy Nasdaq Composite rose for a third straight session. 

    The scale back of the Glencore International $US11 billion initial public offering is seen as a litmus test for the commodities super cycle going forward, and has helped the mood for commodities.

    LinkedIn, the professional networking site, had a successful IPO closing up 109% at $94.25, making it the best performing initial public offering for the year.  The success of this IPO has raised hopes that more IPOs may come to the market to help drive more capital off the sidelines. 

    Economic news was mixed: the weekly jobs report showed better-than-expected unemployment claims figures, however the Federal Reserve Bank of Philadelphia’s reading on mid-Atlantic manufacturing activity plunged to its slowest pace in months, and housing sales of previously occupied homes in the U.S. fell slightly in April.

    The Dow Jones closed up 0.4% (or 45 points) at 12,605, the S&P 500 index closed up 0.2% (or 3 points) at 1,343, the Nasdaq ended up 0.3% (or 8 points) at 2,823, and the smaller cap Russell 2000 was up 0.2%.

    Company groups that make up the S&P index generally traded higher: Industrials were up 0.6%, Consumer Staples were up 0.3%, the Technology sector was up 0.2%, while Materials and Energy sector were flat.

    European Markets

    European stock markets ended higher overnight, helped by continuing gains in the U.S. markets. The Stoxx Europe 600 index rose 0.7%. 

    The IMF is looking for a new head following the resignation of Mr Strauss-Khan, currently being held in the U.S. on sexual assault charges.  Germany is advocating that the new leader should be European because of the issues that the region faces near-term. 

    In London the FTSE 100 index rose 0.5% led by the miners and financials as investors look to add risk to their portfolios. Investec jumped 5.4% after the financial services group reported a 22% jump in fiscal year net profit.  BP rose 1.6% after Bank of America upgraded it to a “Buy”, however other energy stocks consolidated in light of crude-oil futures dropping below $US100 a barrel, after a string of disappointing U.S. data.

    Bank stocks gained across the European region, with Societe Generale up 0.6% and Barclays PLC stronger by 2.5%. In Germany, the DAX 30 index advanced as investors went looking for opportunities from the recent pullback.

    The FTSE 100 index up 0.5% (or 32 points) at 5,956, the German DAX was up 0.7% (or 55 points) at 7,358,  while in France the CAC was up 1.3% (or 49 points) at 4,027.

    Asian Markets

    Asian share markets ended mixed yesterday, with Japan in a “technical recession”.  

    The Japanese market sold-off after data showed their economy contracted sharply in the first quarter of 2011, as the March earthquake and tsunami resulted in gross domestic product (GDP) contracting -0.9% in the first quarter of 2011, and is now tracking at a -3.7% annualised decline. The fall marked the second consecutive quarter of contraction, taking Japan into what economists consider a “technical recession”.  Japanese utilities declined after the Prime Minister raised the possibility of splitting up electricity generation and distribution businesses, this sent power generators plummeting and Tokyo Electric Power Co. (Tepco) sold down -8.0%. 

    In China the SSE Composite was down -0.5% (or -13 points) at 2,859, while in Hong Kong the Hang Seng Index was closed up 0.7% (or 154 points) at 23,164 led by miners. In Japan the Nikkei 225 Index was down -0.4% (or -41 points) at 9,620, the South Korean KOSPI was down -1.9%, and the Indian market was up 0.3%.    

    Commodities

    The Dollar Index was higher at 75.12 on a lower Euro, while the Australian Dollar last traded lower at 106.65. Commodities prices consolidated.

    For the session the benchmark crude NYMEX for June delivery was down -1.6% (or -$US1.67) to settle at $98.40. Copper prices are higher still below 2-year highs as Copper for June delivery was down -1.3% (or -5.3 cents) at $US4.0480.  June gold was down -0.2% (or -$US3.40) at $US1,491.50.

    ASX Market News

    AUN – Austar the regional pay-tv provider has confirmed it is in discussions with Foxtel that may result in a takeover offer.

    BKN – Bradken the consumable products supplier to the resources and freight rail industries, has acquired Wear Protect Systems Pty Ltd (WPS) and two of its related companies for an upfront payment of $13.3 million and an earn-out over two years.

    BXB – Brambles, the pallets supplier and documents manager, is still targeting an annual operating profit between $US740 and $US780 million, after sales in the 9 months to the end of March lifted 5 percent.

    CDD – Cardno says the 1H11 financial year has been robust, but 2H11 profit will be lower than in the first half.

    JHX – James Hardie Industries has posted a net loss of $US347 million for the full year to 31 March 2011, and expects the key US housing market to remain flat in the current year.

    LEI – Leighton Holdings says its Asian subsidiary has won two major contracts worth $547 million to construct the South Island Line (East) rail project in Hong Kong.

    MAK – Minemakers Ltd shares jumped after the phosphate explorer confirmed reports it was in talks with a state-owned Indian enterprise about jointly developing its Northern Territory project.

    MAP – MAP Group, the airports owner, expects to pay distributions of 21 cents per stapled security in calendar 2011.

    QBE – QBE Insurance Group will raise $493 million through the placement of subordinated debt notes with overseas institutional investors.

    RCG – RCG Corporation the footwear business owner expects full year net profit at the upper end of earlier guidance.

    RIO – Rio Tinto has priced $US2 billion of fixed rate bonds, comprising $US700 million of 5-year, $US1 billion of 10-year and $US300 billion of 30-year SEC-registered securities.

    TSE – Transfield Services has reaffirmed annual profit guidance, as it sells a business unit in the United States for $US255 million.

     

    Local Corporate Reporting

    PanAust Ltd (PNA)              Full year 2010 AGM
    InvoCare Ltd (IVC)              Full year 2010 AGM
    Spark Infrastructure (SKI)    Full year 2011 AGM
    Spotless Group Ltd (SPT)    Trading statement 

    Ex-dividend Date

    None

    Market Summary

    ASX – to open flat

    US & UK/Europe – higher

    US ADRs – Generally Higher

    BHP down -0.9% & RIO  down -1.2%; AWC up 0.4%
    ANZ up 1.8% & NAB up 1.9%
    NEM  up 1.5%, JHX down -0.2% , NWS up 1.8%

    Commodities Stock Index down -0.3%
    Gold Stocks Index up 0.6%
    Oil Stocks Index up 0.2% 

    By Michael Hevern
    Head of Research

    For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

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    Stock Market Analysis: Energy and Materials Sectors Lead The Markets

    Thursday, May 19th, 2011

    * U.S. stock markets have broken a 3-day losing streak overnight, as commmodities prices recovered.
    * European stock markets ended with modest gains as rising commodity prices spurred on the resources sector.
    * Asian stock markets ended mostly higher yesterday.
    * Commodities were sharply higher.  

    The SPI Futures is trading below the key level of 4800, closing up 0.5% (or 24 pts) at 4,721. The key levels for our index today are 4760 and 4680. The ASX is set to trade higher as we have positive leads for markets in the U.S. and Europe. 

    Yesterday the Australian market gains were led by the resources sector, as the financial sector was weaker after a Moody’s downgrade of the big four banks.  Expect the materials and energy sectors to lead the way again today as commodities prices rose sharply overnight.

    See below for ASX listed companies in the news today.

    Economics News Today

    * Consumer Inflationary Expectations Survey for May
    * Foreign Exchange Transactions and Holdings of Official Reserve Assets
    * WA Government State Budget presentation

    U.S. Markets

    U.S. stock markets have broken a 3-day losing streak overnight, as commodities prices recovered.  Sentiment was helped by the release of the Federal Reserve’s FOMC minutes which showed the central bank officials are in no hurry to tighten monetary policy, as they tread a fine line after the completion of QE2 in June.  The Fed commented that the economy is improving, which could lead to higher demand for raw materials like steel and fertiliser. 

    The Dow Jones had its biggest gain since April 27th, led by bellwethers Caterpillar, Chevron and Exxon Mobil.  The S&P 500 stock index was led higher by the materials and energy sectors, while the tech heavy Nasdaq Composite had its biggest gain since April 20th, as a strong corporate profit report from Dell was in contrast to HP’s disappointment of yesterday.   

    Material and energy stocks were the biggest gainers as oil futures closed at $US100 a barrel for the first time in a week.  In soft commodities prices stopped their slide after floods damaged wheat, corn and soybean fields, raising the spectre of supply shortages which would lead to higher prices.

    The Dow Jones closed up 0.6% (or 81 points) at 12,480, the S&P 500 index closed up 0.8% (or 11 points) at 1,340, the Nasdaq ended up 1.1% (or 32 points) at 2,815, and the smaller cap Russell 2000 was up 1.6%.  Four stocks rose for every one that fell on the New York Stock Exchange.

    All ten company groups that make up the S&P index traded higher: Materials were up 2.2%, the Energy sector was up 2.0%, Industrials were up 1.4%, Consumer Staples were up 1.2%, the Technology sector was up 0.7%, while Financials closed up 0.4%.

    European Markets

    European stock markets ended with modest gains overnight, as rising commodity prices spurred on the resources sector and real estate shares were also strong.  The Stoxx Europe 600 index closed up 0.3%, breaking a four-session losing streak.  

    Sentiment was buoyed after a EUR78 billion bailout for Portugal was signed off, however in Greece the ASE Composite index fell 1.4% despite the European Central Bank attempting to hose down the prospects for a restructuring of Greek sovereign debt which is needed to fund the EUR60 billion gap for Greece for this year and next. 

    In London the FTSE 100 climbed as large cap mining stocks rallied and in Germany the DAX also rebounded, led by resource and energy stocks.

    The FTSE 100 index was up 1.1% (or 63 points) at 5,923, the German DAX was up 0.7% (or 47 points) at 7,303, while in France the CAC was up 0.9% (or 36 points) at 3,978.

    Asian Markets

    Asian stock markets ended mostly higher yesterday.  In Japan the Nikkei Stock Average rose, led by the banking sector, while tech stocks rose after Dell’s better-than-expected report and exporters were helped by the weaker yen.  In Hong Kong the Hang Seng Index climbed as did the Chinese Shanghai Composite, led by the materials and energy sectors.

    In China the SSE Composite was up 0.7% (or 20 points) at 2,872, while in Hong Kong the Hang Seng Index closed up 0.5% (or 110 points) at 23,011 and in Japan the Nikkei 225 Index was up 1.0% (or 95 points) at 9,662.  The South Korean KOSPI was up 1.6%, while the Indian market was down -0.3%.

    Commodities

    The Dollar Index was higher at 75.40 on a lower Euro, while the Australian Dollar last traded lower at 105.66. Commodities were sharply higher.

    The benchmark crude NYMEX for June delivery was up 3.3% (or $US3.19) to settle at $US99.80. Copper for June delivery was up 2.7% (or 1.1 cents) at $US4.0930 and June gold was up 1.1% (or $US15.80) at $US1,497.00.

    ASX Market News

    ABC – Adelaide Brighton, the cement and lime manufacturer, expects full year profit to be in line, despite a weaker 1H11 due to maintenance shutdowns and a loss of contracted cement volumes in WA.

    AUN – Austar the Regional Pay TV provider has confirmed it is in discussions with Foxtel that may result in a takeover offer.

    CAZ – WA Premier Colin Barnett says it was basically his decision to reject the Cazaly Resources proposal to export iron ore from Fremantle.

    BIG 4 – Major banks traded lower after global ratings agency Moody’s downgraded the big four banks and the Commonwealth Bank subsidiary, BankWest, by one notch to AA2 with a stable outlook, due to their sensitivity to volatile wholesale funding markets.

    FGL – Foster’s Group Ltd is looking to cut up to 50 jobs at its Abbotsford brewery in Melbourne as part of moves to improve performance at the plant.

    GMG – Goodman Property Trust reported a $NZ500,000 rise in full year distributable earnings after tax to $58 million, as net property income and financing costs rose.

    GNC – Grains handler and marketer GrainCorp Ltd will not confirm or deny that it is the subject of takeover interest.

    MAK – Minemakers Ltd shares jumped after the phosphate explorer confirmed reports it was in talks with a state-owned Indian enterprise about jointly developing its Northern Territory project.
    MEO -  MEO Australia has announced a deal with Italian energy major ENI, giving it 50 percent of the earnings from new gas discoveries in the Timor Sea off northern Australia.

    NWH – NRW Holdings, the mining services provider, has been awarded a $158 million 12-month contract in the Pilbara region of WA.

    PSA – Petsec Energy Ltd plans to sell its Beibu Gulf oil project in China so it can utilise $US37 million in funding towards developing shale oil plays in the U.S.

    QAN – Qantas and Australia Post have reconfigured their JV businesses Australian Air Express and Star Track Express.

    QBE – QBE has raised $US1 billion through the placement of subordinated debt notes with institutional investors in the U.S.

    RIO – Rio Tinto has priced $US2 billion of fixed rate bonds, comprising $US700 million of 5-year, $US1 billion of 10-year and $US300 billion of 30-year SEC-registered securities.

    UNX – Uranex NL shares have spiked after the uranium explorer announced a major new discovery at its Mkuju project in southern Tanzania.

     

    Local Corporate Reporting

    MAP Airports (MAP)             Full year 2010 AGM
    James Hardie (JHX)             Q4 2011 Results
    Brambles Industries Ltd (BXB)  Trading statement
     

    Ex-dividend Date

    None

    Market Summary

    ASX – to open  higher
    US & UK/Europe – higher

    US ADRs – Generally Higher

    BHP up 1.1% & RIO  up 1.2%; AWC down -0.5%
    ANZ up 0.8% & NAB up 1.2%
    NEM  up 0.5%, JHX up 0.1% , NWS up 1.4%

    Commodities Stock Index up 1.4%
    Gold Stocks Index up 1.1%
    Oil Stocks Index up 1.3% 

    By Michael Hevern
    Head of Research

    For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

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    ASX Company News: NRW Holdings Secures BHP Mining Contract

    Thursday, May 19th, 2011

    NRW Holdings Limited (NWH), a leading Australian civil and mining services contractor, has been awarded a $158 million twelve month contract in the Pilbara. NRW’s contract award by BHP Billiton Iron Ore comprises three sections – the Goldsworthy to Finucane Island Rail Duplication earthworks; the Mooka Access Road and Mooka Marshalling Yard.

    NRW Holdings Ltd Managing Director and Chief Executive Officer, Jules Pemberton said of the project win, “This award takes NRW’s secured workload for next financial year (2011/12) to approximately $800 million out of a total order book of approximately $1.74 billion.” NRW’s peak workforce is expected to be approximately 200 with site mobilisation to commence in July 2011, and works to continue through until June 2012.

    www.nrw.com.au

    http://www.traderdealer.com.au/fundamentals/nwh

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    Stock Market Analysis: Markets Volatile As Commodities Sell Off

    Thursday, May 12th, 2011

    * U.S. stock markets traded lower overnight, led by the mining and energy sectors, as commodities price fell sharply.
    * European stock markets moved mostly sideways overnight.
    * Asian shares had mixed results, but are expected to give back any gains today.
    * Commodities sold off sharply as the US dollar finds strength.  

    The SPI Futures is trading below the key level of 4800, closing down -1.2% (or -56 pts) at 4,729. The key levels for our index today are 4760 and 4680. The ASX is set to trade lower as we have negative leads for markets in the U.S. and European markets, and the slump in commodities prices will weigh on investor sentiment. 

    Economics News Today

    * ABS Job Report for April
    * AFOM tender for $600 million Note for July 2011

    U.S. Markets

    U.S. stock markets traded lower overnight, led by the mining and energy sectors as commodities prices fell sharply. The US dollar found some strength.

    The S&P 500 index posted its biggest 1-day drop since March 16th, as crude oil prices plunged on the back of increasing supply.  The energy sector was the biggest drag on the market, with Chevron Corp and Exxon down over 2%.  Crude-oil prices were put under further pressure after the euro was pushed lower by renewed worries over the finances of Greece and Portugal, which also helped drive the US dollar higher. 

    Investors are showing caution as the S&P 500 again traded within 0.5 percent of the yearly high, as the market has been buoyed by the strong corporate earnings that have been carrying the market higher since the beginning of 2011. 

    The market sell off was broad, which sent all 10 industry groups in the S&P 500 index lower, a sign that the economic recovery may be faltering.  Three stocks fell for every one that rose on the New York Stock Exchange (NYSE). 

    Circuit breakers cut in the energy markets and traders were spooked around midday as crude oil futures headed down toward the psychologically important $US100 a barrel, and then the CME Group halted trading in crude oil, heating oil and gasoline futures for the first time in more than 2 years when gasoline dropped to its trading limit. 

    In corporate news Walt Disney Co. the media and entertainment company fell 5.4% and was the worst Dow Jones performer, after reporting earnings and revenue below analyst expectations, while chip maker Intel Corp. rose 1.7% after announcing a 16% increase to its dividend.

    The Dow Jones closed down -1.0% (or -130 points) at 12,630, the S&P 500 index closed down -1.1% (or -15 points) at 1,342, the Nasdaq ended down -0.9% (or -27 points) at 2,845, and the smaller cap Russell 2000 was down -1.8%.

    All ten company groups that make up the S&P index traded lower: the Energy sector was down -2.9%, Materials were down -2.7%, Financials closed down -1.4%, Industrials were down -1.4%, Consumer Staples were down -1.0%  and Healthcare was down -0.2%.

    European Markets

    European stock markets ended mostly sideways overnight.  The Stoxx Europe 600 index closed 0.3% higher. 

    European investors focused on a number of upbeat earnings reports of the Stoxx Europe 600 stocks 225 have reported and 148 have beaten estimates. 

    Regionally the oil and gas sector weighed on markets as oil prices slumped, while mining stocks were also affected as other commodities, including copper prices, fell sharply.  The euro lost ground against the US dollar, as concerns over the mounting Greek debt outweighed the weaker than expected US trade data. 

    In London the FTSE 100 fell despite shares of luxury fashion group Burberry Group PLC rising 2.7%, while HSBC Holdings PLC weighed on the index, dropping 1.3%.  In Germany the market was flat while a number of automobile makers were upgraded by Morgan Stanley.

    The FTSE 100 index closed down -0.7% (or -43 points) at 5,976, the German DAX was down -0.1% (or 6 points) at 7,495, while in France the CAC was up 0.1% (or 5 points) at 4,058. 

    Asian Markets

    Asian shares ended mixed yesterday, but are expected to give back any gains today.  The Japanese market gained on the back of a weaker yen and easing supply-chain worries.  Technology stocks were in positive territory after Microsoft announced it would buy internet phone pioneer Skype Technologies. 

    The gains in the region were capped as the news of elevated Chinese inflation renewed concerns that it might lead to further tightening measures by the government. Markets in Shanghai and Hong Kong slipped after Chinese data showed inflation eased only moderately. The Chinese consumer price index (CPI) climbed 5.3% in April from a year earlier, while the producer price index (PPI), a measure of upstream inflation pressures, climbed 6.8%.  Industrial output rose 13.4% on the year, compared with an expected 14.5% rise, and slowing from a 14.8% increase in March.

    In China the SSE Composite was down -0.3% (or -7 points) at 2883, while in Hong Kong the Hang Seng Index was closed down -0.2% (or -44 points) at 23,291 and in Japan the Nikkei 225 Index was down -0.7% (or -70 points) at 9,864.  The South Korean KOSPI gained 1.3%, while the Indian market was up 0.4%.

    Commodities

    The Dollar Index was higher at 75.35 on a lower Euro, while the Australian Dollar last traded below record levels at 106.95. Commodities were sharply lower.

    For the session the benchmark crude NYMEX for June delivery was down -5.1% (or -$US5.67) to settle at $US98.21. Copper prices are still below 2-year highs as Copper for June delivery was down -3.5% (or 13.6 cents) at $US3.9020.  June gold was down -1.0% (or -$US15.50) at $US1,501.40.

    ASX Market News

    BCI – BC Iron’s spurned suitor Regent Pacific says it will not offer a better price ($345 million) for the junior iron ore miner.
    BHP – BHP Billiton is earning at double its spend rate and has appointed a new president for its diamond division, a day after announcing a $260 million extension of its diamond mine in Canada.

    BLD – Boral, the building materials supplier, remains on track to deliver a turnaround in annual net profit, despite soft residential markets and bad weather earlier in the year.

    CBA – CommBank posted 3Q unaudited cash earnings of around $1.7 billion amid “subdued” credit demand and “fragile” consumer and business confidence.

    CSR – CSR has posted full-year net profit after tax of $503.4 million, following a$111.7 million loss last year.

    CWN – Casino operator Crown will spend an extra $281 million to buy new properties and further upgrade its premier casinos in Melbourne and Perth.

    DJS – David Jones has reported a fall in sales in its 3Q, but has reaffirmed its annual profit guidance.

    FRG – Forge Resources shares plummeted after rare earths explorer Lynas Corporation terminated a deal to sub-lease phosphate, tantalum and niobium-prospective areas at its Mount Weld project to Forge.

    GPT – GPT Group the property company is confident of boosting earnings per security by at least 4 percent in 2011 as the group returns to stability.

    LLC – Lend Lease the developer of the Sydney Barangaroo development will need to comply with state environmental planning laws, despite being exempted by the former Labor planning minister.

    MYR – Myer Holdings says discount department stores are encroaching on the market share of upmarket chains as consumers continue to belt-tighten.

    VBA – Virgin Australia and Delta Air Lines have won US government approval to form a JV on trans-Pacific flights.

    WDC – Westfield Group has confirmed its forecasts for annual earnings, distributions and operating income.

    WES – The ACCC has asked the market for submissions on concerns it raised about Wesfarmers’ proposed acquisition of Burrup Fertilisers Ltd.

    Local Corporate Reporting

    AMP (AMP)           Full year 2011 AGM
    Rock Oil (ROC)      Full year 2011 AGM
    Singtel (SGT)         Annual Results

    Ex-dividend Date

    ANZ – ANZ Bank (64 cents)
    KNH – Koon Holdings (1 cents)
    RHG – RHG Limited (79 cents)

    Market Summary

    ASX – to open lower
    US & UK/Europe – Lower

    US ADRs – Broadly Lower

    BHP down -2.3% & RIO down -2.7%; AWC up 2.0%
    ANZ down -2.7% & NAB down -4.5%
    NEM  down -2.3%, JHX down -2.6% , NWS down -1.9%

    Commodities Stock Index down -2.7%
    Gold Stocks Index down -3.1%
    Oil Stocks Index down -2.9% 

    By Michael Hevern
    Head of Research

    For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

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    Stock Market Analysis: Recovery In Commodities Supports Markets

    Tuesday, May 10th, 2011

    * U.S. stock markets rose overnight, led by the energy sector.
    * European stock markets traded lower, led by a fall in financial shares.
    * Asian share markets ended mostly higher as commodity prices rebounded.
    * Commodities prices recovered as crude oil and gold futures bounced.  

    The SPI Futures is trading below the key level of 4800, closing down -0.1% (or 3 pts) at 4,761. The key levels for our index today are 4800 and 4720.

    The Aussie market is set to trade sideways, but share prices will be dampened by the strong Aussie dollar.  Recovery in commodities prices and mixed leads from overseas should help investor sentiment, but investors will be cautious ahead of the Federal Budget due for release tonight.

    See below for ASX listed companies in the news today.

    Economics News Today

    * International Trade in Goods & Services Balance on Goods and Services for March
    * Australian Treasury – Australia Budget statement

    U.S. Markets

    U.S. stock markets rose overnight, led by the energy sector as crude oil prices rose 6% settling above $US102 a barrel, while gold prices rose 1.5%.  Investor sentiment improved, as a recovery in commodity prices and a rush of M&A activity helped overshadow concerns the Greek downgrade. 

    The crude oil price jumped as JP Morgan and Goldman Sachs said that the price of will rise into the end of the year.  Mining and Energy companies traded mostly higher, while commodity funds, especially for silver and gold, were some of the most heavily traded shares. 

    US investors shrugged off the problems with the eurozone after S&P’s downgrade of Greece’s sovereign debt.  The Dow Jones rose as McDonald’s was up 0.8% after its same-store sales rose 6% in April, the biggest monthly increase since October, while aluminium giant Alcoa jumped 2.2% as metal prices climbed.

    The Dow Jones closed up 0.4% (or 55 points) at 12,683, the S&P 500 index closed up 0.4% (or 5 points) at 1,340, the Nasdaq ended up 0.4% (or 13 points) at 2,828, and the smaller cap Russell 2000 was up 0.5%.

    All ten company groups that make up the S&P index generally traded higher: the Energy sector was up 1.8%, Materials were up 1.5%, Healthcare was up 0.6%, Industrials were up 0.4%, Consumer Staples were up 0.1%  while Financials closed down -0.3%. 

    European Markets

    European stock markets traded lower overnight, led by a fall in financial shares as concerns mounted over Greece’s debt burden and as Standard & Poor’s cut the country’s credit rating. The Stoxx Europe 600 index closed down 0.3% due to the resurfacing of eurozone debt concerns. 

    The Standard & Poor’s agency downgraded the Greek credit rating by two notches, citing concerns that eurozone officials are looking to extend the debt payment maturities of the European Commission’s portion of the nation’s EUR110 billion bailout.  Moody’s also placed Greek debt on review for potentially a multi-notch downgrade. 

    The banking and insurance sectors across the region sold off due to the increasing probability of the requirement of debt restructuring needed by Greece to address its debt problems.  This will weigh on balance sheets as European banks are big holders of Greek bonds. Bank shares were big losers. 

    In London the FTSE 100 index was down -0.6% (or -34 points) at 5,9742, the German DAX was down -1.1% (or -82 points) at 7,410, while in France the CAC was down -1.3% (or -51 points) at 4,007. 

    Asian Markets

    Asian share markets ended mostly higher yesterday, as commodity prices rebounded from their sharp sell-off of last week.  Commodities prices have been under pressure since the U.S. Federal Reserve last month cut its economic growth forecast for 2011 and as China’s manufacturing activity continued to slow in April. 

    Crude oil typically has seasonal strength from May through to the end of the year and the recent sell-off is seen as a good platform for oil to trade to test recent highs by year’s end. Both JP Morgan and Goldman Sachs have forecast that crude oil will trade higher as the year unfolds. 

    In Japan the Nikkei Index fell 0.7% due to concerns about potential power shortages, as saftey issues need to be addressed at other nuclear plants within the country. 

    In Hong Kong stocks climbed for the first time breaking an 8-session losing streak as investors went bargain hunting in property and resource shares.  The Chinese market bounced off its 200-day moving average. Resource stocks bounced as Nymex crude oil prices edged back over $US100 a barrel and as silver led precious metals higher.

    In China the SSE Composite was up 0.3% (or 9 points) at  2,872, while in Hong Kong the Hang Seng Index was up 0.8% (or 177 points) at 23,336  and in Japan the Nikkei 225 Index was down -0.6% at 9,794.  The South Korean KOSPI was down -0.3% due to worries that the Bank of Korea might raise interest rates again, while the Indian market was flat.

    Commodities

    The Dollar Index was higher at 74.67 on a lower Euro, while the Australian Dollar last traded around record levels at 107.83. Commodities were higher.

    For the session the Benchmark crude NYMEX for April delivery was up 5.4% (or $US5.37) to settle at $US102.62. Copper prices are higher but still below 2-year highs, with copper for April delivery up 1.0% (or 4.1 cents) at $US4.0410. April gold was up 0.8% (or $US11.70) at $US1,512.80.

    ASX Market News

    AAC – Australian Agricultural Company expects earnings of between $60 and $65 million in the FY11 and has launched an equity raising and share purchase plan to raise $86 million.

    AGO – Atlas Iron Ltd has signed an agreement to expand capacity at its Wodgina iron ore mine in the Pilbara WA by 75 percent to 7 million tonnes per annum (Mtpa).

    AAO – Australasia Consolidated has changed its direction from gold exploration to financial services, with the announcement of the first of several planned acquisitions in the sector.

    AWC – Alumina CEO has told shareholders to expect the aluminium market to grow by 12 per cent this year

    CTX- Caltex Australia the oil refiner, has flagged a lift in first half production.

    FGL – Foster’s Group will recover $256.7 million from the tax department after the ATO decided not to appeal a court decision that went in favour of the brewer.

    GCL – Gloucester Coal Ltd is in a trading halt as the coal miner prepares an announcement in relation to two potential takeovers and a new share sale.

    IPL – Incitec Pivot Ltd the explosives and fertiliser supplier, has booked a 25 percent lift in 1H11 profit and will build a $40 million ammonium nitrate emulsion plant at Port Hedland in the Pilbara region WA.

    ORG – Origin Energy has bought a 40 per cent stake in a Chilean geothermal exploration company.

    QAN – Qantas engineers will stop work for an hour on Friday following a breakdown in wage negotiations with the airline.

    RDF – Redflex Holdings the red light camera maker, is in a trading halt to holds meetings for shareholders to consider a $303.5 million takeover offer by Macquarie Group Ltd and The Carlyle Group.

    RFG – Retail Food Group has made an off-market takeover offer for all the shares in Oaks Hotels and Resorts, trumping a rival offer.

    SGM – Sims Metal Management, the world’s largest listed recycling company, says the strong metals prices which helped it report a 74 per cent jump in net profit and it has acquired UK metals recycling business Dunn Brothers Ltd.

    SPT – Spotless Group the maintenance and cleaning services firm has received a $657 million takeover offer from a private equity firm.  

    TAH – Tabcorp Holdings has been awarded the Victorian Keno Licence for the next 10 years, which is expected to add $20 million per annum to the gambling and gaming company’s earnings. 

     

    Local Corporate Reporting

    Grange Resources Limited (GRR)      Full year 2011 AGM 

    Ex-dividend Date

    AIR – Astivita Renewables (4 cents)
    TWD – Tamawood Limited (8 cents)

    Market Summary

    ASX – to open flat

    US & UK/Europe – mixed

    US ADRs – Broadly Higher

    BHP up 2.1% & RIO up 2.4%; AWC up 2.0%
    ANZ up 1.5% & NAB up 1.2%
    NEM  up 1.8%, JHX up 0.8% , NWSdown -0.4%

    Commodities Stock Index up 1.7%
    Gold Stocks Index up 1.6%
    Oil Stocks Index up 1.7% 

    By Michael Hevern
    Head of Research

    For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

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    Stock Market Analysis: Markets Sell-off as Commodities Prices Plummet

    Friday, May 6th, 2011

    * US stock markets sold-off again overnight, as crude-oil and gold prices plunged, dragging energy and commodity stocks sharply lower.
    * European stock markets again dropped sharply as weak economic data, falling commodity prices and disappointing earnings weighed on sentiment.
    * Asian share markets ended lower yesterday, with falls led by energy, miners and financials.
    * Commodities prices slid again as crude-oil and gold futures backed off. Silver prices have collasped this week.  

    The SPI Futures is trading below the key level of 4800, closing down -0.7% (or -34 pts) at 4,718. The key levels for our index today are 4760 and 4650. The ASX is set to open lower as we saw sharply lower markets in the U.S. and Europe. 

    The Aussie market is set to again open lower as share prices will be dampened by the strong Aussie dollar, lower commodities prices and negative leads.  The U.S. earnings reporting season continues, but we are starting to see some disappointing reports. 

    See below for ASX listed companies in the news today.

    Economics News Today

    * RBA – Reserve Bank of Australia Quarterly Statement on Monetary Policy
    * Official Reserve Assets Reserves ($US36.93B) for Arpil.

    U.S. Markets

    US stock markets sold-off again overnight, as crude-oil and gold prices plunged, dragging energy and commodity stocks sharply lower.

    Risk aversion was the order of the day as investors pursued a more defensive path.  The sell-off was broad-based but energy stocks provided the biggest drag. Crude oil prices plummeted for their biggest 1-day fall in two years to trade to below $US99 a barrel. 

    In the broader markets of the S&P 500 and Nasdaq were down to start the month with a fourth consecutive day of losses, marking the first time such a sell-off had occurred at the start of the month since October 2008. 

    Commodities have sold-off the most since 2008, having recently reached all-time records and multi-year peaks were hit due to some disappointing earnings reports this week, along with the US dollar finding some support and recent weak economic data out of the U.S. calling into question the sustainability of the economic reovery. 

    The crude oil price plunge came as investors rushed to the safety of the US dollar after economic data showed new weekly claims for jobless benefits unexpectedly surged last week to the highest level since August.  The Labor Department reported that initial jobless claims rose to 474,000 in the week ending April 30, a 10 percent increase from the prior week and an 8-month high, casting doubt over the monthly Non-Farm payrolls report due out tonight.

    The Dow Jones closed down -1.1% (or -139 points) at 12,584, while in the broader market the S&P 500 index closed down -0.9% (or -13 points) at 1,335 and the tech-heavy Nasdaq ended  down -0.5% (or -13 points) at 2,815, in the smaller cap index Russell 2000 was down -0.4%.

    All ten company groups that make up the S&P index traded lower. Energy was down -2.1%, Financials were down -1.3%, Materials were down -1.2%, Healthcare was down -0.6%, Industrials were down -0.5%, and the Consumer Staples sector was down -0.3%.

    European Markets

    European stock markets dropped sharply as weak economic data in the eurozone and U.S., falling commodity prices and disappointing earnings all weighed on investor sentiment. The Stoxx Europe 600 index was down -0.7%.

    Banks weighed on the region after disappointing earnings reports from Lloyds Banking Group PLC and Societe Generale SA. 

    The Bank of England and the ECB left rates on hold as expected.  However stock prices slumped following comments from European Central Bank (ECB) President Jean-Claude Trichet that were interpreted as signaling that interest rates will not rise again next month, despite noting that there are upward inflationary pressures due to commodity prices.  The comments raised concerns that there may be headwinds down the track for the eurozone. 

    In London the FTSE 100 fell as shares in Lloyds Banking Group slumped 8% after they announced that they have slipped back to a loss of 2.44 billion pounds in the 1Q, while Schroders PLC the asset manager was down 9.2% after they reported an 11% increase in 1Q pretax profit that missed expectations.

    In Germany the DAX 30 bucked the trend finishing flat for the session, despite German manufacturing orders reporting an unexpected 4% drop. 

    In London the FTSE 100 index was down -1.1% (or -64 points) at 5,920, the German DAX was flat (or 3 points) at 7,377, while in France the CAC was down -0.8% (or -34 points) at 4,042. 

    Asian Markets

    Asian share markets ended lower yesterday.  Investors are nervous over the prospect of a global economic slowdown after some disappointing economic data from the eurozone and the U.S. this week. 

    A broad commodity sell-off saw commodities-related stocks weighing on sentiment. In particular the continued fall in silver prices (down 28% in the last 7 sessions), is reflecting the heightened risk aversion. Financials also sold-off in the region. 

    Japanese and South Korean markets were again closed for public holidays.

    In Hong Kong stocks fell for the seventh session in a row, weighed by commodity stocks and drops for many property developers. China bucked the trend as the Shanghai Composite managed to end in the green.

    The SSE Composite was up 0.2% (or 6 points) at 2,872, while in Hong Kong the Hang Seng Index was down -1.4% (or -318 points) at 23,315 and in Japan the Nikkei 225 Index was closed at 10,004.  The South Korean KOSPI was closed, while Indian market was down -1.4%.

    Commodities

    The Dollar Index was higher at 74.08 on a lower Euro, while the Australian Dollar last traded around record levels at 105.82. Commodities were sharply lower. 

    For the session the benchmark crude NYMEX for April delivery was down -2.0% (or -$US1.90) to settle at $US108.81. Copper for April delivery was down -3.2% (or -13.5 cents) at $US3.9835. April gold was down -2.5% (or -$US38.40) at $US1,476.50.

    ASX Market News

    AGG – Anglogold Ashanti has confirmed quarterly production guidance, saying strong performances at its overseas operations have offset disruptions due to weather at its Sunrise Dam mine in WA.

    AMP – AMP, Australia’s biggest superannuation provider, said net cashflows for the 1Q at the AMP Financial Services business fell to $42 million from $236 million a year earlier as inflows slowed and outflows increased.

    AWC – The Alumina CEO has told shareholders to expect the aluminium market to grow by 12 per cent this year.

    BEN – Bendigo Bank has seen its credit rating upgraded by Fitch Ratings from BBB+ to A- as the regional bank strengthens its retail banking franchise.

    CCL – Coca-Cola Amatil expects 1H11 profit to rise 5 percent, before significant items, as natural disasters, higher resin prices and the stronger Australian dollar slow earnings growth.

    CRZ – News Ltd and a consortium of car dealers, including AHG and AP Eagers, will establish a joint venture to boost the car sales website carsguide.com.au.

    ERA – Energy Resources of Australia is accelerating work to minimise the risk of water overflows at a tailings dam at its Ranger uranium mine in the NT.

    FXJ – Fairfax Media group chairman Roger Corbett says Fairfax will survive only if it evolves and deals appropriately with the digital age.

    MCC – Macarthur Coal Ltd says record metallurgical coal prices will substantially boost its annual net profit, more than offsetting lower full year production.

    NAB – National Bank the nation’s biggest business lender, has increased first half profit by 16 percent, NAB says it will grow its business lending this year.

    NWS – News Corporation, the global media group, has reported a 24 percent fall in 3Q net profit as film and publishing revenue slumped, but has maintained its earnings guidance for FY11.

    RIO – Rio Tinto CEO Tom Albanese says the mining giant is running strongly and benefiting from favourable, albeit volatile, markets for its products.

    STO – Wet weather continues to hurt Santos operations, with production tipped to be 4 percent lower than previously forecast.

     

    Local Corporate Reporting

    Equinox Minerals Limited(EQN)         Full year 2010 AGM
    Hca Holdings Inc (HCA)                     Q1 2011 Earnings conference call
    Lynas Corporation (LYC)                    March Activities Report
    Sims Metal Management (SGM)          Q3 2011 Activities Report
    West Australian Newspaper (WAN)   Q3 2011 Activities Report 

    Ex-dividend Date

    * None

    Market Summary

    ASX – to open lower
    US & UK/Europe – sharply lower

    US ADRs – Broadly Lower

    BHP down -2.8% & RIO down -3.1%; AWC down -2.0%
    ANZ down -1.3% & NAB up -1.5%
    NEM  down -3.1%, JHX down 5.2% , NWS down -1.8%

    Commodities Stock Index down -2.3%
    Gold Stocks Index down -3.8%
    Oil Stocks Index down -2.6% 

    By Michael Hevern
    Head of Research
    For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

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