Posts Tagged ‘oil’

Stock Market Analysis: IMF Warns of Global Recession

Wednesday, September 21st, 2011

* US stock markets sold off heavily late in the session, to finish modestly lower, despite early gains.  Investor sentiment remains gloomy due to the Greek debt crisis and the IMF remarking that the US and eurozone may be falling back into recession.
* European stock markets ended higher overnight, as traders bet that Greece will get its next round of funding and the Federal Reserve will inject some more stimulus into the US economy.
* Asian share markets ended mixed yesterday in volatile trade.
* Commodities prices traded mixed, and Gold prices jumped to $US1,801 and while crude-oil closed up around $US86.

The SPI Futures is trading above the key pivot level of 4080, ended  up 0.8% (or 33 points) at 4,081. The key levels for our index for today are 4000 to 4150.

Yesterday Australian shares extended the losses of the prior session, on light volumes.  Investor sentiment was hurt by the “surprise” downgrade of Italy’s debt rating by the Standard and Poors Ratings agency overnight.  The late rebound in the US share market was not sufficient to change the gloomy mood in Australia.    The news of the Italian downgrade impacted investor sentiment across the board, including banks, energy and mining sectors which were all down, due to the prospects of slowing global growth as the eurozone debt crisis drags on. Sentiment was also dampened as commodities sold off heavily overnight, with copper plunging to a 9-month low and crude-oil trading at 3-week lows.

The All Ordinaries (XAO) was down -0.9% at 4125 today, the S&P/ASX 200 (XJO) closed down -1.0% at 4040.  Most sectors finished in the red, with materials, financials and real estate trust sectors all down around 1.3%, while industrials were down 0.9%. However defensive sectors were fared better and actually finished in the green with HealthCare stocks closing up 0.8% and Consumer Staples stocks closed up 0.5%.

Stocks will may see some support today ahead of the US FOMC meeting outcome which is due to be announced tonight.  Gold stocks are set to lead any gains.

Overseas stocks traded mixed overnight, as US and  European markets worried about a Greek default, but traders kept a wary eye on the Fed meeting outcome. The US markets sold-off late in the session after reports that the Greek bailout resolution could be delayed, despite the Greek Finance Minister assuring that Greece is taking the neccessary measures to qualify for access to the next round of bailout funding.

See below for ASX listed companies in the news today.

Economics News Today

*  July     Westpac-Melbourne Institute Indexes of Economic Activity
*  Sept     Skilled Vacancies Index.

US Markets

US stock markets sold off heavily late in the session, to finish modestly lower, despite early gains.  Investor sentiment remains gloomy due to fears about the Greek debt crisis and comments from the IMF that the US and eurozone may be falling back into recession, which wouild halt the prospects of the global economic recovery. 

The Dow Jones Index closed flat, as investors initially bet on a rescue for Greece and more stimulus from the Federal Reserve, when it releases a anticipated policy statement tonight.  However a late session sell-off was triggered following reports that the negotiations over the bailout package for the heavily indebted eurozone nations may drag on longer than expected. 

The S&P500 stock index finished modestly lower, but the tech-heavy Nasdaq Composite sold-off almost -1%.  Investors showed concern after a coalition of the International Monetary Fund, European Commission and European Central Bank were not expected to revisit the Greek situation until mid-October, draging on the resolution of the Greek situation. 

In the broader market the financial, technology and energy sector all dragged on the market, but some defensive sectors finished in the green, namely healthcare and consumer staples. Gold prices jumped above $US1,800, while crude-oil closed above $US86 per barrel. 

Traders are expecting the Fed Reserve to announce “Operation Twist” at the end of its 2-day meeting of its monetary policy tonight.  The plan is expcted to involve the Fed attempting to push down long-term interest rates, while stimulating the economy by shifting the average maturity of its $US2.7 trillion balance sheet further out.

All ten company groups that make up the S&P index traded sharply lower:  Industrials were down -0.7%,  the Materials were down -1.2%, Energy sector was were down -0.6%, Financials sector was down -0.3%, Consumer Staples were down -0.5%, while the Technology sector was down -0.2%.

The Dow Jones closed up 0.1% (or 8 points) at 11,409, the S&P 500 index closed down -0.2% (or -2 points) at 1,202, the Nasdaq ended down -0.9% (or -23 points)  at 2,590, and the smaller cap Russell 2000 was down -1.8%.

European Markets

European stock markets ended higher overnight, as traders bet that Greece will get its next round of funding and the Federal Reserve will inject some more stimulus into the US economy. The Stoxx Europe 600 index rose 1.8%. 

The Greek finance ministry is telling creditors that Greece can meet its deficit reduction obligations, and is taking the necessary action to qualify for EUR8 billion in bailout funds, without which Greece will run out of money by mid-October.

The International Monetary Fund (IMF), has cut its forecast for global growth, citing slow private sector demand, burgeoning sovereign debt and bank capital adequacy and liquidity issues. They highlighted that the world is in danger falling into a double dip recession, as the recovery has weakened considerably and the global financial system is at risk of freezing up again.  They downgraded US economic growth forecast to 1.5%, and the UK forecast to 1.1%, while the eurozone growth is expected to be 1.6%, with Germany the only EU country with forecast growth above 2%.  The IMF went on to say that governments need to consider that austerity measures inhibit future growth prospects and that the eurozone needs to cut their interest rates going forward. 

In London the FTSE 100 index gained 2%, as retailers and miners added to gains from drug stocks, while the German DAX 30 index rose almost 3%. The Italian market brushed off the Standard and Poor’s downgrade finishing up 1.9%.

In London the FTSE 100 index closed up 2.0% (or 104 points)  5,364, the German DAX was up 2.9% (or -155 points) at 5,572,  while in France the CAC was up 1.5% (or 44 points)  at 2,984.

Asian Markets

Asian  share markets ended mixed yesterday in volatile trade.  The downgrade of Italy’s sovereign debt rating spooked trades due to concern that the debt contagion issues may be getting out of control.  In Japan the Nikkei Stock Index played catchup after returning from a 3-day holiday weekend, as exporters and financials traded lower.  In Hong Kong the Hang Seng Index and the Chinese Shanghai Composite Index gained 0.4%.   

In China the SSE Composite up 0.4% (or 10 points)  at 2,448, while in Hong Kong the Hang Seng Index was up 0.5% (or 97 points) at 19,015 and in Japan the Nikkei 225 Index was down -1.6% (or -143 points) at 8,721, South Korean KOSPI was up 0.9% for the session, while the Indian market was up 2.1%.   

Commodities

The Dollar Index was lower at 76.97 on a higher Euro, while the Australian Dollar last traded higher at 102.71. Commodities prices were mixed.

For the session the Benchmark crude NYMEX for September delivery was up 1.4% (or $US1.20) settle at $US86.76.  Copper prices are still below key support level as Copper for September delivery was down -1.5% (or -5.5 cents) at $US3.7050.  September gold was up 1.7% (or $US30.20) at $US1,801.50. 


ASX News Today

JHX – The tax office has appealed to the High Court after the Full Federal Court found in favour of James Hardie Industries SE over a $242 million disputed tax assessment.

LEI – Leighton Holdings Ltd subsidiary Thiess has won a $100 million contract with Fortescue Metals Group Ltd for works on the Solomon Hub iron ore mine in Western Australia’s Pilbara region.

MAP – Traffic through Sydney Airport declined slightly in August from the same month a year earlier.
   
MTS – Metcash is free to takeover Franklins after the Federal Court has dismissed an interim application by the competition watchdog ACCC to prevent Metcash Ltd from going ahead with the deal.
   
NHC – New Hope Corporation says it has almost tripled its full-year profit, as coal exports rose to a record and the miner sold stakes in Arrow Energy and the Lenton project, but profit before non regular items fell 20 per cent to $147 million and revenue declined 11 percent.
   
SVW – Media, industrial services and investment group Seven Group Holdings Ltd (SGH) proposes to make an off-market takeover offer for the shares in National Hire Group Ltd that it does not already own.
   
QAN – Qantas passengers will not face delays on Wednesday after the union ruled out further strike action, saying people had been “inconvenienced enough”.
   
SRQ – Straits Resources will pay $US120 million to restructure an existing sales deal with a JP Morgan company for copper from its Tritton mine in NSW to reflect lower prices for the metal.
   
TPM – Telecommunications services provider TPG Telecom Ltd has 
announced a 40 percent increase in full year net profits as the company enjoys strong subscriber growth in its broadband business.


Local Corporate Reporting
Alesco Corp Ltd (ALS)            Full year 2011 AGM 
New Hope Corp Ltd (NHC)      Full year 2011 Preliminary results
Murchison Metals Ltd (MMX)  Full year 2011 Results  
 
Ex-dividend Date
GRR – Grange Resources.
Market Summary

ASX – to open higher
US & UK/Europe –  EU higher, US lower

Commodities Stock Index  down -0.6%
Gold Stocks Index up 2.9%
Oil Stocks Index  down -0.3% 

US ADRs – Broadly Lower!!…

BHP down -1.1% & RIO down -0.7%; AWC down -3.1%
ANZ down -0.1% & NAB down -1.4%
NEM  up 5.5%, JHX down -1.1%, NWS down -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: US Markets Await The Pesident’s Plan For The Future

Friday, September 9th, 2011

* US stock markets sold off after a modestly positive start to the session. Federal Reserve Chairman Ben Bernanke’s remarks failed to calm investors.
* European stock markets closed modestly higher overnight in a volatile session. The Stoxx Europe 600 index closed up 0.7%, after rallying 3% in the previous session.
* Asian stock markets ended mostly higher yesterday, following a strong US lead.
* Commodities prices traded higher. Gold prices traded higher to $US1,866 while crude-oil settled around $US88.

The SPI Futures is trading around the key pivot level of 4000, ending down -0.4% (or -17 points) at 4,170. The key levels for our index today are 4090 and 4220.

Yesterday the Australian stock market traded lower, despite a surge in overseas markets overnight.  Investors chose to focus on local issues, but the energy sector did see some bargain hunters step into the breach. Investor mood was dampened after disappointing unemployment results were released. The unemployment rate rose in August to 5.3 per cent, up from 5.1 per cent a month earlier, pushing the jobless rate to a 10-month high. All up the economy lost 9,700 jobs after economists had predicted it would add 10,000 and the jobless rate would hold steady at 5.1 per cent. The participation rate remained steady at 66 percent, while total employment stood at 11.4 million. 

The All Ordinaries (XAO) was up 0.2% at 4270, the S&P/ASX 200 (XJO) closed up 0.1% at 4188.

According to a report from the World Economic Forum, Australia is ranked the 20th of the world’s most competitive economies, while the US has fallen back one notch to fifth place, but still ahead of Germany in sixth.  Switzerland held on to the top place for the third consecutive year in the annual ranking, followed by Singapore, Denmark and Finland (up from seventh). The rankings are based on economic data and a survey of 15,000 business executives.

Overseas stocks traded mixed overnight. US markets lower and European investors continued shopping for bargains, as concerns over the debt issues eased.  US investors will be watching President Barack Obama’s speech on Thursday (after market) for support for the economy going forward, after the Fed failed to announce further quantitative easing measures.  The President is expected to propose $US300 billion in federal spending and tax cuts to get Americans working again.

Local investors will likely to be cautious across all sectors after the negative lead from the US.  Gold stocks are set to outperform after gold price surged again.

See below for ASX listed companies in the news today.

Economics News Today

*  None

US Markets

U.S. stock markets sold off after a modestly positive start to the session. Federal Reserve Chairman Ben Bernanke’s remarks failed to calm investor nerves over the state of the economy, and did not announce a QE3.

The US President will address the nation on his jobs plan and plans to jump start the US economy, after market.

The Dow Jones Index gave back half the gains of the previous session, while in the broader markets the S&P 500 stock index and the tech-heavy Nasdaq Composite fell over -0.83% for the session. All sectors finished in the red, with financials, materials, and industrials giving up over -1.3%.

The euphoria following a number of European countries approving the implementation of their austerity measures soon evaporated, as US investors focused on speeches from the Fed Chairman and the US President. Another batch of weak weekly employment data also weighed on sentiment.

All ten company groups that make up the S&P index traded generally lower:  Industrials were down -1.5%, Materials were down -1.3%, the Energy sector was down -1.2%, the Financials sector was down -2.2%, Consumer Staples were down -1.4%, while the Technology sector was down -0.5%.

The Dow Jones closed down -1.0% (or -119 points) at 11,296, the S&P 500 index closed down -1.1% (or -13 points) at 1,186, the Nasdaq ended down -0.8% (or -20 points)  at 2,529, and the smaller cap Russell 2000 was down -2.1%.

European Markets

European stock markets closed modestly higher overnight, in a volatile session. The Stoxx Europe 600 index closed up 0.7%, after rallying 3% in the previous session as fears about European sovereign debt issues easedand as bargain hunters continued to buy up cheap stocks.  Across the region resource and banking stocks posted some of the strongest gains.

The remarks from the European Central Bank (ECB) President Jean-Claude Trichet weighed on sentiment, after he cut growth forecasts and signaled an end to rate increases, but stopped short of foreshadowing future rate cuts.  The ECB also now sees growth for 2011 of between 1.4% and 1.8% (from the previous forecast of 1.5% – 2.3%).

The London and German markets ended modestly higher.  The euro dollar reached a fresh 2-month low against the US dollar, while the US dollar set a more-than three month high against the Swiss franc and has also traded up against the yen.

In London the FTSE 100 index closed up 0.4% (or 22 points)  5,340, the German DAX was up 0.1% (or 3 points) at 5,408, while in France the CAC was up 0.4% (or 13 points) at 3,086. 

Asian Markets

Asian stock markets ended mostly higher yesterday, following a strong US lead. In Japan the Nikkei Stock Index ended higher as technology and exporters provided support.

In Hong Kong the Hang Seng Index and in China the Shanghai Composite Index both fell -0.7%, as investors displayed caution as the Chinese monetary policy remains on a tightening bias.  This weighed on financials, but energy stocks did see some buying as the crude-oil price remains stubbornly high.

In China the SSE Composite was down -0.7% (or -17 points) at 2,499, while in Hong Kong the Hang Seng Index was down -0.7% (or -135 points) at 19,13 and in Japan the Nikkei 225 Index was up 0.3% (or 30 points) at 8,793. The South Korean KOSPI was up 0.7% for the session, while the Indian market was up 0.6%.   

Commodities

The Dollar Index was higher at 76.23 on a lower Euro, while the Australian Dollar last traded lower at 105.62. Commodities prices were generally higher.

For the session the benchmark crude NYMEX for September delivery was down -0.8% (or -$US0.69) to settle at $US88.65.  Copper prices are still below key pivot level as Copper for September delivery was down -0.3% (or -1.2 cents) at $US4.1040.  September gold was up 2.2% (or $US40.20) at $US1,866.10. 

       

ASX News Today

AGO – Atlas Iron Ltd has declared its FerrAus takeover offer unconditional.

AIX – Australian Infrastructure Fund has reported a 1.2 percent increase in passenger numbers through its airports in July

AQA – Aquila Resources is in a trading halt as the miner prepares to make an announcement in relation to its Eagle Downs Hard Coking Coal Project.

BHP – British oil giant BP has announced a major oil find in the US Gulf of Mexico that it says underscores the development potential of the region.

FGL – The Takeovers Panel has dealt a blow to global brewer SABMiller’s $11 billion hostile takeover strategy for Foster’s Group, declining to conduct proceedings on the Aussie brewer’s recent financial results and outlook statements. The panel said any concerns it had about Foster’s debt statements have now been addressed by new information volunteered by Foster’s.

GNS – Gunns the timber company is facing another legal hurdle to its controversial northern Tasmanian pulp mill. 

MQG – Investment bank Macquarie reiterated its profit guidance, but highlighted that some divisions are facing difficult conditions, as market conditions remain volatile and corporate action activity is subdued. The tone of the update suggested that a bigger fall from last year’s first-half profit of $403 million is looming and that they will likely be cutting further their 15,500 workforce.

NAB – NAB is in merger discussions and could become one of Britain’s biggest retail banks if it mergers with financial investment NBNK, as a report suggests that there could be a joint bid for the 632 branches put up for sale by Lloyds Banking Group.  

OGC – OceanaGold Corp, operator of the Macraes gold field, will be included into the NZX 50 Index on 19 September.

QAN – Qantas CEO Alan Joyce is running into some turbulence, after unions described as “obscene” the fact that his total remuneration package has surged 71 percent to $5.1 million for FY11, after he was awarded $2.2 million worth of shares.  This news comes as Qantas recently announced 1000 jobs would be axed as part of a restructure of its international flying and protracted enterprise bargaining negotiations.

RIO – Rio Tinto has increased its opposition to the Australian carbon tax as proposed by the Labor Government.  Rio has previously said that the tax would penalise trade exposed industries and deter investment in resource projects, but they have now upped the ante by urging the government not to proceed with the tax in its present form, as it fails to address the changed geopolitical landscape. 

SGP – Stockland has gained approval from Queensland’s Urban Land Development Authority to start building its Bellvista II residential community at Caloundra on the Sunshine Coast.

Local Corporate Reporting

Cockatoo Coal Ltd (COK)    Full year 2011 Results 

Ex-dividend Date

AKG – Academies Aus Grp
CDA – Codan Limited
CLO – Clough Limited
FPG – Forest Place Group
GLB – Globe International
IGO – Independence Group
IRE – IRESS Market Tech.
MAQ – Macquarie Telecom Gp
OSH – Oil Search Ltd
RUL – Runge Limited
SST – Steamships Trading
TGR – Tassal Group Limited
VRL – Village Roadshow Ltd
VTG – Vita Group Ltd

Market Summary

ASX – to open lower

US & UK/Europe – US lower; EU higher
 
US ADRs – Broadly Lower

BHP down -2.7% & RIO down -2.7%; AWC down -5.6%

ANZ down -2.6% & NAB down -0.5%
NEM  up 2.9%, JHX down -2.8%, NWS down -2.0%
Commodities Stock Index flat
Gold Stocks Index up 1.5%
Oil Stocks Index down -1.2% 

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: Spectre of Eurozone Debt Clouds Investor Sentiment

Thursday, August 18th, 2011

* U.S. stock markets only managed modest gains by the end of the sesion despite surging higher early.
* European stock markets generally traded lower overnight, as investors remain cautious due to ongoing uncertainty.
* Asian stock markets ended mixed yesterday.  Australia bucked the trend after earning reports pushed stocks higher.
* Commodities prices traded lower, and Gold prices found support above $US1,786 and while crude-oil closed above $US87.

Australian shares traded steadily higher yesterday, as corporate earnings reporting season continued.  Once again the gains were driven by the ASX top 20 stocks, in particular the banks and BHP.  Aussie investors are proving remarkably resilient, as they reversed the lead from overseas where investors displayed caution over the eurozone sovereign debt concerns.  Yesterday the All Ordinaries (XAO) closed up 1.3% at 4372, while the S&P/ASX 200 (XJO) closed up 1.3% at 4304.  The major S&P/ASX 200 sectors finished in the green with the leaders being  Info Tech stocks closing up 3.0%, Consumer Staples stocks up 2.1%, Real Estate Trusts up 1.7%, Energy stocks up 1.5% and Financials stocks up 1.4%.

The SPI Futures is trading around the key pivot level of 4000, and ended down -0.3% (or -12 points) at 4,260. The key levels for our index today are 4200 to 4320. Overnight global stocks traded lower in Europe as the leaders of France and Germany failed to address fears that the euro zone debt crisis could spread further, and in the US the markets could not hold on to early gains.  The miners will be in focus today as commodities prices traded higher overnight.

See below for ASX listed companies in the news today.

Economics News Today

*  June Westpac-Melbourne Institute Indexes of Economic Activity Leading Index
*  August Skilled Vacancies Index
*  Q2 Labour Price Index

U.S. Markets

U.S. stock markets managed only modest gains by the end of the sesion despite surging higher early.  Investors remain cautious over the problems with the European sovereign debt crisis and some earnings reports disappointed. 

The Dow Jones Index ended flat, as did the S&P 500 and tech-heavy Nasdaq Index.  The defensive sectors supported the market with the utilities, telecoms and consumer staples sectors all higher, as investors went in search of yield.  The financials also saw some support, up 0.6% for the session.  The industrials and technology dragged and were down over 0.3% on the session. 

Dell disappointed the market after reporting slowing sales and lowering its full-year revenue target.  This sparked a sell-off in technology stocks as investors are starting to factor in a slowing global economy. 

In economic news, U.S. producer prices climbed rose 0.2% in July, despite energy prices falling, while core prices, which strip out volatile food and energy components, jumped 0.4% last month for their eighth consecutive gain.

Commodities had a good session with gold futures at record levels of $US1,790 and crude-oil rose above $US87 per barrel and copper again rose over $US4.00 per pound.

All ten company groups that make up the S&P index traded mixed:  Industrials were down -0.3%, Materials were up 0.3%, Energy was up 0.4%, the Financials sector was up 0.6%, Technology was down -0.5%, while Consumer Staples were down -0.1%.

The Dow Jones closed up 0.1% (or 4 points) at 11,410, the S&P 500 index closed up 0.1% (or 1 point) at 1,194, the Nasdaq ended down -0.5% (or -12 points) at 2,511, and the smaller cap Russell 2000 was down -0.1%.

European Markets

European stock markets generally traded lower overnight, as there is still uncertainty about how the eurozone leaders will address the ongoing sovereign debt crisis.  The Stoxx Europe 600 index rose 0.2%. 

The London and German markets dropped, led lower by financial shares, but in Paris, the CAC 40 index rose 0.7%.  Regional financial stocks continued to post losses due to the comments from the German and French leaders as they proposed governance changes for the euro zone, but dismissed the idea of countries jointly issuing euro-zone bonds.

In London the FTSE 100 index was down -0.5% (or -26 points) at 5,332, the German DAX was down -0.8% (or -46 points) at 5,949, while in France the CAC was up 0.7% (or 23 points) at 3,254. 

Asian Markets

Asian stock markets ended mixed yesterday.  Australia bucked the trend after earning reports pushed stocks higher. 

In Japan the Nikkei Stock Index ended lower.  In Hong Kong the Hang Seng Index rose but finished well off its highs, while in China the Shanghai Composite fell, as stocks declined on worries about futher monetary tightening. China Coal Energy surged 6.9% after its first-half profit beat expectations and was upgraded. Financial stocks climbed in Hong Kong, as bargain hunters stepped in after recent steep losses. Volatility still rules around the region, as investors remain cautious about the debt crisis in Europe and the disappointing quarterly German and eurozone growth reports heightened concerns about the export demand and overall global economic growth.

In China the SSE Composite was down -0.3% (or -7 points) at 2,601, while in Hong Kong the Hang Seng Index was up 0.4% (or 77 points) at 20,289 and in Japan the Nikkei 225 Index was down -0.6% (or -50 points) at 9,057. The South Korean KOSPI was up 0.7% for the session, while the Indian market was up 0.7%.

Commodities

The Dollar Index was lower at 73.75 on a higher Euro, while the Australian Dollar last traded higher at 105.51. Commodities prices were generally lower.

For the session the benchmark crude NYMEX for August delivery was up 0.8% (or $US0.72) settle at $US87.36.  Copper prices are still below the key pivot level as Copper for August delivery was up 0.9% (or 3.5 cents) at $US4.0385.  August gold was up 0.5% (or $US3.50) at $US1,790.00.   

ASX News Today

BLD – Boral, the building materials company, posted a net profit of $166 million from continuing operations for the year to June, (versus a $19 million loss last year) and has reported a rebound in earnings due to lower costs and fewer asset write downs. However Boral shares were sold down after the company announced it had bought out France-based joint venture partner Lafarge for $530 million.

BXB – Brambles has posted a six per cent rise in full-year profit and will sell its information management division, Recall, to focus on pallet pooling solutions, and pay down debt.  Brambles Limited closed up 4.4%.

CSL – CSL, the blood products maker, reported a full year profit decline of 10.7 percent due to a hit from unfavourable movements in the Australian dollar, and problems where Greece’s state-owned hospitals could not afford to pay millions of dollars worth of bills, resulting in a write-off of $25 million in CSL’s accounts for the year. CSL Limited shares finished down -2.7%.

DJS – David Jones the retailer recently reported Matthews International Capital Management has announced it has taken a 5% stake in the company and the shares closed up 3.7%.

FGL – Fosters is in the news again with international brewer SABMiller making a hostile bid for Foster’s Group, valuing the Australian company at about $US10 billion, and has taken the takeover offer, valued at $4.90/share, directly to shareholders after the Melbourne-based brewer rejected its earlier bid. Foster’s Group closed up 0.6%.

QAN – Qantas is facing stiff opposition to its major restructure which will cost up to 1000 Australian jobs, as local unions expect international support for their fight against the move.  Qantas Airways closed up 3.3%.

WDC – Westfield Group has confirmed earlier full year guidance for earnings, distributions and revenue after posting a 32 percent fall in half year profit, with revenue down 24.5 percent and flagging asset sales worth $2 billion in the US, UK and NZ. Westfield Group finished up 0.7%.

WPL – Woodside Petroleum, Australia’s biggest oil and gas company, has exceeded analysts’ forecasts by reporting a 3.6 percent rise in first half underlying profit due to higher crude-oil prices. Woodside Petroleum finished up 1.2%. CEO Peter Coleman will travel to East Timor in the coming weeks in a bid to break the deadlock over the controversial Sunrise gas project.  

WRT – Westfield Retail Trust, the shopping centre owner, has reported funds from operations for the first half of this year were slightly below analyst estimates and kept its outlook for the full year unchanged. The company looks to conduct takeovers and sell if assets have gained value.  Westfield Retail Trust closed up 0.4%.

Local Corporate Reporting

AMP – AMP Ltd first half results
ASX – ASX Ltd full year results
PTM – Platinum Asset Management Ltd full year results
GMG – Goodman Group full year results
WES – Wesfarmers Ltd full year results
VRL – Village Roadshow full year results
 

Ex-dividend Date

Argo Investments (ARG)
Australian United Investments (AUI)
Diversified United (DUI)

Market Summary

ASX – to open flat
US & UK/Europe – lower
US ADRs – Broadly higher

BHP up 1.7% & RIO up 1.4%; AWC up 2.4%
ANZ up 2.8% & NAB up 2.1%
NEM  up 0.6%, JHX up 2.4%, NWS down -0.5%

Commodities Stock Index up 0.7%
Gold Stocks Index up 1.2%
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.

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ASX Company News: BHP Billiton Acquires Petrohawk Energy

Monday, July 18th, 2011

BHP Billiton (BHP) and Petrohawk Energy Corporation announced  that the companies have entered into a definitive agreement for BHP Billiton to acquire Petrohawk for US$38.75 per share by means of an all-cash tender offer for all of the issued and outstanding shares of Petrohawk, representing a total equity value of approximately US$12.1 billion and a total enterprise value of approximately US$15.1 billion, including the assumption of net debt. The transaction would provide BHP Billiton with operated positions in the three world class resource plays of the Eagle Ford and Haynesville shales, and the Permian Basin.

BHP Billiton CEO, Marius Kloppers, said the acquisition was a natural fit with BHP Billiton’s strategy. “The proposed acquisition of Petrohawk is consistent with our well defined, upstream, Tier 1 strategy and provides us with even greater exposure to the world’s largest energy market, while also broadening our geographic and customer spread. Importantly, our offer and the associated substantial premium represent a unique opportunity for Petrohawk shareholders and recognise the growth opportunities embedded in its portfolio immediately.”

www.bhpbilliton.com

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

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Stock Market Analysis: Markets Rebound on Chinese GDP Report and Signals of QE3

Thursday, July 14th, 2011

* U.S. stock markets recovered from a 3-day slide overnight, as the Fed signalled that they may consider further economic stimulus (QE3?).
* European share markets rose overnight, recovering from three days of heavy selling, as European stocks ended broadly higher.
* Asian stock markets closed higher yesterday boosted by Chinees data that showed economic growth and industrial production in China remains robust.
* Commodities prices traded generally higher, while Gold prices hit record levels.

The SPI Futures is trading below the key pivot level of 4600, ending flat at 4,490. The key levels for our index today are 4550 and 4450.  Australian shares are set to trade higher again today after positive leads from key markets in the U.S. and Europe and data from China showing that their economy continues to grow strongly.  Mining and banking stocks should see some bargain hunting today.

See below for ASX listed companies in the news today.

Economics News Today

*   July Consumer Inflationary Expectations Survey.

U.S. Markets

U.S. stock markets recovered from a 3-day slide overnight, as the Fed signalled that it may consider further economic stimulus (QE3?) if the economy continues to soften and inflation remains subdued, factors which are especially problematic given the jobless recovery.

The three major indices finished higher but closeed well off their highs of the session.  The Fed Chairman Ben Bernanke told legislators that the Fed was “prepared to respond” if stimulus was needed, signaling that quantitative easing (QE3) could be on the table. These comments pushed markets to their highs early in the session.  However continued posturing over the raising of the U.S. debt ceiling (due to be voted on in August), sparked comments from the Fed which said that failure to raise the ceiling would be disasterous for the global financial system; this sparked profit taking late in the session. 

In the broader market energy and materials stocks led the gains for the day.  In late news Moody’s has warned that the U.S. debt is under review for a possible downgrade. 

In corporate news News Corp jumped 3.8% after the company dropped its bid to own 100% of British Sky Broadcasting Group after the political backlash from the U.K. phone tapping scandal. 

Commodity prices rose again with spot gold breaking all-time record highs of $US1,587, while the crude oil price rose to a 1-month high after a reported fall (by 3.1 million barrels) in U.S. inventories.  Silver surged 7.1% to hit a 6-week high.

All ten company groups that make up the S&P index traded higher: Industrials were up 0.4%, the Technology sector was up 0.2%, Materials were up 0.9%, the Financials sector was up 0.1%, Consumer Staples were up 0.5%, and the Energy sector was up 0.8%.

The Dow Jones closed up 0.4% (or 45 points) at 12,492, the S&P 500 index closed up 0.3% (or 8 points) at 1,318, the Nasdaq ended up 0.5% (or 15 points) at 2,797, and the smaller cap Russell 2000 was up 0.9%.

European Markets

European share markets rose overnight, recovering from three days of heavy selling.  The Stoxx Europe 600 Index gained 0.7%. 

European stocks ended broadly higher with London and German markets rising for the first time in four sessions, as fear of sovereign debt contagion eased and European investors looked further afield for some promising news. A downgrade of the Irish sovereign debt rating to junk status by ratings firm Moody’s Investors Service had little impact across Europe, but bank stocks continued to weigh, especially those with exposure to the sovereign debt of Italy and peripheral European PIIGS nations. 

Investor sentiment was boosted later in the session following GDP data from China and the comments from the US Federal Reserve regarding a possible QE3. 

Across the region stock with exposure to Chinese growth performed well including miners and automobole makers.  In London, miners were strong performers as commodity prices rose.

In London the FTSE 100 index was up 0.6% (or 35 points) at 5,904, the German DAX was up 1.3% (or 94 points) at 7,268, while in France the CAC was up 0.5% (or 19 points) at 3,793. 

Asian Markets

Asian stock markets closed higher yesterday boosted by Chinese data that showed the economic growth and industrial production in China remains robust as the government successfully engineers a soft landing. 

Investor sentiment was boosted by Chinese data that showed second-quarter gross domestic product rose 9.5% year on year, and industrial production in June was up 15.1%, beating forecasts and easing fears that the Chinese economy may be headed for a hard landing.

In Japan the Nikkei Stock Index ended higher, while in Hong Kong the Hang Seng Index climbed, retracing only part of the losses from the previous session when it slumped -3.1%. In China the Shanghai Composite gained 1.5%, as Chinese property stocks gained following the release of the data, with China Overseas Land & Investment surging 5.7%. Banks also had a solid session.

In China the SSE Composite was up 1.5% (or 41 points) at 2,795, while in Hong Kong the Hang Seng Index was up 1.2% (or 264 points) at 21,927 and in Japan the Nikkei 225 Index was up 0.4% (or 37 points) at 9,963, the South Korean KOSPI was up 0.9% for the session, while the Indian market was up 1.0%.         

Commodities

The Dollar Index was lower at 75.18 on a higher Euro, while the Australian Dollar last traded lower at 105.71. Commodities prices were higher. For the session the benchmark crude NYMEX for July delivery was up 0.4% (or $US0.39) to settle at $97.82. Copper prices are still below 2-year highs as copper for July delivery was up 0.3% (or 1.3 cents) at $US4.3815.  July gold was up 1.3% (or $US19.30) at $US1,581.20.

ASX News Today

AQA – Aquila Resources has started legal proceedings against its Isaac Plains coal mine joint venture partner, Vale, seeking damages for four shipments it says the Brazilian giant prevented from being exported.

AWC – Alumina’s JV partner Alcoa increased its second quarter earnings as an improving US manufacturing sector drove higher sales and prices.

AUN – Austar and Pay TV broadcaster Foxtel says it has secured its $2.5 billion takeover for Austar, in a move to cement its hold on the sector in the face of competition from free-to-air channels.

CNA – Rio Tinto-majority owned coal miner Coal & Allied Industries has reported a rise in 1H production, and is on track to achieve a full year lift of 5 to 10 percent.

ERA – Energy Resources of Australia has increased its full year uranium oxide production forecast by 8.3 percent as it gets its processing operations going after a closure because of rain.

KZL – Kagara the zinc and copper producer posted a 121 percent jump in zinc production for the June quarter on a reduced cash cost of $US0.74 cents per pound.

MAP – MAp the airport owner says Copenhagen Airports Denmark has raised $940 million in new debt, to be used mainly to refinance existing bank debt due to mature in December 2012.

NUF – Nufarn the ag chemicals supplier will report underlying operating profit of $67 to $73 million when it releases its full year results, including $21 million in write downs.

NWS – News Corp has withdrawn its bid for BSkyB and has announced a $US5 billion stock repurchase plan. Key execs including Rupert and James Murdoch have been asked by the U.K. government to give evidence on the phone hacking scandal inquiry.

LYC – Lynas Corporation, the rare earths supplier, say its Malaysian subsidiary will spend up to $US210 million on the second phase of construction on a planned refinery plant in Kuantan.

QAN -  Qantas says industrial action in which right-handed Qantas engineers will repair planes only with their left hands could pose a safety risk.

TCL – Transurban, the toll road owner, says revenue in the three months to June was up by 13.9 per cent, capping a 10 per cent rise in revenue for the financial year.

Local Corporate Reporting

Rio Tinto Ltd (RIO)         Q2 2011 Production Report 

Ex-dividend Date

None

Market Summary

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

BHP up 1.9% & RIO up 1.2%; AWC up 2.3%
ANZ up 2.1% & NAB up 1.0%
NEM  up 2.6%, JHX up 4.7%, NWS up 1.7%

Commodities Stock Index up 1.1%
Gold Stocks Index up 2.9%
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.

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Stock Market Analysis: Greek Saga Continues, Fed Comments Are Measured

Thursday, June 23rd, 2011

* U.S. stock markets ended lower breaking a 4-day winning streak.  The markets traded lower from the start and comments from the Fed failed to spark.
* European markets closed broadly lower overnight, as economic data shows that the European consumer environment is showing signs of further weakness.
* Asian stock markets finished mostly higher yesterday, as investors bet that Greece will avoid a debt default.
* Commodities prices traded higher.  Gold is trading towards record levels again.

The SPI Futures is trading below the key pivot level of 4600, ending down -0.4% (or -16 points) at 4,515. The key levels for our index today are 4550 and 4480.  Australian shares are set to trade lower today after negative leads from key markets in the U.S. and Europe. 

Investors are likely to be finalising their portfolios for the end-of-year cleanout.  Look for miners and banks to be the focus as we run into the end of the month.  We also have options expiry today.

Interestingly Australia’s mid-west iron ore miners surged yesterday after QR National said it would be ready to take a stake in the delayed Oakajee port and rail project. Shares in Oakajee developer Murchison Metals and Gindalbie Metals jumped on the news, as they plan to use the project for its longer-term expansion plans. This sector will be in focus today.

See below for ASX listed companies in the news today.

Economics News Today

*  Monthly CB Leading Index.

U.S. Markets

U.S. stock markets ended lower breaking a 4-day winning streak.  The markets traded lower from the start and comments from the Fed failed to spark any support.

All three major indices closed lower and all ten sectors of the S&P 500 finished lower for the day, with technology and consumer discretionary stocks falling the hardest, while energy and materials stocks also traded lower as crude oil prices jumped 1.3% above $US95 a barrel.

The Fed confirmed their plans to end QE2, the purchase of $600 billion in U.S. Treasurys on 30 June and vowed to keep short-term interest rates near zero. The Fed has also downgraded its assessment of the U.S. economic performance, estimating growth will be down to 2.7%-2.9% (down from previous estimates of 3% in April) and also said that unemployment is likely to remain high from 8.6% to 8.9% (currently running at 9.1%). The chairman also said that the economic headwinds are “stronger and more persistent” than initially forecast and cited problems in the financials and the housing markets, and the spectre of contagion if the Greek debt crisis is not resolved.

The Dow Jones closed down -0.9% (or -80 points) at 12,110, the S&P 500 index closed down -0.7% (or -8 points) at 1,287, the Nasdaq ended down -0.7% (or -18 points) at 2,669, and the smaller cap Russell 2000 was down -0.8%.

All ten company groups that make up the S&P index traded lower: Consumer Staples were down -0.8%,  Industrials were down -0.6%, the Technology sector was down -0.7%, Financials were down -0.6%, while the Energy sector was down -0.3% and Materials were down -0.4%.

European Markets

European markets closed broadly lower overnight, as economic data shows that the European consumer environment is showing signs of further weakness.  The Stoxx Europe 600 finished down 0.6%, the index has declined 11 of the past 16 sessions now.

The Greek ASE Composite index fell 0.3%, while the Portugese PSI 20 index fell 0.7%. Investors looked past the successful confidence-vote by the Greek government, aware that the resolution of the country’s debt problems are far from complete, as parliament now must pass stringent austerity measures totalling EUR28 billion before Greece gets a EUR12 billion tranche of a financial aid package from the European Union. 

In economic data consumers in the 17-nation euro-zone bloc became less confident in June about their prospects, with the EU confidence index falling to -10 from -9.9 in May.

In London the FTSE 100 fell, with banks leading the declines after minutes from the last Bank of England monetary policy meeting proved to be very dovish, pushing rate-hike expectations back even further than expected.  In Germany the market ended flat.

In London the FTSE 100 index was down -0.1% (or -2 points) at 5,773, the German DAX was down -0.1% (or -7 points) at 7,278, while in France the CAC was down -0.2% (or -6 points) at 3,877. 

Asian Markets

Asian stock markets finished mostly higher yesterday, as investors bet that Greece will avoid a debt default, as the Greek government won a key confidence vote.

In Japan the Nikkei Stock Index surged 1.8%, as financials rallied after the Greek vote, with key financials rising over 2.5% in the session. 

Investors in Hong Kong and China remain concerned about the prospect of yet another Chinese interest rate hike, after the Chinese National Development and Reform Commission said it expects consumer inflation to have accelerated in June from May’s 5.5% rise. These markets ended flat, as property developers weighed on sentiment, but in China the banks actually rose on the back of bargain hunting.

In China the SSE Composite was up 0.1% (or 2 points) at 2,649, while in Hong Kong the Hang Seng Index was up 0.1% (or 9 points) at 21,860 and in Japan the Nikkei 225 Index was up 1.8% (or 170 points) at 9,629.  The South Korean KOSPI was up 0.8% for the session, while the Indian market was down -0.1%.       

Commodities

The Dollar Index was lower at 74.88 on a higher Euro, while the Australian Dollar last traded lower at 105.61. Commodities prices were generally higher.

For the session the benchmark crude NYMEX for June delivery was up 0.3% (or $US0.29) to settle at $94.47. Copper prices are still below 2-year highs as Copper for June delivery was flat (or up 0.1 cents) at $US4.0935.  June gold was up 0.5% (or $US6.90) at $US1,551.60.

ASX News Today

AQA – Aquila Resources Ltd has not reached an agreement with Brazilian resource major Vale regarding how coal shipments can be made separately from a jointly owned mine.

BLD – National Bank has increased their stake in Boral to 7.2% (up from 6.1%).

CSL –  CSL says the US Food and Drug Administration (FDA) has sent a warning letter to CSL stating that the company’s manufacture process of an influenza vaccine was not up to standard.

CSP – Coalspur Mines has completed the private placement of 6 million shares at $C1.85 per share to Highland Park Group, a strategic investor, raising a further $C11.1 million.

DOW – Downer may have to hold sensitive discussions with parties involved in Sydney’s Waratah train project because it is “in serious risk”, says NSW Treasurer Mike Baird.

FXJ  - Fairfax Media Ltd, now NZ’s biggest newspaper proprietor, is to make up to 45 staff redundant by outsourcing their jobs to India, the Engineering, Printing and Manufacturing Union (EPMU) says.

GNC – The ACCC says that it has accepted access arrangements for grains marketer GrainCorp Ltd’s wheat port for October 2011 to September 2014.

MAP – MAp Group says it has received an offer from the Ontario Teachers’ Pension Plan Board (OAPP) to take over the Canadian fund’s stake in Sydney Airport in exchange for its stake in Brussels and Copenhagen Airports.

MMX – Australia’s mid-west iron ore miners surged yesterday after QR National said the company would be ready to take a stake in the delayed Oakajee port and rail project. Shares in Oakajee developer Murchison Metals (MMX) and Gindalbie Metals (GBG) jumped on the news, as they plan to use the project for its longer-term expansion plans.

QAN – Qantas Airways Ltd says underlying profit before tax is expected to be between $500 million and $550 million for the full 2010/11 year, and announced a settlement with engine manufacturer Rolls Royce.

SGP –  Stockland the property developer will acquire two residential projects in WA and a shopping centre in Victoria while selling its 50 per cent holding in Perth’s BankWest Tower.

SHV – Select Harvests Ltd the almond orchardist and nuts supplier has agreed to a new $115 million debt facility from the National Bank (NAB).

WHC – Whitehaven now has a new substantial holder as JCP Investments now have a 5% stake.

WPL – Woodside Petroleum Ltd may face another credit rating downgrade, following last week’s $900 million cost blowout and delays to its flagship offshore gas project.

Local Corporate Reporting

Range Resources (RRS) – Full year 2010 AGM 

Ex-dividend Date

G8 Education Limited (GEM)

Market Summary

ASX – to open lower
US & UK/Europe – lower
US ADRs – Broadly Mixed

BHP down -1.1% & RIO down -0.5%; AWC up 0.9%
ANZ down -0.7% & NAB down -1.2%
NEM  up 1.5%, JHX down , NWS up 0.2%

Commodities Stock Index up 0.1%
Gold Stocks Index up 0.4%
Oil Stocks Index down -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.

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Stock Market Analysis: Markets Mixed

Friday, April 15th, 2011

* U.S. stocks recovered from early weakness to finish flat.  Investors remain cautious ahead of the earnings season.
* European stock markets closed lower overnight.
* Asian markets mostly fell yesterday, led by miners and energy after Goldman Sachs recommended taking profit on commodities including copper, gold and oil.
* Commodities were mixed overnight.  

The SPI Futures is trading below the key level of 4930, closing up 0.1% (or 4 pts) at 4,896. The key levels for our index today are 4950 and 4850. The ASX is set to trade flat as we saw markets rise modestly in the U.S. but fall in Europe.  Protection is still cheap through options.

Crude oil traded higher above $US108 and is still seen as a significant headwind for the economic recovery if sustained at these price levels. 

See below for ASX listed companies in the news today.

U.S. Markets

U.S. stocks recovered from early weakess to finish flat, after the U.S. House of Representatives voted to approve a budget bill that will fund the government through the remaining months of fiscal year 2011 until September. 

The market initially traded lower following disappointing jobless claims data, but steadily recovered throughout the day.  Financial stocks weighed after news reports that U.S. investigators are examining whether some of the world’s biggest banks colluded to manipulate a key interest rate before and during the financial crisis. 

In economic news an index of U.S. producer prices rose a seasonally adjusted 0.7% in March due to rising energy costs, and inline with expectation. 

The market has been treading water this week as the coproarte earning season kicked off. Google closed up 0.4% ahead of its first-quarter results, due after market.  Technology stocks traded lower after industry researcher Gartner said global shipments of PCs fell 1.1% in the first quarter, reflecting a seasonally weak period as well as a greater focus on the tablet market. 

Commodities held on to the gains of the previous session, with gold prices back at record levels above $US1,470.  Against the major currencies, the US dollar was weaker depite initially rising after President Barack Obama committed to spending cuts and tax increases to bring the U.S. budget deficit under control.

The Dow closed up 0.1% (or 14 points) at 12,285, while in the broader market the S&P 500 index closed flat (or up 0.1 points) at 1,314 and the tech-heavy Nasdaq ended down -0.1% (or -1 points) at 2,760. 

The ten company groups that make up the S&P index traded mixed, with under-performers including Financials down -0.9%, Technology down -0.2%, and Consumer Staples down -0.2%, while the Energy sector was up 0.7%, Healthcare was up 0.5% and Materials rose 0.3%.

European Markets

European stock markets closed lower overnight.  In Germany investors reacted nervously to comments that Greece might have to restructure its debt, stoking fresh fears over the eurozone.  The German economy is now expected to grow 2.6% this year and 1.8% in 2012, while inflation is set to remain low at 2.4% and fall to 1.9% in 2012, according to government forecasts. 

The PIIGS economies were again in focus as the Greek money market rates jumped sharply after the German Finance Minister suggested that Athens might have to restructure its debt, meaning investors would lose out. 

In London, the FTSE 100 index of leading shares closed lower for a third day on four, as the Swiss-based commodities giant Glencore reported that it would raise up to $US11 billion via a stock market listing in London and Hong Kong, the largest share offer so far this year.  Rio Tinto Ltd. fell after the diversified mining giant reported weak first-quarter production results.

In London the FTSE 100 index closed down -0.8% (or -46 points) at 5,964, the German DAX was down -0.4% (or -31 points) at 7,146, and the French CAC was down -0.9% (or -36 points) at 3,989.

Asian Markets

Asian markets mostly fell yesterday, led by miners and energy. In Japan the Nikkei Index recovered from early losses to finish modestly positive, led by some technology shares. Shares in Tokyo Electric Power Co. (Tepco) slipped 0.4% due to continued worries over the company’s Fukushima nuclear power plant.

Chinese and Hong Kong stocks fell yesterday, led by property developers as the Chinese State Council declared it will take all required measures to maintain price stability and relax controls on the property sector. Moody’s Investors Service also cut its outlook on the Chinese property sector to negative from stable, citing a tough operating environment for developers due to policy tightening, rising interest rates, reduced bank lending and increased supply. 

China will release March Chinese inflation data today and there are concerns that the government may need to tighten its monetary policy further, which could weigh on global demand for commodities in particular. Economists expect the CPI to show prices were up around 5.2% from a year earlier, up from the 4.9% reading of January and February.

In China the SSE Composite closed down -0.3% (or -8 points) at 3,043, while in Hong Kong the Hang Seng Index was down -0.5% (or -121 points) at 24,014 and in Japan the Nikkei 225 Index was up 0.1% (or 13 points) at 9,653. The South Korean Kospi Composite gained 0.9%, while markets in India and Thailand were closed for a public holiday. 

Commodities

The Dollar Index was lower at 74.68 on a higher Euro, while the Australian Dollar last traded at record levels at 105.39. Commodities were generally higher.

For the session the Benchmark crude NYMEX for April delivery was up 1.2% (or $US1.23) to settle at $US108.35. Copper for April delivery was down -0.2% (or -0.9 cents) at $US4.2775. April gold was up 1.2% (or $US16.80) at $US1,472.70.

ASX Market News

ALZ – Property developer Australand Property Group expects earnings to grow by five percent in FY11 and has reaffirmed distribution guidance of 21.5 cents per security.

BCI – BC Iron shares are in a trading halt for the third time in a month ahead of an announcement regarding the availability of finance to suitor Regent Pacific Ltd.

BOQ – Bank of Queensland’s first half profit slumped 45 per cent as the regional lender was hit by a significant increase in bad debts.

CNA – Coal & Allied Industries Ltd has maintained its target for full year saleable production to increase by 5 to 10 percent.

ERA – Uranium miner Energy Resources of Australia says earnings in FY11 will be lower than the prior year, along with lower production and sales.

GXY – Shares in lithium miner Galaxy Resources slumped, following the first phase of a capital raising aimed at securing $120 million in new capital.

LEI – Leighton Holdings shares slumped 13 percent to their lowest in one and a half years after announcing a $757 million new share sale and said it would report a full year loss.

NWH – NRW Holdings the mining services provider, is looking to raise $70 million in new capital through a share placement, and is on track to achieve its FY11 revenue target of $700 million.

NXS – Nexus Energy the oil and gas producer, has raised $57 million from institutional shareholders who took up a renounceable entitlement offer at 40 cents per new share.

OZL – OZ Minerals expects to achieve forecast gold production targets for the year even though total gold production fell in the March quarter.

TEN – Ten has announced yet another change on Ten Network Holdings’ board with long time director Peter Viner stepping down next month.

VTA – Viterra the Canadian grain producer has shipped a record 2.26 million tonnes of bulk grain from South Australia during the March quarter.

WHC – Whitehaven Coal Ltd the potential takeover target, says companies have completed due diligence and submitted formal proposals for the company.

Local Corporate Reporting

Coal & Allied Industries (CNA) Full year 2010 AGM
Hastie Group Ltd (HST)         Interim 2011 Results
Gindalbie Metals Ltd (GBG)     March Quarterly Report

Ex-dividend Date

CLX – CTI Logistics (3 cents)
FFI – F.F.I. Holdings (10 cents)
SOL – Soul Pattinson (W.H) (15 cents)

Market Summary

ASX – to open flat
US & UK/Europe – EU lower, US flat

US ADRs – Broadly Mixed

Commodities Stock Index up 0.7%
Gold Stocks Index up 1.3%
Oil Stocks Index up 0.6% 

By Michael Hevern
Head of Research

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Stock Market Analysis: Energy Stocks Weigh On Markets

Tuesday, April 12th, 2011

* U.S. stock markets fell modestly overnight, with falls led by energy stocks. Investors exercised caution ahead the start of U.S. company 1Q earnings reports.
* European markets ended lower, led by shares of automobile makers which weighed after a broker downgrade, but U.K. banks traded higher.
* Asian markets ended mixed as energy stocks posted gains.  The lower crude oil prices weighed on energy stocks.
* Commodities eased overnight as the US dollar found moderate support.  

Australian stocks ended at their highest level in nearly a year yesterday, with BHP Billiton leading miners after saying it was not aware of the basis for speculation that it planned to buy Woodside Petroleum, and offering updated details on a continuing share buy-back.

The SPI Futures is trading around the key level of 4930, closing down -0.4% (or -20 pts) at 4,981. The key levels for our index today are 5000 and 4880. The ASX is set to trade lower as we saw cautious trading in the U.S. and European markets. Look for banks, energy and mining stocks to be in focus, and remember protection is still cheap through options. Energy and gold stocks are likely to see profit taking today.

Crude oil backed off sharply from the $US113 which will be a significant headwind for the economic recovery if sustained at these price levels, as overseas investors start to focus on the impact of higher energy prices on global growth. The U.S. starts earnings reporting season this week.

See below for ASX listed companies in the news today.

Economics News Today

* NAB Business Survey for March.

U.S. Markets

U.S. stock markets fell modestly overnight, with falls led by energy stocks.  The market mood was helped by the last minute congressional deal that avoided a government shutdown Friday night – the U.S. budget deficit is now projected to exceed $US1.5 trillion this year.  The vote also helped the US dollar advance in overnight trading, while riskier emerging currencies eased after the sharp rally last week. 

The mood was dampened by the International Monetary Fund (IMF) reporting that U.S. annual growth is now forecast to be 2.8% down from 3.0%, citing higher gas prices could slow the pace of the US economy and offset the boost from the Federal Reserve’s QE2 bond-buying stimulus program. 

The 1Q earnings are expected to come in strong, but there is concern about the impact of rising food and energy prices. A senior S&P index analyst has forecast more than 30 percent of companies could report revenue growth of at least 10 percent. 

Analysts are hopeful that overall corporate earnings will come in ahead of expectations for the ninth consecutive quarter. Since the turnaround from the GFC the earnings growth for companies during the recovery has come from cutting jobs and other costs, but companies now need to show progess on revenue growth in order to sustain the economic recovery.   

After-market Alcoa fell short of estimates as it swung to a first-quarter profit of $US308 million (up from a loss of $US201 million) and revenue rose 22%, as it again posted higher aluminum prices and increased production, helping income from continuing operations reach its highest mark since the second quarter of 2008.

The Dow closed flat at 12,381, while in the broader market the S&P 500 index was down -0.3% (or -4 points) at 1,324 and the tech-heavy Nasdaq ended down -0.3% (or -9 points) at 2,771. 

The ten company groups that make up the S&P index traded generally lower, with under-performers including Energy down -2.0%, Materials down -1.1%, and Industrials down -0.8%. Financials were flat, while the Consumer Discretionary sector was up 0.5% and Healthcare was up 0.6%.

European Markets

European markets ended lower overnight, led by shares of automoibile makers which weighed after a broker downgrade, but U.K. banks traded higher. The Stoxx Europe 600 index fell 0.2%, after gaining 0.6% last week. 

Markets were nervous after news of another strong earthquake in northeastern Japan, but damage proved to be limited.  In the region European automotive stocks dropped over 2.5% after Credit Suisse downgraded the sector to benchmark from overweight, saying it’s taking an increasingly cautious stance on cyclical stocks. 

The PIIGS economies were under pressure as the Greek market dropped 2.6% after German Finance Minister Wolfgang Schaeuble reportedly said it’s unclear if Greece will need more financial relief, while in Ireland the market fell 1%, with shares of Bank of Ireland down more than 9%. 

In London the market finished flat as bank stocks traded higher, after the Independent Commission on Banking said that the U.K.’s biggest lenders should have a minimum equity capital ratio of 10% and that retail operations should be separated from riskier investment-banking arms.

The FTSE 100 index closed down -0.1% (or -2 points) at 6,053, the German DAX was down -0.2% (or -12 points) at 7,204, while in France the CAC was down -0.6% (or -23 points) at 4,038.

Asian Markets

Asian markets ended mixed yesterday, as energy stocks posted gains, however lower crude oil prices weighed on energy stocks overnight. 

Japan suffered another strong aftershock overnight but damage was limited, and they are extending their nuclear exclusion zone.  The Japanese market is facing selling pressure after the index jumped 1.8% on Friday to record gains for a third successive week.   Japanese stocks lost ground after data showed February’s core machinery orders fell a sharper-than-expected 2.3% from the previous month.  Concern remains over the delays to production in the wake of the earthquake and tsunami and this weighed on automobile stocks, which fell around 2.2%.  Shares in Tokyo Electric Power Co. (Tepco), the owner of the stricken Fukushima Daiichi nuclear plant, soared another 19% after the Tokyo Stock Exchange temporarily imposed higher margin requirements to trade in the stock. 

Energy shares posted gains of around 3% as crude oil prices briefly went above $US113 a barrel. Regional coal miners also traded higher.  In South Korea the Kospi fell 0.3% and the Indian Sensex fell 1%. 

In China the Shanghai Composite dropped while the Hong Kong Hang Seng Index also traded lower.  The Chinese market ended lower a day after China posted its first quarterly trade deficit in seven years as rising commodity prices pushed manufacturing costs higher.  Exports rose 26.5% on year in the first quarter and imports were up 32.6% on year.  China recorded a small trade deficit of $US1.02 billion, however analysts expect a large trade surplus for the full year as its exports tend to grow later in the year.

In China the SSE Composite was down -0.2% (or -7 points) at 3,023, while in Hong Kong the Hang Seng Index was down -0.3% (or -93 points) at 24,303 and in Japan the Nikkei 225 Index was down -0.5% (or -48 points) at 9,719.

Commodities

The Dollar Index was lower at 75.07 on a higher Euro, while the Australian Dollar last traded at record levels at 104.99. Commodities were generally higher.

For the session the Benchmark crude NYMEX for April delivery was down -1.0% (or -$US1.09) to settle at $US108.83. Copper prices are just off the 2-year highs. Copper for April delivery was down -1.1% (or -5.0 cents) at $US4.4535. April gold was down 0.4% (or -$US5.70) at $US1,461.70.

ASX Market News

ASX – The federal government’s blocking of the Australian Stock Exchange (ASX) takeover by Singapore on national interest grounds could deter future suitors.

BEN – Bendigo and Adelaide Bank has consolidated and re-branded its wealth management operations into a new business unit dubbed Bendigo Wealth.

EQN – Equinox Minerals has rejected an informal takeover offer from Minmetals Resources Ltd saying the bid is “opportunistic” and “lowball”.

LEI – Australia’s biggest construction company Leighton Holdings Ltd now expects to report a full year loss of $427 million and plans to raise $757 million in a new equity raising.

ORG – Origin Energy Ltd has completed the syndication of a $2.15 billion and $US350 million bank debt facility with a term of between three and five years.

POH – Phosphagenics Ltd, the biotech firm, will launch a new cosmetic product using its anti-cellulite technology in Australia later in April.

RIO – Rio Tinto has assumed control of Riversdale Mining Ltd after announcing its shareholding in the target had passed 50 percent in its $3.9 billion takeover bid.

SDL – Sundance Resources has put a $US4.6 billion development cost on its Mbalam iron ore project in central West Africa.

TLS – Telstra has priced a $US1 billion bond issue in the US, the proceeds of which will be used for general corporate purposes and to refinance existing debt.

WPL – Shares in Woodside Petroleum, Australia’s second biggest oil and gas producer, fell after BHP said it was not aware of any basis for market speculation that the miner was in talks with Shell to buy its 24% stake and instigate a full $46 billion takeover bid for Woodside.
 

Local Corporate Reporting

Macquarie Atlas Roads (MAQ)  Full year 2010 AGM
Energy Resources of Australia (EAR) Q1 2011 operations review

Ex-dividend Date

KRS – Kresta Holdings (0.5 cents)

Market Summary

ASX – to open lower
US & UK/Europe – EU lower, US lower

US ADRs – Broadly Lower

BHP up 1.3% & RIO down -0.2%; AWC down -1.1%
ANZ up 0.2% & NAB up 0.1%
NEM  down -1.8%, JHX down -4.0%, NWS up 0.2%

Commodities Stock Index down -1.8%
Gold Stocks Index down -2.7%
Oil Stocks Index down 2.1% 

By Michael Hevern
Head of Research

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Stock Market Analysis: Markets Head Back to Pre-Tsunami Levels

Friday, March 25th, 2011

*  U.S. stock markets gained overnight, led by technology.
*  European markets rose sharply overnight, led by gains for U.K. retailers and German automobile makers, despite Portugal facing a bailout.
*  Asian markets ended mostly higher yesterday, led by materials stocks as commodities prices surged.
*  Commodities were sharply higher, as copper, gold and crude oil prices again traded higher. 

The SPI Futures is trading above the key pivot level of 4650, closing up 0.6% (or 28 pts) at 4,750.  The key levels for our index for today 4800 and 4700.  

The ASX is set to trade higher today.  We had positive leads from overseas markets as Japanese authorities are reportedly making slow progress on closing down damaged nuclear plants. 

Overseas investors again pushed commodities prices higher overnight with mining stocks also rising.  Investors still need to monitor the geopolitical unrest in the Middle East and North Africa, as the Japanese nuclear crisis remains under control and the European sovereign debt concerns persist.

U.S. Markets

U.S. stock markets gained overnight, led by technology stocks as investors looked past the deepening European sovereign debt crisis and the geopolitical worries.  Traders focused on the progress of the U.S. economic recovery and corporate earnings, rather than the worsening debt crisis in Portugal.  

Technology stocks boosted all three major indices on the back of encouraging earnings and forecasts. The U.S. markets are now back at their levels before the Japanese earthquake and tsunami.  Micron Technology, the semiconductor company, climbed 8.4% after reporting a better-than-expected 15% jump in fiscal 2Q revenue and said it is still assessing the impact of the Japanese earthquake and tsunami.  Computer company Dell also rose 0.4%, after reporting it has not seen any material disruption to its supply chain because of the earthquake.  Red Hat, a provider of open-source software, surged 18% after its fiscal 4Q profit jumped 43%, as its revenue benefited from record bookings and billings.  Telecoms remained positive with AT&T up 1.4% after an upgrade, citing its proposed acquisition of T-Mobile USA would make it a leading wireless carrier. 

In economic news the data was mixed as initial jobless claims unexpectedly fell by 5,000 to 382,000 last week, encouraging investors. Conversely the Commerce Department said durable-goods orders fell -0.6% last month, worst than the expected 1.5% gain. 

Gold prices spiked to record levels but finished well off the highs.  Crude oil prices spiked above $US106, but settled at $US105.44 a barrel, as coalition forces bombed targets of the Libyan regime on the Mediterranean coast and deep inland. 

The Dow closed up 0.7% (or 84 points) at 12,170, while in the broader market the S&P 500 index was up 0.9% (or 12 points) at 1,309 and the tech-heavy Nasdaq ended up 1.4% (or 38 points) at 2,736.

All of the 10 company groups that make up the S&P index traded higher, with outperformers including Consumer Staples up 1.5%, Industrials up 1.1%, Financials up 0.5%, Materials up 0.4%, while the Energy sector was up 0.3%. 

European Markets

European markets rose sharply overnight, led by gains for U.K. retailers and German car makers, while investors largely shrugged off news from Portugal. The Stoxx Europe 600 index gained 1%. 

The deepening political debt crisis in Portugal was ignored by investors.  Portugal’s parliament rejected new government austerity plans on Wednesday,  and the PM resigned, increasing the likelihood that they will likely have to request financial assistance to meet their obligations, just like Greece and Ireland before them.  The Portuguese market rose 1% as Portugal’s rejection of austerity measures came as European Union leaders convened overnight for a summit on tackling the debt crisis. 

Traders chose to focus on the good news from the U.S. recovery and corporate news.  The Euro strengthened as the prospect of interest-rate rises from the European Central Bank (ECB) continued to provide support for the currency. 

In the U.K. the FTSE 100 index rose as Kingfisher PLC rallied 7.2% after the home-improvement retailer increased its  dividend and set out ambitious growth plans,  while Next PLC the clothing retailer rose 4%, after the company reported a 10% increase in full-year profit.  In Germany, the market rose, as car manufacturers stocks cintinued to recover from earlier sell-offs as BMW gained 4.2%, while Daimler rose 3.5%.

In London the FTSE 100 index closed up 1.5% (or 85 points) at 5,796, the German DAX was up 1.9% (or 129 points) at 6,933, while in France the CAC was up 1.4% (or 55 points) at 3,968.

Asian Markets

Asian markets ended mostly higher yesterday as solid gains in commodity prices pushed the miners higher.  Investors put aside concerns over the geopolitical worries in the Mideast and North Africa, along with the concerns over sovereign debt in the euro zone.

Japanese stocks ended with modest losses.  There is still uncertainty over the stability of the Fukushima Daiichi nuclear power complex and worries about the economic impact from the earthquake and tsunami triggered a decline in several manufacturers.  The South Korean Kospi added 1.2%. 

The Hang Seng index rose and the Chinese market was flat.  Stocks in the resource sector jumped in the region after gold prices hit a record high and copper prices surged, with energy shares also rising as NYMEX crudeoil prices stayed above $US105 a barrel.

In China the SSE Composite closed down -0.1% (or -2 points) at 3,087, while in Hong Kong the Hang Seng Index was up 0.4% (or 90 points) at 22,915 and in Japan the Nikkei 225 Index was down -0.2% (or -14 points) at 9,435.

Commodities

The Dollar Index was lower at 75.68 on a higher Euro, while the Australian Dollar last traded above parity at 101.06. Commodities were sharply higher.

For the session the Benchmark crude NYMEX for April delivery was down -0.1% (or -$US0.15) to settle at $US105.44.  Copper prices are around 2-year highs. Copper for April delivery was down -0.1% (or -0.5 cents) at $US4.4200.  April gold was down -0.2% (or -$US3.10) at $US1,439.50.

ASX Market News

BKW – Brickworks is expecting a “steady” year ahead, after wet weather and cyclones on the east coast wieghed on the group’s 1H11 building products result.

Banks – The federal government’s long awaited crackdown on price signalling by the big banks has been introduced into parliament.

CYX – Caltex Australia said refining margins had contracted and eroded earnings, as crude oil prices rose.

GNC – The ACCC has given preliminary approval to current access arrangements for bulk wheat exports at ports operated by grains marketer GrainCorp, with some modifications.

LEI – Leighton Holdings the world’s largest contract miner has won two new gold mining contracts worth $317 million.

PRY – Primary Health Care, the medical services company, has blamed Queensland’s natural disasters for another downgrade to its earnings guidance.

QAN – Qantas Airways Ltd says it will increase fares for domestic, regional and trans-Tasman flights for the second time since February due to higher fuel prices.

RIO – Rio Tinto Ltd says acceptances for its $4 billion takeover offer for coking coal developer Riversdale mining Ltd has risen to 37.25 per cent.

SOL – Washington H Soul Pattinson Ltd says net profit more than doubled in fiscal 2011 after the investment firm benefitted from New Hope Corporation Ltd’s sale of a stake in Arrow Energy Ltd.

TLS – The future fund is no longer a substantial shareholder of Telstra. 

WAN – Kerry Stokes says printed newspapers could be gone in as little as ten years after evolving online news reports incorporate TV broadcasts.

WBC – Westpac Bank Australia’s second biggest lender, has had a solid start to the year with good margins, and says the quality of its lending assets is improving.


Local Corporate Reporting 
* None
 
Ex-dividend Date
 
APZ – Aspen Group (1.05 cents)
ASZ – ASG Group Limited (2 cents)
AYF – Australian Enhanced (12.5 cents)
CAB – Cabcharge Australia (10 cents)
CMG – Chandler Macleod Ltd (0.8 cents)
EPX – Ethane Pipeline (3.97 cents)
SNO – Snowball Group (1.5 cents)
 

Market Summary    


ASX – to open higher
US & UK/Europe – higher 
 
US ADRs –  Broadly higher
 
BHP up 1.4% & RIO up  ; AWC up 3.3%
ANZ up 1.9% & NAB up 1.1%
NEM  down 0.6%, JHX up 3.6%, NWS up 1.0%
 
Commodities Stock Index up 0.3%
Gold Stocks Index up 0.5%
Oil Stocks Index up 0.6%

 

By Michael Hevern
Head of Research
 

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Stock Market Analysis: Markets Down on Escalating Middle East Unrest

Wednesday, March 2nd, 2011

*  US markets pulled back overnight.  Investors got the jitters after construction spending dropped to its lowest level in 10 years and the Fed expressed concerns over the spike in oil prices.
*  European markets ended lower with losses led by financial and energy companies.
*  Asian markets advanced yesterday, but are set to fall today in line with U.S. and European world markets.
*  Commodities were generally higher. Crude oil prices spiked again.
* Locally the RBA left rates on hold as expected.

The SPI Futures is trading below the key level of 4850, and closed down -1.2% (or -58 pts) at 4,767.  The key levels for our index today are 4820 and 4730. M&A activity continues to drive specific stocks. 

The ASX is set to trade sharply lower today, as we had negative leads from overseas markets.  Expect the market to be broadly lower, but gold stocks should see some support. Investors need to continue monitoring the escalating unrest in the Middle East and North Africa, and possible tensions in the Korean Peninsular. 

See below for ASX listed companies in the news today.

Economics News Today

*  GDP for the Quarter.

U.S. Markets

U.S. markets pulled back overnight.  Investors got the jitters after construction spending dropped to its lowest level in 10 years and Fed Reserve Chairman Ben Bernanke said rising oil prices could hurt the economic recovery.  The Fed Chairman said a prolonged increase in crude prices could pose a risk to the recovery, but fell short of predicting a sustained increase in inflation. Bernanke also noted that the unemployment rate will remain above 9 percent for the foreseeable future.

Crude oil prices surged 13 percent last week as a result of the unrest in the Middle East and North Africa, and overnight prices jumped over $3 to $US100 a barrel as Iran clamped down on anti-government protesters.  

In economic news the Department of Commerce reported that builders began work on fewer homes, offices and commercial projects in January.

As February came to a close all three major U.S. stock indexes ended the month higher, marking their third consecutive month of gains. The S&P 500 index has had its best start of any year since 1998.  A note from CNBC says if history is any guide the markets will end higher this year. History suggests that when both January and February have gains, then there is a 96 percent chance of gains for the full year.

The Dow closed up 0.8% (or 96 points) at 12,226, while in the broader market the S&P 500 index was up 0.6% (or 7 points) at 1,327 and the tech-heavy Nasdaq ended up 0.01% (or 1 points) at 2,782. The S&P 500 held below key support at 1324. 1275 is the next target.

Sectors that make up the S&P index sold off, with underperformers including Materials down -2.5%, Financials and Industrials down over -2.1%, Energy and Consumer Staples down over -1.9%, and Healthcare down -0.8%.

European Markets

European markets ended lower overnight, with losses led by financial and energy companies.  The Stoxx Europe 600 index fell 0.6%, as unrest in the Middle East continued to weigh on economic growth expectations, particlarly if crude oil prices remain at these elevated levels for an extended period. 

The European sell-off came as investors worried over the spread of unrest in the Middle East and North Africa.  Stocks in Saudi Arabia ended the session sharply lower and oil prices pushed higher.

Most European lenders were lower, with stocks like Spain’s Banco Santander down -1.7%.  Among energy stocks that sold off were Total SA, down -2.1% in Paris, and Eni SpA down -1.1% in Milan as worries about production continued to weigh on the sector. 

In London the FTSE 100 index fell below 6000, as shares of HSBC Holdings PLC fell 3% after a UBS downgrade to neutral from a buy.  In Germany the market was lower, but shares in BMW rose 1.5% after data showed German new car registrations jumped 15% in February.

In London the FTSE 100 index closed down -1.0% (or -58 points) at 5,935, the German DAX was down -0.7% (or -49 points) at 7,223, while in France the CAC was up 1.1% (or -43 points) at 4,067.

Asian Markets

Asian markets advanced yesterday, but are set to fall today in line with U.S. and European world markets. 

In China the Shanghai Composite rose as did the Hong Kong market, after data from two separate surveys showed Chinese PMI manufacturing activity continued to expand in February.  Two manufacturing indices also showed a slowdown in economic activity, the data was offest by figures showing input prices rose for the third month in a row, adding to inflation.  The Chinese official manufacturing PMI slowed to 52.2 in February (from 52.9), while the HSBC PMI for February fell to 51.7 (from 54.5).  This data is confirming that the Chinese tightening measures are begining to have an effect. 

The Indian market jumped 3.5% extending gains from Tuesday, as the government forecast that the economy could grow 9 percent in the next financial year. Indian auto companies, including Tata Motors up 5.5%, led the gains after the federal budget released on Monday did not raise excise duties and as February sales increased.

In China the SSE Composite closed up 0.5% (or 14 points) at 2,919, while in Hong Kong the Hang Seng Index was up 0.3% (or 58 points) at 23,396 and in Japan the Nikkei 225 Index was up 1.2% (or 130 points) at 10,754.

Commodities

The Dollar Index was higher at 77.02 on a lower Euro, while the Australian Dollar last traded above parity at 101.32.  Commodities were general higher.

For the session the Benchmark crude NYMEX for December delivery was up 3.7% (or $US3.60) to settle at $US100.57.  Copper prices back at 2-year highs. Copper for December delivery was down -0.7% (or -0.31 cents) at $US4.447.  April gold was up 1.5% (or $US21.40) at $US1,434.40.

ASX Market News

ASX – The ASX is still investigating the problem behind the disruption to trade on Monday.
AMP – The government has approved the $13 billion merger proposal with fellow wealth fund manager AXA Asia Pacific Holdings, on the eve of a shareholder vote to approve the plan.

CBA – Commonwealth Bank shares are likely to sell-off, after customers were able to withdraw more money than was in their account yesterday.

CSE – Copper Strike’s plan to develop its key project in Queensland in a JV with Chinese investors does not have the backing of the explorer’s largest shareholder, Kagara.
CNP – Centro Properties Group will sell all its U.S. assets and look to merge all Centro properties into one fund as part of a restructure aimed at returning value to shareholders.

CRG – A member of the Crane family has called for Crane Group shareholders to reject the $700 million plus takeover offer from NZ company Fletcher Building Ltd.

CXY – Cougar Energy will challenge a state ruling that shut down its underground coal gasification (UCG) activities.

FMG – Fortescue Metals Group Ltd has made a new infrared discovery of 1.03 billion tonnes of high-grade Brockman iron ore in WA’s Pilbara region.

GFF – Goodman Fielder expects its FY11 normalised earnings will be similar to the prior year given the impact of various natural disasters and an uncertain trading environment.

MMX – Murchison Metals is in a trading halt as the miner waits to see whether the Western Australian government will grant an extension to its stalled Oakajee port and rail development.

NMS – Neptune Marine Services Ltd has angered investors by proposing a dilution of their shareholdings via a capital raising
of up to $80.6 million under plans to return the ailing company to growth.

QBE – QBE Insurance Group has posted a 17 percent drop in FY11 net profit but expects a higher insurance profit margin in 2011.

QRN – QR National, the rail operator, expects coal haulage to be further reduced for the rest of the financial year as a result of recent floods and Cyclone Yasi in Queensland.

RMS – Ramelius Resources Ltd the gold miner, has tripled its 1H11 net profit and quadrupled its revenue from gold sales.


Local Corporate Reporting 

 
GBG – Gindalbie Metals Ltd
 
Ex-dividend Date
 
BKL – Blackmores Ltd
CGR – Careers Multilist
CTX – Caltex Australia Ltd
EMI – Emerging Leaders Inv
GLG – Gerard Lighting
GPT – GPT Group
MSF – Maryborough Sugar
QUB – Qube Logistics
RIO – Rio Tinto Limited
SKI – Spark Infrastructure
TTS – Tatts Group Ltd
 

 

Market Summary    

ASX – to open sharply lower
US & UK/Europe –lower
 
US ADRs –  Broadly Lower
 
BHP down -1.4% & RIO down ; AWC down -1.3%
ANZ down -2.7% & NAB down -2.6%
NEM  up 1.5%, JHX down -3.5%, NWS down -1.9%
 
Commodities Stock Index down -1.6%
Gold Stocks Index up 1.1%
Oil Stocks Index down 1.6%

 

By Michael Hevern
Head of Research

 

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