Posts Tagged ‘stock market’

    • Stock Market Analysis: Weekly Market Wrap

    Friday, April 1st, 2011

    Positive End to a Volatile Quarter

    As we’ve noted in this week’s Analyst’s Eye, world markets have faced some substantial hurdles this quarter, but investors have continued to put the chaos to the side and focus instead on growth.

    Australian Market

    The ASX All Ordinaries and the S&P/ASX 200 are now trading above their 50-day moving averages and are moving into a key resistance level having found support off their 200-day moving averages last week. The indices have now recovered to pre-Japanese disaster levels. Next week we expect to see some consolidation, which would be healthy if the market is to push to new YTD highs.

    US Markets

    US stock markets rose again this week, as investors looked past the deepening European sovereign debt crisis and the geopolitical worries. Traders focused on the progress of the US economic recovery and corporate earnings front, rather than the worsening debt crisis in Portugal. The US markets are now back at the levels they were at before the Japanese earthquake and tsunami. Telecom stocks have been a focus, due to continued optimism about consolidation in the industry after AT&T bid for Deutsche Telekom T-Mobile USA, to create the country’s largest phone carrier. Energy stocks were also strong as oil again edged up towards $US106 a barrel.

    US markets have closed off their best March quarter since 1999 and finished just below their peaks from the bull run in play since the turnaround from the GFC early in 2009. Gains were led by the energy, materials and industrial sectors, while the consumer-discretionary and financial sectors fell. Investors remain cautious ahead of the monthly payrolls report tonight, where we are expecting to see a March increase of 195,000 jobs, but the market has already factored in a good report.

    US markets have outperformed for the quarter due to growing optimism that the US economic recovery is strengthening, despite overseas disasters and geopolitical turmoil in the Middle East and North Africa. For the first quarter of the year the Dow Jones is up 6.4%, while the S&P 500 ended up 5.4% and the tech-heavy Nasdaq is up 4.8%. Market performance has been volatile for the quarter having slipped into the negative early this month due to concerns over the earthquake and tsunami destruction in Japan, and the conflicts in the Middle East and North Africa briefly sent the markets down over 6%.

    Overnight the Dow closed down -0.3% at 12,319, while in the broader market the S&P 500 index finished down -0.2% at 1,325 and the tech-heavy Nasdaq ended up 0.2% at 2,781.

    European Markets

    European markets continued to recover this week. Financials have weighed on the markets, initially as Portugal looked set to need a bailout, and then as Irish banks underwent stress tests, which resulted in four banks needing to raise EUR24 billion in order to meet new capital requirements. Germany continues to outperform in the region.

    The German and UK markets have had a volatile quarter with the DAX and FTSE selling off -13% and -8.5% respectively, from their year-to-date peaks after the Japanese disaster. Both markets have since recovered strongly with the DAX up 5.8% and the FTSE 100 flat for the quarter.

    Overnight in London the FTSE 100 closed down -0.2% at 5,908, the German DAX was down -0.2% at 7,041, while in France the CAC was down -0.9% at 3,989.

    Asian Markets

    Asian markets generally ended higher this week, though trading volumes were down due to caution ahead of the release of the key US Non-farm payroll report. Japanese stocks have recovered from early losses as the weaker yen and optimism about post-tsunami reconstruction boosted investor sentiment. The Chinese press reported that the Chinese March CPI will likely exceed 5%, and the central bank could raise interest rates around April or towards the middle of the year to help bring prices down. Material companies have been under pressure and banks were also weaker.

    Asian markets avoided the volatility of other global markets, except for Japan, which was down 25% directly after their disaster. The Chinese market outperformed for the quarter, up 4%, while the Hong Kong market rose 2.1%, the South Korean market ended up 2.7%, and the Japanese market rebounded strongly from the lows of the quarter to end down -4.1%.

    In China the SSE Composite closed down -0.9% at 2,928, while in Hong Kong the Hang Seng Index was up 0.3% at 23,527 and in Japan the Nikkei 225 Index was up 0.5% at 9,755.

    Our View

    The S&P/ASX 200 index looks set to consolidate recent gains near-term as we have now ruled off the quarter. We will see some reallocation of funds early in the week. Investors need to continue to monitor inflation news, the Japanese nuclear crisis and the geopolitical issues in the Middle East.

    The S&P/ASX 200 is currently trading at 4865, having broken through its key level around 4800. The focus near-term will be on the US unemployment report, the Aussie dollar and commodities prices, particularly crude oil. Key levels for the index next week will be 4720 to 4930.

    Investors can apply protection through options to hedge their long positions near-term.

    By Michael Hevern
    Head of Research

    Post to Twitter

    Tags: , , , , , , , , , ,
    Posted in Stock Market Analysis, Trader Dealer News | No Comments

    Stock Market Analysis: Markets Consolidate Ahead of Busy News Week

    Tuesday, March 29th, 2011

    *  U.S. stock markets sold-off late in the session with light volumes, as the financial and material sectors fell to join consumer and tech stocks in the red.
    *  European stock markets finished mixed overnight, consolidating the gains of last week.
    *  Asian markets also ended mixed yesterday.  Japanese shares fell as high levels of radioactivity hindered work at the nuclear plant.
    *  Copper, gold and crude oil prices all traded lower.

    The SPI Futures is trading around the key weekly pivot level of 4750, closing up 0.1% (or 4 pts) at 4,758.  The key levels for our index this week 4700 and 4800.   The ASX is set to trade lower today as we move to finish off the quarter.

    We had negative leads from overseas markets last overnight.  Overseas investors pushed mining, financial and consumer-related stocks lower.  There is plenty of economic data due for release this week that will impact our market including the Chinese PMI data and the U.S. non-farm unemployment report. 

    Investors still need to monitor the geopolitical unrest in the Middle East and North Africa, the Japanese nuclear crisis and European sovereign debt concerns.  Investors should also monitor the Aussie dollar which has again reached it highest levels since 1982 (post-float).

    See below for ASX companies in the news today.

    Economics News Today

    *   RBA assistant governor Malcolm Edey will speak at the Cards and Payments Australasia 2011 Conference.
    *   The Housing Industry Association is due to release new home sales data for January.

    U.S. Markets

    U.S. stock markets sold-off late in the session with light volumes, as the financial and materials sectors fell to join consumer and tech stocks in the red.  Concerns over Japan came after news that dangerous levels of radiation were detected in water puddles outside the stricken nuclear reactor, which have set back efforts to restore cooling systems at the plant. 

    In economic news the Department of Commerce said consumer spending rose 0.7% last month, its fastest pace in four months, though part of the increase was driven by higher fuel prices. The National Association of Realtors said more Americans signed contracts to buy homes in February – up 2.1%, more than economists were expecting. Sales rose in every region but the north east.

    Crude oil prices fell as Libyan rebels retook control of key port towns Ras Lanouf and Brega and said they would resume exporting crude in the coming weeks.  Gold futures locked in their third consecutive decline after stronger-than-expected U.S. consumer spending data set a negative tone for traders. 

    There is still plenty of data due out this week including the crucial Non-Farm jobs report and manufacturing surveys, also the end-of-quarter. 

    The Dow closed up 0.4% (or 50 points) at 12,220, while in the broader market the S&P 500 index was up 0.3% (or 4 points) at 1,314 and the tech-heavy Nasdaq ended up 0.2% (or 6 points) at 2,743.

    All of the 10 company groups that make up the S&P index traded lower, with under-performers including Consumer Staples down -1.1%, Financials down -0.3%, Materials down -0.5%, Energy down -0.2%, and Industrials down -0.1%.

    European Markets

    European stock markets finished mixed overnight, consolidating the gains of last week.  The Stoxx Europe 600 index closed flat having risen 3.1% last week. 

    Telecom equipment stocks rose as Goldman Sachs recommended buying Alcatel-Lucent (which rose 8%) and Nokia Corp (up 3.6%).  The euro rose against the US dollar following comments from ECB President Jean-Claude Trichet that reinforced expectations the ECB will raise interest rates as soon as next month. There are still ongoing worries about a potential bailout of Portugal, question marks hovering over Irish banks and German Chancellor Angela Merkel’s political issues. 

    In London, the FTSE 100 index of leading shares ended flat.  In Germany, the market closed flat as automobile stocks sold-off again, while alternative energy companies rallied after the German Green Party made strong gains in a state election on the weekend – bad for nuclear proponents.

    In London the FTSE 100 index closed up 0.1% (or 4 points) at 5,904, the German DAX was down -0.1% (or -8 points) at 6,938, while in France the CAC was up 0.1% (or 5 points) at 3,976.

    Asian Markets

    Asian markets ended mixed yesterday.  Japanese shares fell as high levels of radioactivity hindered work to control the nuclear fallout from the damaged Fukushima Daiichi power facility, prompting concerns that the resolution of the problems will take months rather than weeks.  Shares in Tokyo Electric Power Co. (Tepco), the owner of the stricken nuclear plant, plunged another 18% to take its losses so far in March to more than 67%.  Exporters also declined, finding little support despite a weakened yen.

    Chinese stocks advanced, led by the Chinese banks on expectations for strong earnings from five major banks due to release their annual reports this week. Hong Kong stocks, however, lost ground after some earnings reports fell short of estimates.  China Construction Bank Corp. and refining giant China Petroleum & Chemical Corp. shares lost over 2% after they both reported 2010 earnings that missed some analyst expectations.  The South Korean Kospi closed flat, while the Indian Sensex rose 0.7%.

    In China the SSE Composite closed up 0.2% (or 6 points) at 3,124, while in Hong Kong the Hang Seng Index was down -0.3% (or -90 points) at 23,068 and in Japan the Nikkei 225 Index was down -0.6% (or -57 points) at 9,478.

    Commodities

    The Dollar Index was lower at 76.16 on a higher Euro, while the Australian Dollar last traded above parity at 102.41 Commodities were generally lower.

    For the session the Benchmark crude NYMEX for April delivery was down -1.5% (or -$US1.60) to settle at $US103.81.  Copper prices remain around 2-year highs, although copper for April delivery was down -1.7% (or -7.4 cents) at $US4.3345.  April gold was down -0.4% (or -$US6.30) at $US1,415.60.

    ASX Market News

    ACC – Australian Agricultural Company Ltd is buying about 53,000 head of branded cattle for $26 million from the Tipperary Group (TG).

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

    GRK – GreenRock Energy says it has “encouraging” results from temperature logging at its joint venture geothermal heat project with BHP in the Collie Basin, south of Perth.

    IOF – ING Real Estate Investment Management (ING) has transferred the management of the ING Office Fund (IOF) to Investa Property Group and has sold Investa a 2.5 per cent stake in the fund.

    LYC – Lynas Corporation the rare earths explorer says its $20.7 million deal to sub-lease two assets to fellow explorer Forge Resources Ltd has been declared fair by an independent expert.

    MTS -  the ACCC continues its bid to prevent Metcash Ltd’s $215 million takeover of Franklins.

    NUF – NuFarm, the agricultural chemicals supplier, says it expects an improved result as its earnings prospects for the rest of its 2011 financial year depend upon factors outside its control.

    PLA – Platinum miners operating in Zimbabwe and South Africa (AQP, NKP, PLA & ZIM) have been sold off due to political concerns in those countries.

    RIO – Rio Tinto is short of its target of at least 50 per cent of shares in coal miner Riversdale Mining Ltd and looks set to take a minority role.

    SIP – Sigma Pharmaceutical Ltd has almost halved its full year net loss after announcing in December that a major supplier had withdrawn.

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

    TSV – Transerv Energy will start to start drill in a fortnight at its Warro onshore gas project, a JV with Alcoa 200km north of Perth

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

    WES – Wesfarmers Ltd is buying Christchurch-based insurance broker Fraser Macandrew Ryan Ltd (FMR Risk) in a bid to become the leading insurance brokerage in NZ.


    Local Corporate Reporting     
    Nufarm Limited (NUF)        Interim 2011 Results briefing
    Hastie Group Ltd (HST)     Interim 2011 Results 
    Ex-dividend Date
     
    AVJ – AVJennings Limited (1 cents)
    CCQ – Contango Capital (2.5 cents)
    PPC – Peet Limited (4 cents)
     

    Market Summary    


    ASX – to open flat
    US & UK/Europe – Consolidate
     
    US ADRs –  Broadly Lower
     
    BHP down -0.1% & RIO down  ; AWC down -2.4%
    ANZ down -0.4% & NAB down -0.8%
    NEM  down -1.3%, JHX down -0.3%, NWS up 0.1%
     
    Commodities Stock Index down -0.1%
    Gold Stocks Index down -1.6%
    Oil Stocks Index down -0.7%

     

    By Michael Hevern
    Head of Research

    Post to Twitter

    Tags: , , , , , , , , , , ,
    Posted in Morning Wrap, Stock Market Analysis | No Comments

    Stock Market Analysis: Global Growth Trumps Global Chaos

    Friday, March 25th, 2011

    Globally stock markets have rebounded strongly this week as bargain hunters stepped into the stocks that had been sold-off heavily following the Japanese earthquake and tsunami. Many world markets are now back at pre-earthquake levels.

    Chaos? What chaos? Investors have chosen to ignore the geopolitical unrest in the Middle East and North Africa, the Portuguese sovereign debt issues and the Japanese nuclear crisis, and have instead concentrated on the positive reports about global economic growth remaining intact. The troubles at the Fukushima Daiichi nuclear plant are yet to be resolved however, with fears of radiation contamination still front of mind for Japanese civilians. Across the region energy stocks jumped higher as crude oil futures climbed after the UN Security Council approved a no-fly zone over Libya and authorised “all necessary measures” to protect civilians in the nation.

    Commodities continued their recovery and metal prices are back at record levels, as traders viewed the rebuilding in Japan as yet another factor that will push demand in the foreseeable future. April NYMEX crude oil futures remain above $US105 a barrel, due to the potential for disruptions to supplies, while the gold price is back at record levels and is trading around $US1,440.

    Also providing positive momentum near-term is the impending end-of-quarter, which is encouraging fund managers to deploy capital in order to match/beat benchmark performances.

    Australian Market

    The ASX All Ordinaries and the S&P/ASX 200 are trading below their 50-day moving averages, having found support around their 200-day moving averages last week. The indices have recovered 50 percent of their falls from the February peak. The recent sell-off in the miners has provided trading opportunities in our resource stocks, while the financials have been trying to find support at current levels. Next week we have the end-of-quarter which should be positive for stocks.

    US Markets

    US markets bounced this week, led by energy, mining and technology stocks. Traders focused on the progress of the US economic recovery and corporate earnings, rather than the worsening debt crisis in Portugal or geopolitical unrest.

    Overnight the Dow closed up 1.3% at 11,678, while in the broader market the S&P 500 index was up 1.3% at 1,274 and the tech-heavy Nasdaq ended up 0.7% at 2,642. The S&P 500 has broken above the 1,300 level.

    European Markets

    European markets have recovered, bouncing off their 200-day moving averages where they found support near-term. The key markets have now recovered 50 percent of their falls from the February peak. The main European news for the week has been the EU/IMF bailout that Portugal is likely to need near-term, having now voted down austerity plans. European Union leaders are convening overnight for a summit on tackling the debt crisis.

    M&A activity in the Telcoms sector has also boosted sentiment in the region during the week, and mining and energy stocks have been the beneficiaries of rising commodities prices.

    Overnight in London the FTSE 100 index closed up 1.5% at 5,796, the German DAX was up 1.9% at 6,933, while in France the CAC was up 1.4% at 3,968.

    Asian Markets

    Asian markets have recovered this week on news that the Japanese currency interventions were to be backed by the G-7, which helped to relieve investor worries over the Japanese economy. Investor optimism over progress in resolving the Japanese nuclear crisis also helped sentiment, with investors looking past the disaster and seeking companies that will participate in the country’s massive rebuild. Traders chose to ignore the heightened geopolitical concerns in the Middle East and North Africa, which have driven energy stocks higher as crude oil prices continue to rise. The South Korean market jumped higher, while Hong Kong and Chinese markets have traded relatively flat for the week.

    Yesterday in China the SSE Composite closed down -0.1% at 3,087, while in Hong Kong the Hang Seng Index was up 0.4% at 22,915 and in Japan the Nikkei 225 Index was down -0.2% at 9,435.

    Our View

    The S&P/ASX 200 index looks set to hold on to gains as we trade into the end-of-quarter next week. Investors need to continue to monitor the Japanese nuclear crisis and the geopolitical issues in the Middle East.

    The S&P/ASX 200 is currently trading at 4750, having broken through its key pivot level around 4700. The focus is now on the end-of-quarter and commodities prices. Key levels for the index next week will be 4650 to 4830.

    Investors can to use protection through options to hedge their long positions near-term. The fear that global assets will need to be sold-off to repatriate funds to pay for the rebuilding in Japan has still yet to be realised.

    By Michael Hevern
    Head of Research

    Post to Twitter

    Tags: , , , , , , , , , , , ,
    Posted in ASX Trading News | No Comments

    Stock Market Analysis: Markets Rise on M&A Activity and Energy Prices

    Tuesday, March 22nd, 2011

    *  U.S. markets closed higher for a third consecutive session, led by energy and telco sectors.
    *  European markets closed higher with strong gains overnight, also led by the telecommunications sector.
    *  Asian markets rose on optimism over progress in resolving the Japanese nuclear crisis.
    *  Commodities were generally higher, as Gold and Crude oil prices again jumped higher.

    The SPI Futures is trading above the key pivot level of 4650, and closed up 0.6% (or 30 pts) at 4,694.  The key levels for our index for today 4750 and 4650.

    The ASX is set to jump higher today.  We had positive leads from overseas markets as Japanese authorities are reportedly making progress on closing down damaged nuclear plants.  Overseas investors are choosing to ignore the geoplotical unrest in the Middle East and North Africa, as the Japanese nuclear crisis remains under control, and the sell-off is seen as a “buy opportunity”.

    U.S. Markets

    U.S. markets closed higher for a third consecutive session, led by the energy and telecommunication sectors, as investors grow more confident in the domestic economy amid overseas turmoil.

    The Dow Jones climbed back above 12000, boosted by a major telecommunications deal and energy stocks as crude oil prices rose.  The S&P 500 stock index climbed to just below 1,300 led by its energy sector. Crude oil prices settled higher around $US102 a barrel as conflict in Libya escalated, with the U.S. and its allies launching new missile strikes.  The Nasdaq Composite rose in its biggest one-day gain since early March.

    Telecom stocks rose on M&A activity as AT&T, the U.S’s largest wireless carrier, rose 1.2%, after saying it was buying T-Mobile USA from Deutsche Telekom for $US39 billion in cash and stock.  Financials also strengthened again after the U.S. Treasury Department said it plans to start selling off the $US142 billion portfolio of agency-guaranteed mortgage-backed securities it purchased during the GFC.

    Sentiment was also boosted by comments from Warren Buffett who said that Berkshire Hathaway is seeking further acquisitions and that he believes the Japanese earthquake creates a buying opportunity.  Investors have gained confidence as Japanese authorities appears to have averted a a nuclear disaster.  The U.S. dollar strengthened modestly against the yen, but weakened against the euro.

    In economic news, sales of previously occupied homes in the U.S. sank by 9.6% to a seasonally adjusted annual rate of 4.88 million in February and prices fell to the lowest level in nearly nine years, this compares with estimates of a decline of 3.9%.

    The Dow closed up 1.3% (or 156 points) at 12,014, while in the broader market the S&P 500 index was up 1.4% (or 18 points) at 1,297 and the tech-heavy Nasdaq ended up 1.8% (or 48 points) at 2,692.

    All 10 company groups that make up the S&P index traded higher, with outperformers including Energy, up 3.1%, Industrials up 2.2%, Materials up 1.7%, Consumer Discretionary up 1.2%, and Financials up 0.4%.

    European Markets

    European markets closed higher with strong gains overnight, led by the telecoms sector, which rallied on news that Deutsche Telekom AG will sell its T-Mobile USA unit to AT&T Inc.  The Stoxx Europe 600 index gained 1.8% to give its biggest 3-day gain since July, and partially bouncing back from the -2.8% loss last week, its worst weekly performance since early July.  Investors are choosing to ignore the risk of further unrest in the Middle East and the Japanese disaster.

    In Germany the market jumped higher driven by telecoms, as shares of Deutsche Telekom rose 11%.  Further M&A news pushed shares of Dutch bank ING Groep up 3.6% on reports that General Electric Co. is among the companies that have expressed interest in a merger with or takeover of ING’s U.S. online bank.

    In London the FTSE 100 index rose for a third day, helped by broker upgrades for Rolls-Royce Group PLC and Weir Group PLC.

    In London the FTSE 100 index closed up 1.2% (or 68 points) at 5,786, the German DAX was up 2.3% (or 151 points) at 6,816, while in France the CAC was up 2.5% (or 94 points) at 3,904.

    Asian Markets

    Asian markets rose on optimism over progress in resolving the Japanese nuclear crisis.  Investors chose to ignore the heightened geopolitical concerns in the Middle East and North Africa, which has driven energy stocks higher as crude oil prices continue to rise.

    The Japanese market was closed for the Vernal Equinox holiday, and Tokyo Electric Power (Tepco) continued to report progress in restoring order at the Fukushima Daiichi nuclear power plant.

    The South Korean Kospi added 1.1%, while the Indian Sensex fell 0.2%.  Markets rose in China and Hong Kong, as Chinese banks and property developers rose around 1% as investors looked past Friday’s much-anticipated increase in lenders’ reserve requirement ratio of 0.50 percentage point by the People’s Bank of China.

    In China the SSE Composite closed up 0.1% (or 2 points) at 3,046, while in Hong Kong the Hang Seng Index was up 1.7% (or 384 points) at 22,685 and in Japan the Nikkei 225 Index was up 2.7% (or 384 points) at 9,206.

    Commodities

    The Dollar Index was lower at 75.72 on a higher Euro, while the Australian Dollar last traded below parity at 99.61. Commodities were generally higher.

    For the session the Benchmark crude NYMEX for April delivery was up 1.1% (or $US1.05) to settle at $US102.12.  Copper prices are around 2-year highs. Copper for April delivery was down -1.3% (or -5.4 cents) at $US4.2710.  April gold was up 0.7% (or $US10.30) at $US1,430.80.

    ASX Market News

    ANZ – ANZ has updated its strategy for international growth, targeting around 30 percent of its profit to be driven by its divisions in Asia, Europe and the Americas by 2017.


    AMU     – Directors of Amadeus Energy, the junior oil and gas producer, have recommended a $105 million takeover bid by a privately owned US oil and gas group.

    ARU – Arafura Resources says the era of low rare earths prices has passed.

    ASX – Federal Treasurer Wayne Swan says he is not about to reject a proposed merger between the Australian and Singaporean securities exchanges.

    BCI – BC Iron will formally challenge last week’s abandonment of a planned $345 million takeover by its suitor Recent Pacific.

    CCL – Coca-Cola Amatil has signed a new 10-year agreement with Beam Global Spirits and Wine Inc to sell the Beam premium spirits portfolio in Australia.

    FXJ – Brett Clegg has returned to Fairfax Media to lead the Financial Review Group.

    GMG – Moody’s Rating Agency has affirmed the Baa3 issuer and senior unsecured ratings to the Goodman Group and changed the outlook to positive from stable, citing “the progress Goodman has made in de-risking its business model via reduced
    gearing, a more conservative approach”.

    LLC – Lend Lease expects to start work next month on a 70 million pound ($122 million) redevelopment of two secondary schools in south-west London.

    NWS – Britons reportedly overwhelming oppose the planned merger between media giant News Corp and satellite broadcaster BSkyB.

    OAK – Bangkok-based hospitality company Minor International has made a takeover offer for embattled Brisbane company Oaks Hotels and Resorts Ltd.

    ORG – Origin Energy has completed the institutional component of its $2.3 billion equity raising, with a 95 percent take up.

    RIV – Rio Tinto said the takeover offer for Riversdale Mining would be extended by three trading days till the 6th of April.

    U308 – Australian uranium stocks continued higher with ERA, EXT and PDN all higher.


    Local Corporate Reporting
    Hastie Group Ltd (HST)     Interim 2011 Results
    Ex-dividend Date
    WOW – Woolworths Limited (57 cents)
    APE – A.P. Eagers Limited (41 cents)
    VSC – Vita Life Sciences. (0.5 cents)

    Market Summary


    ASX – to open higher
    US & UK/Europe – higher
    US ADRs –  Broadly higher
    BHP up 1.2% & RIO up  ; AWC up 3.1%
    ANZ up 4.3% & NAB up 3.6%
    NEM up 1.6%, JHX up 3.2%, NWS up 3.2%
    Commodities Stock Index up 2.4%
    Gold Stocks Index up 2.4%
    Oil Stocks Index up 2.9%
    By Michael Hevern
    Head of Research

    Post to Twitter

    Tags: , , , , , , , , , , ,
    Posted in Morning Wrap, Stock Market Analysis | No Comments

    Stock Market Analysis: Investors Go Bargain Hunting

    Friday, March 18th, 2011

    *  U.S. markets closed higher for the first time this week, helped by positive economic news on jobs and manufacturing.
    *  European markets rallied yesterday, breaking a 6-session losing streak. Mining and energy stocks led the gains.
    *  Asian markets ended mostly lower yesterday as investors remained nervous, but bargain hunters are set to step in today.
    *  Commodities were sharply higher overnight, as gold and crude oil prices jumped higher.

    The SPI Futures is trading below the key pivot level of 4650, as closed up 0.4% (or 18 pts) at 4,575.  The key levels for our index today are 4650 and 4530.  

    The ASX is set to trade higher today.  We had positive leads from overseas markets as Japanese authorities are reportedly making progress on closing down damaged nuclear plants.  Investors’ focus will remain on the devastation in Japan, the unrest in the Middle East and the European sovereign debt issues, as they go searching for over-sold bargain stocks.

    See below for ASX stocks in the news today.

    U.S. Markets

    U.S. markets closed higher for the first time this week.  Positive economic news on jobs and manufacturing, as well as action from bargain hunters helped push markets higher. Rising commodity and crude oil prices boosted energy and mining stocks, and the efforts to address Japan’s damaged nuclear power plant showed signs of gaining traction which has eased some of the fears over the crisis. 

    The Dow Jones had fallen 3.6% in the first three sessions of the week, but turned around overnight to post its biggest point and percentage gain in 2 weeks.  The Nasdaq and S&P 500 also rose, led by the energy, mining and technology sectors.  Market advances came as Japanese authorities claimed some modest progress in their efforts to address the crisis at the Fukushima Daiichi nuclear power complex by wetting it with over 100 tons of seawater, while radiation levels at the site fell slightly. 

    Energy companies gained as crude oil prices jumped more than 3.5%, settling above $US101 a barrel, as unrest continued in the Middle East and North Africa. The UN Security Council is going to vote on a resolution that would authorise a “No-Fly” zone in Libya.  Natural gas explorers received a boost as the head of the U.S. Energy Information Administration said Japan is likely to turn to LNG to meet its energy needs as it recovers from the earthquake.  Industrials also climbed, as international package shipper FedEx rose after its 4Q earnings target beat analysts’ estimates. 

    In economic news data was mixed:
    * The Philadelphia Federal Reserve manufacturing survey for March showed its best reading since January 1984, well above expectations.
    * The government’s weekly report on the number of U.S. workers filing new claims for unemployment also showed a larger-than-expected drop last week.
    * U.S. consumer prices rose in February at their fastest pace since mid-2009 as energy and food prices continued to move higher. 

    The US dollar plunged against the Japanese yen yesterday but recovered as the day progressed, after a report said the G-7 world leaders of the largest economies will support any Japanese intervention into the currency markets, in an attempt to calm global markets.

    The US dollar also weakened against the euro, which touched its highest level against the dollar since early November.  Gold futures settled slightly higher, while demand for U.S. Treasuries slipped, pushing the yield on the 10-year note up to 3.26%.

    The Dow closed up 1.3% (or 145 points) at 11,678, while in the broader market the S&P 500 index was up 1.3% (or 16 points) at 1,274 and the tech-heavy Nasdaq ended up 0.7% (or 27 points) at 2,642.

    All 10 company groups that make up the S&P index recovered. Energy was up 3.1%, Materials were up 1.8%, Financials were up 1.6%, Industrials were up 1.2%, and the Consumer Staples sector was up 0.5%. 

    European Markets

    European markets rallied yesterday, breaking a 6-session losing streak as investors went shopping for bargains by buying insurers and industrial firms on speculation that many stocks have been oversold in the wake of the Japanese disaster. 

    The Stoxx Europe 600 index gained 1.9%, rebounding from its lowest close since late November.  There are a number of stocks that have been unjustifiably oversold due to the Japanese crisis.  The Group of Seven (G-7) finance leaders and central bank governors will be held today. 

    In London the FTSE rose led by the miners which rose over 3 percent.  In Germany the market rebound was led by industrial groups Heidelberg Cement AG, Siemens AG and Alstom SA which surged over 4.5%.

    The FTSE 100 index closed up 1.7% (or 98 points) at 5,696, the German DAX was up 2.2% (or 143 points) at 6,656, while in France the CAC was up 2.4% (or 89 points) at 3,786.

    Asian Markets

    Asian markets ended mostly lower yesterday. Investors remained nervous as Japan struggled to deal with the earthquake’s aftermath, although hopes that authorities may bring the disintegrating nuclear facility under control helped to trim stock losses. 

    Asian investors are likely to go bargain hunting today in light of overnight market performances.  The Japanese Nikkei Index was down as much as 5% at one point, but pared its losses by the end of the day, though exporters remained weak.  The Japanese stocks recovered as the yen retreated sharply, after the Japanese currency rose to a record high against the U.S. dollar early in Asian trading, due to expectations that the Japanese central bank would intervene to support the dollar and protect the nation’s exporters from the impact of a stronger local currency. 

    Asian stocks and currency markets were sold-off sharply in early trading after remarks from the chairman of the U.S. Nuclear Regulatory Commission, who said the risk of radiation was more serious than Japanese officials had outlined in public.  Fortunately Asian markets recovered as the day progressed amid Japan’s latest attempt to cool down the reactors and restore electrical power to the plant to improve their chances. 

    The Shanghai Composite and Hang Seng Index were both lower, while the Indian Sensex Index fell 1.1% and the South Korean Kospi finished flat.  China has suspended approvals for new nuclear power plants which has pushed non-nuclear energy producers higher.

    In China the SSE Composite closed down -1.1% (or -33 points) at 3,034, while in Hong Kong the Hang Seng Index was down -1.8% (or -416 points) at 22,678 and in Japan the Nikkei 225 Index was down -1.4% (or -131 points) at 8,963.

    Commodities

    The Dollar Index was lower at 75.95 on a higher Euro, while the Australian Dollar last traded below parity at 98.01. Commodities were sharply higher.

    For the session the Benchmark crude NYMEX for April delivery was up 3.6% (or $US3.53) to settle at $US101.51.  Copper prices backed-off 2-year highs. Copper for April delivery was up 4.0% (or 16.8 cents) at $US4.3550.  April gold was up 0.6% (or $US8.00) at $US1,393.60.

    ASX Market News

    AEO – ACCC, the competition watchdog will not oppose Southern Cross Media Group Ltd’s $741 million takeover of Austereo Group Ltd.

    API – Australian Pharmaceutical Industries (API) earnings will be impacted by an accounting change which will see financial guarantee programs with pharmacists’ banks reflected on its balance sheet.

    CRG – Fletcher Building of NZ has declared its $700 million takeover offer for plumbing and building supplies firm Crane Group unconditional.

    ELD – Elders the agribusiness has moved to exit from its interest in the HiFert fertiliser distribution business, despite being unsuccessful in selling the stake.

    FGL – The Supreme Court of Victoria has ordered a meeting of shareholders Foster’s Group Ltd to consider a proposed demerger of Foster’s beer and wine operations.

    KMD – Kathmandu, the outdoor clothing and equipment company, reported a first half net profit of $8 million, with same store sales growth of 12 per cent.

    MCC – Macarthur Coal says the capital cost for its Middlemount project in Queensland has increased by $100 million or 25% because of the increased scope of the project.

    MYR – Department store operator Myer says the retail environment remains challenging and it expects a lower net profit for the FY11.

    ORL – Oroton, the luxury goods manufacturer, recorded a 1H11 net profit of $15.4 million, unchanged from the last year, and the group remains cautious in uncertain market conditions.

    SDL – Sundance Resources says that it has more than doubled its reported high quality iron ore resource at its West African project.

    TAH – Tabcorp Holdings Ltd says it is not contemplating a sale of its television racing network, Sky Channel.

    WPL – Woodside Petroleum has reported that it has discovered more natural gas offshore in the Carnarvon Basin WA, boosting its chances of formally approving an expansion of its flagship $14 billion Pluto project this year.

    U308 – Australian uranium stocks (ERA, EXT, PDN, TOE) were again among the worst performers, plummeting again amid heightened fears of a nuclear meltdown in Japan. Bargain hunters may look to step in again today.

    Local Corporate Reporting     
    MAP – MAP Airports International Ltd February Traffic Results
     
    Ex-dividend Date
     
    AGK – AGL Energy Limited (29 cents)
    IDE – Ideas International (4 cents)
     
    Market Summary    

    ASX – to open higher
    US & UK/Europe – sharply higher 
     
    US ADRs –  Broadly higher
     
    BHP up 3.0% & RIO up  ; AWC up 1.6%
    ANZ up 1.3% & NAB up 0.4%
    NEM  up 0.9%, JHX up 0.9%, NWS up 1.1%
     
    Commodities Stock Index up 2.1%
    Gold Stocks Index up 1.0%
    Oil Stocks Index up 3.0%

     

    By Michael Hevern
    Head of Research
     

    Post to Twitter

    Tags: , , , , , , , , , , ,
    Posted in Morning Wrap, Stock Market Analysis | No Comments

    Stock Market Analysis: Investors Set To De-Risk Protfolios

    Monday, March 14th, 2011

    *  U.S. stock markets climbed on Friday, despite the strongest earthquake to hit Japan in at least 300 years. Though markets finished lower for the week.
    *  European stocks closed at their lowest level this year on Friday, as insurance stocks sold-off in reaction to the Japanese earthquake.  Eurozone debt fears resurfaced after a credit downgrade to Spain.
    *  Asian markets fell sharply Friday, due initially to the  higher-than-expected inflation in China and then the Japanese earthquake.
    *  Commodities were generally lower for the week, the Yen rose,  as Gold, Copper and Crude oil prices fell over the week.

    The SPI Futures is trading below the key support level of 4750, as the SPI Futures flat (or up 8 pts) at 4,639.  The key levels for our index this week are 4750 and 4550. M&A activity continues to drive specific stocks. 

    The ASX is set to trade  lower today.  We had negative leads from overseas markets for the week.  Investor nerves will be tested today on the market as traders move to de-risk their portfolios, and insurers look to repatriate funds to pay for Japanese earthquake ans Tsunami damage. Investors focus will be the devastation in Japan, the unrest in the Middle East and the European sovereign debt issues this week.
    �
    See below for stocks in the news today.

    U.S. Markets

    U.S. stock markets climbed on Friday, despite the strongest earthquake to hit Japan in at least 300 years, with a magnitude of 8.9, while investors were relieved that protests in Saudi Arabia ended relatively orderly.  The gains were broad across the energy, materials and industrial sectors, but volumes were down and volatilty was up for the week. 

     In Saudi Arabia the “day of rage” ended in a whimper as the massive Saudi show of militay force silenced the dissidents.  Investors chose to focus on companies that may benefit from the expectations of increased demand from rebuilding efforts of Japan, while selling Japanese stocks.  We would suggest this optimism is presumptuous as the rebuild will take time and now that there are problems at a number of nuclear reactors the trobles will be prolonged.  Industrial giants such as 3M and Caterpillar led the climb rising over 1.7%, whle energy stocks recovered as the Saudi protests did not result in violence, though Col. Gadhafi’s forces escalated their attacks in Libya. 

    In economic news: US Retail Sales rose 1.0% which was less-than-expected;  the Commerce Department said earlier in week the U.S. trade deficit hit its highest level in 7-months and Goldman Sachs has warnned that the ongoing deficit is a risk to the U.S. Dollar.
    �
    The Dow closed up 0.5% (or 60 points) at 12,048, while in the broader market the S&P 500 index up 0.7% (or 9 points) at 1,304 and the tech-heavy Nasdaq ended up 0.5% (or 14 points) at 2,715. The S&P500 key at levels are 1324, 1275.  For the week the U.S. markets posted a weekly drop, with the Dow Jones falling -1.0%, the S&P 500 down -1.3% and the Nasdaq the weakest down -2.5% for the week, marking the second weekly decline in the past three weeks.

    The 10 company groups that make up the S&P index were recovered, with outperformers including:  Energy was up 1.7%, Materials were up 1.4%, Industrials were up 1.2%, Financials up 0.7%, while the Consumer Staples sector was up 0.6%.

    European Markets

    European stocks closed at their lowest level this year on Friday, as insurance stocks tumbled in reaction to the Japanese earthquake.  The Stoxx Europe 600 index fell 0.9%, its lowest close since 8 December, for the benchmark ended the week down 2.3%, as euro-zone debt concerns and instability in the Middle East and North Africa spooked investors. 

    Some of the biggest blue-chip decliners were companies in the reinsurance sector down around 4%.  The negative reports also hurt from earlier in the week that Moody’s cut the Spainish credit rating and also placed it on negative watch near-term, citing alarm over Spanish banking problems and the burgeoning deficit. 

    In Germany the DAX 30 broke out of its rising channel that had been in place since July and was down 2.7 percent for the week. In London, the FTSE 100 slumped 4.2% over the week, the worst performance among the three major European indexes and its biggest weekly loss since the week ended 2 July.

    In London the FTSE 100 index closed down -0.3% (or -17 points) at 5,828, the German DAX was down -1.2% (or -81 points) at 6,981, while in France the CAC was down -0.9% (or -35 points) at 3,929.

    Asian Markets

    Asian markets fell sharply Friday, due initially to the  higher-than-expected inflation in China and then the Japanese earthquake. 

    Japanese stocks fell sharply late Friday, as an earthquake that struck near the end of trading exacerbated broad Asian-market weakness brought on by higher-than-expected inflation in China.  The Nikkei Index fell to its lowest close since January, down 4.1% for the week, its worst since the week ending early July.  The earthquake in Japan will add to the uncertainty in markets, particularly with the probleom with a number of nuclear plants.  Japanese sovereign debt to GDP level was already near 200% before the quake, the highest level among industrialised countries. 

    Investor are also facing the tensions in the Middle East, the oil price spiking higher and problems resurfacing in the eurozone.  Stocks in most Asian markets extended losses for the week amid fears of damage to the Japanese economy.  Hong Kong’s Hang Seng Index and the Chinese Shanghai Composite finished lower, with all the major benchmark indexes lower for the week. 

    For the week most Asian markets traded lower following China’s release of monthly inflation data earlier in the week, which raised fears of further monetary tightening in the country. Interest-rate-sensitive stocks in Hong Kong and China were the biggest losers, insurers and miners also suffered.
    �
    In China the SSE Composite closed down -0.8% (or -23 points) at 2,934, while in Hong Kong the Hang Seng Index was down -1.6% (or -365 points) at 23,801 and in Japan the Nikkei 225 Index was down -1.7% (or -180 points) at 10,254.

    Commodities

    The Dollar Index was higher at 77.77 on a higher Euro, while the Australian Dollar last traded above parity at 101.46. Commodities were generally lower.

    For the session the Benchmark crude NYMEX for April delivery  was down -1.5% (or -$US1.54) to settle at $US100.59.  Copper prices back-off 2-year highs. Copper for April delivery  was up 0.3% (or 1.1 cents) at $US4.2120.  April gold was up 0.7% (or -$US9.30) at $US1,422.50.

    ASX Market News

    AGK – AGL Energy will build a $45 million co-generation plant in Victoria for polymers maker Qenos Pty Ltd.

    AMC – IFL is no longer a substantial holder of Amcor shares.

    BSL – BlueScope is planning a structural reorganisation that will combine its Australian and NZ businesses into a consolidated trans-Tasman unit.

    CCC – Continental Coal the South African focused coal miner, is on track to exceed budgeted export sales of 120,000 tonnes and meet targeted sales of 141,000 tonnes for the March quarter 2011.

    CWN – Betting firms Betfair and Sportsbet have won the right to appeal a decision they pay 1.5 per cent of turnover to racing authorities in NSW.

    EXT – Extract Resources will oppose a takeover attempt of cash takeover offer for its 43% of Kalahari by Chinese state-owned CGNPC Uranium Resources Co Ltd unless it makes a full bid for the parent.

    FBU – IFL is no longer a substantial holder of Fletcher Building shares.

    LYC – Malaysia says it is strictly regulating a $US230 million refinery being built by Aussie miner Lynas Corp Ltd to process rare earth materials critical for the manufacture of high-tech goods.

    MAH – Macmahon Holdings has been awarded a $150 million Gladstone LNG (GLNG) civil works subcontract in Queensland.

    MQG – Macquarie Group has bought a U.S. investment bank specialising in gaming, lodging and leisure industries.

    TSE – Transfield Services has secured a 15-month contract with the federal government to manage the Home Insulation Safety Program.

    VTA – Viterra Inc the Canadian-based grains marketer, says a record crop in South Australia helped it achieve “exceptional” financial results.

    WHS – The Warehouse Group says lower sales of CDs and DVDs are an issue for it but it is increasing sales in a range of other categories.

    WBC – Westpac will bring back the Bank of Melbourne in Victoria as the country’s second biggest lender pursues its multi-brand strategy.

    Local Corporate Reporting     
    COK – Cockatoo Coal Ltd              Interim 2011 Results
    GBG – Gindalbie Metals Ltd           Interim 2011 Results
    MMX – Murchison Metals Ltd           Interim 2011 Results
     
    Ex-dividend Date
     
    BBG – Billabong (16 cents)
    DVN – Devine Limited (1 cents)
    ENV – Envestra Limited (2.75 cents)
    MIO – Miclyn Exp Offshr (3.4595 cents)
    SYM – Symex Holdings (1 cents)
    WAX – WAM Research Ltd (3 cents)
    WLL – Wellcom Group Ltd (7.5 cents)
     
    Market Summary    

    ASX – to open lower
    US & UK/Europe – lower for the week
     
    US ADRs –  Broadly higher!!…
     
    BHP up 1.5% & RIO up ; AWC up 3.5%
    ANZ down -0.6% & NAB up 2.8%
    NEM  up 1.5%, JHX down, NWS up 1.2%
     
    Commodities Stock Index up 2.1%
    Gold Stocks Index up 2.1%
    Oil Stocks Index up 1.4%

     

    By Michael Hevern
    Head of Research
     
    Written on 14th  March, 7:15am

    Post to Twitter

    Tags: , , , , , , , , , , , ,
    Posted in Morning Wrap, Stock Market Analysis | No Comments

    Stock Market Analysis: Crude Oil Spike Trumps U.S. Jobs Data Improvement

    Monday, March 7th, 2011

    *  U.S. markets fell Friday, despite unemployment below 9%, as crude oil futures topped $US104 a barrel.
    *  European markets fell Friday, as the ECB hinted interest rate hikes as soon as April and crude oil prices surged.
    *  Most Asian markets advanced Friday, however we expect investor caution will resurface today.
    *  Commodities were generally lower, and the U.S. dollar fell. Gold and Crude oil prices rose.

    The SPI Futures is trading at the key pivot level of 4850, and closed down 0.6% (or -28 pts) at 4,836.  The key levels for our index this week are 4930 and 4750. M&A activity continues to drive specific stocks. 

    With negative leads from overseas markets, the ASX is set to trade lower today.  Expect Gold and Energy stocks to again offer support to the market. Investors need to continue monitoring the escalating tensions in the Middle East, North Africa, and the Korean Peninsular.  

    Economics News Today

    *  Australian PCI for February
    *  ANZ Jobs Data for February
    *  Official Reserve Assets for February.

    U.S. Markets

    U.S. markets fell Friday, despite unemployment dropping below 9%. Crude oil futures topped $US104 a barrel.  The financial and industrial sectors posted the biggest drop in the S&P500 sectors.  Investors had already factored in an improving jobs number and the worries about the potential impact of crude oil above $100 a barrel sent U.S. investors closing their positions ahead of the weekend.

    The Dow Jones fell halting a two-day advance, with the pullback led by GE, HP and AMEX all down over 1.3%.  The U.S. jobs market rebounded in February and unemployment fell below 9% for the first time in 2 years, the latest signs of a steadily improving economy. However Non-farm payrolls rose by 192,000 last month, below the forecast consensus of 200,000.

    The U.S. dollar traded lower.  The continuing turmoil in North Africa and the Middle East pushed crude oil prices higher and sent investors scrambling into the Swiss franc, gold and other safe-haven assets, away from the US dollar.  The widening interest-rate differentials reigned as the main driver for the US dollar, as investors start to factor in the European Central Bank (ECB) raising interest rates possibly as soon as April, while the Federal Reserve is expected to keep its “accomodative” monetary policy much longer. 

    The week ended flat with the major indices managing modest gains. The Dow Jones rose 0.3%, while the S&P 500 edged up 0.1% and the Nasdaq Composite added 0.1%.

    High crude oil prices are seen as the biggest barrier to the continuing global recovery, followed by the debt crisis in Europe.  Investors are also beginning to factor in a life without the Federal Reserve stimulus as the program winds down into June.

    The Dow closed down -0.7% (or -88 points) at 12,258, while in the broader market the S&P 500 index was down -0.7% (or -10 points) at 1,331 and the tech-heavy Nasdaq ended down -0.5% (or -14 points) at 2,784. The S&P 500 has key support at levels 1324 and 1275.

    All 10 company groups that make up the S&P index fell, with underperformers including Financials and Industrials, down over 1.2%, Materials down 0.9%, and Energy down 0.6%.

    European Markets

    European markets fell Friday, as crude oil prices spiked again and investors digested the news that they may be facing interest hikes as early as April to control inflation amid rising oil prices. 

    The benchmark Stoxx Europe 600 index declined 0.8 percent for the week. Banking and automobile stocks led the drop for the session, but the oil services companies offered some support.  This index is still up 2.2 percent for the year-to-date as investors factor in better-than-expected corporate earnings. 

    ECB President Jean-Claude Trichet signaled that an increase in official interest rates at its meeting next month “is possible,” and reaffirmed that the bank will continue to lend as much as euro-zone banks want for at least another three months. The euro surged above $US1.40 for the first time since November on Friday as investors reacted to the U.S. non-farm payrolls report and continued to bet on expectations of euro-zone rate hikes. The February Non-farm payrolls report showed smaller-than-forecast jobs growth, which pushed interest rate traders to cut bets on a rate increase from the Federal Reserve at the turn of the year.

    In London the benchmark FTSE 100 fell below 6,000, down 0.2% for the week, but this index is still up 1.5 percent for the year-to-date as investors factor in better-than-expected corporate earnings.  In Germany the market erased its weekly gains to end flat on the interest rate concerns.

    In London the FTSE 100 index closed down -0.2% (or -15 points) at 6,005, the German DAX was down -0.7% (or -47 points) at 7,178, while in France the CAC was down -1.0% (or -41 points) at 4,020.

    Asian Markets

    Most Asian markets advanced Friday.  In China the Shanghai Composite index was up 2.2% for the week.  Chinese banks were mostly higher on expectations they will report strong 2010 earnings.  China Merchants Bank and Industrial & Commercial Bank of China added over 1.4%.  In Hong Kong, the market rose and was up up 1.7% for the week.

    In Japan the Nikkei Stock Average was up 1.7% for the week. Sumitomo Electric Industries surged 8% after a report that they had developed a rechargeable molten-salt battery.

    In South Korea the Kospi rose 1.7% on the back of continued foreign buying, as construction shares recovered after heavy losses in the wake of the Libyan turmoil.

    We expect that investor caution will resurface today, with concerns over Middle East and North African unrest and soaring crude oil prices and their potential impact on the global recovery.  April NYMEX crude oil prices closed at over $US104 a barrel in New York, the highest settlement since September 2008. 

    In China the SSE Composite closed up 1.4% (or 41 points) at 3,040, while in Hong Kong the Hang Seng Index was up 1.2% (or 286 points) at 23,409 and in Japan the Nikkei 225 Index was up 1.0% (or 107 points) at 10,694.

    Commodities

    The Dollar Index was lower at 76.40 on a higher Euro, while the Australian Dollar last traded above parity at 101.54. Commodities were generally lower.

    For the session the Benchmark crude NYMEX for December delivery was up 2% (or -$US2.52) to settle at $US104.42.  Copper prices are back at 2-year highs. Copper for December delivery was down -0.1% (or 0.3 cents) at $US4.4720.  April gold was up 0.8% (or $US12.20) at $US1,417.00.

    ASX Market News

    ASX – ACCC, the corporate regulator, expects alternative stock exchange operator Chi-X Australia will begin operations later this year in competition to the main bourse.

    AUN – Austar, the pay television operator, says its majority owner has had talks with Foxtel over a possible takeover bid of the company.

    AMP – AMP’s bid for wealth manager AXA Asia Pacific faces its penultimate hurdle, to get court approval, following AXA shareholder voting their approval of AMP’s takeover bid.

    CNP – Centro Properties Group has sold all its U.S. assets and looks to merge all Centro properties into one fund in an attempt to return some value to shareholders.

    DOW – Downer reported a 1H11 net loss of $104 million, and seeks $279 million in new capital to help deal with the impact of the troubled Waratah train project.  Fitch Ratings agency has resolved its negative rating watch on the company.

    FKP – IOOF Holdings (IFL) has increased its stake in FKP from 5.6% to 7.9%.

    MSB – Mesoblast will be added to the S&P/ASX 300, and jumped 9.1% after Southern Cross Equities upgraded the stock to “buy.”

    NWS – News Corp, the global media empire, is poised to grow further after the British government approved plans by News Corp to buy full control of satellite TV operator British Sky Broadcasting Group PLC.

    QBE – QBE 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.

    STO – NAB has announced it has acquired a 6.4% stake in Santos. 

    TEN – Further board room activity with James Packer’s surprise resignation from the board of Ten Network Holdings Ltd less than three months after joining.

    WDC – After 50 years at the helm Frank Lowy is handing the day-to-day control of shopping centre giant Westfield Group to his sons.
     


    Local Corporate Reporting     
    ** None
     
    Ex-dividend Date
     
    AEF – Australian Ethical (45 cents)
    AGG – AngloGold Ashanti (2.288 cents)
    AIZ – Air New Zealand (2.1983 cents)
    BFG – Bell Financial Group (4 cents)
    BHP – BHP Billiton Limited (45.803 cents)
    BPT – Beach Energy Limited (0.75 cents)
    BSA – BSA Limited (1 cents)
    BXB – Brambles Limited (13 cents)
    CDD – Cardno Limited (17 cents)
    CLH – Collection House (3.1 cents)
    CND – Clarius Grp Ltd (2 cents)
    CSV – CSG Limited (2.5 cents)
    CYG – Coventry Group (6 cents)
    FLT – Flight Centre (36 cents)
    FPS – Fiducian Portfolio (5 cents)
    HMC – Hydromet Corp. Ltd (0.075 cents)
    IHD – iShares S&P High Div (9.8594 cents)
    ILC – iShares S&P/ASX 20 (13.782 cents)
    IMD – Imdex Limited (1.75 cents)
    IOZ – iShares MSCI Aus 200 (3.3545 cents)
    LAU – Lindsay Australia (0.5 cents)
    MML – Medusa Mining Ltd (5 cents)
    MND – Monadelphous Group (40 cents)
    NHF – NIB Holdings Limited (4 cents)
    OFG – Over Fifty Group (2.5 cents)
    PAN – Panoramic Resources (4 cents)
    PLB – Plan B Group Hld (1.7 cents)
    PNW – Pacific Star Network (0.1 cents)
    PPG – Pro-Pac Packaging (1 cents)
    RIC – Ridley Corporation (3.75 cents)
    SFH – Specialty Fashion (4 cents)
    SXL – Sthn Cross Media (7 cents)
    TOL – Toll Holdings Ltd (11.5 cents)
    TPC – Tel.Pacific Limited (0.4 cents)
    WBB – Wide Bay Aust Ltd (30 cents)
    WCB – Warrnambool Cheese (4 cents)
     
    Market Summary    

    ASX – to open lower
    US & UK/Europe – lower
     
    US ADRs –  Broadly Lower
     
    BHP down -0.3% & RIO down ; AWC down -0.3%
    ANZ down -1.4% & NAB down -1.1%
    NEM  up 1.3%, JHX up 0.7%, NWS up 1.2%
     
    Commodities Stock Index down  -0.8%
    Gold Stocks Index up 0.1%
    Oil Stocks Index down  -0.7%

     

    By Michael Hevern
    Head of Research
     
    Written on 7th  March, 7:15am

    Post to Twitter

    Tags: , , , , , , , , ,
    Posted in Morning Wrap, Stock Market Analysis | No Comments

    Stock Market Analysis: Weekly Market Wrap

    Friday, February 25th, 2011

    Spike in Oil Price Drives Global Markets Lower

    Globally stock markets have sold-off this week as geopolitical unrest spreads in the Middle East with violence increasing in Libya, a major oil-producing state. The broad losses came after April Nymex crude oil futures rose past $US100 a barrel for the first time in over 2 years, due to the potential of disruptions to supplies. Brent Crude rose to over $US120 a barrel. Overnight the crude oil futures price spiked above $US103 as the Libyan rebels that are controlling large areas within the country promised an offensive against the capital, Tripoli.

    Investors are concerned that the rising crude prices will hurt consumer spending and ultimately slow down the global economic recovery, and that the turmoil could spread to other oil exporters in the region.

    Australian Market

    Trading in the Australian market has been dominated by investor sentiment from overseas. The earthquake in Christchurch has again put the spotlight back on the insurers. Stocks sensitive to higher oil prices weighed on the market, and even the local energy sector sold off. Small and mid cap resource stocks have seen profit-taking recently as oil is a major input cost for these mining operations. The federal government is revisiting the imposition of a carbon tax and this has added to the negative investor sentiment. Traders have used this week’s corporate earnings reports as an excuse to take profits, resulting in a number of “bull traps” being triggered, as discussed in the Analyst’s Eye this week.

    The ASX All Ordinaries has backed off the 5000 level, while the S&P ASX 200 failed to reach the key psychological level of 5000.

    US Markets

    The US markets traded lower in a week shortened by the Presidents’ Day holiday. These markets have seen their biggest falls since last August. The three major markets are testing their 50 day moving averages where we would normally expect to see some short-term support. However, if oil prices remain at these elevated levels then this support is likely to give way near-term.

    Overnight the Dow closed down -0.3% at 12,068, while in the broader market the S&P 500 index was down -0.1% at 1,306 and the tech-heavy Nasdaq ended up 0.6% at 2,738. The S&P 500 held below key support at 1324. The next target is 1275.

    European Markets

    European stock markets are backing off two and a half year highs, having sold-off sharply this week, due to the Middle East unrest, the oil price spike and concerns over the global economic recovery. The Stoxx Europe 600 index has fallen for a fifth straight session.

    Libya is the first major oil exporter to be engulfed by the crisis and there are fears that the unrest will continue to spread in the Middle East, seriously impacting oil production in the medium term. Libya exports around 1.2 million barrels of oil a day – Saudi Arabia, on the other hand, exports 6.5 million barrels a day.

    The 3 major European markets (U.K., France, and Germany) are testing their 50 day moving averages, where we would expect to see some short-term support, but again if oil prices remain at these elevated levels then this support is likely to give way near-term.

    Overnight in London, the FTSE 100 index closed down -0.1% at 5,920, the German DAX was down -0.9% at 7,130, while in France the CAC was down -0.1% at 4,009.

    Asian Markets

    Asian markets have generally sold-off heavily this week, with the exception of China. The Japanese and Hong Kong markets have sold-off due to the geopolitical tensions in the Middle East and the rise in the price of oil, as well as Moody’s downgrade of Japan and China’s hike in interest rates. In Hong Kong the Financial Secretary reported the economy grew 6.8% in 2010, (exceeding forecasts of 6.5%) and expects the economy to grow 4%-5% in 2011.

    In China the market has traded flat, despite the Chinese consumer confidence index falling in the fourth quarter to the lowest since 2009, indicating concern over inflation is weighing on sentiment and has been running above the government’s 4 percent target for the past four months, despite a number of recent interest rate rises.

    Yesterday in China the SSE Composite closed up 0.6% at 2,878, while in Hong Kong the Hang Seng Index was down -1.3% at 23,906 and in Japan the Nikkei 225 Index was down -1.2% at 10,452.

    Our View

    Next week we should see the S&P ASX 200 index find support around 4800, its 50 day moving average, but selling pressure will likely resume if the oil price remains at these elevated levels and unrest in the Middle East is not resolved soon.

    The focus for next week will again be on the unrest in the Middle East, Asian concerns over inflation, European debt concerns and locally the continuing earning reporting season. Key levels for next week will be 4880 to 4730.

    Investors need to monitor the tensions in the Middle East and North Africa, with unrest in Libya and Bahrain and tensions between Iran and Israel over the Suez Canal. Be prepared to hedge your positions, as the current low options volatility provides investors with long term portfolios opportunity to hedge their positions cheaply.

    By Michael Hevern
    Head of Research

    Post to Twitter

    Tags: , , , , , , , , , , , , , ,
    Posted in Stock Market Analysis, Trader Dealer News | No Comments

    Stock Market Analysis: Asian Investors Worry Over The Chinese Rate Hike

    Thursday, February 10th, 2011

    *  U.S. markets turned lower, but the Dow Jones bucked the trend closing higher for an 8-day winning streak.  The Fed chairman reiterated his expectation of unemployment remaining high for several years.

    *  European markets closed lower overnight, as a number of top companies went ex-dividend.  Elsewhere there was M&A activity in the stock exchange stocks.

    *  Asian markets mostly fell yesterday after China raised interest rates for the third time in four months.  China said it would raise interest rates by 0.25 percentage points, for the third time since October.

    *  Commodities prices generally rose.

    The SPI Futures is trading above the key level of 4800, and closed down marginally -0.1% (or -5 pts) at 4,870.  The key levels for our index today are 4900 and 4830. M&A activity continues to drive specific stocks. 

    The ASX is set to consolidate today, as local earnings reporting continues – see below for stocks in the news today.  We had mixed leads from overseas markets, and materials and retail stocks are likely to weigh. 

    Economics News Today

    * ABS – January Labour Force Unemployment Rate (current seasonally adj. 5%)
    * CPI  – Consumer Inflationary Expectations Survey for February.

    U.S. Markets

    U.S. markets turned lower, but the Dow Jones bucked the trend closing higher for an 8-day winning streak.  The Dow Jones and S&P500 indices hovered around levels last seen in June 2008.  Stocks slipped and bonds rose as Federal Reserve chairman Ben Bernanke told the House of Representatives that he expects unemployment to remain high for several years.  The Department of Labor reported last week that the unemployment rate dropped to 9 percent in January, but much of the drop was due to a fall in the participation rate. 

    In corporate news:
    * Coca-Cola was up 0.5% after it reported a tripling of its net income, helped by the acquisition of a bottler and selling more drinks in North America
    * Walt Disney Co. rose 6% after reporting strong earnings and higher revenues at its ABC and ESPN networks. 

    Crude oil prices fell on overnight after the US government reported crude oil supplies rose last week, and new data showed OPEC production reached a 2-year high. 

    The Dow closed up 0.1% (or 7 points) at 12,240, while in the broader market the S&P 500 index was down -0.3% (or -4 points) at 1,321 and the tech-heavy Nasdaq ended down -0.3% (or -8 points) at 2,789.  Falling stocks outnumbered rising ones by more than 2 to 1 on the New York Stock Exchange (NYSE).

    Sectors that make up the S&P index were under pressure, with laggards including Energy, down -1.3%,  Materials down -0.9% and Financials down -0.7%, while Consumer Staples rose 0.7%.

    European Markets

    European markets closed lower overnight. The broader Stoxx Europe 600 index still closed nears its highest level since 2008.  The unrest in Egypt continues to simmer as protesters call for the resignation of the President.

    In London markets fell, despite a spike in the London Stock Exchange share price after it announced a landmark merger deal with its Canadian counterpart in Toronto.  The U.K. stock market was also pulled lower as a number of top companies went ex-dividend, including GlaxoSmithKline, BP, Shell and Unilever.  After the close there were reports of a possible Deutsche Boerse merger with the NYSE Euronext. 

    In Germany exports increased for a second month in December, as the global recovery boosted demand for goods and services from Europe’s largest economy.  The German market backed off its highest level in 3 years as speculation of increasing corporate earnings continues to support the rally in stocks. 

    In London the FTSE 100 index closed down -0.6% (or -39 points) at 6,052, the German DAX was flat (or -2 points) at 7,321, while in France the CAC was down -0.4% (or -18 points) at 4,110.

    Asian Markets

    Asian markets mostly fell yesterday after China raised interest rates for the third time in four months.  In China the Shanghai Composite fell, led lower by property developers, while in Hong Kong the market sold-off again.

    Asian investors are concerned that the interest rate rise in China will lead to a slow-down in the economy and adversely affect trade both domestically and globally, thereby impacting the state of the global economic recovery.

    In Japan the market was softer, as optimism in exporters, due to the weaker yen, was offset by weakness in stocks with exposure to China.  Toyota’s share price surged after a strong earnings report and news that a US probe found its electronics had not caused the acceleration problems that led the firm to recall millions of vehicles.

    In China the People’s Bank of China announced it was raising the one-year deposit and lending rates by 25 basis points, taking them to 3.0 percent and 6.06 percent respectively.  China’s central bank also fixed the yuan’s exchange rate against the dollar at 6.5850 yuan yesterday, the strongest rate since policymakers pledged last June to loosen their grip on the currency.  The strengthening Chinese currency should help curb inflation by reducing the cost of imports.

    In China the SSE Composite closed down -0.9% (or -25 points) at 2,774, while in Hong Kong the Hang Seng Index was down -1.4% (or -320 points) at 23,164 and in Japan the Nikkei 225 Index was down marginally -0.2% (or -18 points) at 10,618.

    Commodities

    The Dollar Index was down at 77.61 on a lower Euro, while the Australian Dollar last traded above parity at 101.13. Commodities were generally higher.

    For the session the Benchmark crude NYMEX for December delivery was down marginally -0.1% (or $US-0.08) to settle at $US86.86.  Copper prices are back at 2-year highs, though copper for December delivery was down -1.1% (or -4.9 cents) at $US4.5235.  December gold was flat at $US1,363.70.

    ASX Market News
     
    AEO – The Austereo Group CEO says the recovery in the radio advertising market from the lows of the GFC has been “satisfactory”.

    ANN – Ansell, the gloves and condoms supplier, says bad weather has contributed to pushing the cost of rubber latex to its highest ever levels, and expects these costs to stay high in the 2H11.

    AVJ – AVJennings, the house builder, has posted a 1H11 net profit up 228 percent, and its outlook is strong as demand for new housing remains ahead of supply.

    BLD – Boral gained nearly 6 percent after the building products supplier reported a 36 percent rise in 1H11 net profit.

    CBA – CommBank of Australia has beaten market forecasts with a $3.335 billion 1H11 cash profit.

    CPU – Computershare the global share registry, has reported a 31 percent decline in 1H11 net profit, but has maintained earnings guidance for the full year.

    IRD – Iron Road the junior explorer, has announced a resource upgrade, tripling the size of its Central Eyre iron project in South Australia.

    NWH – NRW Holdings, the resources sector services provider, expects net profit for the 1H11 to be around 30 percent higher than in the prior first half year.

    OZL – OZ Minerals has returned to a sound financial position after reporting a full year net profit of $587 million, rebounding from a loss last year.

    QRN – QR National will slash its workforce under a voluntary redundancy scheme, 3 months after it was privatised with a promise to keep jobs safe.

    RIC – Ridley Corporation, the animal feed and salt producer, posted a 6 percent fall in 1H11 net profit, but says it cannot provide meaningful guidance because of the problems with impacts of recent weather events.

    RIO – Rio Tinto announced that it will invest more than $US1 billion in the group’s existing iron ore operations in Australia and Canada.

    SGM – Sims Metal Management, the world’s largest scrap metal firm, has forecast a 24 percent rise in first half net profit, due to strong shipments in the 2Q, disappointing investors.

    SGP – Stockland, the property developer, reported a doubling in its first-half profit and upgraded its full year earnings outlook to growth of 8.5 percent.

    TLS – Telstra has reported a 36% first-half profit drop: $1.21bn down from $1.89bn.

    WEB – Webjet the online travel agency, says 1H11 net profit fell 3.2 percent, with current profit levels expected to continue the rest of the year.

     

    Local Corporate Reporting     
     
    AQP  – Aquarius Platinum          Interim 2011 Earnings
    AWC – Alumina Ltd                  Full year 2010 Results
    IIF     – ING Industrial Fund       Interim 2011 Results
    JHX   – James Hardie                Q3 2011 Results
    RIO   – Rio Tinto Ltd                 Full year 2010 Results
    TCL   – Transurban Group Ltd   Interim 2011 Results
    TLS   - Telstra Corp                  Interim 2011 Results
     
    CRG – Crane Group Ltd        $0.50 Special ex-dividend date
     
     
    Market Summary    

    ASX – to open flat
    US & UK/Europe – consolidate
     
    US ADRs –  Broadly lower
     
    BHP down -2.0% & RIO up ; AWC down -3.7%
    ANZ up 1.6% & NAB up 1.1%
    NEM  down -0.7%, JHX up 1.0%, NWS up 0.1%
     
    Commodities Stock Index up 0.5%
    Gold Stocks Index up 2.0%
    Oil Stocks Index down -0.2%

     

    By Michael Hevern
    Head of Research

     

    Post to Twitter

    Tags: , , , , , , , ,
    Posted in Morning Wrap, Stock Market Analysis | No Comments

    Stock Market Analysis: US Economy Improving, China Resists Rate Hike

    Sunday, December 19th, 2010

    US markets rose for a third week, as the S&P500 Index reached a 2-year high, as better than estimated data on retail sales, manufacturing and housing boosted confidence that the economic recovery is still intact.  European markets ended lower Friday, due to concerns over the euro-zone sovereign debt contagion weighing on investor sentiment.  Asian markets rose for a second week, as China refrained from raising interest rates to cool inflation. Commodities prices were positive.

    The SPI Futures is above its key weekly pivot level of 4700, closing up 0.2% (or 8 pts) at 4,767.  The key levels for our index this week are 4860 and 4630. M&A activity continues to drive specific stocks.  The ASX is set to open higher, as we had mixed leads from overseas markets.  Look to small and mid cap stocks to outperform as we see some “window-dressing” by fund managers trading into the year’s close. Expect trading volumes to reduce this week.
     

    US Markets

    US markets rose for a third week. The S&P500 Index rose to a 2-year high, as better than estimated data on retail sales, manufacturing and housing boosted confidence that the economic recovery is still intact. The S&P 500 has risen 13 of the past 16 weeks, rising 84 percent from a low in March 2009 as corporate profits have beaten estimates, the economy improved and as a result of the Federal Reserve’s QE2 where it committed to buy assets to boost growth.  Bellweathers Caterpillar, Kraft and DuPont all advanced at over 2.5 percent to lead the gains on the Dow Jones.  The tech heavy Nasdaq rose thanks to software maker Oracle Corp’s advance of 5.1 percent after it forecast earnings that beat analyst estimates. However the world’s two largest credit card companies, Visa and Mastercard, were sold down over 13% after reports that they may face permanent damage to the fastest-growing part of their business after the Federal Reserve proposed rules that could cut debit-card transaction fees by 84 percent. However sentiment was also helped by comments from the former Fed Chairman Alan Greenspan that the US economy is picking up speed and may grow by 3 to 3.5 percent next year.  The benchmark VIX index for US stock options fell to 16 this week, its lowest since April, which means that investors can insure themselves against stock price falls relatively cheaply near-term.  The outstanding performing sectors were materials up (0.8%) and financials (up 0.6%), while industrials dropped 0.3%. 

    The Dow closed down -0.1% (or 7 points) at 11,492, while in the broader market the S&P 500 index was up 0.1% (or 1 point) at 1,244 and the tech-heavy Nasdaq ended up 0.2% (or 6 points) at 2,643.

    European Markets

    European markets closed down, on continuing concerns over sovereign debt contagion.  EU leaders have agreed to amend the eurozone’s treaties to create a permanent debt-crisis mechanism in 2013 as they struggled to bridge divisions over immediate steps to stabilise bond markets. The markets fell on the spectre of debt ratings downgrades on a number of countries, on fears that some euro-zone nations will default on their debt.  Spain’s credit rating may be cut from Aa1 by Moody’s Investors Service on concern about rising borrowing costs, potential losses in the banking system and deficits in the country’s regions, and Moody’s has also put Greece’s Ba1 bond ratings on review for a possible downgrade. Ireland’s credit rating was cut five levels, after the government last month was forced to ask for external aid.  The UK market fell for a third day, trimming its advance to 1 percent for the week, led by declines in banking stocks, as an agreement among Europe’s leaders to create a crisis management mechanism failed to ease investor concern over eurozone sovereign debt contagion.  Lloyds Banking Group Plc lost 3.6 percent after saying it expects to report an increased impairment charge because of Irish loan losses.  Germany continues to outperform, despite a fall on Friday.

    In London the FTSE 100 index closed down -0.2% (or -9 points) at 5,872, the German DAX closed down -0.6% (or 42 points) at 6,893, while in France the CAC was up marginally -0.5% (or -21 points) at 3,888.

    Asian Markets

    Asian markets rose for a second week, as China refrained from raising interest rates to address inflation issues, as the US reports on consumer confidence, the trade deficit and claims for jobless benefits beat forecasts. In Japan the market rose for its seventh straight weekly advance and its longest winning streak since April.  In Hong Kong the Hang Seng Index declined 1.9 percent for the week, while in the Chinese market the Shanghai Composite Index rose 1.9 percent this week. Steelmakers led gains this week, with a gauge tracking material shares rising 1 percent, the most among the 10 industry groups on the MSCI Asia Pacific index. The MSCI Asia Pacific Index has risen 11 percent this year, and the average PE for the stocks on the gauge is at 14.8 times estimated earnings, versus 23 times at the start of the year. Exporters to the US gained after improving data from the world’s biggest economy boosted confidence the recovery was continuing. 

    In China the SSE Composite closed down -0.2% (or -4 points) at 2,894, while in Hong Kong the Hang Seng Index was up 0.2% (or 46 points) at 22,715 and in Japan the Nikkei 225 Index was down marginally 0.1% (or -7 points) at 10,303.

    Commodities

    Copper remained around record levels again, on continuing concerns that demand will outpace supply into 2011 driving prices higher.  Gold is higher but still below $US1,400 an ounce, and crude oil rose also. The Dollar Index was up 1.0% at 80.36 on the lower Euro, while the Australian Dollar last traded higher at 98.81.  Commodities were generally higher.

    The benchmark crude NYMEX for December delivery was up 0.4% (or $US0.32) to settle at $US88.21. Copper prices backed around 2-year highs, with copper for December delivery up 1.1% (or 4.3 cents) at $US4.1640. Gold prices were off all-time highs again, with December gold up 0.6% (or $8.20) at $US1,377.20.

    Key International News Drivers Today

    US -   U.S. markets positive. Manufacturing and production improving.
    EU –   European markets ended lower on EU debt concerns. 
    CHINA –  China is targeting 4 percent inflation in 2011, resists rate hike. China prospect of implementing further tightening measures.
    JAPAN – Market holding above 10,000 at 7-month highs.


    Markets Overview

    Market

    Movement

    The Dow Jones Industrial Average

     Down -0.1% (or 54 pts)  at 11,492

    The S&P 500                             

     Up 0.1% (or 1 pts)  at 1,244 

    The Nasdaq                              

     Up 0.2% (or 6 pts)  at 2,643



    The FTSE 100                           

     Down -0.2% (or -9 pts)  at 5,872

    The German DAX               

     Down -0.6% (or -41 pts)  at 6,893

    The French CAC             

     Down -0.5% (or  -21 pts)  at 3,888   



    The Dollar Index 

     Down  Marginally -0.12% at 80.16

    The Australian Dollar 

     Last traded at 98.85

    The Commodities Index

     Up 1.0% at 320.6



    Crude Oil Futures      

     Up 0.4% at $88.21 

    Gold Futures             

     Up 0.6% at $1,377.20 

    Copper Futures             

     Up 1.1% at $4.1640

    SPI Futures              

     Up  0.2% (or 8 pts) at 4,767 





    Market

    Movement

    SSE Composite (China) 

     Down -0.2%  at 2,894

    Hang Seng Index (Hong Kong) 

     Up 0.2%  at 22,715

    Nikkei 225 Index (Japan) 

     Down  Marginally -0.1%  at 10,303



    ASX News Today 
      
    AMP- AMP the wealth manager and its takeover target, AXA Asia Pacific Holdings, have satisfactorily completed due diligence on each other.

    BHP- BHP forecasts that each 1 cent move in the AUD will impact $95 million in after tax profit.  The AUD rise has wiped $1.7 billion off BHP’s bottom line. 

    BRM- Brockman Resources Ltd, the iron ore explorer, is in advanced talks with Fortescue Metals Group Ltd for a rail haulage, port access and marketing service for its Marillanna project in WA.
    CLO- Engineering and construction firm Clough has won a $300m contract for work on Chevron’s massive Gorgon gas project in WA.
     
    HIL- Hills announced a profit downgrade with 1H profit expected to fall 30 percent.  Shares plunged 12%. 
    LLC- Lend Lease says the NSW government has approved changes to its plan for Barangaroo South that increase the floor space and allow the development of a hotel on a pier jutting into the harbour.
    MCC- Macarthur Coal Ltd has cut its forecast for 1H profit by 18 percent, blaming wet weather for disrupting operations.
     
    ORI- Orica the world’s largest explosives maker has confirmed that profit in FY11 will rise from last year as the global economy recovers, but the surging AUD has cost $75 million.
    LEI- Leighton Holdings’ subsidiary Thiess has won a $1.015 billion contract extension to operate the Mt Owen coal mine in the upper Hunter Valley, NSW, until the end of 2015.
    STO- Santos was in a trading halt for a capital raising, and says Korea Gas Corporation (Kogas) has purchased a 7.5 percent stake in its GLNG coal seam gas project in Queensland’s Surat and Bowen Basins.
     
    Economic Reports
    RBA minutes out Tuesday.

      

    Companies:

    None
     
    Ex-Dividends
    None   

     

    Market Summary    


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

     
    US ADRs –  Generally lower
     
    BHP up 0.6% & RIO up; AWC up 5.0%
    ANZ down 0.4% & NAB down 0.5%
    NEM  down 0.8%, JHX down 0.6%, NWS down
     
    Commodities Stock Index up 0.3%
    Gold Stocks Index up 0.4%
    Oil Stocks Index down 0.3%

     

    By Michael Hevern
    Head of Research
     
    Written on 19th December 2010, 7:15am

    Post to Twitter

    Tags: , , , , , , , , ,
    Posted in Morning Wrap, Stock Market Analysis | 1 Comment

    « Older Entries
    Newer Entries »