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Tricom Today Australian Stock Report 15-4-09

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The SFE Futures suggested a 41 point fall in the market. BHP and RIO mixed in ADR form overnight – BHP down 1.85% and RIO up 0.56%. (BHP closed at the equivalent of 3305c, up 1c on yesterday’s close.) Metals all mostly up overnight – Copper up 3.07%, Zinc up 3.23% and Aluminium down 1.43%. Nickel up 7.34%. Oil price down 0.71% to $49.51.Gold down $3.80 to $892.00. Bonds up with the 10 year yield down to 2.7872%. A$/US$ down 0.31% to 72.15c.

Obama and Bernanke made some encouraging comments about hopeful signs in the economy, but said that a sustained recovery won’t happen quickly. Material stocks down nearly 2% – Talk of Rio Tinto launching a $3.5bn two-part note – a $2bn 5-year note and a $1.5bn 10-year note – someone familiar with the deal said they expected the deal to be priced later Tuesday via Deutsche Bank/JP Morgan Stanley/Morgan Stanley Stanley. Retailers down 2.5% on the negative March sales report – Macy’s Inc down 7.3% and Best Buy down 6.9%. Retailers were up 4% last week and 6% the week before. March retail sales down 1.1%- much more than the 0.3% fall expected. Consumer spending makes up about 2/3rds of US GDP – economic activity still reflects a recessionary environment. The Labour Department’s March PPI index (wholesale prices) fell 1.2%- energy and food prices fell sharply. The fears around falling wholesale prices resides in the fact that businesses and consumers hold off from buying products because they think
that they’ll be able to get a cheaper price in the future – this can have a negative compounding feedback effect on a slowing economy. Core PPI was in-line with expectations.

The market is up 1 – holding up well after broad-based weakness in the US overnight. The SFE Futures suggested a 41 point fall in the market this morning. Sectors mixed. Financials down 0.7%. Resources up 0.9% on higher metal prices.

Tricom Today Australian Stock Report 14-4-09

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The SFE Futures suggested a 63 point rise this morning. BHP and RIO both up – 3.76% and 3.95% respectively. (BHP closed at the equivalent of 3318c, up 73c on Thursday’s close.) Metals all up overnight – Copper up 3.16%, Zinc up 1.45% and Aluminium 2.88%. Nickel up 0.59%. Oil price down 3.9% to $50.22 on the IEA forecasting lower global demand by 1m barrels per day. Gold up $12.50 to $895.80. Bonds flat with the 10 year yield at 2.8607%. A$/US$ down to 73.16c.

Goldmans Sachs released their results a day early – posted better-than-expected earnings beating expectations. Goldmans said they would raise $5bn in an equity offering to assist in paying back the government’s bailout funds. Achieved EPS of $3.38 a share in the quarter, well past the $1.64 expected. EPS in the same quarter
last year was $3.23. The positive result followed Wells Fargo’s preliminary results guidance on Thursday which also outperformed expectations. Industrials are now the worst performing sector year-to-date – down 12.9%. But were
up 0.4% Monday with General Electric leading the way.

The market is up 89. The SFE Futures suggested a 63 point rise in the market this morning. Our market is up following a 220 point rise on Wall St since we closed on Thursday. Financials
up after a strong session in the sector on Wall Street overnight and on Thursday – all the banks
up 3-4% this morning. Qantas down 7% on a profit warning.

Tricom Today Australian Stock Report 9-4-09

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The SFE Futures suggested a 45 point rise in the market. BHP and RIO mixed in ADR form overnight BHP down 0.31% and RIO up 4.58%. (BHP closed at the equivalent of 3178c, up 36c yesterday’s close.) Metals all up overnight – Copper up 0.48%, Zinc 1.48% and Aluminium 1.15%. Nickel up 0.64%. Oil price up 0.5% to $49.37. Gold up $2.60 to $885.90. Bonds down with the 10 year yield up to 2.8596%. A$/US$ down 0.08% to 70.98c.

Nasdaq outperformed on the hope that a recovery in business spending will boost technology stock’s profits. IBM up 2.5% and Qualcomm up 2.2%. Security regulators voted to seek public comment on five proposals to curb
shortselling. Chrysler’s chairman said the government’s May 1 deadline for completing a deal with Fiat is “ample time”. Homebuilders up – Pulte Homes made a bid for Centex Corp from $1.3bn which would create the largest US homebuilder. Centex up 19% and Pulte down 10.5%. Bloomberg data suggests EPS across the S&P500 will fall 37% this quarter and another 30% next quarter. Juniper Networks preannounced quarterly results that were inline with expectations and the company’s prior forecasts.

The market is up 22. The SFE Futures suggested a 45 point rise this morning. All sectors bar telecom and healthcare up. Property leading the way – up 2.9%. Banks mixed – NAB down 1.4% and CBA up 1.4%. BOQ down 4% on 1H results. Resources up – BHP and RIO up 1.3% and 1.5%. Major gold stocks down despite the $2 rise in the gold price.

Tricom Trader Australian Stock Report 7-6-09

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The SFE Futures suggested a 21 point fall in the market. BHP and RIO both down in ADR form overnight – down 3.67% and 11.19% respectively. (BHP closed at the equivalent of 3336c, down 64c on yesterday’s close.) Metals all down overnight – Copper up 3.64%, Zinc 2.85% and Aluminium 3.57%. Nickel up 3.31%. Oil price down 2.7% to $51.10. Gold down $11.60 to $897.30. Bonds down with the 10 year yield up to 2.9279%. A$/US$ down 0.23% to 71.23c.

Cisco Systems was downgraded by a major broker on its share price have reached its price target – it fell 3.5%.     Commodity down – gold down for the third day having dropped through the 900 support level with next support level around 805. Healthcare stocks had a positive day – were up 0.6%. Financials down 2.9% – Analyst Michael Mayo put a sell recommendation on several big banks saying bank losses could be greater than those seen in the great depression. He said that the government’s efforts to stabilize the banks may not be as successful as hoped. Wells Fargo and PNC Financial Services down 6.7% and 5.6% respectively. Regional banks also tumbled.

The ASX 200 is down 35 points. The SFE Futures were predicting a 21 point fall this morning. Resources the biggest fallers – down 3.1%. Financials and property stocks down following US sectors overnight. We are expecting a decision from the RBA on interest rates at 2:30pm. Consensus is for a 25bps cut or no change.

Tricom Today Australian Stock Report 3-4-09

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The SFE Futures suggested a 56 point rise in the market. BHP and RIO both up in ADR form overnight – 8.32% and 6.32% respectively. (BHP closed at the equivalent of 3441c, up 103c on yesterday’s close.) Metals all up overnight – Copper up 2.22%, Zinc up 1.52% and Aluminium up 3.25%. Nickel up 4.75%. Oil price up 8.6% to $52.61. Investors jumped into oil on the weak US dollar, rising stock markets and the hope that the US economy is turning a corner.
Gold down $18.80 to $908.90. Bonds down with the 10 year yield up to 2.7607%. A$/US$ up 2.40% to 71.56c.

The rulemaking body for the accounting industry(FASB) finally decided to relax the rules which govern the way banks value the assets on their balance sheets – the quarterly ‘mark-to-market’ rules will be relaxed, allowing the banks to essentially increase their capital positions. Industrials up 5.5% – strongest sector. Consumer discretionary stocks up 5.2%. Healthcare stocks up only 0.1% – the pharmaceutical stocks lagged (down 0.9%). IBM and Sun Microsystems may announce a takeover deal next week – the rumours are that IBM may pay $9-$10 for Sun.

The market is up a healthy 48. A little under the 58 point rise the Futures predicted this
morning. We were up 70 at one stage. It seems we did most of our dash yesterday by putting
on just over 100 points. The G20 meeting has done the trick. Resources flying, except gold.
Banks also doing their bit. Healthcare stocks going backwards.

Tricom Today Australian Stock Report 2-4-09

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The SFE Futures suggested a 58 point rise in the market. BHP and RIO both up in ADR form overnight – 1.93% and 3.04% respectively. (BHP closed at the equivalent of 3254c, up 44c on yesterday’s close.) Metals mixed overnight – Copper up 0.50%, Zinc down 0.61% and Aluminium down 0.50%. Nickel up 2.54%. Oil price down 2.4% to $48.46. Gold up $2.70 to $927.70. Bonds up with the 10 year yield down to 2.6575%. A$/US$ up 1.02% to 69.85c.

Financials up – Treasury’s Geithner made positive comments about the strengthening of US financials. Citigroup and JP Morgan up on the comments. Only 3 times in the history of the Dow Jones has the index swung over 20% in both
positive and negative directions in the same quarter. Homebuilders up on the better-than-expected pending homes sales data.

March was pitiful for the car manufacturers – General Motors down posting monthly sales down 45% on-year. Obama said a swift bankruptcy would be the best way for the car manufacturer to restructure and become a profitable producer again. Ford posted monthly sales down 41%. Toyota’s and Chrysler’s down 39%. Honda’s down 36%
saying the will partly cut production in North America. Healthcare stocks down- Biotec Celgene issued a profit warning.

The SFE Futures suggested a 58 point rise in the market this morning. 3706 on the ASX 200 is seen as resistance (the recent high), a break of that will target 3817. Now 3677. All sectors up. The banks are doing well on the back of a strong night in US financials on comments about “signs of financial recovery” from the US Treasury’s Geithner.

Tricom Today ASX Stock Report 1-4-09

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BHP and RIO both up in ADR form overnight – 3.58% and 0.80% respectively. (BHP closed at the equivalent of 3222c, up 31c on yesterday’s close.) Metals mostly up overnight – Copper up 3.32%, Zinc up 0.38% and Aluminium down 0.14%. Nickel up 2.87%. Oil price up 2.4% to $49.67. Oil locked in its largest monthly rise since May last year – largely due to the rally in equity markets and the lower US dollar. Gold up $7.10 to $922.60. Bonds down with the 10 year yield up to 2.6674%. A$/US$ up 1.61% to 69.23c. Financials up 6.7% – up 8.1% at best. Up 17.6% over March.

The TED spread (the difference between 3-month Treasury bills and 3-month Libor) dropped under the 1% mark again, encouraging the rise in financials. Technology stocks up – Brokerage Davenport moved Microsoft to a BUY on the increased sales of computers in China and the United States. Said there is the potential of restocking to come in Europe. Material stocks up- Alcoa up 10% after falling 14% the previous day, on rumours BHP is about to make a takeover play on the Aluminium producer. Deutsche Bank upgraded the stock a week before its 4Q results.
General Motors new CEO said bankruptcy is ‘more probable’ under the new tougher requirements for government aid. GM is already planning to shut 5 plants, is likely to have to ‘take more measures’.

The market is down 1. The SFE Futures suggested a 27 point gain this morning. The big news today is Oz Minerals receiving another bid from Minmetals excluding Prominent Hill and Wayne Swan giving Hunan Valin the green light to buy a 17.55% stake in FMG. Property Trusts dong well today. Industrials down 1.7%. Financials up 0.3%.

Tricom Today ASX Stock Market Report 31-3-09

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The SFE Futures suggested a 57 point fall this morning. BHP and RIO both down in ADR form, 6.2% and 5.7% respectively. Metals all down overnight – Copper down 3.4%, Zinc down 2.5% and Aluminium 1.83%. Nickel down 1.29%. Oil price down 7.5% to $48.49. Gold down $7.70 to $915.50. Bonds up with the 10 year yield down to 2.71%. A$/US$ down to 68.13c. Biggest fall in 3 weeks US Government rejects recovery plans from GM and Chrysler. Financials struggled on concerns that banks will need another capital injection. Realization that the recent bounce was good but the economy can’t recover overnight.

Oz Minerals (OZL) announces it has received an incomplete alternative bid from Minmetals that would result in them acquiring most of its assets apart from Prominent Hill mine. They say, “OZ Minerals has received an alternative incomplete proposal from Minmetals which, when completed, will result in Minmetals acquiring all of OZ Minerals’ assets except for Prominent Hill, Martabe and the company’s portfolio of listed assets. It also said it will make an announcement on refinancing negotiations before the start of trading tomorrow and will try to make a definitive announcement the new Minmetals deal. OZL still in a trading halt.

The market is surprisingly doing OK – down only 22 compared to the 57 point fall the SFE futures predicted this morning following heavy falls on Wall Street overnight. It seems we soaked up most of the damage yesterday. Aussie banks doing well despite their US counterparts getting smashed overnight, Resources down. Except gold stocks.

Tricom Today ASX Stock Market Report 30-3-09

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The SFE Futures suggested a 37 point fall in the market. BHP and RIO mixed Friday in ADR form – BHP down 5.15% and RIO up 1.38%. (BHP closed at the equivalent of 3333c, down 68c on Friday’s close.) Metals mostly down Friday - Copper down 0.86%, Zinc up 0.15% and Aluminium down 1.59%. Nickel down 0.26%. Oil price down 2.7% to $52.41. Gold down $16.80 to $923.20. Bonds unchanged with the 10 year yield at 2.7607%. A$/US$ down 0.04% to 68.96c.

No major news or announcements Friday. Stocks up 6.2% for the week. Widespread weakness. Financials up 12.2% for the week. Commodity stocks down on lower oil and metal prices. May oil futures down 3.6%. Material and energy stocks down 2-3%.General Motors up whilst announcing they are offering union members $10bn in preferred stock with a 9% coupon and $10bn in cash amortized over 20 years.IBM posts a gain. February personal income and spending in-line. Real personal consumption down.

The market is down 51 underperforming the 37 point fall predicted by the SFE Futures this morning. All sectors are down. Resources fairing the worst. BHP down 3.2%. RIO is the sole hero holding the market up a few index points. Banks down – only WBC up 0.7%.

Tricom Today Australian Stock Market Report 26-3-09

The SFE Futures suggested a 15 point rise in the market. BHP up 1.36% in ADR form and RIO down 1.16%. (BHP closed at the equivalent of 3306c, down 20c on yesterday’s close.) Metals mixed overnight – Copper down 0.25%, Zinc down 1.54% and Aluminium up 0.35%. Nickel down 1.54%. Oil price down 2.1% to $52.24. Gold up $12.00 to $935.80. Bonds down with the 10 year yield up to 3.3%. A$/US$ up 0.29% to 69.755c. Financials closed up 4.6% – up 6.5% at best and down 2.5% at worst – there were some fears over the weak demand for the auction of $34bn in government 5-year treasuries to raise funds as part of the economic rescue program. The demand for $40bn in 2-year treasuries yesterday was much stronger. The main concern, is that the weak demand for government debt and the fears it raises, reminds investors just how reliant on the government’s bailout the economy and financial institutions are. Bank of America up 6.65% on comments it would repay government debt soon. IBM was slated in The Wall Street Journal that it would cut jobs.

Energy stocks down on the lower oil price. February’s durable goods orders for airplanes, cars, appliances, furniture and other significant goods, was up 3.4% – far better than the 2% drop expected – and the biggest jump up in 14 months. Durable goods had drop consecutively for the last 6 months. February new home sales rose 4.7% to an annualized 337,000 – but still the worst month on record since 1963.

The market is up 23 slightly better than the 15 point gain the SFE Futures predicted this morning. Gold and Healthcare stocks going along nicely. Quiet day on the news front. Seems as if the market is taking a bit of a breather after the recent rally.

Tricom Today ASX Stock Market Report 25-3-09

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The SFE Futures suggested a 25 point fall in the market. BHP and RIO both down in ADR form overnight – 5.37% and 2.10% respectively.(BHP closed at the equivalent of 3273c, down 109c on yesterday’s close.) Metals all down overnight Copper down 2.09%, Zinc down 1.39% and Aluminium down 2.28%. Nickel down 1.02%. Oil price up 0.6% to $53.36. Gold down $29.00 to $923.50. Bonds down slightly with the 10 year yield up to 2.7073%. A$/US$ flat overnight at 69.55c. Financials down 6.5% – Citigroup down 3.5%, Bank of America down 7.2%. JP Morgan down 8.6%. The economy still has problems with excessive debt – The unemployment rate sits at 8.1% – the highest level since the early 1980’s, House prices continue to fall. consumers refuse to spend and credit markets remain tight.

Treasury’s Geithner asked Congress to provide him with the power to safely dismantle large financial companies that pose a major risk to the economy. The SEC are still considering the modification to the “uptick rule” with regard to shortselling stock, with pressure from exchanges like the NYSE and the NASDAQ for changes to be made. Energy stocks down 2.2% despite a rebound in crude oil futures.Tech stocks down 1.6%. Some of the large names fell harder – Microsoft and Intel both down over 2.5%. The market is up 29 outperforming the 25 point fall predicted by the SFE Futures this morning. BHP and RIO down 1.9% and 0.5%. Financials and property both up – banks all up despite US financials down 6.5% – NAB outperforming – up 4.4%. Macquarie Group down 1.8% today – A couple of brokers suggest it has done its dash – Both Royal Bank of Scotland and Citi cut their recommendation to Hold from Buy due to its recent outperformance. The stock is up 47% so far this month.

ASX closes higher after Wall St surge

The Australian share market closed higher on Tuesday but nowhere near the near seven per cent surge on Wall Street as local bank stocks wound back the earlier gains from the big miners and energy stocks.

The benchmark SP/ASX200 index was 29.7 points, or 0.84 per cent, higher at 3580, while the broader All Ordinaries gained 34.2 points, or 0.98 per cent to 3517.3.

At the close of day trading on the Sydney Futures Exchange, the June share price index contract was 51 points higher at 3604, on a volume of 29,599 contracts.

Austock Securities senior client adviser Michael Heffernan said Wall Street’s positive move prompted the gains on the local market, with oil-based stocks and the big miners the drivers.

‘We bolted out of the gate given the six per cent plus moves on Wall Street last night but it was very much a see-sawing day, certainly for some of the major bank stocks,’ Mr Heffernan told AAP.

‘The oil-based stocks along with BHP and Rio did the driving today, while the financials ran out of puff towards the end.’

Tricom Today ASX Stock Market Report 24-3-09

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The SFE Futures suggested an 88 point rise in the market.BHP and RIO both up in ADR form overnight – 8.07% and 16.38% respectively. (BHP closed at the equivalent of 3409c, up 76c on yesterday’s close.) Metals mixed overnight – Copper up 2.65%, Zinc up 2.62% and Aluminium down 0.96%. Nickel down 1.25%. Oil price up 2.9% to $53.05.
Gold down $3.70 to $952.50. Bonds down with the 10 year yield up to %2.6595. A$/US$ up 2.24% to 70.54. Citigroup up 19.5%. JP Morgan up 25% and the Bank of America up 26%. Bill Gross from Pimco said that the world’s largest bond fund will take part in the program. Diversified Financials up 24.5%. Diversified banks up 22.3%. Energy sector up 7.8%- May crude oil futures were up 3.5%. Defensive sectors up less on a relative basis. Homebuilders up strong on the positive home sales report – Toll Brothers up 10.8% and KBR Inc up 5.7%. The market is up 52 after being up 96 earlier in line the 88 point rise predicted by the SFE Futures this morning. Financials and property leading the way as the US government unveil their US$1 trillion public-private partnership bank plan. All the banks up but coming off morning highs – CBA outperforming.

Tricom Today ASX Stock Market Report 23-3-09

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The SFE Futures suggested a 20 point fall in the market. BHP and RIO both down in ADR form Friday – 1.29% and 0.18% respectively. (BHP closed at the equivalent of 3224c, up 6c on Friday’s close.)Metals down Friday – Copper down 1.10%, Zinc 0.32% and Aluminium 0.27%. Nickel down 0.30%. Oil price up 0.20% to $51.55 on a quite day in the energy sector after oil’s best weekly run in a month. Gold down $2.60 to $956.20. Bonds up slightly with the 10 year yield down to 2.6309%. A$/US$ up 0.49% to 68.99c. Industrials down 3.3% – General Electric down despite positive broker comments about their capital position and liquidity. Defensive stocks outperformed – up 0.1%. Healthcare up 0.2%Defensives have been the worst performers over the last couple of weeks during the rally. Financials down 5.3% – still up 40% since March 6th – Treasury’s Geithner is expected to announce Monday the details of the government’s $1 trillion package to buy troubled securities from the balance sheets of major banks utilizing the new government entity – the Public Investment Corp – using the resources of the $700bn bank bailout fund announced on February 10. The market has started the week off in a positive mood 0- up 43 – despite the SFE Futures suggesting a 20 point fall this morning and the 122 point fall in the US on Friday. Financials, Property Trusts and Resources are maintaining their recent good form.

Tricom Today Australian Stock Market Report 20-3-09

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The SFE Futures suggested a 13 point rise in the market. BHP and RIO both up in ADR form overnight – 5.23% and 3.93% respectively. (BHP closed at the equivalent of 3287c, up 162c on yesterday’s close.) Metals up overnight – Copper up 6.47%, Zinc up 6.22% and Aluminium up 6.09%. Nickel up 1.32%. Oil price up 6.9% to $51.46 on a lower US$ against other currencies as the Fed announced their potential inflation inducing $1 trillion capital injection into the financial system. Gold up $69.70 to $958.80. Bonds down slightly with the 10 year yield up to 2.6086%. A$/US$ up slightly to 68.51c. CRB Commodity index up 5%. The weaker US$ was underpinning the strong performance across commodities. The US$ was down 1.7% last night and down over 4% over the last two sessions. Material stocks up 1.4% on the higher metal prices. General Electric up on reaffirming positive profit guidance for 1Q and FY. Fed Ex posted 3Q NPAT down 75% – plans to cut more jobs and cut costs. Oracle and Nike beat quarterly expectations. The market is down 3 after being up 19 points earlier in line with the 13 point rise predicted by the SFE Futures this morning. Financials down, Resources up on higher metals and commodity prices. US$ down – Aussie dollar up. Financials taking a breather today – down 2.2% – after consecutive days of gains, not helped by US Financials which went backwards overnight.

Tricom Today ASX Stock Market Report 19-3-09

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The SFE Futures suggested a 31 point rise in the market.BHP and RIO mixed in ADR form overnight – BHP up 2.15% and RIO down 2.3%.(BHP closed at the equivalent of 3166c, up 58c on yesterday’s close.)Metals mostly down overnight – Copper down 1.16%, Zinc down 3.64% and Aluminium up 0.44%. Nickel down 2.23%. Oil price down 1.7% to $48.12 on a government report showing a bigger-thanexpected inventory increase in the US. Gold down $27.70 to $889.10, but rallied after hours $50+. Bonds up with the 10 year yield down to 2.5419%. A$/US$ up 2.21% to 67.66c. Material and energy stocks finished higher despite the fall in oil and metals overnight. Technology stocks up on the news IBM is in takeover talks with Sun Microsystems – reports of at least $6.5bn in cash for the deal are being bandied around. Oracle announced positive results after the close. Financials up 10.1% on the announcements from the Fed regarding their plans to further stimulate the economy, increasing the flow of credit and creating demand for assets. Diversified financials services companies up 13.2%. Diversified banks up 14.9%. Our market is having a good day – up 20 – up 54 at best and in line with the 31 point rise predicted by the SFE Futures this morning. Most sectors up – only healthcare and telecom stocks down. Financials, Resources and Industrials outperforming.

Tricom Today ASX Stock Market Report 18-3-09

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The SFE Futures suggested a 27 point rise in the market. BHP up 1.60% in ADR form and RIO down 3.28%. (BHP closed at the equivalent of 3168c, down 22c on yesterday’s close)
Metals mixed overnight – Copper down 0.78%, Zinc down 1.2% and Aluminium up 1.1%. Nickel up 0.05%. Oil price up 3.5% to $48.97 on talk that demand for oil has bottomed. Gold down $5.20 to $916.80. Bonds down with the 10 year yield up to 3.0104%. A$/US$ down 0.4% to 66.20c. Financials up 6.6% – closed on their high. Obama has not yet outlined how toxic assets will be removed from the balance sheets of the banks. Material stocks up 0.4% – after being down 2%during the session. The sectors relative weakness was due to some negative company announcements from Nucor, Alcoa and Rio Tinto. Alcoa was the big drag on the Dow – fell 8.7% on announcing it would cut its dividend and issue stock and convertible notes worth $1.1bn – send it would slash costs. Construction index up 6.3% overnight on the strong housing starts number. Home Depot up 6.7%. Pulte Homes up 7%. Toll Brothers up 6%. Technology stocks outperform with the large cap stocks leading the way as Cisco Systems was upgraded to a BUY and some brokers cited an improved outlook for the economy. The market is down 6 and drifting – up 36 earlier – underperforming the 27 point rise predicted by the SFE Futures this morning. Industrials and financials up. Energy up. Discretionary stocks up. Resources and healthcare stocks down 2.8% and 1.6%. BHP and RIO both down – dragging the index down 20 points between them.

Tricom Today ASX Stock Market Report 17-3-09

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The SFE Futures suggested an 8 point rise in the market.
BHP and RIO both down in ADR form overnight – 1.10% and 1.36% respectively.(BHP closed at the equivalent of 3128c, up 28c on yesterday’s close.) Metals up overnight – Copper up 4.36%, Zinc 2.21% and Aluminium 0.82%. Nickel up 5.16%. Oil price up 2.4% to $47.33 – OPEC hinted that itsmembers might cut production as its next meeting. Gold down $8.10 to $922. Bonds down with the 10 year yield up to %2.9557. A$/US$ up 0.72% to 65.95c. Financials down 1.9% after being up 6% early in the session. Citigroup up 31%, Bank of America up 7.3% and AIG up 66%. Obama also laid out more details on the plan to assist small businesses including a $15bn injection into the secondary credit markets to reduce lending fees, increase loan guarantees and ease the tax burden. Obama said he’d pursue every legal channel to ensure the executives at AIG don’t get paid the $450m in bonuses when AIG has already received $170bn from the American taxpayers. He said it was an issue of “fundamental values”. The FASB (accounting board) proposed changes to legislation that would allow companies more discretion in determining the definition of “distressed markets” for accounting purposes which would potentially allow a relaxation of the mark-tomarket
write downs on troubled assets across their balance sheets. The market is up 49 outperforming the 8 point rise predicted by the SFE Futures this morning. All sectors up bar telecoms. Industrials and resources outperforming. Property stocks continue to recover. BHP and RIO both up – RIO says in its financial statement summary that it’s ahead on delivering Alcan synergies. Banks all up today with Westpac outperforming – up 1.8%.

Tricom Today ASX Stock Market Report 16-3-09

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The SFE Futures suggested a 26 point rise in the market. BHP and RIO both up in ADR form Friday – 2.30% and 0.8% respectively. (BHP closed at the equivalent of 3186c, up 20c on Friday’s close.)Metals mostly up Friday – Copper up 2.51%, Zinc down 0.16% and Aluminium up 0.52%. Nickel up 1.53%. Oil price down 1.5% to $46.22. Gold up $6.10 to $930.10. Bonds down with the 10 year yield up to 2.8921%. A$/US$ down 0.5% to 65.475c. Obama announced a $730m package to provide assistance to small business owners. The government also plans to increase the government guarantee on some small business administration loans to 90%. They will also boost bank liquidity with
$10bn in an attempt to unfreeze the secondary credit market. Healthcare – the largest sector in the S&P 500 – up 3.3% after recent heavy selling pressure due to fears over government reform. Energy down the most – fell 0.7% on the lower oil price. OPEC’s meeting over the weekend only created more uncertainty about demand and stabilizing prices. They did not make a cut to production but urged their members to stop overproducing. The market is up 16 in-line with the 26 point rise predicted by the SFE Futures this morning. A pretty flat start to the week with not a lot of significant news around. Resources struggling, Property Trusts and Banks doing well.