ASX Stock Report 13-4-10

1. Early selling market -13.2points by 10.10am. Then again post 1pm, market lost any leads from yesterday as commodities lost value across the board.

• ASX 200 4951.6 -0.66%

• SPI Futures 4964.0 -0.86%

2. BHP $43.84 -1.37%; RIO $79.50 (-1.44%), Gold Spot –US$11.45/oz LGL $3.92 -1.51%; NCM $34.41 -1.49%, Oil spot –US$0.68/barrel STO $14.64 -1.88%; ORG $16.75 -1.41%

3. ABS lending finance data for February; commercial finance +5.6% – revolving credit commitments +13.7% and fixed lending commitments +2.9%, owner occupied lending -4.4%, personal finance +0.7% – fixed lending commitments +1% & revolving credit commitments +0.4%. Lease finance commitments +0.8%.

4. NAB business conditions index +6points to 13pts. Strongest since November 07, on improved employment forecasts, capacity utilisation and stronger eco growth forecasts. – WSJ

5. Energy: Coal – KRL $0.19 -2.56% Indonesian Coal resources; 1) Thermal Coal GPK project 84.82% owned. Commencing production 25KTp.m. Margin $20/T; expecting 1-2MT p.a.CY10 & +10MT p.a. within three years. 2) Mamahak Coking project inherited 30KT stockpile ready for immediate shipping, have exposed 15KT of fresh resource for mining. Initial production 30KTp.m. margin $50/T. Infrastructure capable of 1.5MTp.a. Production JORC resources 10.22MT. 3) New m’ment looking to unlock value.

6. MTE $0.305 -3.17% finding a level market after being up 40% over a week.

7. Santos signs Gas sale and Purchase agreement with Wesfarmers Energy WES $32.28 -0.28%. Five year contract for 60 Petajoules of gas, sourced from John Brookes gas field offshore WA. Commence 2H CY10

8. Energy: Uranium – EXT $7.83 -0.89%; BKY $1.52 +0.66%

9. ERA $18.52 -5.94%; -27% 1Q uranium output, expected from lower grade resource.

10. Over the past 12 months, the price of uranium has hovered between USD 55.00/lb and USD 40.00/lb, and is currently priced around USD 41.75/lb; the latest peak was seen in mid-2009 at around USD 54.00/lb.

11. The Nuclear Energy Agency (NEA) of the Organisation for Economic Cooperation and Development paints a healthy growing demand for uranium, especially in the longer term, and the World Nuclear Association reckons that where mine supply was about 44,000 tonnes (about 20% each from Canada, Kazakhstan and Australia) in 2008, demand is likely to increase to 74,000 tonnes by 2015

12. OneSteel $3.96 -3.41% blast furnace failure leading to production stoppage.

13. Industrial Services: DOW $7.44 -2.75%; AAX $4.75 -0.84%; BLY $0.345 -2.82%; TOL $7.50 +0.4%

14. MAH $0.815 -3.55% awarded $90M rail contract, 16th March awarded $190M contract to operate Cameby Downs coal in QLD.

15. Leighton $37.85 -0.24% JV contract with Abigroup to upgrade Gateway motorway QLD. $240M contract extension. Also awarded $940M adjustment from Energy Resources to increase production at Ukhaa Khudag coal mine in Mangolia.

16. South Korean Hyundai Merchant Marine contract with Brazil and Australian iron ore shipment, translates to $315M in sales for 2010-2015. is a 15yr contract. 50:50 JV with Far East Marine Group.

17. Healthcare: SIP $0.515 (-0.96%) SHL $14.48 (+1.54%) ISF $0.58 (-1.69%) PRY $4.25 (+1.92%)

18. TLS $3.19 (+2.9%) drove up telecoms.

19. Utilities: EWC 0.50 +3.09%; APA $3.70 +1.65%; AGK 15.38 (+1.18%)

20. Retail: US based discretionary’s FXJ $1.775 (-1.39%) NWS $18.95 (-1.3%) ALL $4.55 (-1.09%) WDC $12.17 (+0.08%)

21. Retail auto sellers performing well off the back of rebounding industry. Car sales YoY March +25.2% (from last week). Super Cheap Auto $5.11 (+0.2%) Automotive Holdings $2.60 (-1.52%) ARB Corp $5.72 (+0.35%)

16-3-10 ASX200 Stock Report

1. Domestic equities market was again relatively flat today, the ASX200 finishing up 13.1 points. Largest contributions where from the teleco’s lead by TLS which ended up 2.3% closing at $3.11 and looks to be in a good position to be trading off; remembering the share price will be sensitive to government intervention on the NBN split up of infrastructure assets.

• ASX200 4797 (+0.27%)
• SPI 4804 (+0.27%)

2. Minutes to the RBA meeting from Tuesday 2nd March, justification for their 0.25bp rate rise:

• International economic conditions remain uncertain. The US reported mixed results; EU remains the weakest of all. Japanese reported relative strong GDP growth, India slightly negative reflecting declining production and China reporting little but evidence of strong property price growth and greater bank lending.

• Global public debt levels remain an issue especially considering the widening of fiscal deficits.
• Domestic economic conditions where faintly better than previously. GDP for Dec09 quarter was expected to be 0.75 – 1%, contributed to by primarily the public sector and household spending.
• Improved business sentiment, improvements in labour market figures where on the upside
• Business credit growth and retail trade improved over January.
• The RBA noted Melbourne as the stronger city from the buoyant domestic housing market.
• Building approvals notably higher from the year previous however loan approvals retracted as expected post MP tightening
• CPI figures where not released, private sector wage growth remained low leading the RBA to suggest underlying inflation will fall further in the short term to 2.5%.
• Sovereign debt issues are not feared by their magnitude but from the possibility of a flow on effect. Greek and German gov. bond spreads had increased, while other major developed nations bond spreads including our own stayed relatively unchanged.
• The RBA admits that if the sovereign debt problems where not resolved this could have implications for our domestic economy.
• Company profits for the 1H FY10 on the aggregate where vastly stronger than the year previous.

3. SEV $8.00 (+0.38%) in trading halt post Federal Court ruling post release of the IER for merger with industrial equipment business owned by Kerry Stokes. NWS $18.16 (+0.83%) is still our strongest content distributor.

4. MOL $0.895 (+1.7%) after Chinese Government approval for $US200mil investment in the company by Hanlong Mining, final approval rec’d today.

5. LNG $0.525 (+2.94%); AOE $5.23 (-0.38%) have signed a limited obligation extension to the terms of the agreement to buy LNG’s Gladstone project. The provisions for the agreement have been extended until June 30th. AOE still developing on an outcome from takeover offer from Shell/PetroChina bid.

6. RIO $75.50 (+0.16%) and Chinalco are entering into a joint-venture to manage political uncertainty and tap into west African country Guinea’s Iron Ore. The Simandou field is set to rival the globe in terms of size and quality of iron ore, comparable to WA Pilbarra mine or Carajas in Brazil . Chinalco has kept the door open for further co-operation between the companies both domestically and abroad.

7. RIO annual report for 2009, experienced difficult period in comparison to the year previous but the company is optimistic on prices going forward. Major highlights:

• Underlying earnings down 38% to US$6.3bil
• Net debt reduced by US$20bil to $US18.9bil
• Cash flow from operations down 33% to US$13.8bil
• Capex US$5.4bil

8. Property market; ALZ $0.515 (-0.96%); SDG $0.80 (+1.91%); DVN $0.28 (+7.69%); CDI $0.53 (-1.85%)

9. Engineering; BLY $0.315 (-1.56%) nature of business may mean that reporting season for them is not in line with their most productive periods for earnings over the year. They are forced to report in February despite a lot of their operations being offshore, especially in the Americas, making their reporting appear conservative and for their quieter months of Jan and Feb. BLY has begun readying rigs and hired more than 1000 employees. The stock will be included in the S&P/ASX 100 from March 19th.

10. UGL $15.02 (+4.23%) we see as overpriced but still an option in the sector with upgrades to industrial services forecasts, FGE $2.51 (+10.09%); DOW $7.48 (+0.13%) & AAX $3.99 (+1.27%) are good plays in the engineering and industrials space.

11. IIN $2.45 (+3.38%) investor presentation 1H FY10 results, focus on low price high bandwidth ISP, differentiating products.

• Revenue $228mil (+11%)
• Underlying NPAT $14.8mil (+30%)
• Underlying EBITDA $37.4mil (+20%)
• Underlying ROE 14% (+3%)

12. Australian Central credit union recorded $6.3mil profit – 55% increase in HY FY10 profit. 120% increase in retail deposits and 107% rise in assets under management.

Overseas Headlines:

1. The beginning of the global financial market descent was marked by the fall of IB Lehman Brothers. Could they also have something to do with the resurrection of global financial markets? The company has announced today that it has come out of receivership.

2. Fears of tightening policy in China entered the commodities market overnight with the majority of traders factoring into prices the effect this will have on domestic demand.

3. European Union officials have confirmed that a mechanism will be put in place to help the Greek government avoid default on debt. They did not confirm how much money would need to be pooled nor who would be contributing and to what extent they would do so, however after meeting yesterday they where protective of their vested interest in the sovereign debt within the region. Greece has committed to cutting their deficit by 4% to bring it below 4% by the end of 2012.

Data Tomorrow:

1. Canada:

• Wholesale Sales month on Jan survey 0.5% vs. prior 0.7%

2. Japan:

• BOJ Target Rate (MP) 0.10%

3. UK:

• Jobless Claims change February survey 6K vs. prior 23.5K

• Average weekly earnings 3months to January (YoY) survey 1.7% vs. prior 0.8%

• U/E rate 3months to January survey 7.9% vs. prior 7.8%

4. US:

• Producer Price Index February survey -0.2% vs. prior 1.4%

• PPO exports Food and Energy survey 0.1% vs. prior 0.3%

Stock Market Report 19-1-10

US markets were closed for the Martin Luther King Day.

Major US companies reporting later this week include the Bank of America, Citigroup, Morgan Stanley, Goldman Sachs, IBM, General Electric and Google.

European shares rose, lifted by a rally in mining and oil shares on the back of firmer commodity prices.

National benchmark indexes gained in all of the 18 western European markets, except Greece, Iceland and Luxembourg. Across Europe, Britain’s FTSE 100, Germany’s DAX and France’s CAC 40 rose between 0.7% and 0.8%.

Trading was subdued, as US markets were closed for the Martin Luther King Day. Volumes on the European index were just 65% of its 90-day daily average volume.

Miners topped the gainers’ list as commodity prices advanced. BHP, Anglo American, Antofagasta, Rio Tinto, Xstrata and Eurasian Natural Resources rose between 1% and 4%.

Cadbury rose 1.8% on media reports that the Kraft Foods will increase its offer to at least 820 pence per share. Kraft Foods must make a revised bid for Cadbury by Tuesday. The Hershey Co., which is reportedly working on a possible bid as well, has until Saturday to make a bid under UK takeover rules.

International Power dropped 3.4% after saying talks with GDF Suez on combining some assets are no longer continuing. The biggest UK-based electricity producer had earlier rallied on speculation that GDF Suez is considering a tie up with International Power that may lead to a partnership.

Greece’s ASE Index slid 2.5%. Finance ministers from the 16 nations using the euro are meeting in Brussels as Greece struggles to cut a 2009 budget deficit that may reach almost 13% of GDP. Among notable movers, Titan Cement, Greece’s largest cement maker, sank 7.9%. Alpha Bank, the country’s third-largest bank, tumbled 7.7%.

L’Oreal, Nokia and Zodiac Aerospace advanced on analyst upgrades. L’Oreal added 2.1%, Nokia was up 1.6% and Zodiac Aerospace gained 5.4%.

Overseas Markets

FTSE up 39 pts to 5,494 (5,454 – 5,504)

Nikkei down 127 pts to 10,855 (10,781 – 10,895)

Shanghai SE Comp up 13 pts to 3,237 (3,202 – 3,238)

Rio Tinto plc up 0.89% to A$63.68 eq.; a 19% discount to prev Aust close A$78.32

BHP plc up 1.47% to A$36.54 eq.; a 16% discount to prev Aust close A$43.44

Commodities

WTI Oil down 1.8% to US$78.00/bbl

Gold up 0.3% to US$1,134/oz

Silver up 1.2% to US$18.64/oz

Platinum up 1.4% to US$1,622/oz

Currency

A$ / US$ down 0.5USc to US$0.93 /A$

EUR / US$ down 1.1USc to US$1.44 /EUR

GBP / US$ down 0.1USc to US$1.63 /GBP

US$ / Yen down 0.5 Yen to 90.74 Yen/US$

Stock Market Wrap 7-10-09

Buoyed by an encouraging lead from overseas, the Australian market started strongly but soon began to shed its gains, and lost more steam after the RBA’s rate hike. The All Ordinaries finished Tuesday 18 points higher.

The S&P/ASX 200 also closed 18 points up. The Materials sector rose, with BHP Billiton (+$0.33), Rio Tinto (+$0.88) and Newcrest (+$0.76) climbing while Fortescue (-$0.19) fell. The Energy sector gained, with winners including Origin (+$0.28), Santos (+$0.13), Oil Search (+$0.10) and WorleyParsons (+$0.75); Woodside (-$0.43) bucked the trend and declined. The Financials sector saw gains in Westpac (+$0.51), ANZ (+$0.20), Westfield (+$0.24) and Macquarie Group (+$1.05); however, Commonwealth Bank (-$0.18) and National Australia Bank (-$0.11) dipped. The Industrials sector saw Brambles (-$0.20) fall while Leighton Holdings (+$0.83) and Macquarie Airports (+$0.08) rose. Losers in the Consumer Discretionary sector included Harvey Norman (-$0.11), Aristocrat (-$0.25), Fairfax (-$0.06) and David Jones (-$0.30). In the Healthcare sector, CSL (-$0.45) and ResMed (-$0.14) softened.

The Reserve Bank raised the cash rate by 0.25% to 3.25%. Graincorp (in trading halt) is to acquire global malt manufacturer United Malt Holdings for an enterprise value of $757M. The acquisition is to be funded by a 9-10 entitlement offer at $5.65ps and institutional placement raising a total of $589M, and a US$200M debt facility. Graincorp also upgraded its FY09 NPAT guidance to a range of $60M-$63M and said it will pay a dividend equivalent to 15cps per existing share. Brambles’ CEO will retire from his role on 1 November 2009. Brambles’ strategic review of its North American CHEP operations endorsed the continued use of wooden pallets and an improvement in customer service.

US Stock Markets

US stocks extended a worldwide rally, on speculation third-quarter earnings will top estimates and growing conviction the global economy is improving.

Market breadth was positive. On the NYSE, winners topped losers by almost four to one. On the NASDAQ, advancers topped decliners two to one.

The stock advance was broad-based, with 29 of 30 Dow stocks rising as investors piled into a variety of stocks battered in the recent sell-off. Investors welcomed reports that Australia became the first major economy to lift interest rates since the start of the financial crisis.

Producers of energy and raw materials had the two biggest advances in the S&P 500 among 10 industries, rising around 2%. Alcoa and Newmont Mining climbed at least 3.5%, while Exxon Mobil gained 1.6% as crude advanced.

The MSCI World Index of 23 developed countries added 1.9%, the most in two months.

In company news, Boeing said it will take a US$1B charge in the third quarter because of higher costs to produce its 747-8 airplanes and tough market conditions. The stock was little changed and was the only Dow stock to not advance.

Alcoa is scheduled to release third-quarter results on Wednesday, the first company in the Dow average to report earnings. General Electric and Intel are among the Dow and S&P 500 companies that will report in the next two weeks. Analysts expect companies will report a ninth straight quarter of declining profits before returning to growth in the final quarter.

RIO Tinto Limited (Ex Today)

Renounceable issue of ordinary shares at a price of A$28.29 per share. New shares rank pari passu with existing shares.

Underwriters: Credit Suisse (australia) Limited, J.P. Morgan Australia Limited, Macquarie Capital Advisers Limited, RBS Equity Capital Markets (Australia) Limited, Deutsche Bank Ag - Sydney Branch, Morgan Stanley Australia Securities Limited, and Societe Generale.

Note: Rio Tinto Limited has obtained a waiver from the ASX allowing the timetable for the Rio Tinto rights issue to be shorter than that ordinarily required under the ASX listing rules.

The date for second posting of Rio Tinto Limited entitlement and acceptance forms to qualifying Rio Tinto Limited Shareholders (i.e. Rights Despatch Date) is 26 June 2009.

Baltic Dry Index – more than a snap-back rally

The Baltic Dry Index – a measure of freight rates for iron ore and bulk commodities – rose non-stop for 23 sessions until Wednesday, before declining somewhat yesterday. This surge represents a gain of 517% from its low on December 5. But one needs to put this in perspective: the Index fell by 94% from its high in May 2008, and therefore still needs to rise by a further 188% to match the previous peak.

More importantly, this rise seems to be more than a snap-back rally and points to better economic tidings. This becomes apparent when considering the close relationship between China’s Purchasing Managers Index (PMI) for New Export Orders and the Baltic Dry Index, showing both indices turning sharply higher.

Source: Plexus Asset Management (based on data from I-Net Bridge)

Also, the improvement in China’s PMI (with the composite Index back in expansionary territory above 50) and the Baltic Dry Index is consistent with the improvement in the Metals Index.

Source: Plexus Asset Management

RIO Ratio Put Spread – Great Risk vs. Reward

Post is currently under repair.

For full information in regards to this trade including entry levels, please call or email Eden Hage on 1300 368 316 or info@TotalTrader.com.au

ASX Stock and CFD Report 12-05-09

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The SFE Futures suggested a 51 point fall in the market. BHP and RIO down in ADR form overnight – 2.57% and 2.44% respectively. (BHP closed at the equivalent of 3503c, down 25c on yesterday’s close.) Metals all down overnight – Copper down 2.56%, Zinc 0.84% and Aluminium 0.32%. Nickel down 2.66%. Oil price down 79c to $57.79. Gold down $1.40 to $913.50. Bonds up with the 10 year yield down to 3.1736%. A$/US$ down to 75.90c.

Last week the banks had massive rallies so a pull-back is not a surprise – Wells Fargo was up 43.7% last week alone and JP Morgan was up 19.9%. Multiline Insurers and life and health insurers were hit the hardest – down 7.5% and 10.5% – down on the continuing debate over healthcare reform and the impact it will have on the industry. Tech stocks just up – Microsoft down 0.5% as they announced they will be raising cash through a debt issuance – didn’t reveal what amount they would raise, but last September noted they could take on up to $6bn in debt – Microsoft has $25bn in
cash. Telecom stocks comprised the only sector making a mentionable gain – AT&T will buy $2.35bn in assets from Verizon. Energy stocks down on the lower oil price after Fridays strong session – Occidental Petroleum down 3.7%. Ford Motors announced a public offering of 300m shares of common stock to partly fund the retiree health care trust.

The market is down 58. The SFE futures suggested a 51 point fall in the market this morning. Most sectors down. Resources and industrials getting hit the hardest – down 2.3% and 2.8%. BHP and RIO down 2.6% and 1.2%. Property trusts doing OK – up 0.2%. Energy  stocks down 1.7% after recent strong gains. Gold stocks mixed – NCM and LGL actually up despite the lower gold price overnight.

ASX Stock and CFD Report 11-5-08

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The SFE Futures suggested a 44 point rise in the market. BHP and RIO both up in ADR form Friday – 4.79% and 2.64% respectively. (BHP closed at the equivalent of 3523c, up 1c on Friday’s close.) Metals mostly down Friday – Copper down 0.53%, Zinc down 1.89% and Aluminium down 1.47%. Nickel up 0.27%. Oil price up $1.91 to $58.58. Gold down 60c to $914.90. Bonds up with the 10 year yield down to 3.2856%. A$/US$ up to 76.85c.

Financials up 8.3% – The 10 banks needing to raise more capital in-line with the government’s stress testing are choosing a number of avenues to do so – capital raisings involving common stock and preference shares and asset sales seem to be the popular choices. The Bank of America is utilizing all three methods – will raise $17bn in a common stock offering, with the balance of the $34m needed through preferred stock to equity conversions and asset sales. Wells Fargo will issue common stock to the tune of $7.5bn, will retain earnings
(cut dividend) and make operational expense cuts. Citigroup will convert more than previously announced preferred stock to common equity. GMAC will likely issue common stock and increase capital further by issuing mandatory convertible preferred stock or do something with the conversion of existing equity.Energy strong – up 4.2% on the higher oil price.Defensive stocks underperformed – telecom companies down 0.4% – AT&Tdown on reports about a deal to buy $2.5bn in assets from Verizon.

Not the best of starts to the week – down 22 – considering the SFE Futures suggested a 44 point rise in the morning. Financials started off well but have since gone backwards. Macquarie Group has gone ex dividend 40c. Santos has had a $3bn capital raising and Pacific Brands $256m adding to last week’s $5bn call on the market from Macquarie, Bluescope Steel, Alumina and GPT.

ASX Stock and CFD Report 8-05-09

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The SFE Futures suggested a 21 point fall in the market. BHP and RIO both down 1.3% in ADR form overnight (BHP closed at the equivalent of 3436c, down 134c on yesterday’s close.) Metals mostly down overnight – Copper down 0.84%, Zinc down 0.88% and Aluminium down 0.19%. Nickel up 0.62%. Oil price up 38c to $56.67 on signs that the US economy might be showing some signs of recovery. Gold up $4.50 to $915.50. Bonds down with the 10 year yield up to 3.3341%. A$/US$ up to 75.43c.

Tech stocks down 3.2% – Cisco Systems posted better-than-expected earnings for the quarter and gave upside guidance. Semiconductors down 5.9%. A government $14bn 30-year bond auction was poorly received by investors,
pushing yields up on both the 30-year bond and the 10-year bond. Government treasuries are falling out of favour at the current offered rates. Retailers down 1.3% despite monthly same-store-sales being broadly better-thanexpected.
Wal-Mart posted April same-store sales up 5.0% but said they would decline to announce monthly same-store-sales going forward – also gave downside revenue guidance for the 1Q. Consumer staples up 0.4%. Utilities up 0.6%.
Healthcare stocks up 2.5% – managed healthcare companies up 8.1%. CBS Corp posted a $55m loss in the 1Q - missed expectations – closed up 1%. Down 11% after hours.

The market is down 23. The SFE Futures suggested a 21 point fall in the market this morning. The ASX is holding up well in light of the 1.2% fall in the US overnight. US Financials putting on a bit after-hours has helped. Resources down 1.5% after their stellar run yesterday – BHP down 2.2%. Rio relatively unchanged. Banks mostly up – NAB up 1.4%.

ASX Market Report 1-05-09

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The SFE Futures suggested an 18 point rise in the market. BHP and RIO both up in ADR form overnight – 0.80% and 3.15% respectively. (BHP closed at the equivalent of 3318c, down 8c on yesterday’s close.) Metals up overnight – Copper up 1.40%, Zinc 0.99% and Aluminium 2.54%. Nickel up 3.32%. Oil price up $0.16 to $50.35.
Gold down $9.30 to $891.20. Bonds down with the 10 year yield up to 3.1197%. A$/US$ down to 72.525c.

Financials down 0.8% – banks were sold off after gains yesterday. The House has passed a credit card law to prevent companies from suddenly boosting interest rates and to curb their more crafty practices. The government’s results from the stress testing of the banks will be delayed as examiners and executives debate the preliminary findings.
Energy stocks down the most – fell 2.1%. Oil and gas drillers down 3.5%. Big integrated companies like Exxon Mobil also brought the sector down – Exxon finished down 2.6% on a quarterly earnings report that fell short of expectations. Both Exxon and Marathon Oil posted quarterly profit over 50% below that posted in the same quarter a year ago – it was only last year than Exxon, the most widely traded oil stock on Wall Street, posted record profits – it was their worst result in 5 years. Doesn’t bode well for the oil sector’s impending results. Chrysler filed for chapter 11 bankruptcy – will temporarily halt most of its car production while completing a deal with Italian car manufacturer Fiat – a group of key creditors wouldn’t go along with Chrysler’s proposal to reduce $6.9bn in secured debt. Ford said the fate of Chrysler going bankrupt wouldn’t affect its own supply – up 9.7%.

Quiet day on our markets – down 10 points – a little disappointing considering the SFE Futures suggested an 18 point rise. Resources down 0.7% with BHP and RIO down 1.1% and 1.7%. Property and industrials down 0.3% and 0.1%. Financials up 0.2% – banks mostly up – NAB up the most at a 1.1% rise. Gold stocks down on the lower gold price overnight.

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%.

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 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.

Tricom Today Australian Stock Report 13-3-09

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The SFE Futures suggested a 58 point rise in the market. BHP and RIO both up in ADR form overnight – 0.22% and 3.48% respectively. (BHP closed at the equivalent of 3108c, up 73c on yesterday’s close.) Metals mostly down overnight – Copper down 0.25%, Zinc down 1.13% and Nickel 3.5%. Aluminium up 0.07%. Oil price up 10.5% to $46.91 following the better-than-expected US February retail sales figures. OPEC meet this weekend to discuss production. Gold up $13.30 to $924.00. Bonds up with the 10 year yield down to 2.8544%. A$/US$ up 0.27c to 65.47c. Biggest 3-day rally since November – up nearly 11% week-to-date. Financials lead the way. Oil has a 10% bounce. The FASB told Congress it may recommend a suspension of “mark-to-market” rules. Bank of America said they were profitable in the first 2 months of the year. Retail numbers better-than-expected. Initial jobless claims worse-than-expected. Business inventories down 1.1% in-line with expectations. General Electric’s credit rating cut less-than-expected – only to AA. General Motors said it wouldn’t need the previously requested $2bn from the government. The market is up 106 outperforming the 58 point rise predicted by the SFE Futures this morning. All sectors enjoying the bounce, particularly property (still recovering) and energy after the 10% bounce in the oil price overnight.

Tricom Today Stock Market Report 6-3-09

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The SFE Futures suggested a 50 point fall in the market. BHP and RIO both down in ADR form overnight – 6.77% and 5.88% respectively. Metals mostly down overnight – Copper down 1.6%, Zinc up 1.47% and Aluminium down 2.87%. Nickel down 2.0%. Oil price down 3.8% to $43.54 after China released little detail about the further stimulus package to boost their economy. US government reports suggested the demand for energy could still drop further.
Gold up $21.10 to $927.80.Bonds up with the 10 year yield down to 2.81%. A$/US$ down 1.64% to 63.86. Financials down 9.9% – Citigroup had an intraday fall of 13% to 98c on fears it will not escape nationalization. Its market cap has fallen from $270bn to $5.4bn over the last two years. Diversified banks down 16.5%. Diversified financial services down 13.2%. General Motor’s future is being questioned – the auditors of its annual report raised serious doubt about whether the company could remain liquid – GM has already had $30bn in handouts from the government. The market is down 48 in-line with the 50 point fall predicted by the Futures this morning. Quiet session ahead of Labour Day on Monday.

Tricom Today ASX Stock Market Report 5-3-09

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The SFE Futures suggest a 72 point rise in the market. BHP and RIO both up in ADR form overnight – 8.70% and 11.14% respectively. Metals up strongly overnight – Copper up 5.82%, Zinc 8.02% and Aluminium 3.42%. Nickel up 3.89%. Oil price up 8.9% to $45.28. Oil up with the rally in the general markets and on reports that crude levels in US storage has unexpectedly shrunk. Gold down $6.90 to $906.70Bonds down with the 10 year yield up to %2.9874. A$/US$ up to 65c. Financials closed 3.5% down after being up as much as 3.5% – down after Reuters reported a congressional subcommittee will meet on March 12th for a hearing on the mark-to-market accounting rules that could result in financials taking huge writedowns on their problem assets. Diversified banks down 10.2% – investors worried about news that Bancorp (Minneapolis-based bank) will cut its dividend by 88% – it was seen as one of the healthier banks. General Electric down to 18-year-lows on the fact that they might have to inject more cash into GE Capital. GE denied they required any outside assistance with capital saying they had ample liquidity. Credit agencies are warning their AAA rating is in danger of being downgraded. GE was down 17% on the open but rallied to close down only 4.5% – GE’s strength gave support to the broad-based market. The market is up 40 – a little disappointing considering the 72 point rise predicted by the SFE Futures this morning. BHP has been holding up the market all morning – boosting the index 28 points alone at midday.

Tricom Today ASX Stock Market Report 4-3-09

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The SFE Futures suggested a 25 point fall in the market this morning.BHP and RIO both up in ADR form overnight – up 4.44% and 0.84% respectively. Metals mostly up overnight – Copper up 4.55%, Zinc up 3% and Nickel 1.05%.
Aluminium down 0.23%. Oil price up 3.7% to $41.57. Oil managed to hold early advances but trading was volatile after the last few weeks of losses in the face of a continuing synchronized global downturn. Gold down $26.40 to $913.60. Bonds down with the 10 year yield up to %2.88255. A$/US$ up to 63.73c. January Pending home sales down 7.7%- worse than the 3.5% expected. Job losses
are continuing and consumer confidence remains at all-time lows. Treasury secretary Geithner reiterated in Congress that Obama’s budget deficit was required to make long-term investment in healthcare, energy and education – the comments didn’t support market buying. The market is down 47 – bit disappointing considering the 25 point fall predicted by the SFE Futures this morning. Industrials the only sector up with Brambles outperforming, but most sectors struggling, most notably Property trusts. Energy stocks down despite the oil price bouncing overnight. 4th Q GDP Number is a bit of a horror – against consensus estimates for a small positive number of +0.2% the number has come out at -0.5%.