Market Review

What a nice surprise it was to see another day of green across the screens although it did wilt towards the close. News early that the Greek issue had been solved with some mega creative accounting, some promises of the ‘cheque in the post’ and ‘of course I love you’ were enough to see our market steadily build momentum. All sectors brightened up as another White swan went swimming by. Gotta love those Swans! We also picked up some good news this morning from market darling CSL which after three days of profit taking went ballistic after a profit upgrade. Financials joined in with all the banks in positive territory even #NAB# which is usually the most canine in appearance. Other defensives like #TLS# had good days together with #WOW# although #WES# missed out on the love in. In the ‘Karate Kid’ stocks of Risk on/Risk off land, #BHP#,#RIO# and #FMG# all showed a good gain today despite Iron Ore prices easing overnight. Whilst Gold shares were mixed as the yellow metal clung to recent gains.

Industrial and media shares were better too with #FXJ# revival continuing. In fact even #TEN# were rising Lazarus like, seriously. Building stocks like #CSR# #BLD# and #BKW# were slightly better and in takeover stocks #GNC# fell away today as our analyst has been suggesting. Another Good call Dennis.

In the region the Shanghai composite fell below 2000 again as investors fretted that the Government is not moving fast enough to stimulate the economy. Volumes on the exchange were abysmal plunging to levels not seen since 2008.Seems to be an issue around the world. We are not alone.

Stocks in the News

House stocks hitting the high numbers included good gains in the energy sector with #COK#,#NXS#,#REY# and #ROC# all posting good gains. And a fantastic day for one of our favourite Gold stories as #EXG# announced some spectacular results at their Zoroastrian project with a hit of 4m at $753g/t. Think they must have drilled into a vault.

Also in the limelight was #LYC# trying to push higher and digest the recent placement. In fact a good day all around in house stocks as #BAB#,#FMS# #NMG# and #ARU# showed promise.

#HVN# held their AGM today where Gerry revealed he’s started to believe in Santa Claus again. ‘‘This year I’ve agreed that Santa can come back into the store. Last weekend we had umpteen thousands of people into our stores and we had a good weekend because we’ve got the Santa.’’ Amazing what lengths he will stoop to. Blokes in red suits and a beard what next..the Easter Bunny!
#REX# is blaming an expected economic slowdown and additional costs such as the carbon tax for a predicted big drop in profits this financial year has told shareholders at its annual meeting in Sydney today that pre-tax profits could drop to as low as $22.8 million.

#BKW# says its earnings have stabilised in recent months, but the timing of a recovery in the housing sector remains unknown. Earnings from Brickworks’ building products operations had fallen over the 18 months to the end of July 2012 because of weak housing construction activity.

#MQG#, is among five bidders short-listed by Total SA to purchase its French gas network. Macquarie is teaming up with as many as four other partners to bid for the TIGF gas-pipeline network spanning about 6000 kilometres in south western France. The asset may fetch about €2.5 billion euros ($A3.1 billion).

#TTS# has secured the right to operate South Australia’s lottery and Keno services for the next 40 years. Tatts has agreed to pay $427 million for the exclusive management agreement with the South Australian government.

Tomorrows news today

Expect a positive reaction across the Globe tonight on the Greek bailout. And more importantly I think for the region is they seem to have embraced a new formula for bailouts which could help Spain and others when the time comes. News from the UK of another Goldman Sachs Alumni taking the reins from ‘Big Merv’ will be greeted with optimism. In the US we are running out of time for a fiscal bluff settlement but the rhetoric is not nearly as poisonous this time around. I suspect as there is no election to fight then this time it will be less political than before. Fingers crossed. There are a few events tonight including the Spanish budget position (dire I suspect) ,the US house price index and consumer confidence ,so room for some volatility. But on a macro front, we are starting to see a few questions answered. And we like that in the market. Certainty breeds optimism. Maybe Gerry Harvey will not be the only one welcoming Santa this year!

And is this the Fiscal Cliff?

Surely not!

Clarence

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