Market Review

What a good way to start the week as the Index once again pushed higher. Most sectors were positive with #ANZ# leading the banks up whilst news of a #WPL# acquisition in Israel helped them lead the resources sector higher. Lacklustre economic news helped with investors now rating a 91% chance that the RBA will cut tomorrow following disappointing retails sales and online jobs ads. We also got some slightly better numbers from China with official manufacturing index rising to 50.6 showing  the economy is recovering after a seven-quarter slowdown. A gauge of new orders rose to its highest level since April and the output reading was the highest in six months all of which is good news indeed. Defensive yield stocks were also back in favour with #TLS# continuing its charge whilst #WES# and #WOW# also made gains.  The media sector gave up some of last week’s gains with #TEN# suffering the worst. Volume was slightly better than a usual Monday and confidence is seeping back into the market as Santa prepares to give the reindeer a once round the park moment!

In other macro news Tim Geithner made a few positive noises on the Fiscal Bluff on Sunday night suggesting that the “Political Theatre “ is a sign of progress. Apparently no one has told John Boehner this theory.

Stocks in the News

In the winners paddock today were #SBM# which is about time. They have been in a downdraught for a while now so good to see some green for a change. #WHC# continued their advance as fears about Nathan ‘s demise seem to have been exaggerated. At least for now.

A fantastic day for #CBA# as it cruised through $60 to what may be all time high. #CSL# also had another very positive day following on from the profit upgrade last week.

A big winner today was #BDR# a Brazilian Gold imminent producer. The stock continues to push ahead and has $1.20 in its sights.

House stocks in the news include #LNC# which announced the approval of their coal development in Queensland with Adani also helped by a deal in South Africa for a JV with Exxaro to use their UCG technology. #REY# was on the other side of the ledger unfortunately with the continuing uncertainty within the company.

Another stock to do well today was #MLB# after a sharp fall last week, it seems all is forgiven. One of the casualties today was #CNU# as the NZ Commission set a new monthly rental price for urban and non-urban areas of around $23.52 ,leading to a downgrade of the company’s estimates on EBITDA.

Scrap-metal recycler #SGM# expects to register a loss from the $US50 million ($A48.13 million) sale of its assets in Arizona.

Talking of scrap ,#LYC# had another nasty day today as news last week of more environmentalist activism continued to weigh heavily on the stock.

Despite #FMG# announcing today the first train ,Thomas the Tank engine and his friends had set off towards Port Headland over the weekend on the new Hammersley Line, the stock could not railroad investors into buying.

And finally todays winner in large cap land is #XRO# a cloud based accounting service which has only recently listed. Looks to be working a dream

Tomorrows New Today

Big news will be the RBA announcement on Tuesday 91% chance of a 25bps rate cut tomorrow, seems to be the current betting. Retailers will be hoping that a rate cut will spur consumers into buying loads of stuff they do not want or need in time for Xmas. It also seems that the Government is toying with lowering the GST threshold on net purchases from overseas. They have been reluctant in the past but maybe they are thawing. Would be an even bigger Xmas present for #JBH# ,#HVN# #DJS# and #MYR#.

The market wants to push higher!

Lots of economic stuff out this week as well with tomorrow bringing the RBA rates decision, ABS building approvals for October, ABS balance of payments for September quarter and ABS government finance statistics for the September quarter.

So long Ricky! Loved yer work!

Clarence

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