Afternoon sports fans,

Whoosh! Off to the race track. Well Albert Park perhaps, as everything fired today after yet another record Dow close. Few shorts around perhaps? The sins of yesterday were forgiven as the machine rolled on. As usual Banks led the way with Westpac Banking (A$30.89, +2.5%) the stand out followed by Commonwealth Bank of Australia (A$70.18, +1.9%), National Australia Bank (A$31.30, +2.0%) and Australia and New Zealand Banking Group (A$28.72, +1.9%). Of course the resources tried to drag their sorry states up today despite the Iron Ore price falling overnight. Maybe they are starting to look cheap after all. BHP Billiton (A$35.55, +1.3%), RIO Tinto (A$61.30, +1.0%) and Fortescue Metals Group Ltd (A$4.06, +2.3%) all tried really hard to rally but it was a struggle. There seemed to be nothing in red today except Orica (A$25.30, -3.3%). Not quite sure what they did to upset everyone today but they were really the only stock down. Defensives were back in vogue Wesfarmers (A$43.12, +2.5%), Woolworths (A$36.05, +2.6%), CSL (A$61.75, +3.4%) and Telstra (A$4.51, +0.7%). In fact the World was a sunny place everywhere. The RBA did its best to hose down the jobs numbers last night and suggest that it didn’t believe them either and that it wouldn’t affect their thinking on rates. One number does not a summer make.

Financials were all strong with insurers beating the banks QBE Insurance Group (A$13.61, +2.7%), Suncorp Group (A$11.84, +1.9%) and Insurance Australia Group (A$5.75, +2.1%) all looking good. Brambles (A$8.70, +3.4%) sprinted ahead today as did other industrial CSR (A$2.19, +1.9%), Boral (A$5.11, +2.0%) and James Hardie Industries PLC (A$10.20, +0.4%).

Media stocks were firmer with big volume as usual in Fairfax Media (A$0.625, -1.6%), APN News & Media (A$0.38, +10.1%) and Ten Network (A$0.35, +1.4%) whilst Seven West Media (A$2.29, -1.7%) were a little weaker and takeover target Southern Cross Media Group (A$1.61, +2.9%), following media rule changes, also impressed.

Big winners today into Mermaid Marine Australia (A$4.03, +7.8%), Sirius Resources NL (A$4.99, +8.71%),again, REA Group Ltd (A$27.57, +5.1%) and Flight Centre (A$34.00, +5.0%) whilst in the slightly naughty corner were Sirtex Medical (A$11.00, -2.9%) but they have had a good run, Pacific Brands (A$0.855, -2.8%), Seven West Media (A$2.29, -1.7%) and Oceanagold (A$2.51, -2.7%).

Nice to finish the week on a strong note especially after yesterday. Volume was pretty decent at 6.1bn. Just kept grinding higher as BHP and RIO came out to play late in the day. In the end the index closed back above 5100…way above it as it turned out.. Maybe a false break yesterday perhaps? Up 88 odd pretty good way to finish! On its highs. Go the Dow!

Stocks in the News

Leighton (A$22.14, +2.1%) picked up another $340m worth of business from the NBN today. Leighton’s Visionstream’s role will include passive fibre network design and construction to bring high speed, fibre optic broadband to Melbourne, Brisbane and southern NSW.

Speaking at the hearing in Sydney today Big Nath suggested his group had around $500m worth of debts. Didn’t mention assets at all. He has a few Whitehaven Coal (A$2.34, +1.3%). Let’s hope it’s enough!

Another stunning day for Xero Limited (A$8.48, +6.13%) the NZ software company that has yet to make a profit. Good news indeed for Craig Walker who founded MYOB before this one and has 16m shares.

In house stocks today G8 Education (A$1.995, +2.3%) shot up following a trade recommendation in house as did APN News & Media (A$0.38, +10.1%) which looks back in the hunt for a 40 cent level next week. Buru Energy (A$2.73, +7.9%) had a good day following rationalisation of its Laurel Project with NSE taking out Green Rock.

In other house faves, Sigma Pharmaceuticals (A$0.69, +5.3%) continued to impress after yesterday’s numbers and Sonic Healthcare (A$13.92, +2.6%) joined the list of winners. Mining services were mixed Mineral Resources (A$10.47, +1.7%), Bradken (A$7.32, +2.2%) and NRW (A$1.905, +3.8%) all to the good whilst Macmahon (A$0.265, +1.9%), Coffey International (A$0.425, -1.2%) and Resource Equipment Ltd(A$0.215, -2.3%) all looking a bit sorry for themselves.

Good news coming out of Linc Energy Ltd (A$2.85, +5.2%) as their Umiat well is progressing well.. Well it would, wouldn’t it.. and they have extracted some good core results that they say are encouraging.

Investors who lost their life savings with Storm Financial (remember those guys) have reached an out-of-court settlement with Macquarie Bank Macquarie Group (A$38.35, +2.5%) for $82m.Leaves only Bank of Queensland (A$9.58, +2.1%) left to go..

Tomorrow’s News Today

“Zombieland” ministers meet for two days to thrash out a resolution to the Cyprus bail out and more problems brewing whilst the Italian Parliament still tries to work out who is going to lead the country. They either have a comedian or a Bunga Bunga specialist…good choice!

Li Keqiang today became China’s first premier with an economics doctorate. In two days he will have a chance to detail his agenda amid calls for deepening China’s shift toward free markets and away from state-directed lending.

Samsung has launched its much anticipated S4.. got my text from Vodafone imploring me to upgrade.. Telstra (A$4.51, +0.7%) is also going to push this baby hard with the early adopters and Apple will have to reply with something good to beat this offering.. they are calling it a game changer!

It appears that JP Morgan was lying over the $6bn loss and that they hid things from the regulator. I can’t believe that for a second. Big wall street Houses hiding things unheard of.. probably shouldn’t have watched the Enron Film last night!

And Japan confirmed its place in the printing money game with the appointment of a new man at the top at BOJ, Haruhiko Kuroda. He has been down to Officeworks and loaded up with new ink cartridges and is ready to join the ‘who can print the most’ game around the World. There is strong competition for the title with “Uncle Benny”, “New Canadian bloke at the Old lady” in London, “Whatever it takes Draghi” and now “My Kuroda” in Japan. This is anyone’s game. Only needs the Chinese to join in and we have a real game on our hands. And the winner will be equity markets and eventually the inflation genie!

Expect the US market to hit its all-time high on the S&P tonight. As with all bubbles they can get bigger and bigger than you could possibly imagine.

And Mark Weber wins his first Australian Grand Prix on the weekend!

Have a great weekend

Clarence
Xxx