Well that was a pathetic bounce! After an attempt early in the session, the market gave way to apathy and insecurity as it gave back the gains and actually finished way down, slipping most of the afternoon to close 70 points off its highs. All the defensives were well off their highs with Woolworths (A$33.85, -2.6%) and Wesfarmers (A$41.09, -2.4%) collapsing. Financials had a similar fate with Australia and New Zealand Banking Group (A$27.83, -0.9%), Westpac Banking (A$29.86, -0.4%) and National Australia Bank (A$30.54, +0.2%) all well off their highs But Commonwealth Bank of Australia (A$69.18, -0.1%) slipped quietly into the lead from BHP Billiton (A$34.55, -0.4%) on who is the biggest Gorilla in the room, but only just and then fell slightly to leave BHP marginally ahead.

We saw some better gains in Asia but even this failed to inspire. Couple of numbers out from China and words from the RBA on interest rates also took their toll on sentiment. Looks like there will be no rate cut this April, the way they are talking.

Cyprus, a country with a population smaller than Adelaide, was still on investor’s minds. Contagion is the worry. Although it seems that the proposals will be watered down it does set an ugly precedent and if I had my money in Spanish or Irish Banks I would be starting to get a little worried too. Some of the winners today included Evolution Mining (A$1.48, +5.0%),Medusa Mining (A$4.35, +3.6%) and New Hope (A$3.98, +4.2%) in the resource space whilst losers included Amcor (A$8.90, -2.2%),Seek (A$10.05, -2.1%) and Boral (A$4.87, -3.4%).Newcrest Mining (A$22.50, +1.5%) was one of the few winners in large caps as the Gold price continues to bubble around.

Media stocks were back in the spotlight with Fairfax Media (A$0.64, +0.8%), Seven West Media (A$2.25, +1.4%) and Ten Network (A$0.36, +2.9%) all better. The Telecom sector also did well with M2 Telecommunications Group (A$5.05, +4.1%) TPG Telecom (A$2.81, +4.9%), BigAir Group (A$0.55, +5.8%), Hutchison Telecommunications (Australia) (A$0.034, +3.0%) and Amcom Telecommunications (A$1.91, +6.1%) all looking very strong as good profits and M&A activity help the sector.

Volume was a more modest number at $4.4bn after yesterday’s big day out for the computer traders. Still not too bad though.

Stocks in the News

New Hope (A$3.98, +4.2%) announced some significant cost cutting measures worth about $45m with no apparent effect on staff numbers. Interesting trick if you can get away with it.

REY Resources (A$0.057, -6.6%) where we have a strong buy fell away today and represent an even stronger buy today .News yesterday that they have dealt themselves into the Canning Basin Unconventional Oil Play in the Fitzroy Basin with Buru Energy (A$2.51, -1.6%) are a step in the right direction. If only they could get rid of their coal assets.

Orpheus Energy (A$0.078, +11.4%) had a good day today after a presentation at the Hong Kong Mines conference.

Another big line of Aurizon (A$4.04, -0.5%) through the market today with 11m crossed at 4.05 before lunch.

One of our biotech favourites Pharmaxis Ltd (A$0.46, -7.1%) was back in the news as the FDA officially denied them permission for their asthma drug. We still see upside in this one but it is sorely testing the patient investors to the extent that you have to question the up side.

TPG Telecom (A$2.81, +4.9%) has recorded a net profit of $78.3 million for the six months to January 31, a 41 per cent increase from the previous corresponding period.

The internet services provider declared a fully franked interim dividend of 3.5 cents.

We also had some pessimistic takes on the Iron Ore price from a conference in Perth which knocked some confidence too. Rio Tinto said its plans to expand Australian iron ore production by more than 40 per cent over the next three years were still in place and on schedule. RIO Tinto (A$58.66, -1.5%) nasty but BHP Billiton (A$34.55, -0.4%) and Fortescue Metals Group Ltd (A$3.89, -0.3%) clung on.

Tomorrows New Today

Don’t cry for me Argentina as HSBC are accused on more money laundering here. Cyprus is likely to remain top of the Doomsday Agenda.

And the World’s largest maker of Solar Panels, Suntech, has the dubious honour of the first Chinese company over $1bn to default on its debt. $540m big ones owed!

Let the horse trading begin in Cyprus to get the agreement it needs to tax the deposit base. New terms, more bank holidays…scary I wonder how long they can keep the banks closed. If they don’t agree and have to open them again, I suspect the ATMs will be running hot…Moscow banks will be inundated with cash!!!And Putin has expressed his disgust that Russia was not consulted on the Cyprus plan. He has even sent a few ships to the Med to haul off all the money when the banks open on Thursday? Of course Russia could just take over the whole Island and use it as their Mediterrean Base!

And spare a thought for Eike Batista, a Brazilian entrepreneur, who was the 7th richest man in the world in 2011 but as Forbes recently noted, he is the ‘biggest loser’ on their list (losing an incredible $2m per hour), ending 2012 in 100th place after his biggest holding – OGX Petroleo E Gas – slumped 80% in the last year (and a stunning 43% in 2013 alone) which means his net worth has plunged 20% YTD. And you thought Nathan has had some problems!

Clarence

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