If the World is handing out free money to all and sundry what do you do, spend it on alcohol and loose women or do you just waste it. Or do you pump it into equity and other asset markets, in fact anything that pays a yield. The answer, after the massive stimulus announced last week, is equities! However, after a very positive week for the S&P/ASX 200 we finished with a quiet end which saw the big resources give up again especially RIO Tinto (A$56.90, -1.9%) and banks mildly positive with Telstra (A$4.61, +0.2%) also in the green room. The big story today was Woodside Petroleum (A$36.40, +3.2%) though, as news of the cancellation of the Browse basin LNG Onshore project was confirmed. The stock had a great relief rally as fears of cost overruns and economic viability won the day. Environmentalists were rubbing their hands together in glee but this is set to cause another political bun fight just as Olympic dam did for BHP. The market ground higher throughout the day closing off its highs as BHP Billiton (A$33.35, -0.1%) weakened at the close.

Financials were as usual firm with Macquarie Group (A$38.17, +1.0%), Bt Investment Management (A$3.40, +2.4%) and Henderson Group PLC. (A$2.38, +1.3%) some of the winners and of course banks were better as the juggernaut continues higher as we approach the results season. Australia and New Zealand Banking Group (A$28.71, +0.1%) was the best of the big four with Westpac Banking (A$31.52, unch) and National Australia Bank (A$31.62, +0.1%) also going well.

More gains in Woolworths (A$34.78, +1.2%) after yesterday’s numbers helped this blue-chip higher. Seems things are going well, although not quite as well as Coles is doing but rate cuts and consumer sentiment helping confidence. We also saw Westfield Group (A$11.34, +2.3%) push higher along with property trusts such as GPT Group (A$3.95, +1.8%), Stockland (A$3.85, +1.9%) and Dexus Property Group (A$1.13, +2.3%). Once again yield was in demand.

Not all resources were weaker with Panaust (A$2.60, +3.6%),Oz Minerals (A$5.28, +3.3%),Fortescue Metals Group Ltd (A$4.01, +1.5%),Cudeco (A$3.57, +3.8%) and Sandfire Resources NL (A$6.34, +5.7%) some standouts. Whilst big losers today included Bradken (A$5.79, -6.2%), Downer EDI (A$4.91, -4.1%), Boart Longyear (A$1.24, -3.9%) and Monadelphous Group (A$22.00, -3.4%) suffering after the Calibre Group (A$0.50, -58.7%) downgrade.

Volume was pretty pathetic again with no real catalyst to get players off the sidelines but the bias is for more gains next week.

Stocks in the News

We have already talked about Woodside Petroleum (A$36.40, +3.2%) but just to rub salt into the WA Governments wounds, they announced late that it has lodged an expression of interest for developing a liquefied natural gas project at Grassy Point, Canada.

RIO Tinto (A$56.90, -1.9%) announced a Pit wall slide at its Copper project at Bingham Canyon. Iron has recorded its first week in positive territory in three as demand for Iron Ore has strengthened following better weather in China.

Big hit today for one of the mining services stocks we cover in Calibre Group (A$0.50, -58.7%) which announced a big downgrade to earnings, margins and profits. This negative sentiment fed through into other service companies with Ausdrill (A$2.31, -4.9%), Bradken (A$5.79, -6.2%), Boart Longyear (A$1.24, -3.9%), Decmil Group (A$2.18, -8.0%), Macmahon (A$0.205, -6.8%) and NRW (A$1.395, -7.9%) all feeling the wrath of the market.

Large line of Fairfax Media (A$0.62, -3.1%) went through the market today with 30m shares traded at 63 cents. Other media stocks gave up some of this week’s gains with Seven West Media (A$2.14, -1.4%), Southern Cross Media Group (A$1.50, unch) and APN News & Media (A$0.335, -2.9%) all slightly weaker. Energy stocks in our universe also took a break with Karoon Gas Australia (A$4.52, -3.0%), Orpheus Energy (A$0.073, -6.4%) and Xceed Resources Ltd (A$0.105, -8.7%) all weaker.

Leighton (A$19.52, -3.8%) has promoted senior executive Peter Gregg to the role of deputy chief executive, as part of a management rejig aimed at putting recent turmoil behind Australia’s largest construction group. Probably should be so weak after that news. Poor bloke. Has more to do with Challenger (A$4.22, +1.2%) results I suspect.

Seems “Big Nath” does have some money after all as he has settled with the ATO after saying that he has paid his debt to the tax man. Whitehaven Coal (A$2.14, +0.9%) took that as a positive rising a smidge.

Australia’s Xstrata and Japan’s Tohoku Electric Power Co have settled the first Japanese annual coal import contract for the year beginning April 1 at $US95 per tonne, four industry sources said, down about $US20 from a year earlier.

Few things coming out of China and North Korea keeping investors on their toes. But signs that the new administration is taking seriously its attempt to slow down the property market and tackle lavish spending by officials and state owned companies is giving some pause for thought on the Chinese recovery story. Of course a nuclear war is giving others a pause for thought as Korea continues its posturing.

Tomorrows News Today

In Asia today, a strengthening yen ensured some profit taking in Japan which fed through to the rest of the region. Singapore GDP was also a little weaker than expected.

Seems the ‘Bitcon’ bubble has been well and truly pricked as the fantasy currency used primarily for buying illicit substances and other things on the net has fallen 75% in two days. The Digital Dog rose from $50 a coin to $250 before collapsing and even being suspended on one of its trading exchanges.

Big Zombie question will be who needs a bailout first Portugal or Slovenia. Unemployment numbers just keep getting worse there and the IMF downgrades the outlook for GDP in the US. Yet still the markets push higher.

Still puzzles me why the Gold Price is so depressed given the amount of money printing going on around the World. News that Cyprus may sell its hoard knocked it the other night, since denied as they seem to have lost it to George Clooney and Brad Pitt, but the biggest issue may be the Gold ETF’s which loaded up on the physical when money was pouring in and as they have faced outflows have been forced to sell physical to repay investors.

Black Caviar will win tomorrow at Randwick. Race starts at 5.10.Expect there will be a few messy people by then.25 in a row. And in more sports news we have seen the future and it’s called Guan Tianlang, a 14-year-old year schoolboy from Guangzhou, China, who shot 1 over at 73 at Augusta. Still Tiger gets to hang out with the Vonn-tourage.

Have a great weekend!