Another day of mixed market signals with results dominating the ASX 200 whilst financials continue to push higher and materials through BHP Billiton Limited (A$37.33, +1.2%) also slightly higher but not RIO Tinto Limited (A$61.40, -0.9%) or Fortescue Metals Group Ltd (A$4.20, -2.1%). Following a negative leads from Wall Street overnight the market was surprisingly firm especially given that there are concerns mounting about the Feds money printing and one or two let downs today on earnings especially from WES. In the end we finished down a tad holding just above the 5150 mark as we continue to hang in there for an assault on 5200.Need some good news though .Maybe next week.
More results out today from AMP Limited (A$4.70, +3.5%) and Wesfarmers Limited (A$41.26, -1.6%) dominating and Sydney Airport (A$3.75, +4.2%) is back on after their trading halt and capital raising to buy out the minority shareholders. Csl Limited (A$63.58, -3.4%) were in the spotlight again and Telstra Corporation Limited (A$5.10, -0.4%) eased too as the market appears to be running out of steam. We have had a good week with two 50 point up days so it’s hardly surprising to see anything that disappoints getting whacked hard. Computershare Limited (A$9.96, +2.2%) made up some of the lost ground from yesterday while utilities were softer with AGL Energy Limited (A$14.21, -1.7%),Spark Infrastructure Group (A$1.75, -1.7%),SP AusNet (A$1.155, -1.3%) and APA Group (A$5.89, -1.7%) giving up ground. Energy stocks were easier despite the problems in Egypt, Santos Limited (A$14.01, -0.7%), Oil Search Limited (A$8.10, -0.9%) and Origin Energy Limited (A$11.94, unch) down with Woodside Petroleum Limited (A$38.31, +0.2%) holding up.
Gold shares continued to push ahead with Newcrest Mining Limited (A$12.09, +1.3%) ,Evolution Mining Limited (A$0.88, +2.9%),Kingsgate Consolidated Limited (A$1.815, +3.1%),Silver Lake Resources Limited (A$0.89, +7.2%) and especially Regis Resources Limited (A$3.84, +3.2%)all firm following the rises in the metal overnight.
Around the region, markets were mixed with Tokyo down nearly 2% whilst China put on a modest amount with other markets like Singapore slightly easier as with the Philippines.
Volume was again slightly more respectable at around $4.5 billion much of it concentrated in companies issuing results and also Sydney Airport following the capital raising which added nearly $0.5bn to the number.
Big winners told were in the resource sector with good gains for the likes of Energy Resources of Australia Limited (A$1.495, +6.4%),Resolute Mining Limited (A$0.835, +5.0%), Panaust Limited (A$2.27, +6.1%), Beadell Resources Limited (A$0.785, +3.3%),Independence Group NL (A$3.53, +4.4%) and Oceanagold Corporation (A$2.00, +6.1%) whilst doggies today included Oz Minerals Limited (A$4.01, -4.8%),Aquila Resources Limited (A$2.16, -5.7%),United Overseas Australia Limited (A$0.555, -4.3%), Flexigroup Limited (A$4.46, -2.2%) and Mesoblast Limited (A$5.92, -3.0%).
Stocks and Stories
Wesfarmers Limited (A$41.26, -1.6%) were down, down prices are down, following their results which showed that Targét is not being helped by Gok or whatever his name is and that it is busted. Never a good sign to import very minor UK celebs! Even the CEO Machin of Targét admitted to analysts that it is broken and will take some time to repair. Always get a bit confused about Target and K Mart. Both owned by Wesfarmers so wouldn’t it make sense to merge them. Coles still doing well but the gloss coming off the numbers a little bit, as analysts had expected more.
In house stocks REA Group Ltd (A$32.79, +0.8%) continued their run after yesterday’s good numbers ,while mining services continued their fight back from the abyss with house faves Bradken Limited (A$5.89, +1.7%) and Boart Longyear Limited (A$0.58, unch) better but others didn’t fare quite so well as Coffey International Limited (A$0.18, -2.7%) went cold and Resource Equipment Ltd (A$0.16, -5.9%) took a hit.
In Sydney Airport (A$3.75, +4.2%) the market liked its new plan and the shares soared as 86m shares were placed at a bullish price of $3.60.Simple is good when it comes to share structures it seems.
AMP Limited (A$4.70, +3.5%) announced this morning beating estimates on profits and dividends and announcing a new man at the helm in the shape of Craig Mellor. Craig Dunn good moving on.
Goodman Group, the world’s second-biggest industrial property manager by assets, has reported a 17 per cent increase in full-year operating profit as income from its management and development businesses climbed. Operating profit rose to $544 million from $463.4 million a year ago.
The Bank of Queensland Limited (A$9.72, +0.2%) is set to refund its customers about $34.5 million, and will be hit by further costs of $11.5 million, after it discovered incorrect interest rates and fees on its accounts. The Brisbane-based bank said about 4 per cent of its customers were affected by these issues, some of which dated back to 2004.
In sad news, Fortescue Metals Group Ltd (A$4.20, -2.1%) has revealed that a contract worker was fatally injured at the Christmas Creek mine overnight.
More job cuts for RIO in Mongolia and Cisco also chipped in with a 5% headcount reduction.
Tomorrows News Today
Time to focus on the new resource boom coming to Australia with 10 liquefied natural gas project across the nation, three of which are operating and seven under construction Analysts believe that they will boost budget revenues by $11 billion between 2015 2025. They projected to raise GDP by 2.6% and support 180,000 jobs.
Not one that is getting a lot of headlines due to events in Egypt, but India seems to be having some issues as it grapples with a plunge in the Rupee and capital leaving the country faster than a dodgy curry in the morning. They have now put currency restrictions on overseas investments both for individuals and companies. And all this whilst rice prices climb due to higher input costs and labour getting more expensive.
Here’s a sign that Kev13 is getting desperate he has backed a 20% company tax rate for the Northern Territory – 10 percentage points lower than the rest of the country – as part of a northern economic plan very similar to a Coalition strategy labelled “wacky” and “crazy” by Labor ministers earlier in the year. I think even he knows he has gone! McMillan Shakespeare Limited (A$11.26, +2.2%) up again!
In the UK where things are improving as they are in France and Germany, the Office for National Statistics (ONS) said on Wednesday that the number of people collecting Jobseekers’ Allowance in Britain fell by 29,200, to its lowest level since February 2009, in the latest piece of good news for the coalition.
And we have now seen 6 Hindenburg Omens in the last 8 sessions on Wall Street 60% of the time they are right every time!(A Hindenburg Omen is a chart formation that is supposed to predict your balloon is going to go up in smoke!)