After opening on a positive note we sank down to a low of 5064 before some stability and bargain hunting emerged. Some Asian strength also helped sentiment as higher oil prices helped the energy sectors rally. Delays in legitimising the upcoming airstrikes also helped sentiment slightly as the market closed up 5 points at a shade under 5100. Financials were mixed with Australia and New Zealand Banking Group Limited (A$29.47, -0.6%) and National Australia Bank Limited (A$32.36, +0.1%) on the nose whilst Westpac Banking Corporation (A$31.22, +0.4%) and Commonwealth Bank of Australia (A$72.05, -0.3%) improved. Big resource stocks also took heart as BHP Billiton Limited (A$35.35, +1.6%) and Fortescue Metals Group Ltd (A$4.31, +2.1%) led the way but despite the Gold price action overnight Newcrest Mining Limited (A$13.45, -2.1%) struggled as did Kingsgate Consolidated Limited (A$2.12, -22.6%) which took it very badly after their profit numbers today. Woolworths Limited (A$35.39, +2.3%) bucked up after yesterday’s numbers whereas Metcash Limited (A$3.17, -2.5%) took it badly as they continued to be squeezed out of it by the majors. Telstra Corporation Limited (A$4.84, -0.6%) continued to waft around as the lack of dividend offers no real incentive to be there and uncertainty over the NBN weighs a little. Apparently Sportsbet have already paid out on a Coalition victory! If I was Kev13 I would have hedged myself with a little splurge on Tony!

Gold shares were weaker despite the relative strength of the metal with Kingsgate Consolidated Limited (A$2.12, -22.6%) now downgraded to a Jokersgate, Evolution Mining Limited (A$0.90, -3.2%), Regis Resources Limited (A$4.07, -4.9%)Silver Lake Resources Limited (A$0.93, -9.7%) and Sims Metal Management Limited (A$9.53, -0.2%) followed suit. Retailers were mixed as David Jones Limited (A$2.84, +0.7%) and JB Hi-Fi Limited (A$18.80, +0.5%) improved but Myer Holdings Limited (A$2.69, -0.7%) and Harvey Norman Holdings Limited (A$2.88, unch) fell a tad. Healthcare stocks were dominated by Ramsay Health Care Limited (A$36.00, +5.3%) after their numbers and Unilife Corporation (A$0.70, +26.1%) came bouncing back to life on strong demand. Industrials also improved with Brambles Limited (A$8.75, +1.7%),Transfield Services Limited (A$1.10, +22.2%) and McMillan Shakespeare Limited (A$11.80, +2.1%) doing well.Oil stocks were better with Woodside Petroleum Limited (A$38.21, +0.7%),Oil Search Limited (A$8.34, +1.3%),Santos Limited (A$14.71, +1.1%) and Origin Energy Limited (A$13.08, +0.8%) in the green whilst Senex Energy Limited (A$0.76, +5.6%) and Beach Energy Limited (A$1.395, +3.3%) had a very good ay.

Volume was still pretty disappointing but sidelines are still a popular place to be.

Big Cheshire cats today included Qantas Airways Limited (A$1.40, +13.8%), ZIM,  Ramsay Health Care Limited (A$36.00, +5.3%), Senex Energy Limited (A$0.76, +5.6%), Drillsearch Energy Limited (A$1.375, +3.0%) and #IGO  whilst the biggest losers included Medusa Mining Limited (A$2.56, -8.2%), Yancoal Australia Limited (A$0.70, -0.7%),Resolute Mining Limited (A$0.93, -7.0%),Iluka Resources Limited (A$10.56, -5.0%),Paladin Energy Ltd (A$0.53, -3.6%) and Wotif.com Holdings Limited (A$4.48, -4.9%).

Asian markets improved Japan (Nikkei): +0.8% Hong Kong: +0.4% Shanghai: -0.3% Taiwan: +1.2% Korea; +1.3% India: +1.2% Singapore: +0.5% Malaysia: +1% Indonesia: +0.4% Philippines: +2.9%.
Stocks and Stories

‘In da house’ stocks today REA Group Ltd (A$35.40, +2.8%) continued their stellar run now valued at $4.6bn!!!Fairfax Media Limited (A$0.55, -0.9%) only $1.3bn.Buru Energy Limited (A$1.735, +4.2%) rose after their full year accounts were releases. Pharmaxis Ltd (A$0.13, -7.1%) continued to bark as they announced a delay to their French pricing for Bronchitol. Ausdrill Limited (A$1.455, +15.0%) had a great day today after announcing their full year results broadly in line and balance sheet looks ok. Yield is a plus too.

Bullabulling Gold Limited (A$0.07, -12.5%) had a nasty day after announcing some preliminary drill results .The stock has run hard in recent days and this woolly result was somewhat disappointing to say the least.

Qantas Airways Limited (A$1.40, +13.8%) announced a tiny profit today but at least it’s better than a loss. Seems there is some recovery in the International business. Jetstar not going quite as well. Call me a cynic but these guys were accused of shifting Jetstar costs to the International biz some months ago, maybe they are now shifting them back. And while we are talking airlines Regional Express Holdings Limited (A$1.035, -13.8%) announced a big profit hit as the carbon Tax bit. They made a profit of $14 million in the 2013-14 financial year, down from $25.5 million in the previous year. Not sure how the Carbon Tax is to blame completely as they only paid $2.4m all up.

Kingsgate Consolidated Limited (A$2.12, -22.6%) have been savaged on its latest earnings – a loss of $323.7 million, largely due to write-offs of $356.8 million which had largely been flagged – but perhaps more importantly the lack of any production upside amid ongoing problems with its Challenger mine in South Australia.

David Jones Limited (A$2.84, +0.7%) has posted another quarter of slipping sales, with sales revenue falling 1.3 per cent to $449.8 million in the fourth quarter. Like-for-like sales were down 2.9 per cent, the company said.

For the financial year, sales dropped 1.2 per cent $1.85 billion, from $1.87 billion a year earlier. The big driver of new sales is clearly the group’s online store, which boosted sales 770 per cent in the fourth quarter, 550 per cent in the third quarter and 288 per cent in the second quarter. But despite this, online still accounts for only 1 per cent of sales.

Newcrest Mining Limited (A$13.45, -2.1%) is letting go its Canadian listing .Having set it up in 2012 to better reflect their value they thought, it seems it didn’t do what they had hoped and now it’s on the chopping block.

Sales of new homes have fallen for the first time in five months but it is believed to be only a temporary setback. New home sales fell 4.7 per cent July, seasonally adjusted, the Housing Industry Association (HIA) said today.

Australian business investment rose by 4.0 per cent in the June quarter, official figures show. The closely-watched figures, released by the Australian Bureau of Statistics, cover investment in capital goods which includes things like buildings and equipment. The median market forecast was for a rise of 0.8 per cent over the quarter.
Tomorrows News Today

Seems the Anti-Syria rhetoric is being slightly tempered as Obama suggests they haven’t made a decision and Congress suggests he needs to ask them first. The UK parliament votes for more time and input from the UN weapons inspectors. And the French go to a long lunch with a nice Bordeaux.

Brazil raises its rates again as the currency collapse has stoked inflation. Now rates up to 9% with inflation at 6.27% still below the official high target point of 6.5%.

Should be some good fees in this deal. Verizon is in advanced talks to buy Vodafone’s 45 per cent stake in their US joint venture for about $US130 billion.

This helped the Asian markets today. The Philippines has posted better-than-forecast economic growth, fuelled by its services sector and higher consumer and government spending. Its economy grew 7.5% in the April to June quarter, from a year earlier.

Here’s a thought as the Indian currency has collapsed it will have big ramifications for colleges and Unis both here and overseas, as these guys now will not be able to afford to come here for their education. It is a pretty expensive place even before the Rupee’s collapse. And looks like the Indonesians are looking at raising their rates too. Currently 6.5% but the rot in their currency has been severe too as its fallen 12% this year. Seems fast free US dollars are heading home faster than you could say 10 year Treasuries!

JP Morgan look to be in a world of pain as they are in trouble over their mortgage securities and now a spreadsheet has emerged on bribery and nepotism in Asia. Hard to believe I know. I mean who keeps this stuff on a spreadsheet! Maybe Dimonds aren’t a regulators best friend!

Clarence

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