Today from downunder!
Another strong day as Investors took heart from the big Wall Street move and Chinese data, finishing up 20 at a smidge above 5200. The finance blob was again in ascendency with the banks continuing to march higher primarily on the back of the blossoming housing boom. Big Four were in demand as were Macquarie Group Limited (A$46.96, +2.4%) (Mortgages?) and Platinum Asset Management Limited (A$5.83, +2.6%),Henderson Group PLC. (A$3.10, +2.3%) and BTM. Resource stocks were also better despite the strengthening dollar with BHP Billiton Limited (A$35.90, +0.7%) and RIO Tinto Limited (A$62.88, +1.5%) on the tear! Telstra Corporation Limited (A$4.84, +0.2%) also joined in the action but losers included and QBE Insurance Group Limited (A$15.35, -2.4%) and Suncorp Group Limited (A$12.70, -0.5%). Golds were a bit weaker as the Dogs of war seem to be back in the kennels barking madly but on a much shorter chain! Newcrest Mining Limited (A$12.89, -2.6%) (as always)suffered as did Evolution Mining Limited (A$0.875, -2.2%), Beadell Resources Limited (A$0.88, -0.6%),Kingsgate Consolidated Limited (A$1.98, -3.9%),Silver Lake Resources Limited (A$0.825, -6.8%) and St Barbara Limited (A$0.67, -5.6%). Energy stocks also gave a little back led by Caltex Australia Limited (A$18.84, -0.7%) and Santos Limited (A$14.91, -0.5%) with a marginal loss from Woodside Petroleum Limited (A$39.05, -0.4%). Retailers also seem to be basking in Tony glow with David Jones Limited (A$2.88, +1.1%), Myer Holdings Limited (A$2.92, +2.5%), Harvey Norman Holdings Limited (A$3.11, +1.0%) and JB Hi-Fi Limited (A$19.74, +1.5%) all looking better.
Big Cheshire cats today included ZIM, Transfield Services Limited (A$1.29, +5.7%), Yancoal Australia Limited (A$0.66, +1.5%),G8 Education Limited (A$3.00, +3.8%), Australand Property Group (A$3.49, +2.9%) and Lynas Corporation Limited (A$0.42, +2.4%) whilst sitting the bull market out today were Automotive Holdings Group Limited (A$3.72, -7.0%),McMillan Shakespeare Limited (A$12.34, -2.7%)(Didn’t Tony win?),Resolute Mining Limited (A$0.795, -5.4%),Ten Network Holdings Limited (A$0.32, -4.5%),Evolution Mining Limited (A$0.875, -2.2%),Seek Limited (A$11.36, -2.9%), Ausdrill Limited (A$1.815, -3.2%) and Newcrest Mining Limited (A$12.89, -2.6%).
Volume was again pretty underwhelming. Supermodels are staying in bed for the time being.
Around the grounds Asian markets were stronger as the Japanese celebrations for their Olympic win and Chinese economic optimism continued. Standouts were Tokyo, Laos and the Philippines.
Stocks and Stories
G8 Education Limited (A$3.00, +3.8%) continue to be a standout success story as they knock on the $3.00 door. A favourable outcome from the ACT courts helped today with a contract going back to 2008.Commonewealth Bank funds also has been a buyer recently. Not hurting the story!
ELD will cut its staff by 10 per cent. Elders today said the job losses would be part of more than $25 million in company cuts.
At the close the Chinese data is out and it’s looking a bit better than expected: Industrial production in August rose 10.4 per cent from a year earlier, outperforming expectations of a 9.9 per cent rise.
Retail sales gained 13.4 per cent, slightly higher than economist expectations of a 13.3 per cent rise. And fixed-asset investment excluding rural households in the first eight months of the year increased 20.3 per cent.
Business confidence across Australia has strengthened in August to its highest level in more than two years, boosted primarily by the anticipated change in government. Confidence rose across all states and sectors, with mining firms leading the charge, according to NAB’s monthly business survey released today.
Tomorrows News Today
iPhone announcements tonight. Expect to see NFC feature in their new products. Only major phone company not to have it, what is it? It’s called Near Frequency Communication. Just point your phone at something and it tells you stuff about it. Like google for physical objects. Going to be huge.
Pause seems to be the new Obama tactic as having offered an Olive branch to Syria if they give up their weapons ,they really have to let them do that. If after all the whole point of bombing them back into the dark ages was to deprive them of their Chemical weapons capability then they may achieve that without firing any of their toys. Of course if their end game was regime change then they are in trouble!
So here’s a history lesson. Last time Kev 07 got voted in the market went to an all-time high pretty soon after. And now that we have Tony13, we are again knocking on the door of another record high.. you have to look at the All Ords Accumulation Index not the ASX200 – it measures total returns on shares. The good news for investors is that the AOAI is at the highest levels since November 1, 2007 and just 2.1 per cent below the highs set on that day.
The UK economy is “turning a corner”, Chancellor George Osborne has said in a speech in London. Mr Osborne cited “tentative signs of a balanced, broad based and sustainable recovery”, but stressed it was still the “early stages” and “plenty of risks” remained. Revised gross domestic product figures showed the UK economy grew by 0.7% in the second quarter of the year, with predictions it could reach 1% for the third quarter. House prices are rising their fastest since 2006!
Now I know we are all Anti-Fracking both here and in the UK and France, but Shale gas has been a great US success story. So much so that they are now looking to export energy! Freeport which is run by Michael Smith a US entrepreneur has just signed another couple of contracts with Asia companies for the supply of LNG. With permission now granted for plants to export a total of 5.6bn cubic feet of gas per day to markets anywhere in the world, the US is approaching the point where sceptics about exports have suggested the Department of Energy should begin to put the brakes on awarding permits.
Nearly five years on from the Lehmans’ collapse and here we are with Equities around the World at near record prices. Interest rates at record lows. House prices in some countries booming and strong financial institutions with more capital than ever! What could go wrong? The best summation of the causes of the crash in 2008 were given by Morgan Stanley CEO Gorman in 2010.“What caused the financial crisis?” he asked. “Illiquid assets, funded short-term, held by overleveraged institutions that were inadequately capitalized.”
A fourth American porn actor has reportedly tested positive for HIV, fuelling fears of a significant outbreak in California’s adult film industry. Why is this significant? Well one of the reasons cited for disappointing jobs numbers from the US was the shutdown of the US porn industry. Looks like more bad news to come!
That is all