The bull market is alive and well. Five year high peeps. Five year high! The big green bank blob continues to drive the market ahead. Is it starting to looking a little stretched? In the end though the ASX 200 finished near its highs for the day building on the Chinese GDP numbers at lunch time, up 38(0.7%) for the day. Blasted through 5300 and next target is 5500 but need resources to join in the fun.

Once again we saw the four horsemen of the apocalypse ride off into the sunset leaving their poor victims behind. Commonwealth Bank of Australia (A$74.17, +1.0%),Westpac Banking Corporation (A$34.00, +1.1%),National Australia Bank Limited (A$35.98, +1.0%) and Australia and New Zealand Banking Group Limited (A$31.86, +0.5%) all good performer again as Macquarie Group Limited (A$50.17, +1.5%), Suncorp Group Limited (A$13.09, +1.3%) and AMP Limited (A$4.67, +0.9%) joined in the fun too. Left holding the wooden spoon were BHP Billiton Limited (A$35.75, -0.1%),RIO Tinto Limited (A$63.45, -0.4%),Fortescue Metals Group Ltd (A$5.30, +1.1%),Iluka Resources Limited (A$9.82, -0.8%) and Orica Limited (A$20.17, -1.0%) in the big ones .Gold had a good day today and Newcrest Mining Limited (A$10.68, +5.3%) turned in a rare stellar performance as did other Gold stocks like Silver Lake Resources Limited (A$0.70, +5.3%),Beadell Resources Limited (A$0.88, +3.5%),Evolution Mining Limited (A$0.79, +6.8%),Regis Resources Limited (A$3.63, +5.5%) and Kingsgate Consolidated Limited (A$1.55, +5.8%).

In industrials Telstra Corporation Limited (A$5.03, +1.4%) once again shone and we saw some more buying in Wesfarmers Limited (A$41.99, +0.8%) and Woolworths Limited (A$33.96, +1.6%) plus Csl Limited (A$68.42, +1.7%) and Crown Limited (A$16.75, +1.4%). News out of China that the Sands China casino in Macau boosted profits by 89% didn’t hurt packer’s plaything. Latest success story XRO went ballistic yet again today now capitalised at more than New Zealand. Now really the Land of the long White cloud $3bn.Really? Other internet successes like Iproperty Group Limited (A$1.935, +1.3%) also surged ahead as did Seek Limited (A$12.44, +2.9%).Domino’s Pizza Enterprises Limited (A$14.10, +3.8%) had a good day as did Flight Centre Limited (A$51.20, +3.2%) and Navitas Limited (A$6.14, +2.7%).

Big winners today included Linc Energy Ltd (A$1.55, +8.4%),Transfield Services Limited (A$1.31, +5.6%),XRO(again),Independence Group NL (A$3.74, +5.1%).McMillan Shakespeare Limited (A$12.30, +5.2%) and Downer EDI Limited (A$4.96, +4.6%) whilst in the canine club today were Hutchison Telecommunications (Australia) Limited (A$0.105, unch),Atlas Iron Limited (A$0.99, -4.3%),Qantas Airways Limited (A$1.43, -3.4%),Skycity Entertainment Group Limited (A$3.48, -3.9%),Ansell Limited (A$19.13, -3.0%),Technology One Limited (A$2.15, -2.7%) and Ten Network Holdings Limited (A$0.28, -1.8%) seriously.

Volume was still on the low side considering the run we are having at around $4bn but that may be the new normal. Asian markets were up around 0.5% across the region with the exception of Japan which fell slightly.
Stocks and Stories

Warrnambool Cheese & Butter Factory Co.Hold.Ltd (A$7.89, +6.3%) another bid today from Murray Goulburn (wasn’t he one of the Wiggles) anyway $7.50 cash plus franking on the dividend works out at about $8.00.Plenty more to come in this one..

Qantas Airways Limited (A$1.43, -3.4%) announced that although people are feeling better about business and consumer confidence it has not translated into an increase in fare income. Joyce blamed the numbers on “weak underlying demand”.

RBA’s Uncle Glenn spoke today. Nothing really new here, he was keen for banking reforms to be followed through. Well he would.

Santos Limited (A$14.75, -0.9%) Third quarter report today. Record sales revenue and strong progress on growth projects. The company’s full year production for calendar 2013 is expected to be at the low end of its previously stated guidance of 52 to 55 million barrels of oil equivalent (mmboe), due mainly to disruption at its Chim Sao oil field operations and deferred production at its Fletcher Finucane project

Cudeco Limited (A$2.16, +10.8%) Stunning day for this baby as it confounded the critics and shorters and sprinted way ahead following a funding deal worth $100m from China’s biggest non China state owned bank .Big tick of approval for Wayne and his dreams. Nice to see a resource stock doing well. There has to be one!

Cockatoo Coal Limited (A$0.059, unch) Cockatoo Coal plans to raise $308 million to expand its Baralaba mine in Queensland, repay debt and fund a takeover offer for Blackwood Corporation. The central Queensland coal producer will issue new shares to raise $153 million, and has also secured a $255 million finance facility from ANZ.

Chinese GDP punched the lights out and just gives the bulls another reason to buy.7.8% in line with expectations so it seems the rumours of China’s death has been greatly exaggerated.

Gold is trading near one-week highs and heading for its best weekly gain in two months on hopes that uncertainties in Washington will delay Federal Reserve stimulus tapering after US lawmakers reached only a temporary budget deal.

China’s first iron ore futures have debuted in heavy trade on the Dalian Commodity Exchange. Not even sure where Dalian is! Ok looked it up now. Love Google maps.
Tomorrows News Today

In the UK, the Chancellor, George Osborne, has announced that the UK will allow Chinese companies to take a stake in British nuclear power plants. If they want that is!

Google has reported a profit of $2.97bn during the July -September period, beating expectations. The company missed forecasts during the last quarter. Share price hits an all-time high!

America starts back to work after the two week shutdown. Jobs numbers to come Tuesday, not Thursday.8 month lows on the US Dollar Index too. The slide continues.

Fascinating facts to lob into the conversation at the BBQ this weekend. Just 2 % of China’s population accounts for about a third of the world’s luxury consumption.

And in China, they seem to have finally worked out that with an ageing population they need more tax payers. As a result the one child policy that has been enforced for nearly 35 years is about to be relaxed. In certain circumstances anyway. Maybe even abandoned in 2015.This is a sleeper story in the next few years. As the Middle Class gets bigger and richer, more kids, more spending, more growth. Simples! Next leg up perhaps.

And finally thanks to all the brave fire-fighters that have battled the worse bush fires in a decade in NSW , our thoughts are with those that have suffered losses both property and life. Take care out there people.

Clarence

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