Five year highs again today as we closed at 5373 up 21 points. Another strong day with BHP Billiton Limited (A$37.05, +2.3%)(half the rise) the star performer as their results this morning attest to strong production growth. Financials joined in but their heart wasn’t in it given the huge runs they have had. Commonwealth Bank of Australia (A$74.76, +0.3%),National Australia Bank Limited (A$36.07, +0.3%) and Australia and New Zealand Banking Group Limited (A$32.23, +0.3%) were the best and AMP Limited (A$4.81, +1.3%) also moved a little with Insurance Australia Group Limited (A$5.90, +1.2%) in demand too. Resource stocks were better led by the soon to be biggest company again BHP Billiton Limited (A$37.05, +2.3%) fast closing in on Commonwealth Bank of Australia (A$74.76, +0.3%).RIO Tinto Limited (A$63.97, +0.3%) were dragged up but weaker  Fortescue Metals Group Ltd (A$5.41, -0.7%) and other resources like Bluescope Steel Limited (A$4.91, -2.4%) and Sundance Resources Limited (A$0.11, -15.4%) spoilt the party mood a little. Golds a little mixed with Kingsgate Consolidated Limited (A$1.515, -0.3%),Evolution Mining Limited (A$0.80, unch),Newcrest Mining Limited (A$10.71, -0.5%),Regis Resources Limited (A$3.71, +0.8%) and Silver Lake Resources Limited (A$0.685, +0.7%) slightly better as were Beadell Resources Limited (A$0.92, +2.2%).

Industrials were mixed with Qantas Airways Limited (A$1.305, -3.3%) continuing to find turbulence  but Sydney Airport (A$4.05, +1.3%) and Transurban Group (A$7.21, +1.3%) better.as were the Schultz boys at Leighton Holdings Limited (A$17.69, +1.4%),Orica Limited (A$20.67, +2.4%),Aurizon Holdings Limited (A$4.72, +1.1%),Macquarie Atlas Roads Group (A$2.61, +4.4%),Monadelphous Group Limited (A$18.86, +2.3%) and Amcor Limited (A$10.76, +0.4%) were also in the green today .Energy stocks were resilient given oil slipping below $100 a barrel. Origin Energy Limited (A$14.25, -1.0%) was weaker but other better Energy Resources of Australia Limited (A$1.235, +0.4%),Whitehaven Coal Limited (A$1.74, +1.5%),Woodside Petroleum Limited (A$38.36, +0.1%) and the DAE , go the dart! After yesterday’s shock announcement from David Jones Limited (A$2.79, -2.1%) chief floor walker the stock was under a little pressure today but others in the sector fared slightly better. Harvey Norman Holdings Limited (A$3.23, +0.3%),Myer Holdings Limited (A$2.58, +1.2%) to the better whilst JB Hi-Fi Limited (A$21.15, -2.2%) suffered a little. In Telcos Telstra Corporation Limited (A$5.01, -0.2%) went nowhere but SMS Management & Technology Limited (A$4.64, +6.4%) had a good day following their AGM.

Seems the AGM season has kicked off with few surprises, lots of anger at directors and management fees but nothing too nasty yet. Just get through it guys then nothing but more blue sky ahead.

Big cheesy grinners today included XRO,Atlas Iron Limited (A$1.05, +6.1%),Ainsworth Game Technology Limited (A$4.64, +7.2%),Bradken Limited (A$6.45, +5.7%),McMillan Shakespeare Limited (A$12.81, +4.5%),Macquarie Atlas Roads Group (A$2.61, +4.4%) and Independence Group NL (A$3.85, +4.3%) whilst in the losers corner apart from Anthony Mundine were Hutchison Telecommunications (Australia) Limited (A$0.081, -16.5%),ERM Power Limited (A$2.95, -1.0%),United Overseas Australia Limited (A$0.53, -3.6%),Linc Energy Ltd (A$1.695, -2.6%),Qantas Airways Limited (A$1.305, -3.3%) and OFX. Volume was slightly better at $3.7bn but still a tad on the low side for my taste. Asian markets were mixed with Japan better whilst HK and Shanghai down a little.
Stocks and Stories

BHP Billiton Limited (A$37.05, +2.3%) was the big news today and accounted for 11 points of the rise today. BHP Billiton Ltd. (BHP) raised its outlook for iron-ore production this fiscal year as it reported record output from its expanding mining hub in the Pilbara. The world’s largest mining group said it now expects to produce 212 million metric tons of the steelmaking ingredient at its Australian mines in the year through June, up on previous guidance of 207 million tons.

Lend Lease Group (A$11.19, +3.6%) investor day helped sentiment.

Mining giant RIO Tinto Limited (A$63.97, +0.3%) is likely to axe hundreds of back office jobs after signing an outsourcing deal with US technology company IBM.

Bradken Limited (A$6.45, +5.7%) has forecast continued tight trading conditions claiming the first half of fiscal 2014 to be ‘‘challenging’’, shareholders were told at today’s annual general meeting.

Sundance Resources Limited (A$0.11, -15.4%) has used its recent strength to tap the market for $40m to develop its Mbalam-Nabeba iron ore project in the Republics of Cameroon and Congo.

Things are hotting up in the Cheese wars as Bega Cheese shareholders have approved the lifting of a 10 per cent shareholding cap that would allow its WCB bid to be carried out if it is successful.

APN News & Media Limited (A$0.455, +8.3%) firmed today after announcing that they were selling their outdoor advertising business to private equity firm Quadrant to sell its remaining interest in its outdoor advertising business for $69 million.

Home prices in China’s four major cities rose the most since January 2011 last month, raising concerns that a lack of new property curbs is allowing a bubble to form.
Tomorrows News Today

US jobs numbers tonight. Would have been sooner had the shutdown not been in place. Fair is foul and foul is fair, perhaps.

Obama has admitted his online offering for Obamacare has been a schmozzle! Really? He has now called in the experts. Finally. He still uses a Blackberry!

The French are not happy that the US has been spying on them. Not happy at all. They are threatening to take their Statue and Fries home!

Mining giant BHP Billiton plans to withdraw from nearly all of its oil and gas exploration projects in India, reportedly due to regulatory delays.

I have heard of Dutch auctions but the Brazilian version involves only one bidder! The rights to explore Brazil’s biggest oilfield have been won at an auction by a consortium led by Brazil’s state-run Petrobras, backed by Total, Shell and Chinese firms. The group made the only bid in the auction, offering the minimum share of the surplus production .Not a great result and they are still rioting about it!

 

Clarence

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