Bulls on parade today as the index smashed the 5400 ceiling. After cruising up early to 5457 we came down to earth a little closing around 5441 up 55 for the day. Once again the gains were led by the big four. Talk in the papers about the housing bubble helping the growth profile of the banks’ mortgage business and with results out in the next week and full of lovely dividends it’s no surprise that they are continuing to bubble around. They just keep getting bigger. Records falling as Commonwealth Bank of Australia (A$77.40, +1.5%),National Australia Bank Limited (A$36.68, +1.7%),Australia and New Zealand Banking Group Limited (A$33.24, +1.8%) and Westpac Banking Corporation (A$34.61, +0.7%) swept away all in their path. Insurers also doing well with Insurance Australia Group Limited (A$5.92, +1.7%),QBE Insurance Group Limited (A$14.45, +0.9%),Suncorp Group Limited (A$13.34, +1.6%) and even AMP Limited (A$4.81, +0.2%) managed to eke out a small gain. Macquarie Group Limited (A$51.96, +1.5%) powered through $51.00 with IOOF Holdings Limited (A$9.30, +3.6%),Bt Investment Management Limited (A$4.92, +1.9%),Platinum Asset Management Limited (A$6.03, +1.7%) and Perpetual Limited (A$45.95, +1.4%) all motoring. Interestingly we had the resource stocks clime in as well with BHP Billiton Limited (A$37.85, +1.2%),RIO Tinto Limited (A$64.38, +1.0%) and Fortescue Metals Group Ltd (A$5.42, +4.0%) all joining the party.

Telstra Corporation Limited (A$5.14, +1.4%) were another standout today, with other consumer stocks like Treasury Wine Estates Limited (A$4.49, -0.9%),Wesfarmers Limited (A$42.29, +0.6%),Woolworths Limited (A$34.75, +0.8%),Coca-Cola Amatil Limited (A$13.04, +1.1%) and Metcash Limited (A$3.21, unch) doing well .Industrial Brambles Limited (A$9.64, +1.9%) powered ahead as the move towards Total Recall, whilst Healthcare stocks also feeling better led by Csl Limited (A$68.49, +3.0%) and Ramsay Health Care Limited (A$39.46, +1.7%). Big volume today in ResMed Inc. (A$5.31, -1.8%) as they steadied after last week’s disappointing numbers and subsequent fall. Atlas Iron Limited (A$1.095, +3.3%) also had good volume as did Qantas Airways Limited (A$1.305, +0.8%) and AMP Limited (A$4.81, +0.2%)

Happy smiley people holding hands included IRESS Limited (A$9.95, +6.0%),Arrium Limited (A$1.47, +3.9%),Evolution Mining Limited (A$0.885, +2.9%),ALS Limited (A$10.32, +2.3%),Kathmandu Holdings Limited (A$3.23, +2.5%) and Southern Cross Media Group Limited (A$1.91, +3.2%) whilst feeling very unloved today were Navitas Limited (A$5.70, -9.4%),Ainsworth Game Technology Limited (A$4.60, -4.0%),Pacific Brands Limited (A$0.705, -4.1%),Regis Resources Limited (A$3.58, -4.8%),Transfield Services Limited (A$1.42, -6.3%),Carsales.Com Limited (A$10.17, -2.7%)# and TV underdog Ten Network Holdings Limited (A$0.27, -3.6%). Asian markets were also covered in warm fuzzy glowing feeling as the Nikkei and Hong Kong did well although Shanghai was suffering a little down 0.4%.Volume was pretty good for a Monday at around $4bn.Seems the money that has been sidelined is starting to find its way into the market.
Stocks and Stories

In house stocks REY Resources Limited (A$0.099, +23.8%) continued their meteoric rise on no news at all. Expect some tomorrow then! In other house stocks(one we do not like) the ‘Annus horribilis’ continues for Kingsgate Consolidated Limited (A$1.53, -5.0%) after their September quarterly performance announcement and higher costs at Challenger continued. Chatree better on costs but no one cares.

In good news for Lynas Corporation Limited (A$0.36, unch) and they sure need some of that, another Malaysian High Court challenge was dismissed. No reaction in the share price though as this was an appeal. Something LYC does not seem to hold for investors at the moment.

Couple of stellar performers recently in MNW launched its PayClip mobile payment platform whilst XRO fella way slightly as NZ closed today and the run has just been to crazy I suspect.

RIO Tinto Limited (A$64.38, +1.0%) agreed the sale of its Clermont Mine for around $1bn.

Navitas Limited (A$5.70, -9.4%) today announced increases in Northern Hemisphere enrolments. Did not help the share price though! Earnings guidance was a little disappointing and a rise in fixed costs.

Greenland Minerals and Energy Limited (A$0.35, +9.4%) was up strongly after Greenland’s parliament voted to remove a 25-year-old ban on uranium mining.. This will help IBG  as well, going forward.

Tomorrows News Today

Good to see Obama using the sergeant Schultz mantra on the Germans. “I hear nothing, I see nothing, I know nothing!” Somewhat ironic really.

These guys could have tried the same excuse. JP Morgan has reached a $5.1bn (£3.2bn) settlement with the US Federal Housing Finance Agency (FHFA) over charges it misled mortgage giants Fannie Mae and Freddie Mac during the housing boom. Maybe next time eh?

No love lost here as McDonald’s has said it is to stop serving Heinz ketchup in its stores after 40 years. The world’s biggest fast-food chain said it would drop the ketchup after Bernardo Hees, the former head of rival Burger King, took over as Heinz’s chief executive.

UK economic output rose by 0.8% between July and September, official GDP figures show.

BIS sees risk of 1998-style Asian crisis as Chinese dollar debt soars. The world’s banking watchdog warns that foreign loans to companies and banks in China has tripled over the last five years and may be large enough to set off financial tremors in the West.

Hurricane-force winds are forecast to disrupt road, rail and airport networks on Monday when one of the strongest storms in decades is expected to hit the southern half of Britain during rush-hour. Remember 87?

China Construction Bank, the country’s No.2 lender, reported its slowest third-quarter earnings growth in more than five years on Sunday, as increased loan-loss provisions eroded profits. Net profit rose 9.4 % to 56.8 billion yuan ($9.3 billion) in July-September from 51.91 billion yuan a year earlier

And this should cause some ripples in the media as the trial of Rebecca Brookes and Andy Coulson starts this week. Phone hacking is ok when done by a Government apparently. Suspect Rupert thinks he is a Government!

 

Clarence

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