• Another dismal day bringing up three in a row this week as we knock on the door of 5300. Closing down 45 at 5308.Fatigue and apathy has set in and as we approach the end of the year, punters are taking some money off the table especially in the engine room stocks of the market ie. the banks. With all the money being sucked out of the market for the pre Xmas IPO rush ,it’s hardly surprising that we are seeing some weakness The big four have turned a nasty shade of red on my market map with Westpac Banking Corporation (A$32.42, -0.4%),Commonwealth Bank of Australia (A$76.72, -0.6%),National Australia Bank Limited (A$33.80, -0.8%) and Australia and New Zealand Banking Group Limited (A$31.56, -1.1%) all taking it badly today. Not wanting to feel left out others joined in too with Macquarie Group Limited (A$53.08, -0.1%),Platinum Asset Management Limited (A$6.05, -0.5%),Magellan Financial Group Limited (A$9.94, -3.5%),Bt Investment Management Limited (A$4.85, -2.2%) all suffering. Material stocks also took it hard today with BHP Billiton Limited (A$37.55, -0.9%),RIO Tinto Limited (A$64.73, -0.7%),Woodside Petroleum Limited (A$38.11, -1.0%),Fortescue Metals Group Ltd (A$5.79, -1.5%) ,Santos Limited (A$14.26, -1.7%) and Iluka Resources Limited (A$9.08, -4.3%) falling in a heap. News out of WorleyParsons Limited (A$16.00, -25.9%) didn’t help the market struggling to come to grips with AGM downgrade season. Telstra Corporation Limited (A$5.07, -0.8%) got walloped as did WOW.
• Retailers like Kathmandu Holdings Limited (A$3.31, -2.6%),JB Hi-Fi Limited (A$20.54, -3.1%),Super Retail Group Limited (A$13.72, -2.0%),Harvey Norman Holdings Limited (A$3.17, -1.6%),David Jones Limited (A$2.98, -0.3%) and Myer Holdings Limited (A$2.84, unch) had some pre Xmas nerves on Click Frenzy day plus the Dick Smith float is focusses the harsh light of day on the sector. Healthcare stocks were trapped in the casualty ward today with Csl Limited (A$67.55, -1.2%),Ramsay Health Care Limited (A$37.66, -1.3%) and Sonic Healthcare Limited (A$16.38, -1.8%) all falling away as industrials also underwent a similar fate. ALS Limited (A$9.17, -2.2%)Asciano Limited (A$5.75, -2.0%),Aurizon Holdings Limited (A$4.66, -0.6%),Leighton Holdings Limited (A$16.32, -2.2%) all on the nose but Csr Limited (A$2.68, +1.1%),Amcor Limited (A$11.02, -0.5%),Brambles Limited (A$9.30, +0.8%) and Maca Limited (A$2.45, +0.8%) bucking the trend. Mining services took things to heart today following Monadelphous Group Limited (A$17.01, -5.3%) comments at its AGM,WorleyParsons Limited (A$16.00, -25.9%) wanted to get in on the act and promptly crashed on their update dragging other service companies with it, Boart Longyear Limited (A$0.37, -5.1%),#NRW#,UGL Limited (A$6.84, -3.0%),Decmil Group Limited (A$2.06, -4.6%),Cardno Limited (A$6.93, -2.5%) and Ausenco Limited (A$1.26, -5.6%).
• Big cheesy grinners today were Ainsworth Game Technology Limited (A$4.60, +8.2%),Peet Limited (A$1.46, +4.3%),Drillsearch Energy Limited (A$1.30, +4.8%),Senex Energy Limited (A$0.80, +3.9%),Qantas Airways Limited (A$1.15, +2.2%),Aquila Resources Limited (A$2.15, +1.9%) and Regis Resources Limited (A$3.18, +2.3%) whilst sitting in the corner wearing a pointy hat and fingers pointed at them were WorleyParsons Limited (A$16.00, -25.9%),Monadelphous Group Limited (A$17.01, -5.3%),Sirius Resources NL (A$2.42, -4.0%),Iluka Resources Limited (A$9.08, -4.3%),Magellan Financial Group Limited (A$9.94, -3.5%),Mount Gibson Iron Limited (A$1.08, -3.6%) and Pacific Brands Limited (A$0.68, unch).
• Around the grounds Asia took a flesh wound with the region down around 0.4% across the board. Volume was pathetic again as many players seem reluctant to get involved after such a stellar year and its only November.
Stocks and Stories
• GrainCorp Limited (A$11.15, -2.8%) were in the Clive Palmer spotlight as he is pushing a private members bill to ensure this one does not fall into foreign hands. It seems that Joe is going to be able to knock this one back easily as every politician seems to be against it.# WCB# no problem but Graincorp ,not so open for investment Australia after all! Would take a brave Treasurer no to approve it ,so Joe are you that brave!
• In house stocks #CSS# took a tumble following a profit update on the 11th and a speeding ticket form the exchange following a big blip up. Chorus Limited (A$1.65, -2.7%) continued their falls as they withdrew their dividend guidance.
• Following our life science conference yesterday, #RGS# has had another stellar day adding to impressive gains since we floated the company a few months ago. A 100% return so far!#PAB# also had a positive day as did #NEU#
• WorleyParsons Limited (A$16.00, -25.9%) maybe the less said about this the better as they updated the market on the state of play.
• Atlas Iron Limited (A$1.18, -2.9%) will recommence royalty payments at its Mt Dove project to De Grey.
• Australand Property Group (A$3.75, -3.4%) has gone into a trading halt amid suggestions its 59-per cent shareholder, CapitaLand is looking to sell about 115m shares in an overnight book build.
• Kathmandu Holdings Limited (A$3.31, -2.6%) AGM and trading update sending them backwards. Sales rise of barely 1% was in line with company expectations but apparently not investor ones.
• Virgin Australia Holdings Limited (A$0.38, -2.6%) Virgin Australia is seeking external legal advice about whether it has grounds to sue Qantas chief executive Alan Joyce for comments he has made in opposing its $350 million capital raising.
• Cabcharge Australia Limited (A$3.81, +1.1%) were first company to get three strikes and Reg is nowhere to be seen at the AGM.
• The OECD said it expected the Australian economy to grow at a sub-trend pace of 2.5 per cent and 2.6 per cent in 2013 and 2014, respectively. “The economy is still in a transition phase.”
• Looks like the Chinese have got some competition with news today that Japan’s exports rose a stronger-than-expected 18.6 percent in October from a year before, notching up the fastest gain in over three years thanks to the weak yen and a pick-up in overseas demand.
Tomorrows News Today
• Two big pieces of news to hit the wires today and will make the front pages tomorrow. The Rolling Stones have announced a tour to Australia and Monty Python are set to return ,looking to ride the senility wave.
• UK’s Financial Conduct Authority has launched a preliminary review into possible rigging of gold benchmarks. Seems it’s not called the AM and PM fix for nothing!
• In the latest currency war game the Yen has hit a four year low against the Euro as the Japanese are urged to pump even more money into their economy.
• Uncle Ben sees the US rates close to zero for some time. Will be a hospital pass to Yellen and free money forever!
• And if you thought our banks had performed well. Zombieland banks are up 40% since June this year! At least the 10 largest Zombie ones are as US funds have made big bets on the recovery there. Bit too Vera Lynn for my liking. Don’t know where ,don’t know when!
• The value of the digital drug currency Bitcon has soared to over $900 at one stage as the US Government says its legit! In which case why not create some of this currency too guys! No need to even print money. Just turn the switch on. Course with all made up stuff it is pretty volatile. Back down to 500 then up to 625! Invisible friends can be like that.
• And finally Uncle Ben has jumped the shark or been hanging out with the Mayor of Toronto, Rob Ford. He said he “does not believe Wall Street was the main beneficiary of the central bank’s quantitative easing program.” He thinks the bond buying has benefitted the man in the street. That makes complete sense for the 47m on food stamps. Sure has helped them! Unless of course the man in the street works on Wall Street that is!