After four days of losses it was good to see a positive day again. Unfortunately it was hardly huge volume as many players sitting on the sidelines evaluating the current crop of IPOs. The big spurt we saw to begin with, inevitably dwindled as the day wore on and the Aussie chances at the cricket dramatically improved. For the week the market was down 65 odd points to close at 5333 after a rise today of 45.We did see good solid gains across the board with financials leading us out of the wilderness. Westpac Banking Corporation (A$32.50, +0.7%),Australia and New Zealand Banking Group Limited (A$31.68, +0.7%),Commonwealth Bank of Australia (A$76.49, +0.5%) and National Australia Bank Limited (A$33.92, +0.7%) all to the good plus Macquarie Group Limited (A$54.50, +2.1%),Henderson Group PLC. (A$3.77, +1.1%) ,Magellan Financial Group Limited (A$10.22, +4.0%) and QBE Insurance Group Limited (A$15.95, +1.6%). Insurers also had a good day led by Suncorp Group Limited (A$13.55, +1.7%),AMP Limited (A$4.64, +1.3%),Insurance Australia Group Limited (A$6.12, +1.2%) and Challenger Limited (A$6.00, +2.7%).
In the sectors resources BHP Billiton Limited (A$37.83, +0.7%),RIO Tinto Limited (A$65.28, +0.7%),Bluescope Steel Limited (A$5.62, +3.7%) and Arrium Limited (A$1.625, +2.2%) did well but Fortescue Metals Group Ltd (A$5.78, +0.5%) seemed to be becalmed. Once again golds took the whole ”worse year in 13 thing” quite badly with Newcrest Mining Limited (A$8.50, -2.3%) slipping below $9.00 and others like Kingsgate Consolidated Limited (A$1.20, -0.8%),Silver Lake Resources Limited (A$0.56, -1.8%),Evolution Mining Limited (A$0.64, -4.5%),Resolute Mining Limited (A$0.51, -2.9%) all suffering although Beadell Resources Limited (A$0.83, +4.4%) rose after a savage beating yesterday. Industrials fared much better Brambles Limited (A$9.71, +3.5%),Toll Holdings Limited (A$5.85, +2.8%),Qantas Airways Limited (A$1.165, +3.6%),Aurizon Holdings Limited (A$4.69, +1.5%)Seven Group Holdings Limited (A$7.57, +3.4%)McMillan Shakespeare Limited (A$12.80, +4.9%),Crown Limited (A$16.55, +1.0%) and Ramsay Health Care Limited (A$38.38, +2.4%) showing good vital signs. Consumer stocks like Telstra Corporation Limited (A$5.06, +0.8%),#WESDA#,Woolworths Limited (A$33.77, +0.5%) and Coca-Cola Amatil Limited (A$12.17, +0.7%) rose as did retailers Harvey Norman Holdings Limited (A$3.18, +1.0%),Myer Holdings Limited (A$2.88, +2.5%) and first strike David Jones Limited (A$2.96, +2.1%). Energy stocks were also good following better oil prices, Oil Search Limited (A$8.44, +1.0%),Santos Limited (A$14.62, +1.7%) and Woodside Petroleum Limited (A$38.25, +0.7%) the best of the bunch.
Hogging the limelight today in big cap land were Skilled Group Limited (A$3.43, +6.2%),Ten Network Holdings Limited (A$0.295, +9.3%),Drillsearch Energy Limited (A$1.29, +3.2%),Charter Hall Group (A$3.75, +5.3%),Beadell Resources Limited (A$0.83, +4.4%)#,Senex Energy Limited (A$0.845, +5.6%) and Monadelphous Group Limited (A$17.20, +3.5%) whilst skulking in the shadows were #FLN#,Hutchison Telecommunications (Australia) Limited (A$0.092, -4.2%),Goodman Fielder Limited (A$0.705, -4.1%),Fisher & Paykel Healthcare Corporation Limited (A$3.27, -2.4%),Technology One Limited (A$2.18, -3.1%) and Amcom Telecommunications Limited (A$2.09, -2.8%) and of course Newcrest Mining Limited (A$8.50, -2.3%).
Volume was pretty sub-standard at a little over $3 bn.hardly the stuff to keep a brokers stockings brimming with good cheer. Over in Asia, Tokyo continues to draw in interest from around the region as it hits post tsunami highs. Abenomics is at least working for its market. Aussie dollar below 92 cents as Bitcons hit $764.
Stocks and Stories
House stocks announcing today included DWS Limited (A$1.445, -3.3%) following a client update whilst Mesoblast Limited (A$5.86, +1.9%) announced an award for 2013 financing deal of the year.
BHP Billiton Limited (A$37.83, +0.7%) announced their AGM results. David Jones Limited (A$2.96, +2.1%) hit with a first strike which gives them another few years to get their house in order. Hardly a huge stick to threaten a company’s directors with.
Senex Energy Limited (A$0.845, +5.6%) and Cooper Energy Limited (A$0.445, +3.5%) hit some success with their Worrior 8 production test results.
Tomorrows News Today
Dr Who turns 50 this weekend. Big party in the Tardis! Sonic Screwdrivers all round.
Seems the Euro chiefs are rapidly losing patience with Greece as their economy is set to contract 4% again this year. Apparently this is good news as estimates were for 4.5%! Also fears are growing that France is going in reverse, has got form in this one, as its (not so ) flash composite PMI (Purchasing Managers Index) – an indicator of the level of business activity – released on Thursday by Markit revealed that output contracted in November to a five-month low of 48.5, down from October’s 50.5
Hardly surprising but a Silicon Valley jury has ruled that Samsung must pay $290m to Apple for copying iPhone and iPad features in its devices. This verdict comes after a previous jury found Samsung owed Apple $1.05bn for copyright infringement.
IPOs coming thick and fast on the international stage too as Cinda, a Chinese bad bank expects to raise $2.5bn in its IPO. Still in China the new Premier Li Keqiang is targeting $1trillion worth of trade with Europe by 2020.Of course when he says trade he means one way trade or at best ,selling stuff to Europe with German engineering nouse.
WTO is on the verge of a global trade pact which some analysts suggest could add $11 trillion to the world’s economy.
And as an Englishmen, not too happy with our show today. Never have so many ,got bowled for so few.