Another stellar day for the market as an opening flurry gave way to a small pullback before China kicked us higher again at lunch time following some good economic numbers revealing conveniently that China’s export growth gained 10.6 per cent year-on-year in January. This was enough to fire us again. In the final countdown we closed at our highs up around 55 points at 5310. Good numbers from Commonwealth Bank of Australia (A$76.20, +0.4%) set the scene for the banks today with Westpac Banking Corporation (A$32.50, +0.8%) and Australia and New Zealand Banking Group Limited (A$30.98, +1.4%) leading the pack .Insurers also gained led by Suncorp Group Limited (A$12.44, +2.3%),AMP Limited (A$4.45, +2.1%) and after yesterdays’ blood bath ,nice to see Macquarie Group Limited (A$54.61, +2.0%) back on track.
Green was the colour today with solid gains in the industrials like Telstra Corporation Limited (A$5.11, +1.2%),Computershare Limited (A$11.80, +6.4%),Woolworths Limited (A$35.02, +0.7%) and Wesfarmers Limited (A$43.05, +0.6%) together with energy stocks such as Woodside Petroleum Limited (A$38.08, +0.9%) and Origin Energy Limited (A$14.86, +1.3%) and Santos Limited (A$13.87, +1.2%) .Big iron ore stocks also gained on the back of the Chinese number despite the underlying metal slipping .Most stocks were a tinge of green except for the Gold sticks which took a hit to the guts as Gold soured in Asian markets. Newcrest Mining Limited (A$10.94, -4.5%) were a big casualty followed by Evolution Mining Limited (A$0.77, -6.1%) and Beadell Resources Limited (A$0.795, -1.9%) but others managed to buck the trend with Regis Resources Limited (A$3.08, +2.7%) rising as did Kingsgate Consolidated Limited (A$1.31, +1.6%),Papillon Resources Limited (A$1.34, unch) and Ampella Mining Limited (A$0.165, +6.5%)
Standouts today were Oz Minerals Limited (A$3.83, +12.6%),Domino’s Pizza Enterprises Limited (A$19.25, +12.4%),Boral Limited (A$5.45, +9.0%),Skilled Group Limited (A$3.09, +9.6%),Hutchison Telecommunications (Australia) Limited (A$0.086, +8.9%) and Computershare Limited (A$11.80, +6.4%) whilst in the naughty corner were Goodman Fielder Limited (A$0.63, -7.4%),Evolution Mining Limited (A$0.77, -6.1%),Greencross Limited (A$7.88, -3.7%),Newcrest Mining Limited (A$10.94, -4.5%),McMillan Shakespeare Limited (A$11.05, -4.0%),Csl Limited (A$67.75, -3.0%) and Mermaid Marine Australia Limited (A$2.82, -2.1%). Volume was significantly better today at around $4.8bn.We have now bounced significantly from the doom and gloom ‘downdates’ from 5062 back up to 5300!Banks as usual been driving the ride but good to see the BHP Billiton Limited (A$37.20, +1.8%),RIO Tinto Limited (A$68.10, +2.2%) and Fortescue Metals Group Ltd (A$5.71, +1.2%) helping things along too.
In Asia ,Gold(Natures’ Bitcon) slipped as everyone is now getting bullish and Iron Ore fell to its lowest level in 7 months as the Aussie dollar pushed above 90 cents convincingly at 90.5 and Bitcons has fallen to $620.Serious volatility there. Asian shares had a good day too after Yellen and Chinese numbers bit the bears. MSCI Asia Pacific Index added 1.2 percent as of 12:44 p.m. in Tokyo. A measure of Chinese shares in Hong Kong advanced 1.4 percent. And Tokyo was up 0.55%
Stocks and Stories
Commonwealth Bank of Australia (A$76.20, +0.4%) Headline number good.$4.27 beating forecasts with increased dividend and lower bad debts. The stock failed to inspire though as it ran pretty hard into the figures. Seems like the others have been left behind and now playing catch up.
Also riding the property boom was Stockland (A$3.90, +4.8%) as it reversed the trend of a year ago by unveiling a statutory profit of $298 million for the first half of 2014, which compared to the loss of $147 million last year, thanks to the residential boom and asset sales.
Oz Minerals Limited (A$3.83, +12.6%) News today that MD Terry Burgess was going helped sentiment enormously together with the figures which showed the company produced 73,362 tonnes of copper, and 128,045 ounces of gold, in 2013.its cash pile stands at $364m and shareholders are rewarded with a dividend increase despite the company slumping to a full year loss of $294 million.
Computershare Limited (A$11.80, +6.4%) Another CEO offski as Crosby reported net profit for the six months to December 31 rose to $139.4 million, up 47.4 per cent compared with the previous corresponding period.Improved earnings came as the company cut ”controllable costs”,
Carsales.Com Limited (A$10.00, +6.6%) recorded a 17 per cent jump in net profit to $43.9 million for the half ending December 31, compared with the previous corresponding period. Revenue grew by 10 per cent to $112.3 million and earnings before interest, tax, depreciation and amortisation was up by 18 per cent to $63.5 million over the same period.
Going from Hero to Zero today with news that #XRO# is arcing up its push into the US with the appointment of a new chairman, ex-Microsoft CFO Chris Liddell. Plus the former HP executive Bill Veghte (a one-time vice president and GM) has also been appointed to the board, while former Paypal executive Peter Karpas has been appointed to head up the group’s US expansion push.
Csl Limited (A$67.75, -3.0%) today slightly disappointed after their numbers today as it reported a 3 per cent rise in net profit to $US646 million ($715 million) in the first half of 2013-14. Underlying profit of $US685 million, which removes the effect of a $US39 million legal settlement, beat analyst expectations. The specialty division, which sells diagnostic products and drugs to control bleeding during surgical operations, was the standout performer
Domino’s Pizza Enterprises Limited (A$19.25, +12.4%) were hot and spicy today as results showed no sign of the customers falling out of love with Pizza. Why would they! Japan and Australia the two standouts whilst new concepts also helping the company along. Big roll out of new stores in the next five years is the aim. If it achieves that it will be Super Supreme!
Westpac-Melbourne Institute’s consumer sentiment slipped for the third-straight month in February as Australians’ expectations about the economy over the next year fell to the lowest level since March 2012.
Tomorrows News Today
The US House of Representatives has passed an increase in the government’s debt limit, after the Republicans gave up on their attempt to win concessions from the Democrats in return.
More floods to come in the UK as the costs mount! One Billion quid and counting they reckon!
Also in the UK, the Bank of England has launched an internal inquiry into allegations that its officials endorsed sharing of information between traders in the foreign exchange market, the central bank’s deputy governor told MPs.
Here’s a thought. Gamblers worldwide lost a record $440 billion in 2013. Australians lost the most money per person. Most of it on the pokies! But Americans lost a combined $119 billion gambling last year – more than any other nation – and more money than China ($76 billion) and Japan ($31 billion), the second- and third-place finishers, lost combined.The really scary thing though is it is predicted that in Macau gambling revenue could top $100bn in five years. Another reason to own Crown! Jamie wouldn’t have made that on NINE!
Barclays Bank in the UK has really gone out of their way to upset everybody after announcing 12,000 jobs to go and the bonuses that their executives will get! Will they never learn! The bank’s total bonus pool for 2013 rose by 10% to £2.38bn, from £2.17bn in 2012, with the investment bank’s bonus pool increasing by 13%.
Canada closed a controversial immigration program popular among rich Chinese that allowed wealthy individuals to effectively buy permanent residency.The cancellation of the Immigrant Investor Program, announced Wednesday.
Who would have guessed this. The two largest bitcoin-trading exchanges came under attack from hackers Tuesday, leaving customers unable to withdraw their money in the latest development to roil the fledgling virtual currency.
Slovenia-based Bitstamp said it halted customer withdrawals to deal with the issue. BTC-e, a bitcoin exchange based in Bulgaria, said it was experiencing delays in crediting certain transactions. 21st Century Digital Tulips!
And in bad news for Rhonda ,it seems that Ketut is delighted that his old girlfriend is now out of jail and getting a $3m pay day from Seven. Sorry Rhonda.” Unlucky he’s with Corby!”
That is all