Another day another big push. But not quite so much as could have been thanks to the better than expected jobs number coming in at a very surprising 5.8%.So things aren’t quite so bad after all. One thing for sure though with these numbers and “The Block” viewing figures there is absolutely no chance of a rate cut. That’s it folks as Yazz would sing,”the only way is up, baby.” The other serious negative to hit the market was the Chinese exports and imports fell very sharply suggesting the slowdown continues. Of course one of the big winners from the jobs numbers was the Aussie dollar which has proved to be “unjawboneable”. Did hit 94.3 before easing back to just above 94c.in the ned the index closed up 17 at 5481 after hitting 5503 early.

So to the scores on the doors. The big green blob of ‘bankingness’ was once again to the fore with good gains across the big four together with AMP Limited (A$5.20, +1.6%),Macquarie Group Limited (A$57.46, +0.9%),Bt Investment Management Limited (A$6.92, +2.8%),IOOF Holdings Limited (A$8.60, +2.5%),Henderson Group PLC. (A$4.60, +1.1%) and Challenger Limited (A$6.39, +0.6%). Property trusts also had their day in the sun with Westfield Group (A$10.66, +1.6%) a standout but strength too in GPT Group (A$3.81, +1.1%),#MRV# and Stockland (A$3.82, unch)

In resource land, despite Iron Ore pushing ahead, it was time for a break. The huge run in the Dollar may have been a factor here. BHP Billiton Limited (A$37.91, -1.3%) was the biggest drag but Fortescue Metals Group Ltd (A$5.41, -2.3%) joined in not wanting to9 be left out. Newcrest Mining Limited (A$10.94, +0.5%) and RIO Tinto Limited (A$64.95, -0.3%) were pretty steady. Mount Gibson Iron Limited (A$0.825, -6.3%) had a shocker though. Energy stocks were weaker with Origin Energy Limited (A$14.46, -0.8%),Caltex Australia Limited (A$21.61, -0.9%),Oil Search Limited (A$8.58, -0.2%) and Whitehaven Coal Limited (A$1.625, -2.4%)

Consumer stocks were also better on eth jobs numbers with Wesfarmers Limited (A$42.81, +0.3%) and Woolworths Limited (A$36.35, +1.2%) powering ahead. Industrials were mixed with no real standouts except for Sydney Airport (A$4.24, +1.4%),Transurban Group (A$7.36, +1.1%) and Aurizon Holdings Limited (A$5.14, +1.0%) .Retail stocks were still reeling from the ‘Yarpies’ assault in David Jones Limited (A$3.93, +0.5%).JB Hi-Fi Limited (A$20.63, +4.1%) was the standout as the shorts ran for the hills.

Sitting pretty today were Wotif.com Holdings Limited (A$2.73, +6.6%),Regis Resources Limited (A$2.65, +6.4%),Tpg Telecom Limited (A$6.28, +5.2%),Ten Network Holdings Limited (A$0.27, +3.8%),APN News & Media Limited (A$0.71, +4.4%),#XRO# and Flexigroup Limited (A$3.79, +3.3%) whilst waiting in the losers lounge were Mount Gibson Iron Limited (A$0.825, -6.3%),Oceanagold Corporation (A$2.53, -1.9%),Myer Holdings Limited (A$2.29, -4.2%),Panaust Limited (A$1.65, -2.4%),#OFX#,Iluka Resources Limited (A$9.70, -2.4%) and Oz Minerals Limited (A$3.68, -2.1%). Volume was still on the skimpy side given the move we have had at around $4bn.
Asian markets pretty unchanged with Tokyo down 0.3%,HK up 0.2% and China up 0.11%.Gold trading around $1317 and Bitcons at $445.

Stocks and Stories

Equity Trustees Limited (A$22.58, unch) has announced it has agreed to acquire ANZ Trustees from ANZ Bank for $150 million. Equity placement required to fund it.

Car Park Operators Transurban Group (A$7.36, +1.1%) reported good numbers this morning with Sydney the Jewel in the Crown Quarterly revenue grew by 12.9 per cent against the same period last year to $221.7 million. Average daily traffic across its Australian assets grew by between 0.2 per cent and 0.5 per cent. Average traffic growth across the stable of car parks they own was around 11% for the quarter.

Ten Network Holdings Limited (A$0.27, +3.8%) reported its better than expected numbers today. Revenue from ordinary activities rose by 7.8 per cent to $331.6 million over the six months to 28 February, The loss attributable to members was $7.99 million, an improvement on the prior period’s loss of $243 million. The loss after tax was $4.75 million, compared with $239.8 million in the previous corresponding period, which included $244.8 million in impairment charges and restructure costs.Apparently they are now looking for “Non-Traditional” advertisers…that is the roasd to ruin as they will have to cut rates to get them in. Ads cost a lot to produce and who wants to see Val Morgan style ads on TV .It’s bad enough having to sit through them at the movies having paid $20 to see Russ with a dodgy beard!

The ‘hopium’ of stimulus is boosted by these numbers as China’s exports and imports unexpectedly fell in March as Premier Li tries to stabilize an economy headed for its slowest growth since the global financial crisis. Shipments declined 6.6 per cent from a year earlier, the customs administration said in Beijing today, compared with the median estimate for a 4.8 percent increase in a Bloomberg News survey of 47 economists. Imports fell 11.3 percent, leaving a trade surplus of $US7.71 billion.

The unemployment rate has fallen to 5.8 per cent, as 18,100 jobs were added to the economy last month, according to the ABS.A total of 22,100 full-time positions were lost in March, and 40,200 part-time jobs were gained as the participation rate was steady at 64.8 per cent.

Japan’s core machinery orders fell sharply in February, Core orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, declined 8.8 per cent.

Tomorrow’s News Today

Hundreds of millions of dollars may have been wasted on a drug for flu that works no better than paracetamol, a landmark analysis has said. The UK has spent $800 on Tamiflu, which is stockpiled by governments globally to prepare for flu pandemics.

China plans to connect the stock exchanges of Hong Kong and Shanghai, allowing a combined 23.5 billion yuan ($3.8 billion) of daily cross-border trading.Investors will be able to trade 10.5 billion yuan of Hong Kong-listed stocks through the Shanghai exchange, and 13 billion yuan of mainland shares through Hong Kong.

In the world’s largest democracy ,Delhi gets to vote today. This is the third phase with nine in total. All the results get released together though on May 16th. The election will be the most expensive in Indian history, with the government, political parties and candidates spending 300 billion rupees ($5 billion).

Bank of America has agreed to pay $783m in fines and refunds to settle accusations it misled customers about its credit card services.

Greece is selling its first five year bond as it enters the recovery clinic from ICU. The country’s economic output has shrunk by a quarter and unemployment remains close to 28%. There are fewer Greeks employed than at any time in the past 33 years.Stunningly the estimates are that it will take until 2025 before it is back to where it was in 2006 economically!

Manchester United out of Europe. Shame!

That is all

Clarence

XXX

 

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