Market Review

After a Another quietish day in the cauldron today as the market drifted around pre the rate decision by the RBA.As expected we saw no change. Nor one in the immediate future it seems. After a better start for resource stocks they once again threw in the towel as BHP Billiton Limited (A$36.40, -0.5%) slipped from a high of $37.04 and RIO Tinto Limited (A$59.65, +0.7%) slipped from $60.28.As it was for the miners so it came to pass for the rest of the market with a positive read for a brief second before gravity took hold and accelerated after the RBA announcement. High of 5526 before we finally closed down 39 at 5480 continue to feel cautious given the complacency out there at the moment. Seems I am not the only one as the Deputy Governor of the Bank of England feels that its quiet .Too quiet! Eerily like the pre GFC environment. We continue to wait to see what rabbits Super Mario Draghi can pull out of his pants on Thursday. Also GDP numbers from here tomorrow will be keenly watched.

Broad losses across the board as we continue to try and find new reasons to buy the same old stories. Financials eased but only slightly Australia and New Zealand Banking Group Limited (A$33.71, unch) the best of the banks and AMP Limited (A$5.38, +0.2%) continue to be loved. Even Telstra Corporation Limited (A$5.36, -0.6%) fell away today unable to retain its’ lofty heights. The W’s suffered a little today with Wesfarmers Limited (A$42.98, -1.3%), Woolworths Limited (A$37.55, -1.1%), Woodside Petroleum Limited (A$41.95, -1.0%),Westfield Retail Trust (A$3.21, -0.9%) and Westfield Group (A$10.73, -0.4%) out performing on the downside. Retail stocks took a whack after sales numbers today and Myer Holdings Limited (A$2.11, -3.7%) cancelled its mid-year sale as no one seemed that interested. Harvey Norman Holdings Limited (A$3.09, -3.4%),JB Hi-Fi Limited (A$17.62, -1.8%),Kathmandu Holdings Limited (A$3.10, -4.6%),Super Retail Group Limited (A$8.80, -2.5%) and Fantastic Holdings Limited (A$1.545, -3.4%) led losses while Corporate Travel Management Limited (A$5.77, -6.8%) and Helloworld Limited (A$0.29, +9.4%) struggled. Healthcare too was a little weaker with Mesoblast Limited (A$4.74, -5.0%) the main loser.

Sitting pretty today were Air New Zealand Limited (A$2.00, +7.0%),Hutchison Telecommunications (Australia) Limited (A$0.077, +6.9%),Country Road Limited (A$12.50, +4.2%),APN News & Media Limited (A$0.82, +3.8%),Oz Minerals Limited (A$4.43, +2.1%),Karoon Gas Australia Limited (A$3.61, +2.8%) and Sirius Resources NL (A$3.24, +3.2%) whilst playing wall flowers were Corporate Travel Management Limited (A$5.77, -6.8%), VDA, Mesoblast Limited (A$4.74, -5.0%),Regis Resources Limited (A$1.41, -5.4%),Platinum Asset Management Limited (A$6.36, -4.4%) and Beadell Resources Limited (A$0.63, -3.1%). Volume was still low at around $3.5bn.Aussie Dollar 92.70, digital tulips at $733 and Gold continues to be treated like a plague victim at $1243.

Asian stocks are on a roll today with Japanese stocks rising for nine straight sessions (the Topix) or at least eight out of nine (the Nikkei), as the yen weakens further. The indices are up a further 0.9 % today. In others, China was up 0.2% and HK up 0.7%

Stocks and Stories

Karoon Gas Australia Limited (A$3.61, +2.8%) found another lift today although far more sedate compared to yesterday’s rocket ship ride. You would have to think that there is more upside to come in this one having just sold its Browse exposure for such a huge price. You get the rest of the company for very little. Shorts got torched yesterday so maybe they will leave this one alone now!

Recent in house placement superstar #TPT# continued its stellar run pushing up another 8% as UK punters grasped the risk/ reward potential on their Moroccan drilling program due to start mid-June.

Lynas Corporation Limited (A$0.17, +9.7%) also fared better today as the selling abated post the SPP and the placement.

Macquarie Group Limited (A$59.26, -1.6%) fell today despite forecasts that their mortgage book will double to around $30bn in the next two years. Serious player it seems.

Financial Index Wealth Accountants is in a bidding war with private equity firm Anchorage Capital Partners to gain control of the nation’s fifth largest accounting firm based on revenue, Crowe Horwath Australasia Ltd (A$0.42, unch)

Retail sales growth were a touch weaker than market expectations in April, increasing a modest 0.2% month on month

RBA keeps rates on hold and issued this commentary. “On present indications, the most prudent course is likely to be a period of stability in interest rates”. 2015? 2016?

The current account deficit narrowed to $5.7 billion from $12.7 billion in the December quarter, as exports swung to a surplus of $3.6 billion from a deficit of $609 million, the ABS said. Economists had tipped a deficit of $7 billion

In China the final reading of the HSBC/Markit purchasing managers’ index (PMI) for May rose to 49.4, lower than a preliminary reading of 49.7 but up from 48.1 in April.

Tomorrow’s News Today

25 years ago today the Chines government cracked down on demonstrators in Tiananmen square. Seems like they don’t like people using Google as the country has blocked the search engine and gmail from its populous today!

Macau casino revenue rose 9.3 % to 4.1 billion in May, according to data published on the website of the city’s Gaming Inspection and Coordination Bureau today. The figure missed the median estimate of 14.5 % .

The Obama administration has announced regulations that would cut the amount of carbon dioxide the US energy sector may emit by 30 per cent on 2005 levels by 2030.If adopted as expected in 2015, it would be the equivalent of removing two-thirds of cars and trucks from America’s roads.

Looks like “Bearded” Bob Berghani may prove an issue for Obama as the father of the POW released. Apparently he is not a huge fan of the US. Well you wouldn’t be if your son had been a prisoner for five years and could have had a negotiated release three years ago!

News out of the UK with the airline industry worldwide expected global profits to reach $18bn in 2014. The figure is the highest ever in absolute terms and a steep rise on previous years despite persistently high fuel prices. QANTAS are you listening?

And finally Apple is introducing a new operating system .I have a ‘rainbow spinny’ thing on my Macbook from time to time at home. Hopefully this will be sorted and apparently it will make me healthier to book. And turn all the lights on in the house and feed the dog! Steve would have approved! Maybe Siri will be replaced too! “Open the pod bay doors, HAL.

HAL: I’m sorry, Dave. I’m afraid I can’t do that.”

That is all