Best day of the year so far as BHP Billiton Limited (A$36.43, +3.3%) ,RIO Tinto Limited (A$59.24, +2.3%) and Fortescue Metals Group Ltd (A$4.22, +5.0%) led the charge higher on slightly better Iron Ore prices and news from the Chinese head Honcho on his own “Whatever it takes” moment. Premier Li Keqiang said that “I can promise everyone honestly and solemnly, there won’t be a hard landing”. It sure helped sentiment and the slow burn following the SPI expiry turned into a stampede. In the final countdown we kicked 85 points to close at 5468 for a yearly performance now of 120 points. The bulls were running hard and banks and financials were on the tear. Maybe they were all celebrating the historic Origin victory last night. It was just green across the screen as Telstra Corporation Limited (A$5.24, +1.4%) joined in and the energy sector under pressure because of the Woodside Petroleum Limited (A$41.50, +1.5%) deal shrugged off any hangover and took a Berocca and gobbled down a bacon and egg roll and surged. Possibly BHP too gaining some fans due to the increase in the oil price.
Industrials were firm too with Brambles Limited (A$9.14, +1.6%), Seek Limited (A$16.78, +1.7%), ALS Limited, Aurizon Holdings Limited (A$4.96, +2.5%) and Asciano Limited (A$5.55, +6.1%) better despite announcing job losses. Wesfarmers Limited (A$41.79, +1.3%) were also pretty strong but Jamie Olivers employers failed to inspire Woolworths Limited (A$35.77, -0.2%) as did Westfield Group (A$10.81, unch).
In the winners enclosure today were Zimplats, Liquefied Natural Gas Limited (A$2.44, +8.0%),Asciano Limited (A$5.55, +6.1%),Sirius Resources NL (A$3.36, +4.7%),Fortescue Metals Group Ltd (A$4.22, +5.0%),Northern Star Resources Ltd (A$1.275, +4.1%), Energy World Corporation and Drillsearch Energy Limited (A$1.545, +4.7%) in the ‘bigs’ whilst the smalls were led by Brockman Mining Limited (A$0.05, +16.3%),Perseus Mining Limited (A$0.36, +16.1%) and iCar Asia. Losers hard to find today. Ten Network Holdings Limited (A$0.27, -6.9%) seriously, NIB Holdings Limited (A$3.05, -8.4%) and Aquarius Platinum Limited (A$0.44, -3.3%).
Volume was big with expiry today at around $6.2bn.Asian stocks joined in the fun in Tokyo at least with a 1.5% gain whilst HK and Shanghai were little changed. Aussie dollar was 94.17 and digital tulips were $642 while Gold at $1276.
Stocks and Stories
Another great disruptive technology lunch organised in house and a huge turnout. God, there are some clever people out there .I just wish I was one of them. Well worth coming just to see what is happening out there and it’s very exciting.
Ten Network Holdings Limited (A$0.27, -6.9%) is warning of a slide in advertising revenues and higher costs as it prepares to close off its accounts for the 2013/14 financial year. It expects its TV revenue will be 3.5-4.5 per cent lower in the 2013/14 financial year.
JB Hi-Fi Limited (A$18.97, +1.3%) has reaffirmed its full-year earnings guidance despite slower than expected sales growth. It now expects total sales for the year ending June 30 to rise 5.3 per cent, compared with a previous forecast for 6 to 8 per cent growth.
Couple of investor briefings out today at a conference with Asciano Limited (A$5.55, +6.1%) and Origin Energy Limited (A$14.73, +3.0%) benefitting form a positive reception.
Perseus Mining Limited (A$0.36, +16.1%) had a golden day with some pretty impressive results from their Edikan project with 13m at nearly6g/t helping things along. Looks very promising indeed.
Tomorrow’s News Today
Amazon introduces a new Smart Phone called Fire! Will struggle to compete. Easy now to say ‘I’m on Fire!!’
The Japanese are still addicted to cash as PM Abe’s hopes to get the money in the system appear to be struggling at the moment. Corporate cash is at a record high.
The UK looks set for its biggest divorce with Hedge Fund Guru Chris Hohn and his ex-wife Jamie Cooper-Hohn are on track to set a new record — for the country’s biggest-ever divorce settlement. The hedge fund manager and his former wife, who have given more than £1 billion to charity, have started legal proceeding to settle the division of their assets, worth as much as £1.2 billion.
The IPO market continues to bubble away with UK Zoopla has pricing its flotation in the lower half of its proposed range, valuing the property website at less than the £1bn it was seeking. The company said it would sell 38.3% of its share capital at 220p a share, giving it a market value of £919m. Last month it set the price range for the initial public offering (IPO) at 200p to 250p.
Great deal for the City of London as it will be the base for the first clearing bank outside Asia for the Chinese currency. The People’s Bank of China (PBC), the country’s central bank, has appointed China Construction Bank as the UK’s first clearing bank for Renminbi.
Following a court ruling this week Argentina may be up for a huge $11bn payout to Vulture funds. Not sure it has the readies to pay that sort of amount back. The Vulture funds snapped up the debt following their default some years ago and this move, long in the courts, has potential to send them bust again with another default.
That is all