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Whooshka! Off to the races today. After two days of losses it was inevitable that we were bounce at some stage and Tuesday rallies in the US are a constant and so it came to pass. “Green, green cross my screen, where I go live” said Mr Bowie or was it blue perhaps. You had to be a real dog to miss out on todays’ euphoria as financials led the charge followed by the BHP Billiton Limited (A$36.85, +2.4%),RIO Tinto Limited (A$62.00, +2.6%) and Alumina Limited (A$1.39, +3.7%) of this world and the ‘W’. All-time highs in NY even on the Russell Small Caps plus some commodities doing nicely helping things along. Even a shock trade figure for May and drastic revisions for April could only slow the speeding train. There was nowhere for the bears to hide as we closed on our highs at 5455 up a massive 79 which makes us up 10 for the week! Half the rise was in 8 stocks.

All sectors were green with Telstra Corporation Limited (A$5.23, +0.4%),iiNet Limited (A$7.37, +2.4%),Hutchison Telecommunications (Australia) Limited (A$0.08, +12.7%) and Vocus Communications Limited (A$5.15, +8.2%) punching the lights out. Resource stocks doing extremely well, Rex Minerals Limited (A$0.345, +13.1%),Sandfire Resources NL (A$6.37, +4.6%),Sirius Resources NL (A$3.40, +2.7%),Oz Minerals Limited (A$4.23, +1.0%),Independence Group NL (A$4.45, +1.6%) and Cudeco Limited (A$1.785, +1.7%) although Fortescue Metals Group Ltd (A$4.40, +0.9%) missing out today. Even mining services were in demand today with Cardno Limited (A$6.58, +3.3%),Leighton Holdings Limited (A$20.43, +3.0%),Monadelphous Group Limited (A$16.19, +1.4%),Bradken Limited (A$4.01, +3.4%) and Boart Longyear Limited (A$0.205, +7.9%) attracting value players and hyennas.

Playing the ball between their legs today were Hutchison Telecommunications (Australia) Limited (A$0.08, +12.7%),Sundance Energy Australia Limited (A$1.255, +6.4%),Transfield Services Limited (A$1.185, +5.8%),Sandfire Resources NL (A$6.37, +4.6%),#VED#,#PGH#,Alumina Limited (A$1.39, +3.7%) in the ‘bigs’ and Unilife Corporation (A$0.555, +8.8%),#IBY# and Imdex Limited (A$0.64, +6.7%) in the smalls. Playing like Serena Williams were Evolution Mining Limited (A$0.72, -2.7%),Goodman Fielder Limited (A$0.655, -3.7%),Ten Network Holdings Limited (A$0.27, unch),Liquefied Natural Gas Limited (A$2.20, -2.7%) and debutante Not so #SIQ# and Brockman Mining Limited (A$0.05, -9.1%).

Volume was healthy at around $4bn again today with top 20 stocks dominating. Asian markets continue to pile on gains at 6 year highs on the regional indexes led primarily by the Japanese house of cards up 0.32%,HK relieves after the demonstrations up 1.13% and China down 0.11%Aussie dollar briefly above 95 slipped following the trade data to 94.54 and Digital Tulips around $682 and Gold $1324.

Stocks and Stories

Wesfarmers Limited (A$42.66, +2.7%) continue to miss the Target and no amount of UK minor ‘D ‘ celebrities are rescuing this business as the down market department store continues to struggle and the patient parent has now written off goodwill at Target by $680 million and booked restructuring costs of $94 million. Just as well it made a truck load of money from selling its insurance assets then.

REA Group Ltd (A$43.82, +3.1%) briefed investors today as rumours continue to swirl around disgruntled real estate agents unhappy with higher advertising costs.

Scentre Group few media reports that the newly minted company is looking to offload some NZ assets and the Lowy family have reiterated their commitment to being a long term shareholder albeit under 5%

Smartgroup Corporation todays disappointing new float with a quick 10% wiped off as the stags got bored after a whole morning. Not sure why you would dump them first day but there you go. Especially at a loss.

iiNet Limited (A$7.37, +2.4%) founder Mike Malone has sold down his holding to under 5% today as he has sold more than $8.4 million in iiNet shares since late March.

Australand Property Group (A$4.48, +0.9%) has unanimously accepted the bid from Singaporeans Frasers Centrepoint after last night the foreigners lobbed $4.48 on the table. That will do nicely.

The Singaporeans were busy too in Goodman Fielder Limited (A$0.655, -3.7%) as the target accepted a revised downwards bid of 67.5c.Mind you the meeting to ratify it isn’t til November so this is a longer takeover than Graincorp. No reason to really be here for a long time!

Economists were rushing around trying to explain how they got it so wrong of the trade numbers as the deficit was $1.9 billion in May, compared to a $780 million deficit in April, ABS figures showed. Exports fell 5.0 per cent during May, while imports were down 1.0 per cent. Not a good sign going forward for GDP numbers as we continue to transition. Interestingly the exports to China surged to a fresh record high, above $100 billion over the year to May and well over a third of our exports now head to China. Eggs in a basket anyone?

Tomorrow’s News Today

Mixed reviews for Python reunion! No new material apparently. Not sure what punters were expecting. The Spanish Inquisition maybe!

Macau casino stocks were on the tear as hopes that gambling revenues will recover from Brazilian World Cup
ldrums. Total gross gaming revenue in Macau dropped 3.7%, better than estimates at 4%, to 27 billion patacas ($3.4 billion) last month, the first decline since June 2009 when it fell 17 percent.

Goldman Sachs has been fined $800,000 by a US regulator for “failing” to ensure that trades in its dark pool took place at the best price.

This is getting silly now..BlaBlaCar is a French car sharing app that has 8m members in 12 countries since 2006.They are looking at raising some more money from punters and are rattling the tin for $100m.Valuaing the company at $1bn!!! BlaBlaCar estimates it now carries more passengers every month than Eurostar trains – without the infrastructure costs. Sorry a hitchhiker app? Brilliant. Whatever happened to the thumb!

Camera on a stick (or wherever company) GoPro has doubled since listing! Now valued at $6bn.Starting to make the DotCom boom look positively conservative.Enron, WorldCom etc should be floated soon at this rate.

This says it all.87? Tracy Emin is having a laff .She sold an unmade bed and a littered floor including empty vodka bottles, cigarette butts and discarded condoms. It quadrupled the previous highest amount paid for a piece by the artist when it was sold at Christie’s. Thinking of putting my 18 year old sons’ bed up for sale. Should get a similar price!

That is all

 

 
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