Another day in the winter sunshine as records falling on overseas markets pushing us towards the top of the range. The ASX 200 closed on its highs with a 34 point rally to 5525 making it a big three day bounce up 80 points for the week, and shrugging off all the tax loss doom and gloom of June. Once again the big green bank blob continues to power us higher with my “Big Four Bank Basket” now around 184 again (Just add them together). The hint of higher rates and a lower dollar also helped spur our Insurance sector with QBE Insurance Group Limited (A$11.54, +4.3%) the big winner followed by Suncorp Group Limited (A$13.70, +1.3%) and Insurance Australia Group Limited (A$5.93, +0.5%).Wealth managers also enjoyed good gains as you would expect given the current buoyant environment with Henderson Group PLC. (A$4.65, +1.8%),Perpetual Limited (A$49.57, +0.8%),Platinum Asset Management Limited (A$6.73, +2.7%) and Magellan Financial Group Limited (A$11.50, +3.8%) all going very well. Away from the money men, consumer stocks Woolworths Limited (A$36.42, +0.9%),Wesfarmers Limited (A$42.94, +0.2%),Treasury Wine Estates Limited (A$5.00, +1.8%) and Coca-Cola Amatil Limited (A$9.59, +0.9%) also enjoying the positive vibes.
In resources, the bounce continues with BHP Billiton Limited (A$37.57, +0.9%) leading the way dragging all behind it. RIO Tinto Limited (A$62.60, +0.2%), Fortescue Metals Group Ltd (A$4.68, +1.1%)(reluctantly) and Oz Minerals Limited (A$4.47, +3.5%) together with Sirius Resources NL (A$3.66, +6.7%) and Independence Group NL (A$4.61, +2.9%).
In the industrials Telstra Corporation Limited (A$5.34, +1.1%) was very strong as was M2 Telecommunications Group Limited (A$5.95, +0.8%) and debutante #ZIP# though failed to fire as they try to take on the global roaming market with their Aussie Sim experience. Raised money as part of the back door listing at 50 cents. Digital economy stocks like REA Group Ltd (A$45.50, +3.8%) and Wotif.com Holdings Limited (A$2.64, +2.7%) improved today. Mining services seem to have found a bottom for the time being with strong bounces continuing in things like Cardno Limited (A$6.73, +2.0%),Bradken Limited (A$4.28, +4.6%),Boart Longyear Limited (A$0.205, unch),McMahon Holdings Limited (A$0.105, +5.0%),NRW Holdings Limited (A$0.985, +3.7%) and Monadelphous Group Limited (A$16.91, +1.3%).
In the winners circle today were Sirius Resources NL (A$3.66, +6.7%) following good sales numbers a day or so ago, Vocation Limited,Atlas Iron Limited (A$0.68, +3.8%),Lynas Corporation Limited (A$0.13, +4.0%),Evolution Mining Limited (A$0.755, +3.4%),REA Group Ltd (A$45.50, +3.8%),Orica Limited (A$20.22, +3.5%) and Steadfast Group on an acquisition of a NZ business. Losers were Zimplats Holdings, Liquefied Natural Gas Limited (A$2.26, -2.6%), Genworth Mortgage, AP Eagers Limited (A$5.73, +0.5%), Chorus Limited (A$1.62, -1.5%) and Transurban Group (A$7.62, -1.6%).
Volume was once again on the low side as investors seem to be absent from the current boom. Reminds me of the old adage of suppose they gave a party and nobody came! Seems most of Sydney is on holiday in sunnier climes. Place is deserted! Aussie dollar is settling once again just below 94c at 93.6 while tulips were $694 and gold at $1320.
Asian markets were mixed as Tokyo up 0.58% and China down 0.2%.HK little changed as the MSCI Asia added to 8 weeks of gains up 1.7%.
Stocks and Stories
Quickflix Limited (A$0.01, unch) today brought in some big Hollywood guns to help its long term prospects with 20 year veteran David Smith joining the board.
MGT Resources is now suing the NSW Government over its cancelled coal seam gas drilling licence.
There is movement at the station for the word had passed around, Discovery Metals Limited (A$0.055, +48.6%) on a spurt and #LSR# showing there is life in the old dogs still.
One to watch in weeks to come Tangiers Petroleum which we did a capital raising for a month or so ago, and very happy we all were too.Looks like Woodside Petroleum Limited (A$41.81, +0.5%) have designs on Morocco too. Thats where Tangiers are so bodes well as the majors start moving into this very prospective area. Woodside have bought a 25% interest in Rabat Deep offshore permits from Chariot Oil and Gas and looking to go to 50% subject to exercising their option.
Tomorrow’s News Today
Big news today that the ECB will make their minutes public after January next year much like the Fed does. Not sure why anyone is that interested in the English Cricket Board but there you go. Something else for the talking heads to ponder and discuss.
The net appears to be tightening around the world on the global digital companies like Amazon, Google and Facebook etc which are offshoring their profits .Looks like the EU is clamping down on Amazon.Not sure they make a profit but it’s worth a try!
Looks like Glaxo Smith Kline is now in serious hot water over its brown bag allegations in China as an investigator hired by GSK says its credible that they bunged Chinese doctors serious bribes. This one will run and run.
Youtube(google) has covered itself in glory recently with moves to block indie musicians from using the service to generate revenue. The good news appears that they are now set to back down though.
Ireland, Spain and Italy were the best performing member states in Markit’s June purchasing managers index survey combining activity in the manufacturing and services sector. Italy’s services sector benefited from the sharpest rise in new orders since July 2007.
US jobs number last night was very strong and will push the Fed to move sooner rather than later.Unless of course they worry about the quality of the jobs created .Most Part Time jobs created since 1993.Full time ones plunge.Quantity over quality wins perhaps.
Big night tonight with Germany v France(again).Also Rolf Harris to be sentenced.
Happy Independence Day US cousins. If it wasn’t for this day the English would never have come to Australia!