Finally we succumbed to the onslaught of negativity and caution sweeping Europe(and the US). Did feel a bit like being a Brazilian defender today. Dazed and confused. Weak overseas leads as German IP and UK numbers hurting plus warnings of overvalued stocks in the US combined with miserable consumer confidence scuppered the market. In the final countdown we closed down 58 points at 5452 having tested the top of the range it’s time to test the bottom? It looked more like the last episode of Game of Thrones from Season 3 as all sectors ran red with blood. Financials obviously the worse hit with consumer stocks also suffering. Harvey Norman Holdings Limited (A$3.11, -1.6%),Breville Group Limited (A$7.63, -2.1%),Dick Smith Holdings Limited (A$1.92, -1.0%) all fell but Myer Holdings Limited (A$2.23, +1.8%) benefitting from some yield driven DJS positive sentiment.Not so for defensives like Woolworths Limited (A$35.89, -1.2%) and #WES and Telstra Corporation Limited (A$5.29, -0.6%) which felt the hate today as did Csl Limited (A$67.60, -1.0%)

Resources were hit with BHP Billiton Limited (A$37.25, -0.9%) leading the way but others escaped the wedding ceremony, RIO Tinto Limited (A$62.14, -0.4%) and Newcrest Mining Limited (A$10.85, +1.9%) both holding up and in the latters’ case actually rising with other golds like Oceanagold Corporation (A$3.35, +4.7%),Evolution Mining Limited (A$0.785, +7.5%) and Perseus Mining Limited (A$0.49, +6.5%). Does seem that the resource stocks are picking up some bottom feeding punters at the moment as banks seem to be fully valued..Energy stocks took it badly led by the majors Woodside Petroleum Limited (A$41.25, -1.2%),Santos Limited (A$14.04, -1.5%),Oil Search Limited (A$9.47, -2.4%) and Origin Energy Limited (A$14.16, -1.8%).

Thumping in goals today were Northern Star Resources Ltd (A$1.505, +14.0%),Evolution Mining Limited (A$0.785, +7.5%),Sirius Resources NL (A$3.66, +3.4%),#GDI#,#OFX# and Regis Resources Limited (A$1.78, +2.3%) whilst defending like a Brazilian were high P/E wannabes #XRO#,Domino’s Pizza Enterprises Limited (A$21.32, -3.5%),#GMA#,Iproperty Group Limited (A$3.18, -4.5%) and Magellan Financial Group Limited (A$11.44, -2.8%) together with minnows Mirabela Nickel Limited (A$0.155, -13.9%), graphite superstars #LMB#, and biotech Acrux Limited (A$1.135, -6.6%). Volume remained on the skimpy side despite the slide at around $3.2bn,Aussie dollar was around 94 cents and digital tulips at $662,Gold at $1322 up a few bucks.

Asian markets dropped like a rock despite Chinese PPI numbers falling at the slowest pace in two years. The producer-price index declined 1.1 % from a year earlier, the National Bureau of Statistics said today in Beijing, compared with the median estimate of analysts for a 1 % drop. Consumer prices in May rose by 2.5 per cent, a sharp increase from April’s annual increase of 1.8 per cent. HK down 1.2,Tokyo 0.7% and China down 0.4%.Indonesia goes to the polls today with 188m voters casting their x in the box. Vote early ,vote often is the motto.

Stocks and Stories

Yellow Brick Road Holdings Ltd paid $36m for Resi Mortgages today and raised money at 70cents with existing shareholder Macbank and Pink Platypus chipping in the bulk of the money. They also resigned the Executive Chairman Mark Bouris for a nice $1.125m a year salary.

Navitas Limited (A$4.86, -31.0%) had a shocker today as they reported losing a key contract with Macquarie University to provide courses. Looks like they are going to write off $40m as a non cash goodwill impairment charge.

Boart Longyear Limited (A$0.165, -15.4%) answered the speeding tickets and promptly fell in a hole.

3P Learning Limited came on today and the Mathletics stars did not get an A. Could do a lot better! Another overhyped new issue bites the dust.

Northern Star Resources Ltd (A$1.505, +14.0%) rallied hard on their production report showing they are on target for total production of around 550,000 to 600,000 ozpa.

Consumer confidence edged higher but only just as the impact from the budget continues to bite. Sentiment rose 1.9 per cent from June to 94.9 points, the Westpac Melbourne Institute index showed on Wednesday. Strange as most of the budget has yet to even pass with more holes in tit than a Swiss Cheese at the moment

Tomorrow’s News Today

Nike has booted Man U into the stands as it does not see any value in their partnership after 13 years of producing their kit. Looks like their last season caught up with them.

Argentina/Netherlands tonight. Go the Dutch! Robben dives again! And again! Where’s batman eh!

Remember these guys. The Greeks. Seems the summer has brought out the strikes as the Public Servants go on a 24 hour strike to protest against job cuts and austerity. So 2012.An d just in time for the Government Inspectors who are looking at how it’s all going.

Good to see that even God’s bankers couldn’t hold off the inevitable writedowns as it sought to end its relationship with 3000 non-performing customers. The Institute for Religious Works, reported a 2.9m euro profit for the year, down from 86.6m euros in 2012.Seems there aren’t always Pennies from Heaven.

So it’s not just the French that are being picked on as it looks like Citi is going to have to stump up $7bn in fines for its part in the Mortgage backed securities party. No wonder banks are reluctant to lend to anyone who actually needs the money with all these billion dollar fines circling. I wonder where the money goes?

And just so we all know the trend is your friend. That is until it isn’t. Short selling is at its lowest level since Lehman days. Halcyon days indeed.

No bubble here then as home buyers(?) in Hong Kong pay HK$150,000 ($19,354) to enter a lottery that prioritises buyers of apartments at City Point, a seven-tower development. More than 5,000 homebuyer-hopefuls are vying for 442 units, or about 11 for every home that went on sale recently. Don’t you love the eighties!

And here’s my tip of the day for all your people travelling to Europe and the US make sure your electronic devices are charged.UK officials have announced that no charge no getting on the plane. Harsh specially if you have an iPhone 5!Charge wouldn’t last through customs!

That is all

 

Clarence

XXX

 

clarence_beeks

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