Following from weak Portuguese inspired leads from overseas it was inevitable to open lower but from there it was pretty much one way traffic as buyers stepped in unfazed by an apparent mini Euro crisis. After hitting a high in anticipation of a US and Zombie bounce tonight we eased back from 5503 to close up 22 at 5487 for a loss of 38 points for the week. Financials were the stand out led by Westpac Banking Corporation (A$33.95, +0.6%) with insurers also pitching in Insurance Australia Group Limited (A$5.98, +2.2%),Suncorp Group Limited (A$13.63, +0.4%),QBE Insurance Group Limited (A$11.47, +1.8%) and AMP Limited (A$5.39, +1.1%) all very solid performers. Big miners also found friends as gold perked up to a 4 month high and prospective M&A activity in the Graphite sector helped valuations and sentiment. BHP Billiton Limited (A$37.58, +0.5%) reversed early losses but Fortescue Metals Group Ltd (A$4.34, -0.2%) and RIO Tinto Limited (A$62.14, -0.4%) failed to convert after rain related factors crimped the third force’s optimistic production targets.
Building stocks were firming following comments from Csr Limited (A$3.72, +1.6%) yesterday at their AGM with Brickworks Limited (A$14.32, +0.8%),Adelaide Brighton Limited (A$3.62, unch),Csr Limited (A$3.72, +1.6%) better but others like James Hardie Industries PLC (A$13.80, -1.8%) easing back on currency. Consumer stocks Woolworths Limited (A$35.97, +0.4%) and Wesfarmers Limited (A$42.96, +0.8%) were back in demand as were Telstra Corporation Limited (A$5.33, +0.8%) with comments about their tax treatments of various asset disposals announced today.
Infrastructure stocks were in demand as Qantas Airways Limited (A$1.285, +6.6%) soared ,Qube Holdings Limited (A$2.30, +0.9%) motored ahead and Sydney Airport (A$4.35, +0.7%) landed safely. Some of the high flying tech stocks fared badly with #FLN#,#XRO#,Iproperty Group Limited (A$3.23, -2.1%),#ESV# and Altium Limited (A$2.44, -1.6%) in the dog house.
Over in resource land ,golds continued to shine as market favourite Northern Star Resources Ltd (A$1.62, +2.5%) keep on hitting highs, AngloGold Ashanti Limited (A$3.75, +5.6%),Regis Resources Limited (A$1.875, +1.4%),Evolution Mining Limited (A$0.87, +5.5%) and Oceanagold Corporation (A$3.42, +0.6%) forging ahead on the better gold price.
Wearing the pink jersey today were Mineral Resources Limited (A$10.59, +5.1%),Syrah Resources Limited (A$5.99, +9.1%),Orica Limited (A$20.95, +2.6%),#ARG#,New Hope Corporation Limited (A$2.65, +2.3%) and #SCG# in the bigs with #TON#(graphite),Silver Chef Limited (A$5.69, +10.5%) profit upgrade, #GOR#,Metals X Limited (A$0.275, +5.8%) and Roc Oil Company Limited (A$0.585, +3.5%) (AGM proved to be a damp squib)Hitting the cobbles were Fairfax Media Limited (A$0.895, -4.8%)(you paid what for Allhomes?), Mesoblast Limited (A$4.32, -3.4%),Hutchison Telecommunications (Australia) Limited (A$0.076, -2.6%),Magellan Financial Group Limited (A$11.21, -2.6%) and M2 Telecommunications Group Limited (A$5.90, -1.7%) with Ruralco Holdings Limited (A$3.52, -5.4%),Buru Energy Limited (A$1.00, -6.1%) (rumours of a margin call),#YBR#,Mirabela Nickel Limited (A$0.15, -14.3%),Affinity Education Group Limited (A$1.115, -2.2%) (awaiting feedback on childcare reforms) and Sino Gas & Energy Holdings Limited (A$0.17, -5.6%).
Volume was ok ish at around $3bn with the Aussie dollar at 93.86 ,tulips at $660 and gold at $1336.Asian markets were mixed to down with Tokyo down 0.5%,HK down 0.05% and Shanghai up 0.29%.
Stocks and Stories
Syrah Resources Limited (A$5.99, +9.1%) Another string day with more speculation that Glencore has them on its global shopping list. Others in the stable got dragged higher with #TON#,#MTA# and #CSE# all doing well.
Fortescue Metals Group Ltd (A$4.34, -0.2%) had vowed to raise exports by 32 per cent during the June quarter to meet its full year guidance of 127 million tonnes, but confirmed this morning that it had fallen short.Despite a strong June quarter, the miner shipped a total of 124.2 million tonnes during the 2014 financial year
ResMed Inc. (A$5.29, +0.6%) results due US time
Telstra Corporation Limited (A$5.33, +0.8%) confirmed their numbers due 14th August and the treatment of their various divestments including Sensis and CSL in HK.
Santos Limited (A$14.00, -0.5%) announced first oil from its Dua oil project in Vietnam at around 8000 barrels a day.
Roc Oil Company Limited (A$0.585, +3.5%) biggest shareholder, Allan Gray, has failed in a challenge to the company’s planned $800 million merger with Horizon Oil. He had argued a loophole in listing rules allowed such deals to happen without investor consent.
Tomorrow’s News Today
Obama has offered to referee the Israeli/Hamas conflict. Good luck on this one.
Storm in a port glass from Portugal perhaps? We shall learn more tonight.
All the news is about Social Media hopeful CYNK in the US with a valuation of around $4.5bn.It has no web site, no assets ,no revenue, only one staff member and still this ridiculous valuation. This Emperor has no cloths. Unlike our Emperor who wears a red Check short on the ABC! If I was an analyst I would call it and underperform from here.
Alibaba is rushing to get its stock listed in the US before its self-imposed August 10th deadline. They are looking at raising $20bn from punters and are shortly on the road to sell the prospects for the company. They will be ruining a lot of fund managers summer in the Hamptons as they try to get it away during peak season. Google tried the same trick during the holidays and had to pare back the price and size of the offering,. Didn’t hurt them in the long run !
And pulled Pork is back perhaps, WH Group Ltd., the pork producer that canned its more than $5 billion initial public offering a few months ago, is back, this time with plans to raise as much as $2.5 billion as early as the end of the month.
Environmental activist Jonathan Moylan is very sorry to have caused such ructions with his fake letter scam for Whitehaven Coal Limited (A$1.445, unch) Maules Creek project.In court today he suggested he was not the Messiah, just a very naughty boy! Former CBA chief David Murray described the hoax “is no different from robbing someone’s house”.
Nice little sign on for M&S finance director in the UK as he moves across to Tesco with a $3m up front welcome fee. Nice.
A report in the UK on its botched sale of theRoyal Mail showed that tax payers lost out to the tune of one billion pounds in the valuation.Lets hope Joking Joe and his acolytes reads this report before they give Medibank away.
Germany to win 2-0 in the World Cup.
On Sky TV at 5.30 Friday talking market moves today.
That is all.