A solid day after the drubbing we have had recently. Green splashes across the screen with not a scrap of red to be seen. Resource charged ahead despite the Iron Ore price continuing to languish as did banks and financial stocks on the “where else do we put our money argument” . In the final countdown we closed up 31 points at 5608 after flirting with 5575. Csl Limited (A$73.20, +1.4%) bounced after going ex-dividend yesterday and it seems that many companies are making up their dividend Telstra Corporation Limited (A$5.68, +0.5%) has also been firm. Property stocks had a fine time led by Lend Lease Group (A$14.30, +2.1%),CFS Retail Property Trust Group (A$2.17, +3.8%),Dexus Property Group (A$1.20, +1.7%) and Peet Limited (A$1.28, +2.4%) with insurers and wealth managers also doing well, Macquarie Group Limited (A$58.03, +1.3%) and AMP Limited (A$5.68, +1.2%) the stand outs. In resource land Western Areas Limited (A$5.28, +3.9%),Independence Group NL (A$4.77, +4.6%),Syrah Resources Limited (A$5.04, +2.0%),#CZI# and Alumina Limited (A$1.635, +3.8%) surfing the nickel and peripheral commodity boom. Energy stocks though continued to be sapped as Oil Search Limited (A$9.42, -0.7%),Santos Limited (A$14.83, -0.5%) and Origin Energy Limited (A$15.74, -0.2%) eased but second tier oilers did remarkably well led by Senex Energy Limited (A$0.595, +7.2%) ,Drillsearch Energy Limited (A$1.37, +1.5%) and Liquefied Natural Gas Limited (A$4.18, +3.5%).
In the industrial space consumer stocks showed their green streak with Billabong International Limited (A$0.685, +3.0%) a stand out following the sale of Surfstitch. Healthcare stocks had rosy cheeks, Ramsay Health Care Limited (A$52.50, +1.1%),Sonic Healthcare Limited (A$17.31, +1.3%) and ResMed Inc. (A$5.73, +0.5%) particularly robust.
Hitting a six or two today included Regis Resources Limited (A$1.82, +8.3%),Senex Energy Limited (A$0.595, +7.2%),Breville Group Limited (A$7.95, +4.6%),CFX# and Independence Group NL (A$4.77, +4.6%) in the bigs and FAR Limited (A$0.065, +18.2%),K & S Corporation Limited (A$1.63, +12.0%),#IPD#,Audio Pixels Holdings Limited (A$13.75, +9.1%) in the small caps. Bowled for a duck included Oceanagold Corporation (A$2.56, -3.4%),Village Roadshow Limited (A$7.18, -2.8%),Papillon Resources Limited (A$1.535, -2.5%),Perpetual Limited (A$47.50, -2.1%) and Csr Limited (A$3.59, -1.4%) in the top order whilst in the middle section Toro Energy Limited (A$0.105, -19.2%),#SFX# and #PBT# folded quickly for no runs. Volume was pretty disappointing, at around $3bn, as many fund managers remain locked in post results meetings trying to sort the wheat from the chaff. Lots of chaff not much wheat.
We have ‘Black Swan’ events ,’Neon Swan’ events and now “Tartan Swan” events as the looming close Scottish vote continues to reap havoc on currency markets capsizing the pound and sending it into a spin, the currency fell 1.3% against the dollar on Monday to $1.611, and also fell 1% against the euro to 1.2488 euros.. The good old Aussie though is resilient at lower levels of 92.6 , tulips at $505 and gold at $1254.Asian markets were mixed with Tokyo up 0.2% as they mull over what else the government can do to stimulate the economy with China and HK down a tad .
Stocks and Stories
Brambles Limited (A$9.48, -0.4%) has bought UK-based Ferguson Group for £320 million ($555 million) in a move that will expand its specialist containers business.
Approvals for home loans rose 0.3 per cent from June, the Australian Bureau of Statistics said, confounding forecasts for a 1 per cent gain. Owner-occupiers were weak in the month, easing 1.3 per cent, across loans for both new (-1.9 per cent) and established (-1.1 per cent). First home buyers were just 13.2 per cent of the total number of loans written to owner occupiers over the month.
According to the latest monthly Business Survey by National Australia Bank, the business confidence index dropped back to its June level of 8, after spiking to 10 in July.
Tomorrow’s News Today
Be prepared for Apple iPhone 6 and the offers from your friendly telco. iWatch coming soon.
And ‘Destiny’, the world’s most expensive video game ever, launches at midnight tonight. Bleary eyes everywhere in nerd land.$500m is a lot of money for a game.
Hope the “Old Lady of Threadneddle Street” has a plan B if Scotland go their own way but use the pound! Should prove interesting to use a currency you have absolutely no control over. Sounds like a recipe for disaster.
Yen hits its lowest level in six years. Currency markets are where the real action is at the moment.
Gotta love the Europeans as they impose more tough anti-gas and oil sanctions against the pesky Ruskies but fail to say when they will start. No one expects the Spanish inquisition .They have three main weapons after all.
The family behind Glenfiddich single malt and Hendrick’s gin has bought Drambuie, the whisky liqueur fabled to have been concocted by Bonnie Prince Charlie. Drambuie claims its origins date back to 1746, when Bonnie Prince Charlie was on the run following his crushing defeat at Culloden the previous year. He is said to have passed on the secret recipe – a blend of whisky, honey and spices –to John MacKinnon, a clan leader who helped him flee the Isle of Skye into exile in France. Could be a load of old haggis but seems the company is worth around $180m.Lots of growth in Asia to come apparently.
Of course if the Mel Gibson inspired Scottish independence comes to pass, England could just invade again. Worked for 250 years last time.
Jimmy Choo, is close to floating 25% of its business to investors after it was acquired by private-equity investors three times before being bought by JAB in 2011 for more than 500 million pounds. It sells women’s and men’s shoes, handbags and accessories in more than 100 stores around the world. Of course Mr Choo is no longer associated with the company and hasn’t been since 2001.Bit like the Dick Smith of the show world then.
That is all