Friday market wrap

If you missed me, the long wait is over! They say that a week is a long time in politics but I have been away for a week and it seems a lifetime in the stock market. The collapse of the dollar, the exodus from high yielding safe banks and other highly popular stocks by the flighty overseas hedge funds. As the dollar fell so did their interest in Aussie banks. Who can blame them when the goodies offered in net sensations far outweigh a stodgy Bank with monopoly earnings and a great yield. Fast money will always chase the fast money. Cherche la femme eh? Anyway a slight bounce today, up 17 to 5433 as banks looked into the abyss ,found it wasn’t so inviting and bounced back. For the week the index was down around 100 points or 1.8% National Australia Bank Limited (A$33.90, +2.1%) was the big grinner as it had most to lose by a split UK, but property trusts were also in demand with Dexus Property Group (A$1.13, +0.9%),Goodman Group (A$5.17, +0.2%) and GPT Group (A$3.88, +0.3%) better although others underwhelmed. Healthcare stocks looked rosy and full of the joys as Csl Limited (A$72.94, +0.5%),Primary Health Care Limited (A$4.46, +2.3%),Ansell Limited (A$19.56, +1.0%) and Sonic Healthcare Limited (A$17.48, +1.1%) all in the recovery ward. In other industrials Telstra Corporation Limited (A$5.41, +0.4%) and #TPG# shrugged off the negative vibes as did iiNet Limited (A$8.06, +2.3%),Newsat Limited (A$0.215, unch) and Chorus Limited (A$1.555, +0.3%). Consumer stocks were mildly better with Wesfarmers Limited (A$42.95, +0.2%) in demand.

Miners were not so positive heading into the weekend as continual erosion of the Iron Ore price, problems with dirty coal and steel keeping them well in check. BHP Billiton Limited (A$35.48, -0.6%),RIO Tinto Limited (A$61.59, -0.6%) and Fortescue Metals Group Ltd (A$3.76, -4.3%) the obvious losers but recent flip stock from the instos Arrium Limited (A$0.375, -6.3%) also struggled as it continued to slide as the flippers turned out their stag stock to lock in losses. Well played boys. The game is good until someone changes the rules then everyone wants out. Winners in resource land were the golds like Northern Star Resources Ltd (A$1.26, -4.9%),Regis Resources Limited (A$1.70, +0.6%),Silver Lake Resources Limited (A$0.415, -1.2%),Saracen Mineral Holdings Limited (A$0.37, -1.3%) and Oceanagold Corporation (A$2.64, +3.1%).Newcrest Mining Limited (A$10.03, -2.2%) failed to impress as Alacer Gold Corp. (A$2.13, +10.6%) emerged as a potential target from Oceanagold Corporation (A$2.64, +3.1%). Newcrest is in no one sights except the RSPCA, to be put out of their misery.

Hitting a cracking drive today were #SDF#,TFS Corporation Limited (A$1.935, +5.2%),Tpg Telecom Limited (A$6.79, +4.6%),Sandfire Resources NL (A$6.00, +5.8%),Oz Minerals Limited (A$4.16, +3.0%) and Alumina Limited (A$1.75, +4.2%) while playing good irons were #PSY#,Alacer Gold Corp. (A$2.13, +10.6%) and Lynas Corporation Limited (A$0.12, +4.3%). Playing with a serious duck hook were Arrium Limited (A$0.375, -6.3%),Atlas Iron Limited (A$0.56, unch),Energy Developments Limited (A$5.20, -3.7%),Fortescue Metals Group Ltd (A$3.76, -4.3%),#CVO# and Mighty River Power Limited (A$2.17, -2.3%). Putting twenty feet past the hole were small caps Alkane Resources Limited (A$0.205, -18.0%),Northern Minerals Limited (A$0.24, -14.3%),#RUL# and #TIS#.

Volume was pretty good at $5bn but futures expiry driven! Golf in Bali was better! Under $3bn again today as we limped into the weekend. Asian stocks positive with the Nikkei share average up 1.8 per cent to 16,354.23, the highest point since 2007 after breaching a December 30 high of 16,320.22. HK up 0.36% and China up 0.06%

Aussie dollar at 89.56c and tulips at $478,whilst Gold was $1220!That fall in the Aussie escalated quickly. When the fire alarm goes they all rush at once.

Stocks and Stories

Not much today really.

Seems free money isn’t that popular in Zombieland as we would have thought. Under the latest cunning master-plan from Super Mario called TLTROs or as I like to call it HOPE which sees banks pay 0.15% rates for four years! Out of total loans of 400bn euros (£315bn) available on Thursday, only 82.6bn was taken up by 255 banks. The man from Madrid he says no.

Tomorrows News Today

It’s all about Alibaba and his tartan iPhone 6’s today! Is it a web site, a William Wallace moment or a new way of life for our thumbs. Or maybe just good hype.

The ‘Tartan Swan’ is no more. In a triumph for good sense over Mel Gibson movies ,the canny Scots have rejected Alex Salmons call for full independence and their very own Olympic team. Even Sir Chris Hoy was pumping his tires up. Anyway not to be this time and the flag makers are in turmoil having ordered in a ton of new material.

Expect the British and Scottish pound to rally back and take with it equities, Zombieland will also breathe a sigh of relief as the moves from the Catalans and some Flems(is that the right term?) will amount to nought.

The other big event tonight will be Alibaba and the forty thieves as the stock kicks off as a giant amongst giants. Should be fun to watch and interestingly some founders who hold around 18% of the stock will be free to sell from day one. Plenty around then!

Alibaba will debut with a market value of $US167.6 billion ($186.5 billion) on the New York Stock Exchange when it begins trading later today. The group will price its shares at $US68, the top end of expectations, allowing it to raise $US21 billion in one of the biggest initial public offerings on record. No wonder money was coming out of Australia. Parking trade for yield game over!

Larry Ellison on Thursday announced his retirement as chief executive of Oracle, a company he founded in 1977.

And more big changes afoot as the Royal and Ancient voted overwhelmingly to allow female members. First time in its 260 year history.

The Republic of Ireland’s economy grew 1.5% in the second quarter of the year, figures show, and was up 7.7% on the April-to-June period in 2013.

Let’s face it the money is flowing back to the US as it seems to the only area showing growth and rising rates. US dollar will continue to strengthen and money will leave Asian equities. Party time is over?

Have a great weekend