The song remains the same as financials and yield stocks again kicked the market higher capping off a week of buying. Banks were the big winners as the near 6% yields prove too much to pass up. For the week the index was up 65 points closing today up 16 at 5271. Samller range today as some nerves crept in pre the anniversary weekend of the crash of 87.Yes it was 27 years ago on 19th that we all woke up to a disaster on Wall Street. Could it happen again. I suspect so but the question is when. Not this weekend .Anyway the green blob was the big four whilst others were mixed with some profit takers hitting the industrials.
Iron Ore miners were generally flat with BHP Billiton Limited (A$33.43, +0.3%) and Fortescue Metals Group Ltd (A$3.44, +0.6%) to the good and RIO Tinto Limited (A$59.40, -0.8%) easier. In other resource sectors, things were mixed. Syrah Resources Limited (A$3.56, -0.3%),Panaust Limited (A$1.745, -1.7%),OZL# easier but Sirius Resources NL (A$2.87, +2.9%),Western Areas Limited (A$4.34, +2.8%) and Arrium Limited (A$0.34, +4.6%) bounced.
Industrials firmed in places, Sydney Airport (A$4.21, +2.2%),Seek Limited (A$15.85, +2.5%),Transfield Services Limited (A$1.495, +4.5%)ALS Limited (A$5.58, +2.2%),TABCORP Holdings Limited (A$3.70, +2.5%),Crown Resorts Limited (A$13.70, +0.4%) to name a few. Some profit taking in the telcos led by Telstra Corporation Limited (A$5.40, -0.6%).
Big winners today included Drillsearch Energy Limited (A$1.17, +5.9%),Liquefied Natural Gas Limited (A$2.99, +6.0%),Australian Agricultural Company Limited (A$1.42, +4.4%),Transfield Services Limited (A$1.495, +4.5%),Mesoblast Limited (A$3.95, +4.8%),Flexigroup Limited (A$3.43, +3.9%) and TABCORP Holdings Limited (A$3.70, +2.5%)(continuing the strong performance after the update)Losers included #EBO#,APN News & Media Limited (A$0.765, -3.2%),Fairfax Media Limited (A$0.775, -1.3%) and Billabong International Limited (A$0.625, -3.1%) in the bigs and Panoramic Resources Limited (A$0.58, -7.9%),Hills Limited (A$1.255, -5.3%) and #CUV# in the small end. Aussie dollar was 87.46,Bitcons at $432 and Aussie Gold at $1411.Volume still flimsy at around $3.5bn.Asian markets were weaker having opened better but lack of interest in a Japanese bond program sent the Nikkei reeling to down 1%.China followed.
Stocks and Stories
Ten Network Holdings Limited (A$0.20, unch) bucked up on potential private equity action. Seriously? Would take a brave man indeed.
Virgin Australia Holdings Limited (A$0.375, unch) will buy the rest of Tiggerair for $1.Not bad.40% for $1.Shame they bought the 60% at $40m first!
Santos Limited (A$12.71, +0.6%) announced its highest quarterly production numbers in seven years as 140mmboe flowed from their wells.9% above the previous quarter.sales revenue too was up 9% and 16% for the first nine months. Key construction milestones continue to be achieved including commissioning of first gas hub,first gas in transmission pipeline and delivery of the final train two module.
Few AGMs around today but not much to excite.
Tomorrow’s News Today
New iPads and iMacs coming.
The number of people in India connected to the net jumped by 25% last year. However there are still 1bn people that cannot access pictures of cats or the theory about Moon landings being staged.
Internet giant Google reports third-quarter profits of $2.8bn, down 5% from the same period a year earlier.
Proving he is not the Messiah but perhaps a very naughty boy, Warren Buffett’s Berkshire Hathaway investment company has sold more than 245 million shares in supermarket giant Tesco. The sale brings Berkshire’s holding to below 3%.Could be a sign .Rather buy than sell here myself!
If you would like to contact Henry Jennings about his Market Wrap, please call him on +61 2 9226 0067 or email email@example.com
The US drugs group AbbVie has pulled out of its proposed $54bn (£34bn) takeover of Britain’s Shire after the Obama administration introduced rules to clamp down on overseas acquisitions driven by tax avoidance. Break fee of $1.64bn!!!Sure the CEO will get a massive pay rise though.
Jimmy Choos has fallen a little flat with its IPO priced at GBP1.40,the lower end of the range. The price values the company at 546 million pounds ($874 million), well below the initially hoped for top market value of 702 million pounds.Medibank?
Russia is now threatening Zombieland with no gas for Xmas. Apparently the EU are not bothered as modelling suggests they can muddle through with only one country having power cuts. Sorry Estonia. Still everyone else will be fine. Just Estonia!
Now we have all seen the rise in Microbreweries. It’s now time for Micro dairies apparently as there is a growing need for milk like it used to be when we were kids.
And in a sobering comment from the famed motorbike investor Jim Rogers he has said “we are all going to pay a terrible price for all this money-printing and debt.”Also perma bear Albery Edwards (Soc Gen) has suggested “Sell everything and run for your lives”.
Have a good weekend.