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A slow day in paradise waiting for Chinese GDP and RBA minutes. After a strongish lead we pushed up to 5344 before succumbing to apathy and profit taking pre the GDP number from our friends across the water. RBA Minutes were pretty predictable with more talk about how high the Aussie dollar still is. They also mentioned they were concerned that the strong competition for the mortgage dollar would lead to lax lending standards. The release at lunch time of the 7.3% number from China did nothing to help our market as it was neither too b ad leading to more stimulus or too good leading to increased optimism. Goldilocks would be proud. In the end we closed up a smidge,6 points at 5325(12 point reversal in the price matching crunch!) as the banks started to feel some profit taking ahead of the upcoming figures. The rest of the market was mixed with Fortescue Metals Group Ltd (A$3.55, +2.6%) a stand out in the miners, and the gamblers also standing out with Aristocrat Leisure Limited (A$6.35, +2.4%),TABCORP Holdings Limited (A$3.82, +2.4%),Crown Resorts Limited (A$13.71, +0.2%) and #SKY#. In other industrials packaging stocks were better Orora Limited (A$1.66, +4.1%),Amcor Limited (A$11.22, +0.8%) and #PGH# all showing a clean pair of heels. Veda Group Ltd fell heavily as private equity said to be unable to flog their holding. Builders Boral Limited (A$5.03, +1.6%) and Csr Limited (A$3.42, +3.3%) also had a day in the sun as NSW got its mojo back due to housing finance numbers showing $67 billion in housing finance had been approved over the first eight months of this year in NSW, according to the ABS. That’s an increase of about 26 per cent over the same period last year and represents 36 per cent of all housing finance approved in Australia.
Sitting pretty today were Downer EDI Limited (A$4.45, +6.2%),Macquarie Atlas Roads Group (A$3.04, +5.9%),Energy World Corporation Ltd (A$0.35, +4.5%),Mighty River Power Limited (A$2.53, +4.1%),Hutchison Telecommunications (Australia) Limited (A$0.067, +3.1%),Csr Limited (A$3.42, +3.3%) and Sundance Resources Limited (A$0.055, +10.0%) and #ADJ# in the smalls. Looking on with the wallflowers were Southern Cross Media Group Limited (A$0.865, -6.5%),V eda Group Ltd, WorleyParsons Limited (A$13.50, -4.3%),Mesoblast Limited (A$3.75, -3.8%),Seven Group Holdings Limited (A$6.42, -4.0%) and #GID#,Focus Minerals Ltd (A$0.011, -15.4%) and #WLF# .Volume was pretty lacklustre at around $3.5bn,Aussie dollar at 88.20 and Bitcons at $434 with Gold at $1415 in AUD.
Asian markets took a breather following the rocket ship ride in Tokyo yesterday with a 0.89% fall as HK fell 0.25% and China down 0.35%.
Stocks and Stories
Southern Cross Media Group Limited (A$0.865, -6.5%) announced a profit downgrade with revenues down 7-8% and this results in a change to the half year EBITDA guidance. They now believe their half year results will be between 18-20% down on H1 FY14, compared to the guidance of 10-15% that we provided in August due to ratings challenges.
Macquarie Atlas Roads Group (A$3.04, +5.9%) issued its traffic numbers. Weighted average traffic for the period was 1.0% higher, reflecting a slowing of traffic growth at APRR(the French road) during the quarter.
Veda Group Ltd announced that contrary to media speculation ,private equity would not be unloading their shares tonight.
China’s economic growth cooled to 7.3 per cent between July and September from a year earlier and retail sales rose 11.6 per cent in September from a year earlier, below analysts’ predictions of 11.8 per cent and down from the previous month’s 11.9 per cent.
Newcrest Mining Limited (A$9.78, -0.3%) today issued a production report with Gold output falling to 561,731 ounces in the three months ending September 30 from 586,573 in the year ago period. Copper rose to 24,831 tonnes from 19,632, while silver jumped to 555,731 ounces from 532,315.
A ‘Weekend at Bernies’ would be good as the CEO of Myer Holdings Limited (A$1.79, -0.6%) has his remuneration upped to $2m a year. And the share price is where? Good job.
Christophe de Margerie, chief executive at Total, Europe’s third-largest oil company, has died in a Moscow plane crash.
Tomorrow’s News Today
Pin the tail on the donkey time tomorrow as the release of the CPI from the ABS. Could be anything with their reputation at the moment.
Here’s a heads up for the bank results. NAB(30th October) ANZ (31st), MQG (31st), WBC (3rd ) November and CBA 5th November.
iPhone sales to customers were up 32 percent in Greater China compared with the same period last year, and that’s without a new phone release during the quarter. It was released yesterday. All up Apple sold a record 39.3m iPhones in the last three months. iPads not so good though slipping 13%.The company has returned $45bn in the last year to shareholders – including $17bn in the quarter. Not enough says Carl iCahn. He wants more and says that Apple is undervalued by 50%!
Some 46 percent of workers who graduated from US colleges in 2012 or 2013 said that they were in a job that did not require their degree. As the US approaches unemployment around the 5.2-5.5% range it is interesting to consider the underemployed.
Scientists and doctors in Poland and London have taken Nasal smell cells and implanted them in a man’s spinal cord and he can now walk with a frame. Brilliant stuff.
Seems that Tassie can’t even grow drugs ,the Apple Isle currently grows almost 50% of the world’s pharmaceutical opium poppy supply, but the first commercial growing licences in Victoria were granted to TPI in August, and the company’s first crop has already been planted at sites in the state’s north. This has led to the closure of Tassie’s processing plant in Cressy with the loss of 55 jobs.
The Bank of England has launched an inquiry as the payment system went AWOL for 10 hours yesterday. This system processes 270bn pounds a day. Love to clip that ticket.
And finally remember that guy from Microsoft that suggested that women shouldn’t ask for pay rises, well, he received $79.8m in stock options when he took the reins of the company earlier this year, on top of a basic salary of $919,000 and a bonus of $3.6m.
That is all