A day to rest as once again banks showed a clean pair of heals whilst resource stocks were walloped. BHP Billiton Limited (A$33.32, -1.4%),RIO Tinto Limited (A$59.03, -1.3%),Fortescue Metals Group Ltd (A$3.35, unch),Newcrest Mining Limited (A$9.70, -1.0%) and the oils well and truly on the nose. A narrow range for the day with a low of 5433 and a high of 5458 on low volumes of around $3.5bn as we limped towards Medibank Private and the bank results. Most of the volume seemed to occur in the last hour! In the final analysis we closed down 6 points at 5453 ensuring the uptrend is still intact. Good to see Australia and New Zealand Banking Group Limited (A$33.41, +0.2%) back on after its trading halt due to it embarrassingly releasing some of its numbers last Friday, Westpac Banking Corporation (A$34.89, +1.0%) also surged as did Insurance Australia Group Limited (A$6.21, +0.5%) and Suncorp Group Limited (A$14.43, +0.5%)
In the industrials Csl Limited (A$77.38, +1.4%) continue to be the star performer with Mesoblast Limited (A$4.06, +5.2%) joining in as did Sirtex Medical Limited (A$25.19, +2.0%) but other biotechs fared less well with #PBT# and Bionomics Limited (A$0.54, -2.7%) down and out. In telcos Amcom Telecommunications Limited (A$2.25, +7.7%) continued to bubble around following the approach from Vocus Communications Limited (A$5.90, +8.5%) and Telstra Corporation Limited (A$5.55, +0.2%),Tpg Telecom Limited (A$7.27, +1.8%),#SPK#,M2 Telecommunications Group Limited (A$8.05, +1.5%) and iiNet Limited (A$8.13, +1.6%) all ringing the right number. Qantas Airways Limited (A$1.61, +7.3%) continued their spectacular run but mining services continued to suffer on AGM comments from WorleyParsons Limited (A$13.25, -2.6%) although Boart Longyear Limited (A$0.26, +8.3%) continued to find friends following their near death experience.
Hogging the limelight today were Vocus Communications Limited (A$5.90, +8.5%),Amcom Telecommunications Limited (A$2.25, +7.7%),Qantas Airways Limited (A$1.61, +7.3%),Mesoblast Limited (A$4.06, +5.2%),Billabong International Limited (A$0.69, +5.3%) and #TFS# in the biggies and #NEA#,Boart Longyear Limited (A$0.26, +8.3%) and #CVN# in the small end. Copping it today were #VET#,Karoon Gas Australia Limited (A$2.90, -5.8%),Beach Energy Limited (A$1.235, -6.8%),Oz Minerals Limited (A$3.75, -4.8%) and Arrium Limited (A$0.325, -4.4%)(notice a pattern?) and Beadell Resources Limited (A$0.275, -14.1%)(company update),#SFX#,#MVF# and BC Iron Limited (A$1.14, -14.0%). Aussie dollar was 88.199 and bitcons at $398 whilst Gold at $1390 in AUD.
Asian stocks were mixed pre the FOMC meeting on the 28/29th.Japan eased down 0.7% meanwhile HK and Shanghai were both in the positive, HK up 0.7% and Shanghai up 1.07%
Stocks and Stories
Virgin Australia Holdings Limited (A$0.385, unch) chairman Neil Chatfield has revealed he intends to step down. Every day that goes by that oil is around $80 and the airlines don’t pass on the savings will be a good day for airline profits.
Beach Energy Limited (A$1.235, -6.8%) posted a 14 per cent decline in September quarter revenues, with sales dragged down by a dip in oil prices and softer oil production.
Revenues for the three month period slid to $232.9 million, as production dipped to 2.4 million barrels of oil equivalent, down from 2.46 million a year earlier
Vocation Ltd (overdone!!!) which raised $74 million in a placement to institutions at $3.05 a share in early September, finally revealed late on Monday it would be forced to forfeit $19.6 million of funds after a commercial settlement with the Victorian government. The company now expects full-year EBITDA to be between $53 million and $57 million for 2014-15, which is 10 to 15 per cent below consensus earnings forecasts in the market.
BC Iron Limited (A$1.14, -14.0%) updated the market. DOH! The iron ore junior’s revised down sales guidance for FY15 to 5.2-5.6 million wet metric tonnes from 5.8-6.2 million wmt.
WorleyParsons Limited (A$13.25, -2.6%) too got hit today dragging the mining services stocks down too as the company suggested that challenging conditions in global resources markets were set to continue.
China eCommerce wannabe #NNW# announced a tie up today with China Unionpay and promptly pushed up 20%.Nice!
Stockland (A$4.16, +0.7%) reaffirmed the company’s full year financial guidance of growth in earnings per security of between six and 7.5 per cent, plus a dividend of 24 cents per security.
Japanese retail sales rose the most in four months as Prime Minister Shinzo Abe weighs another bump in the sales tax levy. Sales climbed 2.7 percent in September from August when they rose 1.9 percent, the trade ministry said today in Tokyo.
Tomorrow’s News Today
Seems a dodgy Rolex is not the only dodgy thing in HK/China. Someone seems to be fiddling the export books as China recorded $1.56 of exports to Hong Kong last month for every $1 in imports Hong Kong registered, leading to a $13.5 billion difference, according to government data. Mmmm.
Interesting moves today in Asia’s biggest commodity trader. Noble Group fell as much as 10 percent today in Singapore after large blocks of shares changed hands in early trade.
Eighteen blocks of 200,000 or more shares were sold between S$1.165 and S$1.195, against a close yesterday of S$1.245.
Twitter(fell 8% after hours) has reported a doubling in sales and a 23% increase in the number of active users for the third quarter. It added 13 million monthly active users between July and September, meaning it now has 284 million users. Sales rose 114% to US$361m but it made a loss of $175m for the period. Still worth $26 bn though!!!
Gotta love the thought though. France’s finance minister says the country plans to cut its budget deficit by €3.6-3.7bn) next year in a bid to meet European Union rules.Bless.
God bless the property boom and all who sail in her. It’s a stamp duty bonanza. NSW Treasurer Andrew Constance has announced the final result for NSW in 2013-14 is a surplus of $1.247 billion – an improvement of $259 million from the June budget estimate of $988 million.
Posh Spice has been named UK’s top entrepreneur.
The Bank of England has launched a nine inquiry into the financial system aimed at increasing confidence and integrity in the system. Good luck with that.