“It’s a mixed up muddled up shook up world except for Lola”. Certainly was today after a strong start hitting nearly 5550 before there was a certain amount of towel throwing from the banks as they fell Bowiesque back to earth. In the end we swooned, we dived, we rollercoasted and finished down a whooping great 12 points at 5505 Unemployment figures at 11.30 did nothing to appease the bear gods and looks like Mr Abbotts promise of 1m jobs over 5 years is yet another one in his boulevard of broken dreams. Cue Greenday! Enough. Strong offshore leads were never going to be enough as the Spring Carnival continues and thoughts drift to equine pursuits. Finance stocks were the big headwind with Iron Ore stocks like Fortescue Metals Group Ltd (A$3.03, -8.5%)(ouch!!!),RIO Tinto Limited (A$60.00, -0.3%),Atlas Iron Limited (A$0.225, -16.7%), also giving way to Newtons laws of gravity as we saw falls in the ore price overnight.
In the gold sector it seems last one out please turn off the lights as the shiny stuff fell into an abyss and looks set for further falls on the silver/gold ration which is worryingly high. Newcrest Mining Limited (A$8.68, -1.1%) got pummelled as did Regis Resources Limited (A$1.28, -1.9%)Evolution Mining Limited (A$0.545, -5.2%),St Barbara Limited (A$0.11, unch),Silver Lake Resources Limited (A$0.25, -2.0%) and other in the same boat. Looks bleak out there for the gold miners. Expect some falling into bed with each other to keep warm in the long winter of discontent. Other metals also copped it with Lynas Corporation Limited (A$0.057, -10.9%) looking horrible as well as Independence Group NL (A$4.00, -5.7%) and others like Panaust Limited (A$1.595, -4.5%),Sandfire Resources NL (A$5.28, -3.5%) and Sirius Resources NL (A$2.78, -4.5%). Energy stocks bounced as the dastardly Saudi plan to put the frackers out of business eased last night on US oil holdings and we saw rises in Oil Search Limited (A$8.62, +1.4%),Santos Limited (A$12.54, +0.2%) and Origin Energy Limited (A$14.20, +0.5%) although Karoon Gas Australia Limited (A$2.80, -3.8%) fell into a funk.
Meanwhile in industrials it was a better picture with Woolworths Limited (A$34.35, +0.6%) continuing to bounce after its huge fall the other day, Brambles Limited (A$9.74, +1.2%) also put on some moves as did Super Retail Group Limited (A$7.90, +12.1%) as they suggested that there was a corporate from overseas stalking them and after 5%.Telstra Corporation Limited (A$5.67, +0.7%) also gained after filing for selling its Autohome biz in the US.
In the runners and riders for ladies day were Super Retail Group Limited (A$7.90, +12.1%),Ten Network Holdings Limited (A$0.23, +7.0%),Hutchison Telecommunications (Australia) Limited (A$0.064, +4.9%),Clearview Wealth Limited (A$1.04, +4.0%),Servcorp Limited (A$5.52, +2.2%) and #XRO# in the bigs, Lonestar Resources Limited (A$0.275, +3.8%),Nanosonics Limited (A$1.01, +7.4%) and #NEA# in the smalls whilst till running in the cup were UGL Limited (A$5.89, -14.6%),Fortescue Metals Group Ltd (A$3.03, -8.5%),Northern Star Resources Ltd (A$0.93, -6.5%),Oceanagold Corporation (A$1.835, -5.7%),Arrium Limited (A$0.31, -4.6%) and Independence Group NL (A$4.00, -5.7%) as well as ponies like Atlas Iron Limited (A$0.225, -16.7%),#GOR# and Resolute Mining Limited (A$0.26, -7.1%). Volume was strong again at around $4bn with the Aussie Dollar at 85.90,Bitcons ,surprisingly steady at $392 and Gold at $1142.
Asian markets were weaker, which is about time ,given the recent strength in the market after the Japanese surprise attack on stimulus spending last week. Tokyo was down 0.73%,Honkers down 0.12% and Shakers down 0.65%.
Stocks and Stories
Unemployment rate printed at 6.2 per cent, the highest jobless rate in Australia since 2003. 20,000 new jobs and a participation rate of 64.5 per cent.
Ten Network Holdings Limited (A$0.23, +7.0%) News today that the Discovery Channel may be interested in TEN. Seriously. Anyway was enough for them to appoint advisers to advise on strategic advice in case of a raiding party from overseas or Fairfax.
The plot thickens at Amcom Telecommunications Limited (A$2.51, +4.6%) as #TPG# has become a substantial holder too.
Donaco International Limited (A$0.74, -9.8%) A Pauline Hanson moment today with ’Please explain’ as the stock dropped like a rock on rumours of changes to Vietnamese gaming laws. Eggs in basket anyone!
Super Retail Group Limited (A$7.90, +12.1%) The company suggested that they would be a tasty morsel for a UK sports shop. Rumours of a overseas raider looking for 5% put a rocket under the stock for sure.
Telstra Corporation Limited (A$5.67, +0.7%) Telstra is set to make a $US460 million windfall by selling part of its shares in its Chinese car sale website Autohome on the New York Stock Exchange. These guys can do no wrong!
UGL Limited (A$5.89, -14.6%) fell in a heap as it warned of almost $200 million of cost blow-outs on a power station it is building on the Ichthys liquified natural gas project in Northern Territory in a joint venture with US engineering group CH2M Hill.
Sales of new vehicles eased back in October after a strong performance in September, with weakness in passenger cars overshadowing red-hot demand for SUV’s (up nearly10%)
The Australian Federal Chamber of Automotive Industries’ VFACTS report showed sales of 91,236 in October, down 1.5 per cent on the same month last year.
Tomorrow’s News Today
“Dirty Deeds Done Dirt Cheap”! This was the biggest surprise today as the AC/DC drummer was arrested suspected of plotting to kill two men! Really? Might need ‘Jailbreak”!
In more surprises the analysts are increasingly worried about the BOJ Halloween surprise given only a few weeks before he suggested “that monetary stimulus is working, the economy is rebounding, and the 2 per cent inflation target looks to be on track.”
There appears to be a full on cold war brewing in the Zombie zone with rasPutin and the West. The currency is under siege and costing the Central bank of the Russian Federation up to $2.5bn a day. Looks like they have thrown in the red towel and just let it sink. It has fallen 25% against the USD this year!
Business in the US will love it now the Republicans are in power in both houses .Obama may as well play golf every day now until his reign finishes in 2016.Lame duck anyone?
Looks like the Saudi’s are taking their oil play straight out of the Chinese book for Iron Ore pricing. Both headed lower.
Remember Ebola ,Obama does ,he wants to spend $6.2bn on fighting it on the beaches, on the streets ,the landing grounds and Texan hospitals.
As they say in Bond Movies ’Nobody does it better. Makes me feel sad for the rest!’