A quiet day of modest losses in the main except for once again the miners and resource stocks .BHP Billiton Limited (A$34.17, -1.5%),RIO Tinto Limited (A$60.51, -1.2%),Fortescue Metals Group Ltd (A$3.02, -4.4%),Woodside Petroleum Limited (A$40.25, -1.6%),Newcrest Mining Limited (A$8.98, -3.1%) and Uncle Tom Cobbly all fell heavily as gold slumped as did oil and iron ore. Predictions from some big houses on the price of Iron Ore will not make Smokin Joe happy as he wrestles with his black hole budget and blames it all on the slump in price. Financials and industrials had a better time of it and a late afternoon rally saved us from a down 14 day. In the end we closed at 5517 down 7 points after hitting a low of 5508 and a high of 5533.Seems that the volatility of October has given way to the range trading we now have. Asian markets were strong as the Chinese showed off their muscles in Beijing for their friends at APEC and the G20 Circus comes to town on the weekend in Brisbane. Looking forward to the Chaser next week!
Gold stocks gave back most of yesterdays’ gains with Northern Star Resources Ltd (A$1.00, -7.4%),Beadell Resources Limited (A$0.25, -10.7%),Evolution Mining Limited (A$0.585, unch),Regis Resources Limited (A$1.33, -3.3%) and Kingsgate Consolidated Limited (A$0.635, -5.9%) in the headlights. Other metals also fell with Iluka Resources Limited (A$7.12, -2.3%),Sirius Resources NL (A$2.73, -5.2%),Western Areas Limited (A$4.20, -2.1%) and Independence Group NL (A$4.07, -2.6%) all hurt. Energy stocks ran out of fuel with Oil Search Limited (A$8.60, -2.9%),Santos Limited (A$12.58, -2.3%),Origin Energy Limited (A$14.12, -1.8%). In industrials telcos were better, #SPK#,#TPG# and the ever onward Telstra Corporation Limited (A$5.79, +1.0%) leading the pack. Consumer stocks were also better with Wesfarmers Limited (A$44.78, +0.2%) outdoing Woolworths Limited (A$34.17, -0.8%). In financials REITS were weaker as were insurers but Commonwealth Bank of Australia (A$83.00, +0.5%) continued to march higher together with National Australia Bank Limited (A$32.94, -0.1%) and Westpac Banking Corporation (A$33.63, +0.5%).
The big Cheshire Cats today were Incitec Pivot Limited (A$3.08, +5.5%) who reported today ,Servcorp Limited (A$5.75, +4.5%),Mighty River Power Limited (A$2.79, +1.5%),Breville Group Limited (A$6.86, +2.4%),CVW# and Aristocrat Leisure Limited (A$6.84, +3.2%) in the big caps and Chandler Macleod Group Limited (A$0.335, +4.7%) and Paladin Energy Ltd (A$0.395, +6.8%)(uranium is back thanks to the Japanese cranking it up again) in the littlies. The biggest losers were focussed in predictably Mount Gibson Iron Limited (A$0.425, -8.6%),ALS Limited (A$5.27, -6.9%),Oceanagold Corporation (A$1.965, -6.0%),Sirius Resources NL (A$2.73, -5.2%),AWE Limited (A$1.685, -4.8%),Liquefied Natural Gas Limited (A$3.77, -3.1%) and Virtus Health Limited (A$7.47, -2.4%) whilst small caps and getting smaller Beadell Resources Limited (A$0.25, -10.7%),Helloworld Limited (A$0.26, -10.3%),Boart Longyear Limited (A$0.18, -10.0%) and Atlas Iron Limited (A$0.245, -7.5%) all took hits today. Volume was pretty good considering it was quiet!$3.7bn.Pretty soon there might be some real punters back playing.
Asian markets were firm on Wall Street and the impending Chinese and HK market hook ups and hopes for yet more stimulus. Tokyo was up 1%,HKup 0.6% and Shanghai up around 1.3%.All good stuff. The Aussie Dollar at 86.40 and Bitcons at $426 whilst gold holding just above $1150 but looks like this will be tested in coming days.
Stocks and Stories
Incitec Pivot Limited (A$3.08, +5.5%) Net profit slumped 33 per cent to $247.1 million, despite a strong performance from its Moranbah ammonium nitrate plant in Western Australia.
The result was dragged down by $109.2 million worth of write-downs. Earnings before interest, tax, depreciation and amortisation increased by 15 per cent to $97.5 million to $742.7 million. Described as a great result in a challenging market.
Ten Network Holdings Limited (A$0.27, -1.8%) Seems that Bruce Gordon is an optimist of massive proportions. He has said his WIN group will not be selling out of TEN. Seriously. He still believes in fairies at the bottom of the garden and a turnaround. It is all about content. No money no content. No content no viewers. No viewers. Gonesky!
Unilife Corporation (A$0.65, -7.8%) sales numbers today did not impress at all! 1st quarter showed the company still has a long way to go to get that pesky revenue in the door.
Construction workers at Chevron’s $US54 billion Gorgon liquefied natural gas project in Western Australia Island have rejected an offer for a new enterprise agreement, in a dispute over work rosters that could turn into industrial action.
National Australia Bank’s monthly business survey shows conditions have improved by the most on record in October.The survey found a massive jump in conditions from just +1 to +13 last month – the largest monthly rise since the survey started in 1998.Really?
Sydney’s house prices continue to soar, posting a 2.7 per cent rise for the September quarter – nearly three times that of Australia’s other citiesMelbourne, Brisbane, Adelaide and Hobart all rose just 1 per cent by comparison, according to the ABS’s Residential Property Price Index.
Japan’s current account surplus rose above forecasts in September to $963bn yen ($8.4bn;).
Tomorrows News Today
Alibaba sold about $US2 billion worth of goods on the e-commerce giant’s websites within the first hour and 12 seconds of its annual shopping festival, November 11 or ‘Singles’ Day’.
The wealth gap between the haves and the have-nots in the US is approaching record levels, according to a paper by Emmanuel Saez of the University of California, The top 0.1 per cent (consisting of 160,000 families worth $US73 million on average) hold 22 per cent of America’s wealth, just shy of the 1929 peak – and almost the same share as the bottom 90 per cent of the population.
This could be the sleeper of world growth as new PM Modi pushes his “Make in India” agenda to rival China. Expect to hear more of this at G20.Also news of the Free Trade Agreement with China. Not sure what that means. They buy all our raw materials and then flog them back to us at value added prices in the tools that fall apart at Bunnings! Great.
Some crazy Frenchman has powered his bicycle to do 207mph and it gets to 200mph in 4.8seconds.10 seconds faster than a Bugatti !Got serious helmet hair too!
The US and China have agreed to liberalise hi tech trade. And the Chinese are set to take on Boeing and Airbus with their passenger plane project. Hope it’s better than the garden tools they produce for before mentioned Bunnings!
The UK outsourcing firm of choice for governments with an awkward asylum seeker problem had a share price collapse last night and is set to raise 550m quid in a rights issue to plug the gaps. Their golden goose appears to be Tony Abbott though and Scott Morrison. The contract was worth 10% of Serco’s revenues in 2013 and helped Serco increase profits by 28% between 2009-2013, whereas without it profits would have been flat.
Lest we forget