After the bloodletting of yesterday there was a bulls roar in the air as the index charged up 60 points on nothing really. Well, I suspect there were a few shorts covering ,a few buying after the Deputy RBA Gov’s comments on interest rates and the fall of the Aussie dollar. Even a fall in the Iron Ore price couldn’t hold back the miners today. Pretty much every sector and every major stock rallied today except Woolworths Limited (A$31.08, -0.5%) which the punters hate, Fortescue Metals Group Ltd (A$2.79, -0.7%) which are on the nose too and Origin Energy Limited (A$13.61, -0.4%). Of course the big story was day two of the #MPL# trading with the stock slipping well below the insto price to close at $2.09.Volume at 200m shares was a drop in yesterday’s ocean and helped the days’ volume to hit $3.6bn.Hardly a great result given the scale of the Medifloat. Banks were once again in demand as the Murray report ,due very soon, looks to be somewhat benign. Well we shall see. Telstra Corporation Limited (A$5.67, +0.9%) also did well as did the big two miners BHP Billiton Limited (A$32.53, +1.3%) and RIO Tinto Limited (A$58.39, +1.7%) plus healthcare stocks like Csl Limited (A$80.86, +1.7%),Ramsay Health Care Limited (A$53.48, +1.9%),Greencross Limited (A$8.20, +10.1%) and ResMed Inc. (A$6.22, +1.8%).
Insurers also rose today along with financial services providers like Macquarie Group Limited (A$59.66, +1.9%),Henderson Group PLC. (A$4.11, +2.2%),,Magellan Financial Group Limited (A$14.83, +2.5%) and Challenger Limited (A$6.99, +2.9%) whilst REITs also did ok Dexus Property Group (A$7.05, +1.7%),GPT Group (A$4.13, +1.7%),Stockland (A$4.16, +1.5%) and Goodman Group (A$5.50, +1.5%) all benefitting from the thought of lower rates. In the end the market rose 62 points(big push at the close) to nearly 5400 ,which is right on the technical breakout level. Tomorrow will be interesting . MYEFO will also prove an interesting diversion for the market as will the Murray report.
Big Cheshire cats today were Greencross Limited (A$8.20, +10.1%),Karoon Gas Australia Limited (A$3.32, +12.9%),Navitas Limited (A$5.32, +4.9%),GWA Group Limited (A$2.85, +5.6%),#OFX# and Qantas Airways Limited (A$1.83, +4.9%) in the bigs and Resolute Mining Limited (A$0.275, +19.6%),Buru Energy Limited (A$0.64, +20.8%)(second day in a row),Paladin Energy Ltd (A$0.385, +13.2%),Medusa Mining Limited (A$0.695, +10.3%) and Acrux Limited (A$1.325, +8.6%).The biggest losers were Arrium Limited (A$0.245, -2.0%),#MTR#,ALS Limited (A$4.93, -1.4%),Syrah Resources Limited (A$3.69, -2.9%),#MPL#,Cardno Limited (A$3.34, -4.0%) and Billabong International Limited (A$0.64, -3.0%) in the bigs and Iron Road Limited (A$0.155, -16.2%),Audio Pixels Holdings Limited (A$7.60, -16.5%) and Boart Longyear Limited (A$0.185, -7.5%) again. The Aussie dollar was 85.35 ,Bitcons at $442 and Gold in AUD at $1403.
Asian markets were mixed, Japan unchanged ,Honkers up 0.1% and Shankers up 0.7%
Stocks and Stories
Karoon Gas Australia Limited (A$3.32, +12.9%) Good results from the Kangaroo-2 appraisal well, which found oil over depth of 250 metres, augurs well for the development of a commercial project at the field in the Santos Basin.Karoon reported that the “net reservoir pay”, the area of the total column that could yield commercial production, was 135 metres.
Buru Energy Limited (A$0.64, +20.8%) seems no news is good news as rumours continue despite the Pauline Hanson yesterday.
‘Old Mother Hubbard’ revealed a very bare cupboard despite Abbott promising to blow some barnacles off. Only three major projects worth a combined $597 million were given the final green light by resources companies in the six months to October, the lowest number and value in more than a decade.
Resolute Mining Limited (A$0.275, +19.6%) was a top performer today as it revealed it had canned expansion plans whilst contractor Ausdrill Limited (A$0.45, -10.9%) copped it as it was due to be the service supplier for Resolute.yet another mining services company hitting lows.
Webjet Limited (A$3.10, -1.3%) has played down any growth as they have suggested that domestic travel remains under a cloud. It forecast pretax earnings of $27 million for this financial year, compared with $23 million previously.
Tomorrow’s News Today
Woolworths Limited (A$31.08, -0.5%) AGM tomorrow. May be a chance to clear the air and punish the shorters.
I suspect the world has gone mad! Uber Technologies Inc. is close to raising a round of financing that would value the mobile car-booking company at $35 billion to $40 billion. Let’s face it there will be more competitors in this space.It’s a taxi booking app FGS!!
Thanksgiving in the US on Thursday so lots of economic numbers tonight. Here’s a quick run down of the ones we shall see. Durable goods orders, personal consumption and expenditures including core PCE inflation figure, pending home sales, new homes sales, initial jobless claims, Chicago PMI, the University of Michigan-Thomson Reuters consumer confidence survey, MBA mortgage market index and Midwest manufacturing survey. Phew. Busy time to be an astrologer!
Black Friday is looming large for US retailers as they gear up for a huge online bonanza. What with the snow covering huge swathes of the east coast, online will be the way to go. Of course you won’t actually get the stuff from DHL but hey it’s all about the shopping experience.US punters are forecast to spend an average of $295 on the weekend up $9 from last year.
Vietnamese lawmakers approved a law allowing broad foreign ownership of property, as the government seeks to boost an ailing real-estate market and accelerate economic growth.
Another night of protests across the US after the cop who shot a black teenager was cleared of any charges.
Apple close to an all-time high and $700bn valuation! This from a company that was pretty irrelevant 10 years ago! South Korea is targeting internet supremacy with 5G coming to a pipe near you. Stuck here in 50’s Australia, still not really got 3G everywhere!
And over in Zombieland the centrepiece of the Euro revival is looking like a sick joke as new kid on the block Jean Claude Juncker is hoping that his ambitious €315bn “New Deal” ,to pull Europe out of its economic slump over the next three years, will do the trick but he is providing no new money .. Sounds a bit like his compadre Dr ‘Do Nothing’ Draghi in this one. All the stimulus is to come from financial engineering! The package will be based on €21bn of EU money that will multiply up to almost €300bn of venture capital and private funds in a complex chemistry. The list of investments and infrastructure projects will take months to sift through, and the stimulus will not reach meaningful scale until 2016. The scheme depends on leverage that increases the headline figure by 15 times, leaving EU taxpayers bearing the heaviest risk while private investors are shielded from losses.
And here’s something that I didn’t know. There are 1451 US Exchange Traded Funds that Bloomberg tracks! Now there’s a good business.
That is all