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It was the best of times, it was the worst of times. Energy and Iron Ore ,Gold horrible. Banks and industrials just fine and dandy. Says it all really. More horror in the mining services as it was WorleyParsons Limited (A$11.89, -5.4%) turn today with Monadelphous Group Limited (A$9.33, -3.1%) continuing to slide as did Cardno Limited (A$3.28, -1.8%) and better than expected capex numbers showing that mining continues to slow and the slack is really not being taken up by the rest of the economy. The financials continue to push the market ahead and we saw a gain today of a measly 5 points with a high of 5411 and a low of 5391,a tight range before a close of 5400(really1!.Our favourite IPO #MPL# pushed back up as the bleating instos decided to pick up a few to average.
Big losses today in Santos Limited (A$11.61, -3.1%),Woodside Petroleum Limited (A$38.47, -2.8%),Oil Search Limited (A$8.47, -2.6%) and Origin Energy Limited (A$13.17, -3.2%). Of course as ore slipped below $69, BHP Billiton Limited (A$32.00, -1.6%) and RIO Tinto Limited (A$58.02, -0.6%) copped shellacking although Fortescue Metals Group Ltd (A$2.86, +2.5%) bucked the trend .It’s a mixed up world indeed.
Industrials were led by Woolworths Limited (A$31.75, +2.2%) as they bounced hard following the AGM comments and optimism on their sales for the full year. Telstra Corporation Limited (A$5.74, +1.2%) also back in the limelight but consumer discretionary stocks like Navitas Limited (A$5.17, -2.8%),Flight Centre Travel Group Limited (A$41.01, -0.6%),Domino’s Pizza Enterprises Limited (A$24.38, -6.1%),Ainsworth Game Technology Limited (A$2.24, -7.8%),Tatts Group Limited (A$3.46, -1.4%),REA Group Ltd (A$45.00, -1.2%) and Ten Network Holdings Limited (A$0.245, -5.8%) all fell in a heap. Healthcare was firm with Csl Limited (A$83.02, +2.7%) as usual doing well, seems you can get blood out of a stone after all. But Mayne Pharma Group Limited (A$0.63, -16.0%) had a shocker on sale issues in the US.Sonic Healthcare Limited (A$17.57, +2.4%),Primary Health Care Limited (A$4.70, +3.1%) and Ansell Limited (A$21.00, +1.0%) all taking heart from the govs change of policy on GP co -payments. Not quite sure what it is yet but investors look to be betting it is gone.
In the winners stables today were Air New Zealand Limited (A$2.15, +5.9%),ALS Limited (A$5.14, +4.3%),Mighty River Power Limited (A$2.75, +3.8%),#ISD#,Greencross Limited (A$8.47, +3.3%),#AHY# and #OFX# with smalls Audio Pixels Holdings Limited (A$8.50, +11.8%),Donaco International Limited (A$0.63, +7.7%) and #CWE# all doing well. Losers included Ainsworth Game Technology Limited (A$2.24, -7.8%),Syrah Resources Limited (A$3.54, -4.1%) again, Ten Network Holdings Limited (A$0.245, -5.8%),Karoon Gas Australia Limited (A$3.16, -4.8%),WorleyParsons Limited (A$11.89, -5.4%) and Oceanagold Corporation (A$2.45, -5.0%) with #VET#(chairman gone!),#Focus Minerals Ltd (A$0.01, -9.1%),NRW Holdings Limited (A$0.415, -8.8%) and Evolution Mining Limited (A$0.57, -6.6%). Volume was around $3.6bn with Medifloat accounting for $150m of it. Dollar was down then back up on capex numbers as the spectre of rate cuts recedes.back to 86c and bitcons at $35 with Gold at AUD 1382
Asian markets took a breather pre the Turkey shoot, Japan down 0.6%,Honkers down 0.41% and Shankers up 0.42% as the PBOC loosens the reins again and cancels a repo sale.
Stocks and Stories
Woolworths Limited (A$31.75, +2.2%) AGM Today and more interesting times for this behemoth. The main point to emerge was the market had got it all wrong with the sales and the board was pretty happy to predict that the 7% sales growth would come through despite the disappointing quarterly. More talk about Masters ,as the company said losses were higher but the foundation for the future were solid. Yeah right.
Buru Energy Limited (A$0.465, -27.3%) A roller coaster ride in the last few days as the build up for the Ungani results went into overdrive. Unfortunately Newtons law came into effect and what goes up must come down and spectacularly too with a dose of reality biting them on the bottom as results were disappointing to say the least.
Mayne Pharma Group Limited (A$0.63, -16.0%) sales figures for their anti-acne drug were in the doldrums and it showed. Sales of their US Doryx™ tablets have declined on slowing prescription demand. Prescriptions continue to track around 5,000 scripts per week which was consistent with the levels the company suggested in August but well down on the peak levels they saw late last year prior to the restructure that followed the acquisition of their US partner Warner Chilcott by Actavis.
China’s steel consumption will peak in just three years, according to one of the country’s top industry officials, more than a decade before the ambitious forecasts of Australia’s big iron ore big miners.
Private capital expenditure (capex) rose 0.2 per cent in the September quarter, coming in well above expectations of a 1.9 per cent fall over the quarter. The fourth estimate for capital expenditure in 2014-15 is $153.21 billion, which is 2.2 per cent higher than the third estimate for 2014-15. It is 7.5 lower than the fourth estimate for 2013/14
Beach Energy Limited (A$1.08, -0.5%) has a new man. Rob Cole, one of Woodside Petroleum’s most senior executives, has resigned to take up the role of managing director .being paid $1.2m helps make the decision!
Vocation Ltd another company chaired by an ex pollie, John Dawkins is still suffering as he has fallen on his sword. Still he gets to be a consultant for probably more money.
Tomorrows News Today
Incredibly sad news about Phil Hughes. Puts the fragile thread of life in perspective.
Thanks giving tonight so all eyes will be on the OPEC meeting and whether we get any production cuts. My money says no as they try to stress test the US Shale producers but we shall see.it has started though as Wells Fargo and Barclays appear to be about to take a bath on loans to US oil companies as the low price takes its toll. Some commentators have suggested that this could be the tip of a very horrible ice berg.
A new record this afternoon as 15 MPs booted out. Good to see Bronwen Bishop kick out a quarter of the Labour MPs this question time and George Brandis is keeping his metadata to himself.17 pages of a redacted Telstra bill!He still gets to look at mine though!
In Asia, Thailand looks set to return to democracy much later than suggested with elections now due in mid 2016! Growth in the Philippine economy slowed sharply in the third quarter due to weaker growth in all sectors, the government said. The economy grew by 5.3% from July to September from a year ago, well below market expectations of a 6.6% rise.
Merkel softening her stance on Russia as they hold out an Olive branch. Sanctions appear to be hurting Germany just as much.
Seems ‘Black Friday’ spending sprees are being adopted from the US all over the world with Visa Europe expecting spending of £518m on its cards in the UK. The unprecedented spending spree will kick-start Christmas shopping as some of the high street’s biggest names including John Lewis, Asda, Currys and Argos as they launch thousands of deals online and in store.
And New Zealand has launched a Butter futures contract. Apparently they wanted a slice of the spread betting market. Lots of churning to come in that contract I reckon.
That is all