After a tentative start the rolling stones gathered no moss as we rose a confidence bringing 74 points to close at 5281 with a low of 5211.A welcome relief from the drubbing we have had in the last few days. Good commodity bounces were primarily the reason as gold, silver, oil and other useful stuff had good positive sessions last night. The oil stocks were in demand although the rises were modest compared to the recent falls as nerves persist. If the oil price can stabilise then we will see further gains in the coming days. Woodside Petroleum Limited (A$34.20, -4.3%),Santos Limited (A$9.11, -9.8%),Oil Search Limited (A$7.29, -8.5%),Liquefied Natural Gas Limited (A$2.52, -22.5%) all taking back some of their losses although AWE Limited (A$1.25, -10.4%) struggled. Qantas Airways Limited (A$2.01, +4.7%) who has been a big winner from the oil price fall gave away some gains but still hovering close to the $2.00 level.
In the miners we saw good gains across the board ,BHP Billiton Limited (A$29.27, -5.3%), Newcrest Mining Limited (A$9.18, -11.2%),RIO Tinto Limited (A$56.66, -4.1%), Sirius Resources NL (A$2.22, -14.9%),Panaust Limited (A$1.33, -19.1%),Oz Minerals Limited (A$2.99, -12.1%) and Iluka Resources Limited (A$6.59, -3.8%) but Que Syrah Resources Limited (A$3.22, -8.0%) sera fell in a screaming heap. Gold put in a positive day ,Northern Star Resources Ltd (A$0.965, -17.9%),Saracen Mineral Holdings Limited (A$0.21, -14.3%),Evolution Mining Limited (A$0.435, -18.7%),Beadell Resources Limited (A$0.19, -5.0%) and Oceanagold Corporation (A$2.07, -13.4%) to name a few.
News that the RBA had photocopied Novembers statement on rates and gone to lunch were greeted with a resounding yawn as they kept rates unchanged for the 17th month in a row. Industrials were in the green with Brambles Limited (A$9.59, -1.3%),Transurban Group (A$8.37, +0.7%),Telstra Corporation Limited (A$5.62, -1.2%),AGL ,Wesfarmers Limited all standing out. Healthcare stocks were also better led as usual by Csl Limited (A$83.15, +0.7%),Sirtex Medical Limited (A$26.00, -2.2%),Healthscope and Cochlear Limited (A$69.20, -0.5%).Woolworths Limited (A$30.48, -2.1%) though continued to inhabit the casualty ward along with Metcash Limited (A$2.18, -16.5%). Financials dithered around before joining the fun with good gains in Westpac Banking Corporation (A$32.24, -1.0%),Commonwealth Bank of Australia (A$79.80, -1.1%),National Australia Bank Limited (A$32.15, -1.4%) and Australia and New Zealand Banking Group Limited (A$31.66, -0.8%).REITS also did well with Stockland (A$4.10, -0.5%),Goodman Group (A$5.42, -0.6%),GPT Group (A$4.16, +0.5%) and Lend Lease Group (A$15.00, -2.2%). The people’s fave Medibank firmed a cent on much lower volumes.
In the winners’ circle today were Chorus Limited (A$1.96, +2.6%),Northern Star Resources Ltd (A$0.965, -17.9%),Newcrest Mining Limited (A$9.18, -11.2%),Independence Group NL (A$3.51, -16.4%),Oil Search Limited (A$7.29, -8.5%),Goodman Group (A$5.42, -0.6%) in the bigs and Evolution Mining Limited (A$0.435, -18.7%),Alacer Gold Corp. (A$2.05, -9.3%),Horizon Oil Limited (A$0.175, -12.5%) and Sino Gas & Energy Holdings Limited (A$0.165, -13.2%) in the small caps. Losers were Syrah Resources Limited (A$3.22, -8.0%),Metcash Limited (A$2.18, -16.5%),Ten Network Holdings Limited (A$0.255, +4.1%),Transfield Services Limited (A$1.75, -7.2%),#SDF# and #JHC# with Unilife Corporation (A$0.62, +1.6%),Ashley Services, Norton Gold Fields Limited (A$0.14, unch) and Maca Limited (A$0.975, -3.5%) under pressure. Volume was pretty good with $4.5bn done with a better split between industrials and resources.
The Aussie dollar was 85.20 after a post RBA ‘sit tight head in sand rally’, Bitcons were $441 and Gold at $1207.
Asian markets eased with Japan unchanged ,Honkers up 0.15% and Shankers up 1.15%.
Stocks and Stories
Not a Chorus Limited (A$1.96, +2.6%) of disapproval with the NZ Commerce Commission releasing its draft FPP prices. A rise from $34.44 to $38.39 seemed to please the market.
Horizon Oil Limited (A$0.175, -12.5%) some good news as the first oil was pumped from their Maari growth project.
Gambling revenue in Macau fell almost 20 per cent in November, making six months of consecutive declines and giving no insight into when the luck of casino operators will turn.Not good for Crown Resorts Limited (A$14.07, -2.2%).
The Australian listed energy sector is down 24 per cent since the start of June
Suspect this is not going to end well. #VET# has been suspended pending a review of its finances.
Atlas Iron Limited (A$0.175, -2.8%) has reduced the size of its board and cut pay for the remaining directors to help reduce costs amid weak iron ore prices. Two board members have resigned, and the remaining six have offered to reduce their pay by 15 per cent, effective immediately. Shame others don’t emulate these guys and their hairshirts.
In economic news, home building approvals have rebounded, driven by a strong surge in apartment blocks.Approvals for the construction of new homes rose 11.4 per cent across Australia in October, following an 11.2 per cent fall in September but public sector spending fell in the September quarter and will be a slight drag on economic growth to be reported tomorrow.
The current account deficit narrowed to $12.5 billion in the September quarter, coming in below expectations for a $13.5 billion shortfall and following a deficit of $13.9 billion in the June quarter.
Tomorrows News Today
Looks like there may be an offer from the Discovery Channel and Foxtel for Ten Network Holdings Limited (A$0.255, +4.1%) it just may be below the current share price!
Former Howard-government minister Michael Wooldridge has been banned as a company director for more than two years over his role approving a $33 million fee in collapsed retirement village scheme Prime Trust.
Apple subjected to a flash crash as the shares plunged almost 5 per cent during a 60-second swoon that started 20 minutes after trading on Wall St. ’Open the pod bay doors Hal’.
On Monday, the rouble suffered its biggest one-day decline since 1998 as oil prices continued to fall escalating fears about the Russian economy. The currency slid almost 9% against the dollar before rallying after suspected central bank intervention. Russia relies on oil for 70% of its exports and 50% of its revenue.
Russia continues to turn away from Europe as it inks a deal with Turkey for a new gas pipeline. It’s lonely out there Vlad!
That is all