Posts Tagged ‘BHP’

Stock Market Analysis: Markets Cautious About Greek Outcome

Wednesday, January 25th, 2012

* US stock markets eased overnight.
* European stock markets ended lower overnight, as the Greek negotiations continue, as the Greek market plunged -5.5%.
* Many Asian stock markets remain closed for the Lunar New Year holidays.
* Commodities prices traded mostly lower, as Gold prices lower to around $US1,668 and while crude-oil closed up around $US100.

The SPI Futures is trading above the key pivot level of 4180, ended up 0.1% (or 4 points) at 4,196. The key levels for our index today are 4150 to 4230.

Yesterday Australian shares have held on to recent gains, as we had early expiry for equities options.  The energy and gold sectors provided some support for the market on the back of rising commodities prices overnight.  Crude-oil traded back above $US100, after news that the European Union (EU) had placed an embargo on Iranian exports, gold also traded around 5-month highs.Financials rose in overseas markets overnight, due to increasing confidence that talks to restructure Greece’s debt were progressing and reports that France and Germany were calling for a relaxation of global bank capital rules.   Shares in the All Ordinaries (XAO) traded flat  today, as the index closed flat at 4286, and as the S&P/ASX 200 (XJO) closed flat at 4224.

Aussie shares are expected to trade lower and after negative leads from the US and European markets.

See below for ASX listed companies in the news today.

Economics News Today
*  Nov     Westpac-Melbourne Institute Indexes of Economic Activity Leading Index
*  Jan     DEEWR Vacancy Report 
*  Q4      CPI Data.

US Markets

US stock markets eased overnight.  The Dow Jones Industrial Index posted its second consecutive decline for the first time in three weeks, but remains up 3.8% from the start of the year. In the broader market the S&P 500 closed in the red for the first time in a week, while the Nasdaq finished modestly higher.  The VIX is below 20 indicating investors are comfortable with this steady melt up of markets.
Investors showed caution as Greece’s debt-reduction talks are yet to be resolved.  In corporate news McDonald’s 4Q earnings rose 11% as the fast food company beat expectations; DuPont was flat after the diversified manufacturer’s 4Q earnings beat estimates; Johnson & Johnson finished flat after the consumer-products company reported 4A earnings and revenue that exceeded expectations and Apple reported after market that fiscal 1Q first-quarter earnings more than doubled, as both profit and revenue hit record highs, led by strong sales of the iPhone and iPad.
In commodities prices were generally lower as oil futures edged lower, as traders reassessed the impact of the European Union’s ban on Iranian crude-oil imports, gold prices slipped and base metals closed mixed.
All ten company groups that make up the S&P index traded mixed with the Materials flat , Financials sector down -0.1%, Energy sector was down -0.3%, Industrials sector was up 0.1%, Technology was down -0.1%,  while  Consumer Staples were down -0.6%.
 
The Dow Jones closed down -0.3% (or -33 points) at 12,676, the S&P 500 index down -0.1%  (or -1 points) at 1,314, the Nasdaq ended up 0.1% (or 2 points) at 2,786 and the smaller cap Russell 2000 was up 0.7%.

European Markets

European stock markets ended lower overnight, as the Greek negotiations continue.  The Stoxx 600 index fell -0.4% down from from a 5-month high.  
Across the region shares prices eased as Greece has yet to conclude debt talks with its private debt holders to write down the country’s debt by EUR100 billion. A resolution is crucial as Greece must repay EUR14.5 billion of maturing debt in March to avoid a default. The Greek market plunged -5.5%, due to the stalemate.

In London the FTSE 100 index closed down -0.5% (or -30 points) at 5752, the German DAX was down -0.3% (or -17 points) at 6,419 while in France the CAC was  down -0.5% (or -16 points)  at 3,322, Spain was down -0.3% and Italy ended up 0.1%.

Asian Markets

Many Asian stock markets are closed for the Lunar New Year holidays.  Many regional markets, including those in Shanghai, Hong Kong and Seoul, were closed for Lunar New Year holidays.
Japanese stocks rose on the back of higher energy stocks as crude- oil futures hovered around $US100 per barrel, though trading volumes were light.  The Bank of Japan kept interest rates on hold at near zero, noting that activity in the Japanese economy has flat due to a slowdown in overseas economies and appreciation of the yen. 
In China the SSE Composite was closed at 2,319, while in Hong Kong the Hang Seng Index was closed  at 20,110 and in Japan the Nikkei 225 Index closed up 0.2% (or  19 points) at 8,785, South Korean KOSPI was closed for the session, while the Indian market up 1.5%.

Commodities

The Dollar Index was lower  at 79.78 on a higher Euro, while the Australian Dollar last traded higher at 1.0491. Commodities prices traded mostly lower.

For the session the Benchmark crude NYMEX for January delivery was down -0.3% (or $US0.35) settle at $US99.24.  Copper prices are seeking a support level as Copper for January delivery was up 0.5% (or 1.8 cents) at $US3.8125.  January gold was down -0.8% (or $US13.80) at $US1,668.

ASX News Today

BBG – Billabong shares plunged today after surging due to recent speculation that the company could be the latest target from private equity buyers.

GUD –  GUD Holdings the consumer and industrial products supplier, says trading conditions are expected to remain tough in the second half of the financial year, in the wake of a fall in profits in the first half.

LYC – Lynas shares remains in a trading halt, as the rare earths miner is seeking to finalize a funding deal, which analysts estimate to be up to $100 million.  The halt comes a week before a meeting of Malaysia’s Atomic Energy Licensing Board, which is to decide whether to approve a temporary license for Lynas to commission a rare earths processing plant in central Malaysia.

NCM – Newcrest reported today it has a big year ahead, with two major expansion projects: the Cadia East project in New South Wales and the Lihir upgrade in PNG, which are set to be delivered in 2012 at costs beyond $1 billion each, weather permitting.  The company has had to downgrade its annual gold production forecasts by 6 percent.  Although on the current high gold prices, Newcrest is making more than $1000 of profit on each ounce of gold it produces, which helps cushion the fall in production. Newcrest plans to set up a secondary listing on the Toronto Stock Exchange and is on on track to launch this in the first quarter of 2012.

ORI – Orica says its restart of its ammonia plant near Newcastle has been put on hold for several weeks.

OSH – Oil Search shares jumped after the PNG-focused oil and gas producer reported a 26 percent rise in revenue for the year to December 31 to $US732.9 million thanks to higher oil prices and went on to forecast steady production in 2012.  The rise in revenue was driven by a 45 percent increase in realised oil prices.

PNA – PanAust the copper and gold miner has forecast an increase in production from its major operation in Laos and a rise in earnings.

QAN – Qantas has enjoyed monopoly status in the corporate travel arena since the collapse of Ansett, but now with Virgin Australia’s introduction of eight cushy padded leather clad business class seats across each of its domestic fleet of Boeing 737s, Qantas will now face competition for business class passengers for the first time in a decade.

Ex-dividend Date

None
 
Market Summary 
ASX – to open flat
US & UK/Europe – lower

Commodities Stock Index  down -0.7%
Gold Stocks Index down -1.9%
Oil Stocks Index down -0.4% 

US ADRs – Broadly Lower!!…

BHP down -0.9% & RIO down -0.5%; AWC down -3.5%
ANZ down -0.3% & NAB down -1.1%
NEM  down -0.1%, JHX down 1.4%, NWS down -0.5%

By Michael Hevern
Head of Research

 
For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

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Stock Market Analysis: Markets Drift Higher On Successful EU Bond Auctions

Thursday, January 19th, 2012

* US stock markets drift higher to levels not seen since mid last year.
* European stocks closed modestly higher after a choppy session overnight, as the Greek market jumped 2.8%.
* Asian stock markets ended mixed yesterday, the Chinese market giving back some of its 4% gains from the previous session.
* Commodities prices traded mostly higher, as Gold prices rose to around $US1,660 and crude-oil closed up around $US101.

The SPI Futures is trading below the key pivot level of 4180, ending up 0.7% (or 30 points) at 4,222. The key levels for our index today are 4180 to 4280.

Yesterday Australian shares edged higher, as investors focused on reports out of the mining sector, rather than disappointing consumer confidence data and fresh profit downgrades from insurers and retailers. 

The World Bank reported that the global economy is on the edge of a new financial crisis, that could be more disastrous than the one that followed the collapse of Lehman Brothers in 2008. 

In its half yearly assessment of global economic prospects the World Bank slashed its global growth forecast for 2012 from 3.6 percent to 2.5 percent, while high-income nations are forecast to grow at 1.4 percent, down from 2.7 percent, and the eurozone economy is now forecast to 0.3 percent.  US growth is now forecast to expand 2.2 percent in its presidential election year (down from the forecast 2.9 percent), while the Chinese economy is expected to expand 8.4 percent this year (down from last year’s 9.2 percent).

Aussie shares are expected to continue rising today and traders are expected to continue looking for bargains, after positive leads from the US and European markets.  

See below for ASX listed companies in the news today.

US Markets

US stock markets drift higher to levels not seen since mid last year.

The Dow Jones Industrial Average registered its biggest one-day gain in more than two weeks. The S&P 500 rose above 1300 for the first time since July, for its sixth gain in seven days and the tech-heavy Nasdaq Composite outperformed up 6.3% this year. The Financials, Technology and Energy sectors have led the markets higher in the session.

Financial stocks led the session’s rise, helped by encouraging news at Goldman Sachs Group and strong housing data. A report from the National Association of Home Builders showed confidence among home builders in January rising to a stronger-than-expected reading of 25 (the highest since June 2007).

Goldman Sachs jumped 6.8% after earnings and revenue slumped, although their profits topped lowered forecasts, and Yahoo rose 3.2% after the company announced co-founder Jerry Yang has resigned from the board.

All ten company groups that make up the S&P index traded higher with Materials up 1.1%, Financials up 1.5%, Energy up 1.6%, Industrials up 0.9%, Technology up 1.5%, while Consumer Staples were up 1.6%.

The Dow Jones closed up 0.8% (or 96 points) at 12,578, the S&P 500 index was up 1.1% (or 14 points) at 1,308, the Nasdaq ended up 1.5% (or 42 points) at 2,770 and the smaller cap Russell 2000 was up 1.8%.

European Markets

European stocks closed modestly higher after a choppy session overnight.  The European Stoxx 600 index was up 0.1%.

The Greek market jumped 2.8%, as the Greek government resumed talks with bondholders to discuss a voluntary write-down on the country’s sovereign debt and as the Prime Minister said that he would consider forcing a private sector haircut on the debt if a deal cannot be reached.

Across the region stocks jumped as the International Monetary Fund (IMF) reportedly proposed expanding its lending fund to $US1 trillion. Financials had a strong session on the back of successful bond auctions.

Investor sentiment was boosted by a successful bond auction in Germany, which paid the lowest interest rate on record to sell 2-year treasury notes, while the Portuguese government sold EUR2.5 billion in short-term debt with borrowing costs declining slightly.

In London the FTSE 100 index closed up 0.2% (or 8 points) at 5702, the German DAX was up 0.3% (or 22 points) at 6,355 while in France the CAC was down -0.2% (or -5 points) at 3,264. Spain was down -1.7% and Italy ended up 1.3%.

Asian Markets

Asian stock markets ended mixed yesterday. The Chinese market gave back some of its 4% gains from the previous session, as concerns Beijing may not ease its monetary policy encouraged traders to lock in profits ahead of the week-long Lunar New Year holiday.

In Japan the Nikkei Stock Index ended 1% higher, outperforming in the region, as fears about the global economic outlook abated, despite the gloomy World Bank forecasts.  In China traders took profits, after the market surged with its biggest gain since October 2009 in the previous session.  Growth-sensitive stocks eased, but energy stocks advanced, as benchmark New York crude-oil futures rose back above $101 a barrel. 

In China the SSE Composite was closed down -1.4% (or 32 points) at 2,226, while in Hong Kong the Hang Seng Index was up 0.3% (or 59 points) at 19,687 and in Japan the Nikkei 225 Index closed up 1.0% (or 84 points) at 8,550. The South Korean KOSPI was flat for the session, while the Indian market eased to be flat.

Commodities

The Dollar Index was lower at 80.52 on a higher Euro, while the Australian Dollar last traded higher at 1.0404. Commodities prices traded mostly higher.

For the session the benchmark crude NYMEX for January delivery was up 0.4% (or $US0.36) to settle at $US101.07.  Copper prices are seeking a support level as Copper for January delivery was up 0.6% (or 2.1 cents) at $US3.7480.  January gold was up 0.3% (or $US4.30) at $US1,660.

ASX News Today

BHP – BHP Billiton is set to break its first-half profit records despite softer iron ore prices, as BHP reported iron ore production for the half year to December 31 of 80.6 million tonnes (Mt), up 23 percent on the same period in 2010.

OZL – OZ Minerals has lifted gold output to 160,007 ounces of gold in the final quarter of 2011 while copper production fell 107,744 tonnes, but it still achieved full-year production in line with guidance.

LYC – Rare earths miner Lynas Corporation reported it has significantly increased the estimated resources at its major Mount Weld project in WA.  The mineral resource estimate at Mt Weld is now 23.9 million tonnes, up 37 percent from its previous estimate in September 2010, after an extended drilling program at Mt Weld. Lynas is in the development phase of two rare earths projects, a concentration plant at Mt Weld and the Lynas Advanced Materials Plant (LAMP) in Malaysia.

ORI – NSW Environment Minister Robyn Parker says she is deeply concerned by yet another emissions breach at one of Orica’s plants and wants answers.

SGM – Sims Metals, the metals recyler, reported it has made a move into the Chinese market, outlaying $US137 million for a 18 percent stake in a Hong Kong company, Chiho-Tiande Group, which has operations in both Hong Kong and mainland China.

SFH – Retailer Speciality Fashion Group says its Christmas performance was disappointing, with sales lower than the previous year.

WES – Wesfarmers expects a 74 percent drop in first-half earnings from its insurance division because of a high number of natural disasters.

Market Summary 

ASX – to open higher
US & UK/Europe – EU higher
Commodities Stock Index  up 1.6%
Gold Stocks Index up 0.5%
Oil Stocks Index up 1.3% 

US ADRs – Broadly Higher

BHP up 2.7% & RIO up 2.7%; AWC up 0.9%
ANZ up 1.1% & NAB up 1.1%
NEM  down -1.0%, JHX up , NWS up 1.5%

 By Michael Hevern
Head of Research

For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

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Stock Market Analysis: Markets Rise On Promises Of Stimulus

Wednesday, January 11th, 2012

* US stock markets continued higher from the outset, as there has been a promising start to the US earnings reporting season.
* European stock markets ended with sharp gains overnight, after Fitch Ratings said that it does not plan to downgrade France this year, unless its economy deteriorates significantly.
* Asian shares ended higher yesterday, as investors stepped into equities after reports that China is considering a stimulus package.
* Commodities prices traded higher, as Gold prices higher to around $US1,637 and while crude-oil closed around $US101.

The SPI Futures is trading below the key pivot level of 4180, ending up 0.6% (or 26 points) at 4,148. The key levels for our index this week are 4080 to 4250.

Aussie shares are expected to open higher and traders are expected to join their overseas counterparts in buying today, after positive leads from the US and European markets.

See below for ASX listed companies in the news today.

US Markets

US stock markets continued higher from the outset, as there has been a promising start to the US earnings reporting season.

The Dow Jones Index was up another 0.5%, closing at highs not seen since late July. Bank of America surged again up 5.7% for the session and is pushing its year-to-date gain to 19%, the best blue-chip performer in 2012 so far. Alcoa the aluminum producer started the reporting season with better than expected results, and its current year projection for aluminum demand raised hopes for a stronger global economy.

In the broader markets all the S&P 500 sectors traded higher, led by financials.  Auto parts maker BorgWarner was the strongest performer, surging 12% after delivering upbeat earnings guidance for 2012.  The Nasdaq outperformed on the back of the consumer electronic show (CES) which is now underway.

Commodity prices rose overnight on the back of renewed optimism, with gold back above its 200 day moving average, and China reported to be assessing stimilus options.

All ten company groups that make up the S&P index traded higher, with Materials up 2.0%, Energy up 0.9%, Financials up 2.0%, Industrials up 0.6%, Technology up 0.7%, and Consumer Staples were up 0.7%.

The Dow Jones closed up 0.6% (or 70 points) at 12,462, the S&P 500 index was up 0.9% (or 11 points) at 1,292, the Nasdaq ended up 0.9% (or 24 points) at 2,700 and the smaller cap Russell 2000 was up 1.5%.

European Markets

European stock markets ended with sharp gains overnight, after Fitch Ratings said that it does not plan to downgrade the country this year, unless its econmoy deteriorates significantly. The Stoxx Europe 600 index rose 1.8%.

Chinese December trade surplus was wider than expected, which has prompted investor belief that some of the risks surrounding Chinese growth are beginning to fade, which boosted commodity prices.

In London the FTSE rose, led by the banks and miners. Heavyweight banks Barclays PLC and HSBC Holdings PLC jumped 5.7% and 2.7%, while in retail Marks & Spencer Group rose 3% after better-than-expected 13-week sales data. In energy BP rose 1.3%, while miners Rio Tinto PLC and BHP Billiton PLC gained over 3.5%.

Italian stocks outperformed in the eurozone, up 3.1% led by Italian banks, as UniCredit SpA rose 6%, after having fallen over -30% last week.  This was despite the head of Fitch Ratings global sovereign ratings, David Riley, saying there was a significant chance of a downgrade for Italy if Europe cannot provide a credible financial firewall. Yields on 10-year Italian bonds continued to climb, rising 9 basis points to 7.10%, levels above 7% are seen as unsustainable.

The French CAC-40 jumped 2.7% after the Fitch Ratings December statement said that the country would keep its triple-A credit rating in 2012 unless there is a major economic shock.

In London the FTSE 100 index closed up 1.5% (or 84 points) at 5,697, the German DAX was up 2.4% (or 145 points) at 6,163, while in France the CAC was up 2.7% (or 83 points) at 3,210. Spain was up 2.3% and Italy ended up 3.1%.

Asian Markets

Asian stock markets ended higher yesterday, as investors stepped into equities after reports that China is considering a stimulus package.

In China the Shanghai Composite Index surged another 2.7% to add to the 2.9% rise of the previous session, as the index bounces off 34-month lows. Chinese shares jumped after the top official at the China Securities Regulatory Commission said the agency will move ahead on reforms including opening the markets further to foreign investors. Shares across all sectors were boosted on the news. 

In Japan the Nikkei Stock Index rose 0.4% as investors returned from a holiday.

In China the SSE Composite closed up 2.7% (or 60 points) at 2,286, while in Hong Kong the Hang Seng Index was up 10.7% (or 138 points) at 19,004 and in Japan the Nikkei 225 Index closed up 0.3% (or 32 points) at 8,422. The South Korean KOSPI was up 1.5% for the session, while the Indian market was up 2.2%.

Commodities

The Dollar Index was higher at 80.88 on a lower Euro, while the Australian Dollar last traded lower at 1.0224. Commodities prices traded higher.

For the session the benchmark crude NYMEX for January delivery was up 0.9% (or $U0.88) to settle at $US101.30.  Copper prices are seeking a support level as Copper for January delivery was up 2.9% (or 9.8 cents) at $US3.5030.  January gold was up 1.5% (or $U23.50) at US1,637.

ASX News Today

AWC – Alumina jumped higher after its joint venture partner Alcoa gave a positive outlook for aluminium demand.

CCF – Carbon Conscious Ltd, the tree planter, expects its net profit in the 2011/12 financial year to rise 309 per cent to $3.5 million.

IAG – Insurance Australia Group (IAG) is facing bills of up to $200 million to cover damage inflicted by the Christmas Day storms that ripped through Melbourne.

MMX – Murchison Metals says an expansion of the Jack Hills iron ore mine has received environmental approval.

PBG – Pacific Brands has a takeover bid for the clothing and footwear maker, which could mark the start of a buying spree among private equity firms in search of bargains.

RMS – Gold miner Ramelius Resources says production and sales were lower in the December quarter, but has forecast improvements for the first quarter of calendar 2012.

SPT – Spotless Group’s hostile takeover bid appears to have stalled, with the private equity suitor unwilling to meet a demand to increase the bid.

Ex-dividend Date

None 

Market Summary

ASX – to open higher
US & UK/Europe – higher
Commodities Stock Index  up 1.5%
Gold Stocks Index up 1.5%
Oil Stocks Index up 0.4% 

US ADRs – Broadly Higher

BHP up 3.0% & RIO up 3.4%; AWC up 7.5%
ANZ up 2.0% & NAB up 1.9%
NEM  up 2.2%, JHX up 3.9%, NWS up 1.7%

By Michael Hevern
Head of Research

For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

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ASX Company News: VDM Construction Awarded $25 million Contract By BHP

Wednesday, January 11th, 2012

VDM Group (VMG)  is pleased to announce that it has been awarded a $25.2m contract from BHP Billiton Iron Ore Pty Ltd for the design and construction of an Ammonium Nitrate Storage Facility at its Jimblebar Project. The project is located in the Pilbara region of Western Australia, approximately 39km east of Newman. The works on site are due to commence in February 2012 and are due for completion in December 2012. This contract takes the total value of work won by VDM this financial year to more than $150 million.

VDM Group is a design and construction company that services the mining, oil & gas, infrastructure, civil and transport sectors. VDM’s highly skilled engineers develop innovative technical solutions for clients and deliver projects that are cost effective, reliable and sustainable. VDM’s construction projects include mine accommodation, mine upgrades, non-process infrastructure (workshops, support buildings, etc) and lifting the world’s largest autogenously grinding mills. Contracting projects include land and marine earthworks, breakwaters, seawalls, mining services such as rock crushing, screening and ore handling, tailings dam construction. Its engineering capabilities offer structural, civil, environmental and specialised engineering services.

www.vdmgroup.com.au

http://www.traderdealer.com.au/fundamentals/vmg

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ASX Company News: Norfolk Group To Supply BHP Rail Signalling System

Tuesday, November 29th, 2011

Integrated engineering company, Norfolk Group Limited (NFK), has signed a $82 million contract for the design and installation of new and modified rail signalling systems for BHP Billiton Iron Ore’s Port Hedland Inner Harbour Project in the Pilbara, Western Australia.

Norfolk’s electrical and communications company, O’Donnell Griffin, will deliver the works and is responsible for the software and hardware design, installation and commissioning of the project. Up to 200 technical and management staff will work on the project, including designers and software engineers. O’Donnell Griffin will partner with global infrastructure leader, GE, to develop the rail signalling technology, drawing on international best-practise technical expertise in Australia, the US, Europe and India.

Norfolk Managing Director, Glenn Wallace, said the company had a strong focus on continuing to grow its rail business.  “Last year we created a National Rail Group within O’Donnell Griffin to recognise the specialist expertise we can deliver in this area.

“Norfolk has built a strong relationship through our successful work on previous projects which recognises our ability to design and deliver industry-leading rail signalling technology.” O’Donnell Griffin has a strong experience in delivering rail projects.

www.norfolkgl.com

http://www.traderdealer.com.au/fundamentals/nfk

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Stock Market Analysis:Global Market “Melt-up” Continues

Monday, October 17th, 2011

* US stock markets ended the week higher again, as investors pushed technology stock prices higher, cheering the 3Q results from Google and the better-than-expected retail sales figures.
* European stock markets rose Friday night, as investor concerns about fiscal and financial conditions in the eurozone debt crisis eased.
* Asian stock markets ended mostly lower on Friday, as a modest slowing in Chinese inflation failed to spark a rebound from the fresh concerns over regional economic growth and euro-zone debt.
* Commodities prices traded higher, as Gold prices rose to $US1,681 and while crude-oil closed around $US87.

The SPI Futures is trading around the key pivot level of 4200, ended up 1.1% (or 46 points) at 4,266. The key levels for our index this week are 4350 to 4150.

Friday the Australian share market traded modestly lower, but was up almost 10% from the recent lows. Investors initially followed the weak leads from European and US share markets overnight, but the outstanding quarterly result from Google that came after the US market close, sets the U.S. up for a positive start to the session. 

In regional news, China released its annual consumer inflation which fell to 6.1 percent in September. The slight slowdown in inflation was in-line with economists’ forecasts, as food prices rose 13.4 percent in the year to September, while non-food prices rose 2.9 percent.  Inflation remains close to the three-year peak of 6.5 percent hit in July, but policy makers are not expected to tighten further in the near-term, as it is expected that inflation will slow down gradually in the coming months.  Mining stocks were under pressure today, after a fall in commodity prices overnight, but investors took heart, as the Chinese inflation figures came in-line with expectations and we even saw a rally into the close, a bullish sign ahead of a weekend break.  The All Ordinaries (XAO) gave back some of its recent gains today closing down -0.9% at 4269, the S&P/ASX 200 (XJO) closed down -0.9% at 4206.

Aussie investors are expected to push stocks prices higher again today, particularly the energy and mining stocks, following the positive leads from the US and Europe, as investors become more comfortable with the European Commission’s commitment to the proposed bank rescue plan.  Chinese CPI data eased.

See below for ASX listed companies in the news today.

US Markets

US stock markets ended the week higher again, as investors pushed technology stock prices higher, cheering the 3Q results from Google and the better-than-expected retail sales figures.

The three major indices overcame key resistance levels to book their best weekly performance since July 2009. Investor sentiment continued to be supported by positive sentiment from Europe. The S&P 500 jumped 6% for the week, after staging a late climb that took it past the 1220 resistance, which had been a point of key resistance level at the start of the session and earlier in the week.

Energy stocks were the best performers in the session up 4.0% as crude-oil prices piked 3.2% to around $87 per barrel. Crude-oil prices ended the week about 5%. 

Retail sales numbers were encouraging with overall retail sales for September increased by 1.1% (forecast up 0.6%), while sales less autos increased by 0.6% (forecast up 0.3%). This marked the strongest increases since the first quarter.

All ten company groups that make up the S&P index traded higher:  the Materials were up 2.6%, Energy sector was were up 4.0%, Financials sector was up 1.2%, Industrials were up %,  Technology sector was up 1.8% , while the Consumer Staples were up 1.6%.

The Dow Jones closed up 1.5% (or 166 points) at 11,644, the S&P 500 index closed up 1.7% (or 21 points) at 1,225, the Nasdaq ended up 1.8% (or 48 points)  at 2,668, and the smaller cap Russell 2000 was up 1.6%.

European Markets

European stock markets rose Friday night, as investor concerns about fiscal and financial conditions in the eurozone debt crisis eased, as the European Commission leaders committed to developing a workable comprehensive plan intended to stabilize precarious conditions and shore up capital at European banks sent a strong signal to global investors.  

Across the region gains were led by gains for miners, technology stocks and car makers, while some banks were lower following a series of recent downgrades and warnings from brokers and credit rating agencies.  The Stoxx Europe 600 index rose 0.8%.

The French and German leaders have pledged to come up with a comprehensive plan for ending two years of turmoil by an October 23 summit.  The G-20 finance chiefs and central banks heads from the world’s biggest economies meet in Paris on Friday in search for a solution to a deepening crisis that has fanned fears of a global recession.  Standard and Poor’s to cut Spain by one notch, although that only brought its rating in line with rival agency Fitch Agency.

Tech stocks rose after strong Google earnings, while mining stocks were also higher as commodity prices rose across the board, helped by a slight softening in Chinese inflation.

In London the FTSE 100 advanced 1.2%  (or 63 points) 5,466, and gained over 3% for the week.  The German DAX-30 rose 0.9% (or 52 points) at 5,967 on Friday and jumped 5% week for the week, while the French CAC-40 climbed 1.0% (or 63 points)  at 3,218 and was up 4% in the week.

Asian Markets

Asian stock markets ended mostly lower on Friday, as a modest slowing in Chinese inflation failed to spark a rebound from the fresh concerns over regional economic growth and euro-zone debt. Most global equity markets have risen around 10% this month, but they are running into key resistance levels now.  

Sentiment was dampened as Standard & Poor’s downgraded Spain’s long-term sovereign credit rating to AA-minus from AA.  Singapore’s central bank has eased monetary policy for the first time in over 2-years.

In Japan the Nikkei Stock Index fell -0.9%, despite Google’s after market strong earnings report,  while in China the Shanghai Composite was modestly lower, while in Hong Kong the Hang Seng Index fell over -1%.  Growth sensitive metals stocks lost ground around the region, as Chinese September consumer price index (CPI came in slightly lower than expected, rising 6.1% from a year earlier,slower than August’s 6.2% on-year increase, and below the 6.2% expected. 

In China the SSE Composite was closed down -0.3% (or -7 points) at 2,431, while in Hong Kong the Hang Seng Index was  down -1.4% (or -256 points)  at 18,501 and in Japan the Nikkei 225 Index was down -0.9% (or -75 points)  at 8,748,while the Indian market was up 1.2%.  


Commodities

The Dollar Index was lower at 77.00 on a higher Euro, while the Australian Dollar last traded higher at 1.0198 Commodities prices were lower.
For the session the Benchmark crude NYMEX for December delivery was surged 3.6% (or $US3.05) settle at $US87.28.  Copper prices are seeking a support level as Copper for December delivery was up 3.2% (or 9 cents) at $US3.4025.  December gold was up 0.8% (or $US12.70) at $US1,680.70. 
 
ASX News Today

BOQ – Bank of Queensland says annual net profit fell by 14 percent to $158.7 million as it forecast a fall in bad debts for fiscal 2012.

BPT – Beach Energy says its east African venture represents huge gas and oil opportunities after reporting strong drilling results from Egypt.

IBG – Ironbark Zinc the Greenland-focused Australian explorer, has secured $US50 million in financing from Swiss giant and major shareholder Glencore.

ILU – Iluka Resources the mineral sands producer has increased its September quarter production by almost 10 percent and said the fundamentals of supply and demand remain solid.

GNS – Gunns says a court challenge against timber company’s right to build its controversial Tamar Valley pulp mill will be heard in Launceston.

KZL – Western Areas has rejected speculation it may buy Kagara Ltd’s Lounge Lizard nickel mine in WA, despite the asset lying within Western Areas’ main project area.
LEI – Leighton Holdings says its Offshore division has been awarded an additional $US79.85 million contract by Iraq’s South Oil Company (SOC).

PNA – PanAust has downgraded its earnings guidance and adjusted its production forecast due to lower copper prices and extreme rainfall at its Phu Kham operation in Laos.

QAN – Qantas flight disruptions are getting worse, as unions including the engineers prepare to walk off the job.

SPT – Spotless refuses to pay cleaners at Melbourne’s Qantas domestic terminal the same as cleaners working for ISS in the Virgin and international terminals.

RIO – RIO Australia’s biggest iron ore producer has set a new quarterly record for sales of the steelmaking commodity, and maintained its 2011 forecast for iron ore production of more than 240 million tonnes.

VBA – The ACCC has indicated it will clear Virgin Australia’s partnership with Singapore Airlines, saying the deal will benefit consumers.

Local Corporate Reporting

Ansell Ltd (ANN)                 Full year 2011 AGM�
Fortescue Metals (FMG)      September Quarterl Report�
Mount Gibson Iron (MGX)  Q1 2012 Activities Report 

Ex-dividend Date
CUP – Countplus Limited
PPG – Pro-Pac Packaging
 
Market Summary 

ASX – to open higher
US & UK/Europe –  Higher

Commodities Stock Index  up 3.3%
Gold Stocks Index up 3.0%
Oil Stocks Index  up 3.6% 

US ADRs – Broadly Higher!!…

BHP up 2.2% & RIO up 2.5%; AWC up 1.1%
ANZ up 2.2% & NAB up 3.0%
NEM  up 4.9%, JHX down -0.3%, NWS up 0.9%

By Michael Hevern
Head of Research

 
For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

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Stock Market Analysis: Spectre of Eurozone Debt Clouds Investor Sentiment

Thursday, August 18th, 2011

* U.S. stock markets only managed modest gains by the end of the sesion despite surging higher early.
* European stock markets generally traded lower overnight, as investors remain cautious due to ongoing uncertainty.
* Asian stock markets ended mixed yesterday.  Australia bucked the trend after earning reports pushed stocks higher.
* Commodities prices traded lower, and Gold prices found support above $US1,786 and while crude-oil closed above $US87.

Australian shares traded steadily higher yesterday, as corporate earnings reporting season continued.  Once again the gains were driven by the ASX top 20 stocks, in particular the banks and BHP.  Aussie investors are proving remarkably resilient, as they reversed the lead from overseas where investors displayed caution over the eurozone sovereign debt concerns.  Yesterday the All Ordinaries (XAO) closed up 1.3% at 4372, while the S&P/ASX 200 (XJO) closed up 1.3% at 4304.  The major S&P/ASX 200 sectors finished in the green with the leaders being  Info Tech stocks closing up 3.0%, Consumer Staples stocks up 2.1%, Real Estate Trusts up 1.7%, Energy stocks up 1.5% and Financials stocks up 1.4%.

The SPI Futures is trading around the key pivot level of 4000, and ended down -0.3% (or -12 points) at 4,260. The key levels for our index today are 4200 to 4320. Overnight global stocks traded lower in Europe as the leaders of France and Germany failed to address fears that the euro zone debt crisis could spread further, and in the US the markets could not hold on to early gains.  The miners will be in focus today as commodities prices traded higher overnight.

See below for ASX listed companies in the news today.

Economics News Today

*  June Westpac-Melbourne Institute Indexes of Economic Activity Leading Index
*  August Skilled Vacancies Index
*  Q2 Labour Price Index

U.S. Markets

U.S. stock markets managed only modest gains by the end of the sesion despite surging higher early.  Investors remain cautious over the problems with the European sovereign debt crisis and some earnings reports disappointed. 

The Dow Jones Index ended flat, as did the S&P 500 and tech-heavy Nasdaq Index.  The defensive sectors supported the market with the utilities, telecoms and consumer staples sectors all higher, as investors went in search of yield.  The financials also saw some support, up 0.6% for the session.  The industrials and technology dragged and were down over 0.3% on the session. 

Dell disappointed the market after reporting slowing sales and lowering its full-year revenue target.  This sparked a sell-off in technology stocks as investors are starting to factor in a slowing global economy. 

In economic news, U.S. producer prices climbed rose 0.2% in July, despite energy prices falling, while core prices, which strip out volatile food and energy components, jumped 0.4% last month for their eighth consecutive gain.

Commodities had a good session with gold futures at record levels of $US1,790 and crude-oil rose above $US87 per barrel and copper again rose over $US4.00 per pound.

All ten company groups that make up the S&P index traded mixed:  Industrials were down -0.3%, Materials were up 0.3%, Energy was up 0.4%, the Financials sector was up 0.6%, Technology was down -0.5%, while Consumer Staples were down -0.1%.

The Dow Jones closed up 0.1% (or 4 points) at 11,410, the S&P 500 index closed up 0.1% (or 1 point) at 1,194, the Nasdaq ended down -0.5% (or -12 points) at 2,511, and the smaller cap Russell 2000 was down -0.1%.

European Markets

European stock markets generally traded lower overnight, as there is still uncertainty about how the eurozone leaders will address the ongoing sovereign debt crisis.  The Stoxx Europe 600 index rose 0.2%. 

The London and German markets dropped, led lower by financial shares, but in Paris, the CAC 40 index rose 0.7%.  Regional financial stocks continued to post losses due to the comments from the German and French leaders as they proposed governance changes for the euro zone, but dismissed the idea of countries jointly issuing euro-zone bonds.

In London the FTSE 100 index was down -0.5% (or -26 points) at 5,332, the German DAX was down -0.8% (or -46 points) at 5,949, while in France the CAC was up 0.7% (or 23 points) at 3,254. 

Asian Markets

Asian stock markets ended mixed yesterday.  Australia bucked the trend after earning reports pushed stocks higher. 

In Japan the Nikkei Stock Index ended lower.  In Hong Kong the Hang Seng Index rose but finished well off its highs, while in China the Shanghai Composite fell, as stocks declined on worries about futher monetary tightening. China Coal Energy surged 6.9% after its first-half profit beat expectations and was upgraded. Financial stocks climbed in Hong Kong, as bargain hunters stepped in after recent steep losses. Volatility still rules around the region, as investors remain cautious about the debt crisis in Europe and the disappointing quarterly German and eurozone growth reports heightened concerns about the export demand and overall global economic growth.

In China the SSE Composite was down -0.3% (or -7 points) at 2,601, while in Hong Kong the Hang Seng Index was up 0.4% (or 77 points) at 20,289 and in Japan the Nikkei 225 Index was down -0.6% (or -50 points) at 9,057. The South Korean KOSPI was up 0.7% for the session, while the Indian market was up 0.7%.

Commodities

The Dollar Index was lower at 73.75 on a higher Euro, while the Australian Dollar last traded higher at 105.51. Commodities prices were generally lower.

For the session the benchmark crude NYMEX for August delivery was up 0.8% (or $US0.72) settle at $US87.36.  Copper prices are still below the key pivot level as Copper for August delivery was up 0.9% (or 3.5 cents) at $US4.0385.  August gold was up 0.5% (or $US3.50) at $US1,790.00.   

ASX News Today

BLD – Boral, the building materials company, posted a net profit of $166 million from continuing operations for the year to June, (versus a $19 million loss last year) and has reported a rebound in earnings due to lower costs and fewer asset write downs. However Boral shares were sold down after the company announced it had bought out France-based joint venture partner Lafarge for $530 million.

BXB – Brambles has posted a six per cent rise in full-year profit and will sell its information management division, Recall, to focus on pallet pooling solutions, and pay down debt.  Brambles Limited closed up 4.4%.

CSL – CSL, the blood products maker, reported a full year profit decline of 10.7 percent due to a hit from unfavourable movements in the Australian dollar, and problems where Greece’s state-owned hospitals could not afford to pay millions of dollars worth of bills, resulting in a write-off of $25 million in CSL’s accounts for the year. CSL Limited shares finished down -2.7%.

DJS – David Jones the retailer recently reported Matthews International Capital Management has announced it has taken a 5% stake in the company and the shares closed up 3.7%.

FGL – Fosters is in the news again with international brewer SABMiller making a hostile bid for Foster’s Group, valuing the Australian company at about $US10 billion, and has taken the takeover offer, valued at $4.90/share, directly to shareholders after the Melbourne-based brewer rejected its earlier bid. Foster’s Group closed up 0.6%.

QAN – Qantas is facing stiff opposition to its major restructure which will cost up to 1000 Australian jobs, as local unions expect international support for their fight against the move.  Qantas Airways closed up 3.3%.

WDC – Westfield Group has confirmed earlier full year guidance for earnings, distributions and revenue after posting a 32 percent fall in half year profit, with revenue down 24.5 percent and flagging asset sales worth $2 billion in the US, UK and NZ. Westfield Group finished up 0.7%.

WPL – Woodside Petroleum, Australia’s biggest oil and gas company, has exceeded analysts’ forecasts by reporting a 3.6 percent rise in first half underlying profit due to higher crude-oil prices. Woodside Petroleum finished up 1.2%. CEO Peter Coleman will travel to East Timor in the coming weeks in a bid to break the deadlock over the controversial Sunrise gas project.  

WRT – Westfield Retail Trust, the shopping centre owner, has reported funds from operations for the first half of this year were slightly below analyst estimates and kept its outlook for the full year unchanged. The company looks to conduct takeovers and sell if assets have gained value.  Westfield Retail Trust closed up 0.4%.

Local Corporate Reporting

AMP – AMP Ltd first half results
ASX – ASX Ltd full year results
PTM – Platinum Asset Management Ltd full year results
GMG – Goodman Group full year results
WES – Wesfarmers Ltd full year results
VRL – Village Roadshow full year results
 

Ex-dividend Date

Argo Investments (ARG)
Australian United Investments (AUI)
Diversified United (DUI)

Market Summary

ASX – to open flat
US & UK/Europe – lower
US ADRs – Broadly higher

BHP up 1.7% & RIO up 1.4%; AWC up 2.4%
ANZ up 2.8% & NAB up 2.1%
NEM  up 0.6%, JHX up 2.4%, NWS down -0.5%

Commodities Stock Index up 0.7%
Gold Stocks Index up 1.2%
Oil Stocks Index up 0.6% 

By Michael Hevern
Head of Research

For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

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ASX Company News: BHP Billiton Acquires Petrohawk Energy

Monday, July 18th, 2011

BHP Billiton (BHP) and Petrohawk Energy Corporation announced  that the companies have entered into a definitive agreement for BHP Billiton to acquire Petrohawk for US$38.75 per share by means of an all-cash tender offer for all of the issued and outstanding shares of Petrohawk, representing a total equity value of approximately US$12.1 billion and a total enterprise value of approximately US$15.1 billion, including the assumption of net debt. The transaction would provide BHP Billiton with operated positions in the three world class resource plays of the Eagle Ford and Haynesville shales, and the Permian Basin.

BHP Billiton CEO, Marius Kloppers, said the acquisition was a natural fit with BHP Billiton’s strategy. “The proposed acquisition of Petrohawk is consistent with our well defined, upstream, Tier 1 strategy and provides us with even greater exposure to the world’s largest energy market, while also broadening our geographic and customer spread. Importantly, our offer and the associated substantial premium represent a unique opportunity for Petrohawk shareholders and recognise the growth opportunities embedded in its portfolio immediately.”

www.bhpbilliton.com

http://www.traderdealer.com.au/fundamentals/bhp

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ASX Company News: Asciano Secures Coal Haulage Contract In Queensland

Thursday, June 16th, 2011

Asciano (AIO) announced that it has entered into a long term, take or pay contract with BHP Mitsui Coal Pty Ltd for the annual movement of up to 4.2 million tonnes of coal in Queensland commencing on 1 January 2013. This new contract will see Asciano haul up to 4.2 million tonnes per annum. The coal will be hauled via the northern missing link (GAPE Project) which will connect the Newlands and Goonyella coal systems when the project is completed in early 2012.

Asciano Managing Director and Chief Executive Officer, John Mullen said, “We are extremely pleased to welcome BHP Mitsui Coal as a valued customer of our Pacific National coal haulage business in Queensland. Asciano is offering an innovative and flexible rail haulage approach A key objective was to maximise the opportunity for tonnage through the newly expanded port of Abbot Point. The result is an innovative operational solution and contract that drives the efficient behaviour of both rail and coal operator.

www.asciano.com

http://www.traderdealer.com.au/fundamentals/aio

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Stock Market Analysis: Caution Ahead of US Employment Report

Friday, June 3rd, 2011

* U.S. stock markets dropped for a second straight session overnight, after another round of soft economic data.
* Asian share markets sold-off sharply yesterday, as the U.S. market had suffered heavy losses.  Concerns of a faltering global economic recovery raised fears about the future demand for Asian exports.
* Commodities prices traded generally lower.

The SPI Futures is trading below the key level of 4800, ending flat at 4,605.  The key levels for our index today are 4630 and 4550.  Australian shares will likely trade flat today after mixed leads from key markets in the U.S. and Europe.

Yesterday investors were pessimistic after the release of data showing GDP fell by -1.2% last quarter, as the economy was hit by a series of natural disasters over last summer, and giving the worst quarterly performance since 1974.  This triggered a sharp sell-off where more than $33 billion was wiped from the value of the Australian share market, which fell in line with other global markets due to renewed concerns about a global economic slowdown. 

We still have headwinds the mining tax and potential carbon tax. Expect investors to exhibit caution today, ahead of the U.S. Non-Farm Payrolls Report due out tonight.

See below for ASX listed companies in the news today.

U.S. Markets

U.S. stock markets dropped for a second straight session overnight, after another round of soft economic data worried investors, and there also was caution ahead of tonight’s Non-Farm jobs report.  The tech-heavy Nasdaq managed modest gains though. 

Moody’s Raings Agency dampened the mood further after warning that the United States faces a credit review and potentially crippling downgrade if the $US14.3 trillion national debt limit is not raised soon.  Moody’s also warned that the credit ratings at Bank of America, Citigroup and Wells Fargo could be downgraded.

Goldman Sachs shares were under pressure after reports it had received a subpoena from the Manhattan District Attorney’s office as part of a probe of the firm’s activities leading up to the GFC. 

U.S. crude oil inventories unexpectedly rose last week, showing softer demand and pushing prices below $US100 a barrel.  Gold prices held above $US1500, but copper prices fell again. 

In economic news factory orders fell in April due in part to weaker sales of big-ticket items such as motor vehicles, machinery and computers.

The Dow Jones closed down -0.3% (or -42 points) at 12,248, the S&P 500 index closed down -0.1% (or -2 points) at 1,313, the Nasdaq ended up 0.2% (or 4 points) at 2,773, and the smaller cap Russell 2000 was down -0.1%.

The ten company groups that make up the S&P index traded mixed:  Materials were up 0.2%, Industrials were up 0.5%, the Technology sector was up 0.1%, the Financials sector was up 0.1%, while Consumer Staples were down -0.2% and the Energy sector was down -0.1%.

European Markets

European stock markets suffered heavy losses overnight, mirroring their U.S. counterparts.  Investors savaged stocks as they reacted to the latest downgrade on Greek sovereign debt, and to global data showing the economic recovery is faltering.  The Stoxx Europe 600 index closed down 1.3%. 

Energy stocks fell as crude oil prices traded below $US100 a barrel.  Moody’s Investors Service cut the Greek sovereign rating from B1 to Caa1, assigning a negative outlook.  Greece is reported to be going to present a new austerity plan tonight as talks between it and the European Union, International Monetary Fund and European Central Bank officials wind down.

In London the FTSE 100 index was down -1.4% (or -81 points) at 5,847, as losses were driven by resources, retail and financials stocks. The German DAX was down -2.0% (or -143 points) at 7,074, with losses widespread across all sectors. In France the CAC was down -1.9% (or -75 points) at 3,890. 

Asian Markets

Asian share markets sold-off sharply yesterday, following the heavy losses in the U.S. markets.  Concerns of a faltering economic recovery raised fears about the future demand for Asian exports. 

Mid-week PMI manufacturing data across Asia pointed to easing of activity across the region.  Stocks fell across the board after U.S. ADP jobs data for May fell far short of market expectations, sparking concern about the U.S. Non-Farm Employment Report due out tonight. In Japan stocks sold-off in the face of political uncertainty as Prime Minister Naoto Kan faced a vote of no-confidence, further testing investor nerves about their struggling economy. 

The Shanghai Composite index and the Hang Seng Index gave up over 1.4%.  The sell-off was broad with miners, banks, and technology stocks all lower in the session.

The SSE Composite was down -1.4% at 2,705, the Hang Seng Index was down -1.6% (or -372 points) at 23,254, and in Japan the Nikkei 225 Index was down -1.7% (or -164 points) at 9,555. The South Korean KOSPI closed down -0.4%, while the Indian market was down -0.6%. 

Commodities

The Dollar Index was lower at 74.23 on a higher Euro, while the Australian Dollar last traded lower at 105.85. Commodities prices were generally lower.

For the session the benchmark crude NYMEX for June delivery was up 0.5% (or $US0.46) to settle at $98.46. Copper for June delivery was down -0.6% (or -2.3 cents) at $US4.0950.  June gold was down -0.7% (or -$US10.40) at $US1,534.20.

ASX News Today

ANZ – ANZ says the Australian mortgage arrears is a concern, Fitch ratings agency last week said arrears on mortgage repayments spiked to a record high 1.8 percent in the first three months of 2011, as more Australians struggled with rising costs.

AUT – Aurora Oil & Gas Ltd notes the Marathon Oil Corp’s $3.5 billion purchase of Hilcorp Energy and KKR’s Eagle Ford acreage.

CCV – Cash Converters International says there is no imminent threat to its business from a potential cap on interest rates charged by payday lenders.

CDD – Cardno the consultant engineer says it expects to report a record annual profit in FY11, up by as much as 57 percent on the prior year.

EQN – Equinox Minerals says the acquisition of Australia’s Equinox Minerals by Canada’s Barrick Gold has cleared a hurdle with authorities in Zambia, where its major copper projects are located.

FMG – Fortescue Metals Group’s Andrew Forrest will retire as chief executive and become chairman.  Fortescue also announced that it plans to ramp up annual iron ore output to 155 million metric tons by mid-2013, a year earlier than previously estimated.

NAB – National Australia Bank plunged over five per cent in opening trade after the stock paid a dividend, as investors worried over the bank’s European exposures.

ORD – Ord River Resources has signed a memorandum of understanding (MoU) with its Chinese construction partner to develop a $US600 million alumina refinery in Laos.

QAN – Qantas Airways carried 7 percent more passengers in April compared with the prior corresponding month.

RIO – Rio Tinto says a venture with Chinalco, China’s largest alumina producer, will give it unprecedented access to explore resource-hungry China for copper and other minerals.

TAP – BHP Billiton has exercised its right to buy a gas exploration permit offshore Western Australia from Tap Oil, ahead of a Japanese consortium.

WBC – Westpac plans to open two more branches in China after receiving final regulatory approval to open a branch in Beijing.

WES – Wesfarmers says heavy rainfall during the April quarter at its Curragh metallurgical coal mine in Queensland has delayed recovery efforts, forcing the company to downgrade sales guidance.

Local Corporate Reporting

Oceanagold (OGC) Full year 2010 AGM & Special Meeting 

Ex-dividend Date

None

Market Summary

ASX – to open flat
US & UK/Europe – EU closed sharply lower
US ADRs – Broadly Lower

BHP down -0.2% & RIO down -0.3%; AWC down -1.2%
ANZ down -0.2% & NAB down -1.6%
NEM  down -0.9%, JHX down -1.1% , NWS down -0.4%

Commodities Stock Index down -0.2%
Gold Stocks Index up 0.1%
Oil Stocks Index down -0.3% 

By Michael Hevern
Head of Research

For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

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