Month: October 2015

Morning Report Friday 16th October 2015

Rate rises and China become almost a distant memory

The ASX 200 changed its tone today, following the US overnight, ending the day +38 points (+0.7%) at 5,268.
The bank sector led the way, despite Westpac (WBC) remaining on trading halt, pending its capital raising. Commonwealth Bank (CBA) soared 1.5% to $776.55.
The clear winner in the Iron Ore sector continues to be Fortescue Metals (FMG) rallying 4.8% to $2.40 versus its peers e.g. BHP off 0.5% to $25.00.
Have a great weekend and lookout for the Weekend Report

Best Sector – Utilities

Do ‘strangers’ Westpac and US Wal-Mart imply bad news for local retailers?

The ASX 200 finished strongly today, after a weak lead from overseas. The market finished up 33 points (0.6%) to 5,230.
BHP Billiton (BHP) announced it raised $6.5b in the U S, European and London debt hybrid markets, in a measure to refinance its existing debt. It’s expected $1.5b will be used to cover dividends for the next three years, with the balance used to pick up assets in copper and/or oil. BHP finished up 44c 1.8% to $25.12.
RIO Tinto (RIO) enjoyed the strength of the day and closed up $1.22 (2.3%) to $54.25. Fortescue Metals (FMG) rocketed up on its quarterly report when it announced that it had repaid part of its debt and brought the cost of production lower than analyst’s expected. The stock closed up 13c (6%) to $2.29.
Asciano (AIO) was the weakest link, as the ACCC prolonged its decision on being taken over by Brookfield. AIO ended 7.6% lower to $7.88.

Best Sector – Materials
Worst Sector – Telecom

Are there any lessons that can currently be learnt from European markets?

The ASX 200 managed to end the day only 6 points lower to 5197, after trading near its low of 5164 in the morning.
The miners kept the market weaker, with BHP Billiton (BHP) finishing down 13c to $24.68 and RIO Tinto (RIO) managed to close above the $53.00 level to $53.03, down 47 cents.
The worst sector was Energy for the third time running, with Santos (STO) down 6.8% to $5.18 and Origin Energy (ORG) down 7.4% to $5.49.
On a brighter note the Health Care stocks were stronger with Ansell (ANN) having a good day up 3.6% to $19.18. Sonic Health Care (SHL) closed up 55c (3%) to $18.63 whilst HealthScope (HSO) was up 5c (+2%) to $2.59.

Best Sector – Health Care
Worst Sector – Energy

Three Australian stocks with almost identical bullish chart patterns

The ASX 200 resumed the negative sentiment this week, ending the day 29 points lower (-0.6%) to 5,203.
The Energy sector led the decline, again. Woodside Petroleum lost 2.1% to $31.36, whilst OilSearch (OSH) managed to close slightly higher, up 0.3% to $7.36.
There was only one stand out of the ‘big four’ banks, ANZ, which closed 0.6% higher to $28.51 as the bank sees growth from business customers from China and being one of the least affected banks on investor home loans.

Best Sector – Consumer Staples

For today’s title we have been inspired by William Shakespeare and his famous play ‘Hamlet’.

The ASX 200 began the week on a negative tone, ending the day 0.9% lower to 5,232 on a low volume session.
Most commodities dragged, led by the Energy Sector – Woodside Petroleum (WPL) closed 1.8% lower at $32.02, while Oil Search (OSH) ended 4.2% lower at $7.34. Today, subscribers received a live alert on a switch in this sector.
Although the Materials sector outperformed the broader market, they were also hurt. The majors, BHP Billiton (BHP) lost 0.9% to $25.6 and RIO Tinto (RIO) down 0.7% to $54.81. While Fortescue Metals (FMG) was the clear winner, up 5.3% to $2.40.
With the US Bond markets closed tonight, another safe haven asset (gold) closed higher – Newcrest (NCM) up 1.5% to $14.71 and Regis Resources (RRL) up 8.1% to $2.00.
The Banking sector didn’t help, with the big four banks down for the day and Commonwealth Bank (CBA) down 1.2% to $74.65.

Best Sector – Materials