Afternoon Report Monday 13 April 2015
• The ASX 200 closed 8 points lower at 5960 after trading as high as 5996 earlier in the day, unable to break above the 6,000 level again.• The Iron Ore sold off after weaker than expected China Economic Data released this afternoon along with a downgrade in Iron Ore by a major broker sent the sector in the red. RIO Tinto (RIO) closed 2.8% lower at $55.30 and BHP Billiton (BHP) closed 2.44% lower at $29.42. Fortescue Metals (FMG) outperformed the 2 majors, ending the day 2.2% lower at $1.775. This afternoon, subscribers received a trading alert in regards to rolling our Long Call position. **Note the Equity Options market closes at 4.20PM.• Junior Iron Ore player, Atlas Iron (AGO) remains suspended and has announced a suspension in its mining operations. The Domino effect has already begun – Transportation Company, Mcaleese (MCS) went into suspension from trade before market open in relation to its contract with AGO.• Seven Group Holdings (SVW) lost 5.6% to $6.91 as investors remain concerned with its industrial services subsidiary, WesTrac Group - Bad timing as Ryan Stokes was announced as the new CEO of SVW this morning, starting September 2015.• The Oil Sector outperformed Australia’s benchmark. Santos (STO) closed 1.6% higher at $7.64 and Oil Search (OSH) up 1.9% at $7.88. Subscribers also received a trading alert earlier today in regards to taking a profit in our call option trade.• Mergers and Acquisitions (M&A) continue to be the theme so far this year. Today, investors saw this in the telco sector. M2 Communications (MTU) to acquire New Zealand’s third largest internet service provider, Call Plus group for NZ$250m. MTU closed 10.7% higher at $11.55.
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