Author: james Carter
• The ASX 200 recovered most of its losses intraday, closing down 24 points, or -0.5% to 5259 after trading as low as 5222.• The banking sector ended mixed, with Commonwealth Bank (CBA) the only one of the ‘big 4’ up 33c at $82.35.• Regis Resources (RRL), a stock I currently hold, roared up 8.8% at $1.61. We remain bullish gold and its sector.• Woodside Petroleum (WPL) closed 1.5% higher at $34.90. As mentioned to subscribers live today, I went ‘long’ WPL via options.• As anticipated, Woolworths (WOW) and Wesfarmers (WES) ended -1.4% at $29.88 and -2.1% at $41.73 respectively, following Tesco, one of UK’s largest super market chain, downgrading their profit guidance overnight.
Oil Plunges BUT “insiders” start buying in the US
· Murray Enquiry Key Takeaways 8th December
The Murray Inquiry is delivered at interestingly difficult times
• The ASX 200 closed 0.7% higher at 5373, after months of speculation around the Murray Inquiry ended with yesterday’s release.• Few surprises were seen in the report hence the market resumed to “normal trading”. Without the potential capital raising overhang the “big 4” banks rallied e.g. National Australia Bank (NAB) ending up 1.8% at $32.97.• The “Aussie IT sector” had a good day led by Seek Ltd (SEK) up 2.7% at $17.70.• The retail sector started the week in the red, with Myer (MYR) continuing its recent decline, down 1.9% at $1.535 and JB Hi-Fi (JBH) down 2.0% at $15.59 – perhaps anticipation of consumers limiting their spending money towards Christmas.• Qantas (QAN) ended 13.8% higher today and up 24.5% for the month so far, after announcing a profit upgrade.
World governments are adopting stricter climate change policies with gaining momentum, which I believe will leave any assets with fringe profitability well and truly in the ground for decades to come. Scientists have said that we should hold temperature increases to 2 degrees celsius for the sake of our planet. This simply MUST start to increase the limits of Carbon Dioxide pollution. A global push to save the planet was typified with representatives from 190 countries, recently meeting in Lima to discuss climate rules. Do not underestimate the world, as a whole is now looking at our atmosphere – it’s not just the “greenies”. Even after the Fukushima disaster in Japan, the country is now planning to restart nuclear reactors next year in an effort to reduce carbon dioxide emissions. Recently, resource stocks have been hammered with collapsing oil and Iron ore prices, but the environment theme I believe, may be lurking in the background to land a knockout blow to the already battered share prices.
• The ASX 200 continues had a breather today, ending 34 points lower for the day at 5335 and up 22 points, or 0.4% for the week.• Today’s weakness seemed to be due to investors closing out positions ahead of tonight’s US non-farm payroll data, as well as Sunday’s anticipated Murray Inquiry.• Estia Health (EHE) had a disappointing debut today, down 18% to $4.74 from its IPO price of $5.75.• The Oil Sector took a beating today, with Woodside (WPL) down 2% at $35.71 and Santos (STO) down 3.8% at $8.48.• On the M&A front, Bradken (BKN) closed 36.5% higher at $4.53, after Pacific Equity Partners and Bain Capital Asia launched a non-binding indicative takeover bid at $5.10.• Please watch out for the Hickman Report tomorrow.
Australia’s GDP yesterday illustrates why local interest rates will fall in 2015
• The ASX 200 continues its winning streak, closing 0.9% higher at 5369 – up 3 of the last 4 days!• Both the Banking and Iron Ore sector contributed to today’s strength, with Westpac (WBC) ending 1.7% higher at $33.40 and RIO Tinto (RIO) up 2.1% at $59.18.• The gold sector continues its Midas touch, with Newcrest Mining (NCM) up 5.3% to $10.53 and Regis Resources (RRL) up 4.2% at $1.495.• Although the retail numbers reported better than expected, Myer (MYR) closed 3% lower at $1.615 and Metcash (MTS) down 3.5% at $1.93 (26% lower for the week!).• Santos (STO) sold off aggressively this morning, losing as much as 95c earlier, to close 61c, or -3.9% to $8.73.• Vocation Ltd (VOC) ended 61% lower at 19.5c after updating investors with its earnings misery. • G8 Education (GEM) however, closed 5.9% higher at $4.51, after it had announced that it anticipates to exceed broker consensus earnings for FY14 and increases its dividend by 20%.
The picture is completing fast – I believe the time is approaching to Move into Cash
Really bullish, there's more to go in the reflation rally
Please enter your login details
Forgot password? Request a One Time Password or reset your password
One Time Password
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
To reset your password, enter your email address
A link to create a new password will be sent to the email address you have registered to your account.
Enter and confirm your new password
Congratulations your password has been reset
Sorry, but your key is expired.
Sorry, but your key is invalid.
Something go wrong.
Only available to Market Matters members
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Smart Phone App
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
