##{"id":60920,"date":"2012-11-19T16:27:18","date_gmt":"2012-11-19T05:27:18","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2012\/11\/19\/what-happened-today-16\/"},"modified":"2012-11-19T16:27:18","modified_gmt":"2012-11-19T05:27:18","slug":"what-happened-today-16","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2012\/11\/19\/what-happened-today-16\/","title":{"rendered":"What Happened Today?"},"content":{"rendered":"

\n\tBy Max Ludowici<\/span>, Equities & Derivatives Advisor, 708 Capital<\/p>\n

\n\tThe Aussie market was higher today on hopes of a move toward a resolution in the fiscal cliff issue that has plagued markets since US elections 2 weeks ago. The Australian market was down 2.8% last week and was ready for bargain hunters to pounce on any slightly more positive news from offshore. After a relatively quiet morning, the ASX200<\/span> found some momentum after lunch to finish the day up 25 points or 0.6% to 4361. US House Speaker, John Boehner described the talks with both parties as “very constructive” which was enough for the DOW to reverse a 70 point loss to close the day up 40 points. Volumes were exceptionally light across the board on the ASX<\/span> signalling<\/span> a serious lack of confidence in market and economic conditions. Total turnover for the day was just $3.2B. The uptick in the index was led by the cyclicals<\/span> and bigger miners in particular with BHP<\/span> Billiton<\/span> ((BHP<\/span>)) paring early gains to close the day up 28 cents or 0.85% to $33.21, Newcrest<\/span> Mining ((NCM<\/span>)) pushed higher for the second trading day in a row, bucking a month long losing streak to close the day up 43 cents or 1.75% to $25.00, the big 4 banks were mixed and financials were generally weaker over the day.<\/p>\n

\n\tYou know we’re in the clutches of a nothing day when the most talked about corporate news of the day is about a potential<\/em> LBO<\/span> (leveraged buy-out) from a divisional manager of a mid-cap clothing company. Billabong<\/span> ((BBG<\/span>)) rose as much as 15% intraday on news that the manager of the company’s US division was investigating the possibility of arranging a leveraged buy-out for the company. This follows to failed takeover attempts for BBG<\/span> by TPG<\/span> and Bain Capital earlier in the year. BBG<\/span> closed the day up 7.5 cents or 10% to $81.50.<\/p>\n

\n\tThe other bit of news came from oil and gas heavyweight Santos ((STO<\/span>)) which announced a discovery of a significant new oil and gas prospect at its Browse Basin project offshore Western Australia. STO<\/span> intersected a significant gas column at its Crown 1 prospect with a combined net pay of 61 metres<\/span> prior to hitting target depth of over 5,000m<\/span>. Whilst the find looks pretty special, it’s commerciality is yet to be demonstrated and we all know how difficult the oil and gas game is. The odds are generally stacked against you, particularly at that sort of depth. STO<\/span> closed on its highs up 3.9% or 42 cents to $11.30.This seemed to filter down to the other oil and gas majors, both with and without Browse Basic interests with Woodside Petroleum ((WPL<\/span>)) moving up 35 cents or 1% to $33.56, Origin Energy ((ORG)) rose 41 cents or 4.2% to $10.25 and Oil Search ((OSH<\/span>)) climbed 17 cents or 2.5% higher to $7.03.<\/p>\n

\n\tThe bargain hunters also piled into Lynas<\/span> Corporation ((LYC<\/span>)) today after weeks of heavy selling, pushing the stock up 8 cents or 14.4% higher to 63.5 cents on no public news from the company.<\/p>\n

\n\tEuropean markets are set to open higher following positive leads from Asian markets and the US on Friday night. Tuesday’s extraordinary meeting of euro-zone finance ministers will aim to address Greece’s two year financing issue that had been plaguing markets the last fortnight. The DOW is also set for a positive start with the futures sitting up 22 points.
\n\t <\/p>\n

\n\tThis article produced at the request of and is published by FNArena<\/span> with the expressed permission of 708 Capital.<\/em><\/em><\/p>\n

\n\t708 Capital is a full service stockbroking<\/span> and investment advisory firm. 708 offers investment and market advice to high-net-worth Private and Institutional clients in Australia and across the globe. 708's extensive network of contacts gives its clients exclusive access to ground-level fundraising opportunities and new company listings in a variety of small and large cap ASX<\/span> listed companies. 708 has a longstanding track record of generating exceptional returns for its clients. Click here 708capital.com.au\/contact-us\/<\/a> <\/a>for a no cost consultation and portfolio review or to learn more visit www.708capital.com.au<\/a>. Note: 708 Capital offers wealth management services for Sophisticated and Wholesale Investors only. We cannot assist investors who aren’t classified as Sophisticated Investors<\/em> or have verified assets over AUD$2.5m.<\/em><\/em><\/p>\n

\n\t $\"\"$ <\/p>\n

\n\t708capital<\/span> is a holder of AFSL<\/span>. No. 386279<\/em><\/p>\n

\n\tIMPORTANT DISCLAIMER – THIS MAY AFFECT YOUR LEGAL RIGHTS:<\/em><\/p>\n

\n\tThis document is intended to provide general securities advice only, and has been prepared without taking account of your objectives, financial situation or needs and therefore before acting on advice contained in this document you should consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain financial, legal and taxation advice before making any financial investment decision.<\/em><\/p>\n

\n\tDisclosure of Interests: 708capital<\/span> receives commission from dealing in securities and its authorised<\/span> representatives, or introducers of business, may directly share in this commission. 708capital<\/span> and its associates may hold shares in the companies recommended.<\/em><\/p>\n

\n\tFind out why FNArena<\/span> subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"