\n\tBy Stephen Hogan, Senior Private Client Adviser, Equities\/Derivatives<\/p>\n
\tAustralian Market<\/strong><\/p>\n \tThe Australian market (XJO) closed down -38.3 points or -0.78% to 4888.3 today. The market came back from a weak open to hit a high of 4932.8 at around 12:40pm before declining solidly all afternoon and closing on the day's low. Leading our market lower was the state of the Dow Jones on Friday, falling -208.96 points or 1.36% to 15,115.60. The Gold Sector has been the only one to gain anything worth while, adding 3.37%, while all other sectors were flat or down. The Information Technology sector was the clear loser for the day, falling -3.34%.<\/p>\n \n\tSome economic news released today:<\/p>\n \n\tInflation rose 0.2 per cent in May, lifted by the prices of fruit, vegetables, rents and books. It was offset by a drop in the prices of fuel, local holiday travel and accommodation, found a survey by TD Securities released today. The latest data came as the manufacturing sector contracted for the 23rd consecutive month in May, according to the Australian Industry Group's Performance of Manufacturing Index, also released today. In the 12 months to May, inflation rose by 2.2%, near the bottom the Reserve Bank's target band of 2-3%. Inflation had risen 0.3% in April and 0.2% in March.<\/p>\n \n\tThe RP Data – Rismark home values index declined by 1.2 per cent in May after falling by 0.5 per cent in April. Despite consecutive monthly falls, values remain higher at just over 1 per cent since the start of 2013.<\/p>\n \n\tHighlights over the quarter:<\/p>\n \n\tBest performing capital city: Perth +1.9 per cent \n\tRetail sales rose 0.2 per cent in April, slightly below expectations for a 0.3 per cent rise. Company operating profits jumped 3 per cent in the first quarter, outpacing predictions of a 1.5 per cent rise. But ANZ job ads posted another drop, falling 2.4 per cent in May, from 1.7 per cent in April.<\/p>\n \n\tSource: SMH<\/p>\n \n\tThe head of Transpacific Industries Group ((TPI)) has resigned as the waste management company downgrades its profit forecast. Chief executive Kevin Campbell informed the company's board he believed he was unable to provide the longer term commitment needed to drive the continuing transformation of the business, Transpacific said. The announcement was made as the company said it expects to make a net profit of between $46 and $53 million in the year to June 30, including one-off costs of $14 million.<\/p>\n \n\tExpectations of a rate cut tomorrow have been increasing; however the majority of people don't think it will be tomorrow's RBA meeting.<\/p>\n \n\tAUD is currently trading at $0.9631, up $0.0019against the USD<\/p>\n \tTop Performers<\/strong><\/p>\n \tKingsgate Consolidated Limited ((KCN)) up $0.235 or 14.42% to $1.865<\/p>\n \n\tTroy Resources Limited ((TRY)) up $0.23 or 13.33% to $1.955<\/p>\n \n\tEnergy World Corporation Limited ((EWC)) up $0.03 or 7.69% to $0.42<\/p>\n \n\tSilver Lake Resources Limited ((SLR)) up $0.057 or 7.04% to $0.867<\/p>\n \n\tMedusa Mining Limited ((MML<\/span>)) up $0.12 or 4.74% to $2.65 \tCochlear Limited ((COH<\/span>)) down -$11.12 or -17.23% to $53.42<\/p>\n \n\tTranspacific Industries Group Limited ((TPI)) down -$0.108 or -12.13% to $0.782<\/p>\n \n\tSenex Energy Limited ((SXY)) down -$0.048 or -7.87% to $0.562<\/p>\n \n\tBluescope Steel Limited ((BSL)) down -$0.335 or -6.36% to $4.935<\/p>\n \n\tMaverick Drilling and Exploration Limited ((MAD)) down -$0.025 or -6.10% to $0.385<\/p>\n \tOur Comments<\/strong><\/p>\n \n\tFor what seemed like a day that was going to turn out quite good considering the SPI futures were down 57 points over the weekend we ended pretty negative albeit only 38 points compared to 57. We sent out the first Australian Market Digest video report today which highlighted the fact we thought the market will either find support here at 4900 or continue to decline to 4760 in some sort of ABC decline which would last either 45 or 90 days.<\/p>\n \n\tI sensed a little bit of panic out there today so it is a good sign we may be near a low, if you're really worried then take a short position or two and trim back some of the riskier assets or write a few calls.<\/p>\n \n\tHere is a link to the video – https:\/\/www.youtube.com\/watch?v=HEctv4Fjad4<\/a><\/p>\n \n\t(For a more comprehensive summary of last night’s market action see FNArena’s<\/span><\/a> Overnight Report.) \n\tRe-published with permission. Views expressed are not by association FNArena's<\/span> (see our disclaimer).<\/em><\/p>\n
\n\tWeakest performing capital city: Melbourne, -1.9 per cent
\n\tHighest rental yields: Darwin houses with gross rental yield of 6.2 per cent and Darwin units at 6.3 per cent
\n\tLowest rental yields: Melbourne houses with gross rental yield of 3.7 per cent and Melbourne units at 4.6 per cent
\n\tMost expensive city: Sydney with a median dwelling price of $580,000
\n\tMost affordable city: Hobart with a median dwelling price of $321,000<\/p>\n
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\n\tBottom Performers<\/strong><\/p>\n
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