{"id":62142,"date":"2013-07-10T17:06:19","date_gmt":"2013-07-10T07:06:19","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2013\/07\/10\/australian-stocks-what-happened-today-126\/"},"modified":"2013-07-10T17:06:19","modified_gmt":"2013-07-10T07:06:19","slug":"australian-stocks-what-happened-today-126","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2013\/07\/10\/australian-stocks-what-happened-today-126\/","title":{"rendered":"Australian Stocks: What Happened Today?"},"content":{"rendered":"

\n\tBy Stephen Hogan<\/a>, Senior Private Client Adviser, Equities\/Derivatives<\/p>\n

\n\tAustralian Market<\/strong><\/p>\n

\n\tThe Australian market (XJO<\/span>) closed <\/span><\/span>up 19.7 points or 0.40% to 4901.4<\/b><\/span> <\/span>today. We had a big charge higher in the morning but pulled back for the afternoon today. Overnight the Dow Jones rose 75.65 points or 0.50% to 15,300.30. We began trading today following suit from overseas, making a high of 4949.9 but after some data releases from China around mid day the market slipped almost back to opening price. The last hour of trading was a small rally. The best performing sector for the day was Health Care, rising 1.60 and the worst was the A-REIT, falling -1.02%.<\/span><\/p>\n

\n\t <\/span><\/p>\n

\n\tIn economic news, the Customs Administration announced today that China's exports dropped 3.1% in June compared to the year earlier, the first decline since Jan 2012.  Imports dropped 0.7%, leaving the country with a trade surplus of U.S. $27.1 billion for the month. That compared with market forecasts of a 4.0% rise in exports, an 8.0% increase in imports and a trade surplus of U.S. $27.0 billion.  <\/span><\/p>\n

\n\t <\/span><\/p>\n

\n\tDomestically, the Westpac Consumer Sentiment survey released today showed a fall of -0.05% in July from June, which rose 4.7%. Year on year the index was 3.0% higher. The outlook for finances over the next 12 months dipped by 2.7%, but was still up 15.8% on July last year. The survey is taken by 1,200 people.<\/span><\/p>\n

\n\t <\/span><\/p>\n

\n\tVirgin Australia Holdings Limited ((VAH<\/span>)) and Air New Zealand Limited ((AIZ<\/span>)) have been approved by the competition regulator Australia Competition and Consumer Commission (ACCC<\/span>) to go ahead with extending their alliance on trans-Tasman routes for 3 more years. However the ACCC<\/span> wouldn't drop the conditions requiring the two airlines to retain a certain number of flights on some routes. Also a request for a 5 year extension was denied on the grounds of the dynamic nature of the aviation industry.<\/span><\/p>\n

\n\t <\/span><\/p>\n

\n\tWestpac Banking Corporation ((WBC)) is intending to raise up to $750 million via subordinated notes through investors. The subordinated notes should pay holders a return of 2.3%-2.45% as well as the 90 day bank bill swap rate. The bank has said the debt issue will bolster its capital position, as regulators require banks to make their balance sheets more conservative. This comes after ANZ<\/span> ((ANZ<\/span>)) announced yesterday that its own offer of a hybrid debt issue had received $1 billion worth of buying interest.<\/span><\/p>\n

\n\t <\/span><\/p>\n

\n\tKingsgate<\/span> Consolidated Limited ((KCN<\/span>)) has received environmental approval from the Chilean government for its local gold and silver mine. <\/span><\/span>Kingsgate<\/span> said an environmental impact assessment submission for the Nueva<\/span> Esperanza project, in the Atacama<\/span> region of Chile, had been approved, but the feasibility study was still being completed. KCN's<\/span> chief executive Gavin Thomas said ''we remain confident that the project will continue to advance despite the volatile metal price conditions.''<\/span><\/p>\n

\n\t <\/span><\/p>\n

\n\tAUD is currently trading at<\/span> <\/span>$0.9188, up $0.0013 <\/b><\/span>against the USD.<\/span><\/p>\n

\n\tTop Performers<\/strong><\/p>\n

\n\tBradken<\/span> Limited ((BKN<\/span>)) up $0.32 or 7.21% to $4.76<\/span><\/p>\n

\n\tEnergy World Corporation Limited ((EWC<\/span>)) up $0.025 or 5.88% to $0.45<\/span><\/p>\n

\n\tMount Gibson Iron Limited ((MGX<\/span>)) up $0.03 or 5.83% to $0.545<\/span><\/p>\n

\n\tLinc<\/span> Energy Limited ((LNC<\/span>)) up $0.06 or 5.61% to $1.13<\/span><\/p>\n

\n\tResolute Mining Limited ((RSG<\/span>)) up $0.03 or 5.36% to $0.59<\/span><\/p>\n

\tBottom Performers<\/strong><\/p>\n

\n\t
\n\tBillabong<\/span> International Limited ((BBG<\/span>)) down -$0.025 or -10.42% to $0.215<\/span><\/p>\n

\n\tFleetwood Corporation Limited ((FWD)) down -$0.46 or -10.02% to $4.13<\/span><\/p>\n

\n\tDiscovery Metals Limited ((DML<\/span>)) down -$0.015 or -8.11% to $0.17<\/span><\/p>\n

\n\tCudeco<\/span> Limited ((CDU<\/span>)) down -$0.115 or -6.27% to $1.72<\/span><\/p>\n

\n\tPerseus<\/span> Mining Limited ((PRU<\/span>)) down -$0.03 or -5.83% to $0.485<\/span><\/p>\n

\n\t <\/p>\n

\n\tOur Comments<\/strong><\/p>\n

\n\tToday we purchased Atlas Iron ((AGO)) for the model portfolio albeit only a small position. The iron price is trading really well in a seasonally weak time for the iron price when inventories are generally high however importers in China are still ordering up in big numbers. Atlas is a reasonably low cost producer in expansion mode with very little debt and plenty of cash on hand. As production ramps over the next 18 months earnings are forecasted to increase to 12cps<\/span> 2014, putting it on a forward P\/E of 6.4. Will also believe that AGO is a very big potential takeover target for an overseas business looking to get iron ore exposure in Australia premier resource area. Consensus short term targets amongst major brokers is $1.40 in the short term.<\/span><\/p>\n

\n\t <\/span><\/p>\n

\n\tWe have designated $20k<\/span> or 4% of the portfolio to this position and have long term targets around $2.20.<\/span><\/p>\n

\n\t <\/span><\/p>\n

\n\tWe also bought a small position in Mermaid Marine ((MRM<\/span>)) in line with our overweight position in the oil and gas sector. Mermaid is a brilliant business that provides marine services to offshore oil and gas producers and explorers. Consistent earnings per share growth in the vicinity of 10%-20% and return on equity of over 26% makes this attractive with a 3% yield fully franked to cushion any downside. <\/span><\/p>\n

\n\t
\n\t(For a more comprehensive summary of last night’s market action see FNArena’s<\/span><\/a> Overnight Report.)
\n\t <\/p>\n

\n\tRe-published with permission. Views expressed are not by association FNArena's<\/span> (see our disclaimer).<\/em><\/p>\n

\n\tStephen Hogan is an Authorised<\/span> Representative of Novus<\/span> Capital. Authorised<\/span> Representative No.345411 – http:\/\/www.stephenhogan.com.au<\/a><\/em><\/p>\n

\n\tNovus<\/span> Capital Limited ("Novus<\/span>") is holder of Australian Financial Services Licence<\/span> No 238 168. Novus<\/span>, its directors, officers, associates and employees each declare that they, from time to time, may hold interests in financial products and\/or earn brokerage, commission, fees or other benefits from financial products mentioned in this e-mail or attached documents. Unless specifically stated within this e-mail or an attached document, any information communicated by this e-mail constitutes unsolicited general financial product advice which has been compiled without regard to any investor's individual objectives, financial situation or needs. It is not specific advice for any particular investor. Before making any decision about the information provided, you need to consider the appropriateness of this information having regard to your individual objectives, financial situation and needs and consult your adviser. Any indicative information and assumptions used here are summarised<\/span> and also may change without notice to you, particularly if based on past performance or relate to a future matter.<\/em><\/p>\n

\n\tNovus<\/span> believes that any information or advice (including any financial product recommendation) contained in this document is accurate when issued but do not warrant its accuracy or reliability. Novus<\/span> is not obliged to provide you with updated information or advice if circumstances change. Novus<\/span>, its directors, officers, associates and employees exclude to the full extent permitted by law, all liability of any kind whether in negligence, contract, under a fiduciary duty or otherwise, for any loss or damage, whether direct, indirect, consequential or otherwise, whether foreseeable or not, arising from or in connection with this e-mail or an attached document.<\/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":"

A wrap of the day’s activity on the Australian stock market.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/62142"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=62142"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/62142\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=62142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=62142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=62142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}