Cautionary note
August 17th, 2009 by Bryden Elssmann
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 9321.4 | -76.79 | -0.8% |
| NASDAQ | 1985.52 | -23.83 | -1.2% |
| S P 500 | 1004.09 | -8.64 | -0.9% |
| FTSE 100 | 4713.97 | -41.49 | -0.9% |
| Nikkei 225 | 10597.33 | 80.14 | 0.8% |
| ASX 200 | 4,461 | 25.1 | 0.6% |
| COMEX Gold - Dec 09 | 948.7 | -7.8 | -0.8% |
| COMEX Silver - Sep 09 | 14.722 | -0.265 | -1.8% |
| COMEX Copper - Sep 09 | 283.6 | -7.8 | -2.7% |
| WTI Spot | 67.51 | -3.01 | -4.3% |
| AUD-USD | 0.8326 | -0.01 | -1.2% |
| Aluminium | 2016.5 | -18.5 | -0.9% |
| Copper | 6386 | -33 | -0.5% |
| Lead | 1905 | 18.5 | 1.0% |
| Nickel | 20755 | -315 | -1.5% |
| Tin | 15550 | -100 | -0.6% |
| Zinc | 1874 | -23.5 | -1.2% |
The market is expected to open weaker this morning after Wall Street ended lower on Friday on concerns about the strength of an economic recovery and ahead of a busy week for company earnings. The Dow fell 76.79 points to close at 9321.40 following a dire report on US consumer sentiment.
On a cautionary note, the fear of missing out is still prevalent amongst investors as the market has rallied more than 50% off its March 09 lows. Basic logic would dictate that there has to be a selloff, and the market may potentially consolidate lower, 10% to 15% in the next month or two. This may start with profit taking in the banking sector as the big four have experienced a very good run in a relatively short period. However, corporate earnings will set the tempo for the market with a number of companies reporting this week including Rio Tinto, Wesfarmers, Qantas and ASX limited. The SPI is currently down 28 points to 4397.
Company News
BLY: Driller Boart Longyear posted an interim first half loss ofUS$5.4 million on Monday and announced plans to raise US$635 million to reduce its debt by nearly 80%. The loss followed an interim net profit last year of US$111.7 million, after the SaltLake City-based, Australian-listed company had sales in the half year ended June 30 of US$462.9 million, down 53% from US$985.2 million a year earlier. BLY last price 44 cents.
AOE: Arrow Energy last traded lower, down 4.87% to $4.30. Britain’s Sunday Telegraph is reporting Royal Dutch Shell has made at least a $3Billion approach to the Australian coal seam gas producer. The oil giant discussed acquiring Arrow several weeks ago as part of wider talks about investing further in the Australian company's assets. Last week, Arrow said it had held talks over the possible sale of some of its assets but didn’t name any suitors. A spokesperson for Shell declined to comment. Arrow Energy climbed out of the red in 2007 and has posted increasing net profits since then
Quote of the day
"How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case."
Robert G. Allen
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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