Defensive play
August 18th, 2009 by Bryden Elssmann
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 9135.34 | -186.06 | -2.0% |
| NASDAQ | 1930.84 | -54.68 | -2.8% |
| S P 500 | 979.73 | -24.36 | -2.4% |
| FTSE 100 | 4645.01 | -68.96 | -1.5% |
| Nikkei 225 | 10268.61 | -328.72 | -3.1% |
| ASX 200 | 4,388 | -72.6 | -1.6% |
| COMEX Gold - Dec 09 | 935.8 | -12.9 | -1.4% |
| COMEX Silver - Sep 09 | 13.975 | -0.747 | -5.1% |
| COMEX Copper - Sep 09 | 277.05 | -6.55 | -2.3% |
| WTI Spot | 65.45 | -2.06 | -3.1% |
| AUD-USD | 0.8203 | -0.0099 | -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% |
Global stocks and commodities suffered a broad-based decline as fear spread around the globe that an economic rebound may be further off than previously thought. China's Shanghai Index posted its biggest single-day percentage drop since November, falling 5.8% and rattling investors. The Dow sank 186.06 points, or 2%, to 9135.34 and the S&P500 was down 24.36 points, or 2.4% at 979.73.
The Australian market looks like it may be in for a weaker start this morning after U.S. stocks took a big tumble overnight on concerns for economic growth. Investors are likely to be cautious ahead of company earnings results due out this week.
NCM
We are looking at Newcrest Mining Limited (NCM) which reported a strong statutory profit this week. The company recorded a profit of $248.1 million, up 85% on the previous corresponding period and underlying profit of $483.1 million. A strong operational performance coupled with successful equity raisings in February and March 2009 have further strengthened Newcrest’s financial position.
The stock is a defensive play and the share price is likely to benefit from any pullback in the market. Please contact your adviser to see if NCM is right for your portfolio.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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