Interesting day ahead
August 6th, 2009 by Bryden Elssmann
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 9280.97 | -39.22 | -0.4% |
| NASDAQ | 1993.05 | -18.26 | -0.9% |
| S P 500 | 1002.72 | -2.93 | -0.3% |
| FTSE 100 | 4647.13 | -24.24 | -0.5% |
| Nikkei 225 | 10252.53 | -122.48 | -1.2% |
| ASX 200 | 4,264 | -44.8 | -1.0% |
| COMEX Gold - Aug 09 | 966.3 | -3.4 | -0.4% |
| COMEX Silver - Jul 09 | 14.76 | 0.065 | 0.4% |
| COMEX Copper - Jul 09 | 281.2 | 1.65 | 0.6% |
| WTI Spot | 71.97 | 0.55 | 0.8% |
| AUD-USD | 0.8412 | 0.0006 | 0.1% |
| Aluminium | 2015.5 | 111 | 5.8% |
| Copper | 6132 | 215 | 3.6% |
| Lead | 1930.5 | 36.5 | 1.9% |
| Nickel | 19740 | 1060 | 5.7% |
| Tin | 15355 | 555 | 3.8% |
| Zinc | 1851 | 56 | 3.1% |
The Australian markets looks like it may open lower this morning following a negative lead from Wall St after some weaker than expected economic reports dented hopes for a global recovery. Weak services sector data in the U.S. cooled optimism of a global recovery and ended Wall Street's four-day rally. The Dow gave up 39 points, or 0.4%. The Standard & Poor's 500 lost 3 points, or 0.3%, and the tech-heavy Nasdaq composite eased 18 points, or 0.9%. The retreat reverses Wall Street's recent run, which has been spurred by better-than-expected second-quarter corporate results and signs of economic stabilization. Last month was the strongest July for the Dow and S&P 500 in two decades.
However, strong gains in metals prices may boost mining companies after copper hit a fresh 10-month high. BHP Billiton is expected to open up about 1.7 percent based on trade in its New York listing BHP.
The Aussie Dollar is buying 84.12 US cents, 79.91 Yen, 58.35 Euro cents and 49.47 British Pence.
Company News
NWS - Shares fell 2.1 per cent to $14.42 yesterday. The company has posted a loss for the full year of US$3.4 billion, hurt by impairment charges and a slump in advertising. The loss compares to a profit of US$5.4 billion last financial year. The company booked a non-cash pre-tax impairing charge of US$8.9 billion and recorded charges of US$312 million, primarily related to restructuring. However according to the Australian Associated Press, CEO Rupert Murdoch remains upbeat saying he is certain that News Corporation is poised to profit, and deliver strong returns, as the economy rebounds. News Corp’s profits have been increasing year on year for the past four years.
QAN - Shares rose 0.42 per cent to $2.38 yesterday. CEO Alan Joyce has ruled out a merger of the company with another airline believing that commercial and regulatory hurdles mean that it is unlikely any consolidation in the industry will happen in the next 10 years. According to the Australian Financial Review, Mr Joyce instead says he will turn his focus to managing the airline’s core business and expanding Jetstar’s presence in Asia. Qantas has held talks with Malaysia Airlines and Singapore Airlines over possible merger deals which fell apart last year. Mr Joyce says the time is absolutely not right now and that the company sees liberalization as a prerequisite for this to fully occur, and this is going to take some time in the region. Qantas recorded net profit of close to $1 billion in 2008.
SUN -Private equity firm J.C. Flowers has run the numbers on embattled Queensland banking and insurance group. Analysts have valued Suncorp's banking and wealth management business at between $3billion and $5bn. The share price has risen this week on speculation that a formal bid may be announced, the share price closed yesterday at $7.64.
GMG is currently in a trading halt until tomorrows “capital management initiatives" announcement, putting to rest long-running speculation that the group plans a capital-raising. The Australian Financial Review reported that Goodman Group plans a A$1.2 billion equity issue, and a A$500 million issue of preference shares to China Investment Corp. No news yet as to what level they intend to raise capital. Last price 49cents.
Dividend reminder
QBE is expected to open higher this morning following a lead from US insurers. We expect strong buying support, around $20-$21, in the stock for the dividend of 61cents, ex-div 26 AUG. last price $20.35
WDC goes ex dividend on Tuesday, 11 Aug, for 53.25cents. Last price $12.05
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
Disclaimer
The material in “Market Fox” (newsletter) is of a general nature only and neither purports nor is intended to be regarded as advice. No consideration has been given or will be given to your investment objectives, financial situation or needs. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk. Not all risks can be or will be explained in the newsletter. Previous results are no indication of future results. Actual results achieved in the market can vary considerably. The Directors and Representatives of Freeman Fox Ltd and their associates may hold securities in the companies presented.
The research made available in this newsletter is for your private use only and it is protected by applicable copyright laws and other applicable intellectual property right laws. You may not reproduce, distribute, disseminate, broadcast, sell, publish, circulate or give for free, any of the materials made available to you in this newsletter without first seeking the prior written consent of Freeman Fox Ltd.
Freeman Fox Ltd is not required to update any of the content made available in this newsletter, including but not limited to any research commentary, forecasts, recommendations or other analysis in this newsletter. Therefore, for the avoidance of any doubt, material made available in this newsletter may not be accurate after the date of publication or the date on which it is displayed in the newsletter.
To the extent permitted by law, Freeman Fox Ltd and their respective directors, officers, employees, contractors and agents disclaim all responsibility to you for any loss, liability, claim, expense (including but not limited to legal costs and resultant defence or settlement costs) or damage whatsoever, whether direct, consequential, special, incidental, punitive or indirect (including but not limited to loss of profits, trading losses and damages that result from delay, loss or inconvenience) arising out of or in connection with the content of the newsletter and/or any omissions from the content whether in contract, tort (including negligence), statute or otherwise and even if Freeman Fox Ltd has been advised of the possibility of such damage or loss.
If you require assistance in relation to your personal investment situation, contact an authorised representative of Freeman Fox Ltd.