Banks weigh on struggling market
January 25, 2010
The Australian market recovered some of the heavy falls witnessed in morning trade to finish 0.7% lower Monday. The negative lead came from across the global markets, prompted by a retreat in commodity prices, tightening lending conditions in China and President Obama’s plan to restrict the size and activity of banks.
The market is now at levels first passed in December 2005, while post-GFC, the market passed through this level in mid-September last year.
In economic news, according to the Bureau of Statistics Australia's producer price index dropped 0.4% in the December quarter. The PPI increased 0.1% the previous quarter and has now had an annual fall of 1.5%.
At the end of the session, the All Ords was down 28.8 to 4,743.1, while the ASX/200 lost 32.7 to 4,717.9. About 2.1 billion shares worth around $4 billion had changed hands.
The banks remained below the line throughout the day, however recovered some of the heavy losses seen in morning trade.
ANZ closed 36c or 1.6% lower at $22.29 and Westpac lost 46c, or 1.8% to $24.92.
NAB retreated 18c to $26.54, while Australia’s largest bank, CBA, was 1.1% cheaper at $55.15.
The insurers followed the banks lower, led by AMP, which shed 11c, or 1.7% to $6.44. Suncorp-Metway was 1.1% lower despite Deutsche Bank upgrading their rating on the stock to a ‘buy’.
The broader Banks and Financials sector was off 1.2%.
The Property Trusts sector shed 1.2%. Australia’s second largest property developer, Stockland, slumped 8c, or 2.1% to $3.79.
Westfield fell 1.3%, while Dexus swung to a gain, up 1.5c, or 1.9% to 82.5c.
Rio Tinto received some respite from the broader market sell-off, with the stock closing 40c higher at $73.34, though still well down over the previous week.
BHP Billiton lost 45c, or 1.1% to $41.25.
Mid-cap stocks received support from bargain hunting investors sending a surprising number above the line, helping the Materials and Resources stocks to be down just 0.5%.
Alumina and Macarthur Coal put on 1.8% and 2.3% to $1.71 and $10.40, while Incitec Pivot rose 3c to $3.34.
Gold miners Newcrest and Lihir were relatively unmoved despite the price of the precious metal continuing to lose ground in New York on Friday.
Among mining industrial stocks Industrea shares rose 2.4% after saying the 2010 outlook was strong despite flagging a decline in profits when it reports in February.
Meanwhile, Ausenco rallied 5.4% after saying it had been awarded a US$130 million contract for work on an African copper mine. Its shares closed at $4.33.
The broader Industrials sector retreated 0.8%.
Sector majors Leighton and Brambles finished either side of the gain line. Leighton added 17c to $38.45 and Brambles dipped 4c to $6.68. Macquarie Infrastructure rallied 1.8% to $1.25.
Airlines Virgin Blue and Qantas lost ground, down 3.2% and 2.1% to 60c and $2.85 respectively.
CSR shed 3.5c, or 1.8% to $1.915.
The Energy sector weakened 0.6% as losses among the sector heavyweights outweighed strong gains from the coal miners.
Woodside lost 37c, or 0.8% to $44.00. A number of workers at the company's Pluto LNG project went on strike Friday over an accommodation dispute.
This afternoon Woodside announced that well offshore Western Australia had struck gas, with the potential to expand the size of its Pluto LNG project.
Oil Search and Santos were 0.5% and 1.2% cheaper respectively.
Among the gainers were Whitehaven Coal which swung from a steep loss at the open to a 24c, or 5.1% gain to $4.94 as investors hunted for bargains.
New Hope climbed 19c, or 4.2% to $4.70.
The Consumer Staples sector was lower by 0.2%, with most stocks in the sector edging marginally lower.
Wesfarmers lost 17c or 0.6% to $29.20, while rival Woolworths shed 2c, or 0.1% to $27.48.
Retailers, gamers and media stocks were all out of favour with investors, sending the Consumer Discretionary sector tumbling 0.9%.
Harvey Norman and David Jones lost 1.6% and 1.4% respectively, while JB Hi-Fi dropped 2.4% to $21.64 meaning its has lost almost 9% of its market cap in the last two-months.
Newscorp was down 26c, or 1.5% to $16.52, while Fairfax bucked the trend advancing 2c, or 1.1% to $1.81.
Telstra jumped 8c, or 2.4% to $3.45, while the Telecommunications sector finished 2.1% higher.
Around the region, the Nikkei 225 fell 49.3 to 10,541.3, while the Straits Times Index lost 8.6 to 2,811.1. Meanwhile, the NZSE50 shed 1.8 to 3,188.7. The Hang Seng dropped 183.8 to 20,542.4.
Spot gold was trading at US$1,098.52 per ounce, and the Aussie was buying US$0.9054.
Ausenco secures US$130m contract
Ausenco said it had secured a US$130m project to complete the Kinsevere Stage II copper project in the African nation of the Democratic Republic of Congo for Anvil Mining. Ausenco said the contract was to provide Engineering, Procurement and Construction (“EPC”) work for the company following Anvil’s successful US$200 million debt and equity refinancing at the end of last year.
At the end of the day, Ausenco shares were up 22c to $4.33, while Anvil Mining shares were up 5c at $3.55.
BOQ prices $250m notes
Bank of Queensland priced a $250 million of 2012 Government Guaranteed fixed and floating rate notes. While acknowledging the need for a government guarantee, BOQ has previously criticised its differential cost structure.
At the close, Bank of Queensland shares were down 10c at $11.06.
Industrea forecasts drop in 1H profit
Industrea expects an adjusted NPAT for the half year in the range of $17.2 - $17.8m, down from $24.6m in the previous corresponding period. The mining products and services provider said the expected decline was due to Handlebar Hill revenue in the previous period and timing of technology sales.
At the finish, Industrea shares were up 1c to 43.5c.
Atlas announces reserve upgrade
Atlas Iron substantially lifted iron reserves at Wodgina to 20.9Mt at 57.7%Fe. Despite this 120% increase in project reserves, AGO shares were trading 1.9% lower in morning trade.
At the finish, Atlas Iron shares were down 4c to $2.10.
MIG portfolio valuation sees slight decline
Macquarie Infrastructure Group completed a portfolio valuation as part of its restructuring proposal. The MIG directors’ portfolio valuation as at 31 December 2009 was $5.08 billion compared with $5.09 billion at 30 June 2009.
At the close, MIG securities were up 2.2c to $1.25.
The market is now at levels first passed in December 2005, while post-GFC, the market passed through this level in mid-September last year.
In economic news, according to the Bureau of Statistics Australia's producer price index dropped 0.4% in the December quarter. The PPI increased 0.1% the previous quarter and has now had an annual fall of 1.5%.
At the end of the session, the All Ords was down 28.8 to 4,743.1, while the ASX/200 lost 32.7 to 4,717.9. About 2.1 billion shares worth around $4 billion had changed hands.
The banks remained below the line throughout the day, however recovered some of the heavy losses seen in morning trade.
ANZ closed 36c or 1.6% lower at $22.29 and Westpac lost 46c, or 1.8% to $24.92.
NAB retreated 18c to $26.54, while Australia’s largest bank, CBA, was 1.1% cheaper at $55.15.
The insurers followed the banks lower, led by AMP, which shed 11c, or 1.7% to $6.44. Suncorp-Metway was 1.1% lower despite Deutsche Bank upgrading their rating on the stock to a ‘buy’.
The broader Banks and Financials sector was off 1.2%.
The Property Trusts sector shed 1.2%. Australia’s second largest property developer, Stockland, slumped 8c, or 2.1% to $3.79.
Westfield fell 1.3%, while Dexus swung to a gain, up 1.5c, or 1.9% to 82.5c.
Rio Tinto received some respite from the broader market sell-off, with the stock closing 40c higher at $73.34, though still well down over the previous week.
BHP Billiton lost 45c, or 1.1% to $41.25.
Mid-cap stocks received support from bargain hunting investors sending a surprising number above the line, helping the Materials and Resources stocks to be down just 0.5%.
Alumina and Macarthur Coal put on 1.8% and 2.3% to $1.71 and $10.40, while Incitec Pivot rose 3c to $3.34.
Gold miners Newcrest and Lihir were relatively unmoved despite the price of the precious metal continuing to lose ground in New York on Friday.
Among mining industrial stocks Industrea shares rose 2.4% after saying the 2010 outlook was strong despite flagging a decline in profits when it reports in February.
Meanwhile, Ausenco rallied 5.4% after saying it had been awarded a US$130 million contract for work on an African copper mine. Its shares closed at $4.33.
The broader Industrials sector retreated 0.8%.
Sector majors Leighton and Brambles finished either side of the gain line. Leighton added 17c to $38.45 and Brambles dipped 4c to $6.68. Macquarie Infrastructure rallied 1.8% to $1.25.
Airlines Virgin Blue and Qantas lost ground, down 3.2% and 2.1% to 60c and $2.85 respectively.
CSR shed 3.5c, or 1.8% to $1.915.
The Energy sector weakened 0.6% as losses among the sector heavyweights outweighed strong gains from the coal miners.
Woodside lost 37c, or 0.8% to $44.00. A number of workers at the company's Pluto LNG project went on strike Friday over an accommodation dispute.
This afternoon Woodside announced that well offshore Western Australia had struck gas, with the potential to expand the size of its Pluto LNG project.
Oil Search and Santos were 0.5% and 1.2% cheaper respectively.
Among the gainers were Whitehaven Coal which swung from a steep loss at the open to a 24c, or 5.1% gain to $4.94 as investors hunted for bargains.
New Hope climbed 19c, or 4.2% to $4.70.
The Consumer Staples sector was lower by 0.2%, with most stocks in the sector edging marginally lower.
Wesfarmers lost 17c or 0.6% to $29.20, while rival Woolworths shed 2c, or 0.1% to $27.48.
Retailers, gamers and media stocks were all out of favour with investors, sending the Consumer Discretionary sector tumbling 0.9%.
Harvey Norman and David Jones lost 1.6% and 1.4% respectively, while JB Hi-Fi dropped 2.4% to $21.64 meaning its has lost almost 9% of its market cap in the last two-months.
Newscorp was down 26c, or 1.5% to $16.52, while Fairfax bucked the trend advancing 2c, or 1.1% to $1.81.
Telstra jumped 8c, or 2.4% to $3.45, while the Telecommunications sector finished 2.1% higher.
Around the region, the Nikkei 225 fell 49.3 to 10,541.3, while the Straits Times Index lost 8.6 to 2,811.1. Meanwhile, the NZSE50 shed 1.8 to 3,188.7. The Hang Seng dropped 183.8 to 20,542.4.
Spot gold was trading at US$1,098.52 per ounce, and the Aussie was buying US$0.9054.
Ausenco secures US$130m contract
Ausenco said it had secured a US$130m project to complete the Kinsevere Stage II copper project in the African nation of the Democratic Republic of Congo for Anvil Mining. Ausenco said the contract was to provide Engineering, Procurement and Construction (“EPC”) work for the company following Anvil’s successful US$200 million debt and equity refinancing at the end of last year.
At the end of the day, Ausenco shares were up 22c to $4.33, while Anvil Mining shares were up 5c at $3.55.
BOQ prices $250m notes
Bank of Queensland priced a $250 million of 2012 Government Guaranteed fixed and floating rate notes. While acknowledging the need for a government guarantee, BOQ has previously criticised its differential cost structure.
At the close, Bank of Queensland shares were down 10c at $11.06.
Industrea forecasts drop in 1H profit
Industrea expects an adjusted NPAT for the half year in the range of $17.2 - $17.8m, down from $24.6m in the previous corresponding period. The mining products and services provider said the expected decline was due to Handlebar Hill revenue in the previous period and timing of technology sales.
At the finish, Industrea shares were up 1c to 43.5c.
Atlas announces reserve upgrade
Atlas Iron substantially lifted iron reserves at Wodgina to 20.9Mt at 57.7%Fe. Despite this 120% increase in project reserves, AGO shares were trading 1.9% lower in morning trade.
At the finish, Atlas Iron shares were down 4c to $2.10.
MIG portfolio valuation sees slight decline
Macquarie Infrastructure Group completed a portfolio valuation as part of its restructuring proposal. The MIG directors’ portfolio valuation as at 31 December 2009 was $5.08 billion compared with $5.09 billion at 30 June 2009.
At the close, MIG securities were up 2.2c to $1.25.
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