Australian Shares

29

Rate cuts won’t save stocks

In normal times, an interest rate cut is usually an indication that it is time to get more bullish, or at least less bearish, about equities. But these are not normal times. The signals being sent by negligible or zero interest rates in developed markets are of extreme distress, and that is creating aversion to

2

Trading Day

The S&P/ASX 200 Index closed up 113 points or 2.66% to 4255 points in a very positive session coming after a strong rally on US and Euro markets on Friday night. In after hours trading, the index has slipped slightly, but Euro and US markets are pointing to slightly higher opens. Asian markets were also

5

Trading Day: duck and cover

The S&P/ASX 200 Index closed down 3 points to 4141 points in a strange session coming into the EU Meeting this weekend. In after hours trading, the index is up 10 points, with Euro and US markets pointing to slightly higher opens. Before I go on, something happened after “lunch” about 2pm today on the

5

Trading Day: gold crunched

The S&P/ASX 200 Index closed down 68 points or 1.66% today to 4144 points following heavy falls on commodity markets and poor leads on overnight markets. In after hours trading, the index is steady, with Euro and US markets pointing to small losses. Asian markets experienced similar moves, with Japan’s Nikkei 225 down 1% at

11

Boring old retail

The great disleveraging is continuing to the point where it is almost a deleveraging. I must ask H&H about the semantic distinction. So, OK, we all know that retail is struggling. But at what point is it fairly priced? A Morningstar report notes what is well known, at least for MB readers, that the savings

2

Trading Day

The S&P/ASX 200 Index closed up 27 points or 0.64% today to 4213 points following the rumor-led rise from overnight US and Euro markets. In after hours trading, the index is steady, with Euro and US markets pointing to modest opens. Asian markets experienced similar moves, with Japan’s Nikkei 225 up 0.35% at 8772 points,

1

Telstra plods to the fore

Telstra shareholders have approved the NBN deal, so brokers are unsurprisingly rushing to opine. Telstra offers a high, fully franked yield, so the share price only has to stay stable for it to be a decent play, at least compared with the rest of what is a very uncertain market. According to Citi, which has

4

Cochlear after the recall

Back in September,  I posted on the recall of Cochlear’s Nucleus 5 implant – COH’s primary device which makes up the lion’s share of Cochlear’s revenues (see full article here).  Since the recall there has been no other information released by Cochlear, who promised to give an update at the AGM.  Well, the AGM was held

6

Trading Day

The S&P/ASX 200 Index closed down 88.5 points or 2.11% today to 4186 points following weak leads from overnight US and Euro markets. In after hours trading, the index is down slightly, with Euro and US markets also pointing to lower opens. Asian markets experienced similar moves, with Japan’s Nikkei 225 down 1.4% at 8749

4

All eyes on Fortescue

Fortescue Metals is the main subject of broker attention. The company seems to have pretty stable operations so its price will be very much a reflection of sentiment about iron ore, which is in turn an assessment of China’s economic health. That could well be perilous waters. Still, the fundamentals look almost enticing, were it

22

Europe loses track of time

You have to wonder if the Germans actually think that a prolonged period before resolution is preferable to something more market friendly and swift. I was only talking with a colleague last week about the different time frames in play at the moment. In Europe you can go to a city where there is a

19

Trading Day: Tom Jones rally

The S&P/ASX 200 Index closed up 69 points or 1.6% today to 4275 points following a strong finish to the week on US and Euro markets on Friday. In after hours trading, the index is down slightly, with Euro and US markets also pointing to modestly higher opens. Asian markets experienced similar moves, with Japan’s

5

The art of stating the obvious

The phones are quiet in broker land as bearish gloom grips. But the analysts’ reports still have to be produced and in theory such bearish conditions create good opportunities to buy. In theory. Wesfarmers, which is diversified, big and reasonably cashed up, is getting some analyst attention. Goldman Sachs has a buy. Goldman says the stock

19

Chart of the Day: Markets in context

Today’s chart is part of a great series of continually updated charts by DShort at his blog here. This puts the current rally in equity markets around the world in context: the chart illustrates the comparative performance of World Markets since March 9, 2009. The start date is arbitrary: The S&P 500, CAC 40 and

1

Equities Spotlight: Metcash (MTS)

In this week’s equities spotlight, we examine an emerging force in the Australian food retail space – Metcash Ltd. The Business Metcash (MTS) is Australia’s leading wholesale distribution and marketing company specialising in grocery, fresh produce, liquor and hardware.  The wholesale distribution networks supplies IGA retailers, various liquor stores and Campbells – a distributor of

13

Chart of the Day: Qantas’ real problem

Qantas (QAN) has been making headlines recently through industrial disputes with their engineering workforce.  Shareholders may be concerned the dispute will impact QAN’s image or maybe even its profits through future strike action. Well, investors can rest assured that strike action won’t have much of an impact on QAN’s future. As we can see from

5

Trading Day: Unreal undollar rally

The S&P/ASX 200 Index closed up 93 points or 2.2% today to 4162 points following gains on “undollar” or non-USD risk markets around the world. In after hours trading, the index is up slightly, with Euro and US markets also pointing to strong opens. Asian markets experienced similar moves, with Japan’s Nikkei 225 up 1.25%

14

Trading Day

The S&P/ASX 200 Index closed up 143 points or 3.5% today to 4069 points following gains on risk markets around the world. In after hours trading, the index is off slightly, with Euro and US markets also pointing to strong opens. Asian markets experienced similar moves, with Japan’s Nikkei 225 trading up 1.4% at 8500

9

Trading Day

The S&P/ASX 200 Index closed up 54 points or 1.4% today to 3926 points after absorbing the strange end of session rally on Wall Street overnight. In after hours trading, the index is up another 15 points, with Euro markets also pointing to firm opens. Asian markets experienced falls, with Japan’s Nikkei 225 closing down

34

Bull versus bear is dead

As the S&P500 rocketed into the close this morning on yet another European bailout rumour, it occurred to me just how broken the equity market is right now. We are trapped in bear market dynamics of grinding sell-offs punctuated by explosive short-covering rallies with no end in sight. The obvious conclusion to draw is that we

11

Trading Day

Another volatile day on the S&P/ASX 200 Index, with a large absorption of data, closing down 25 points or 0.6% today to 3872 points. The market is up slightly in the after hours futures market. Asian markets had larger falls, Japan’s Nikkei 225 closing down 1% at 8452 points, and the Hang Seng also down

11

Trading Day

The S&P/ASX 200 Index closed down 111 points or 2.8% today to 3897 points. The market has dropped 10 points in the after hours futures market, whilst Euro and US markets are also set to open down, and at crucial support levels. Breakouts below are likely to result in the next step down. Asian markets

25

Value investing in volatile times

Several MacroBusiness bloggers have talked about the possibility of share markets entering a period dubbed the “Great Volatility”.  This is essentially a secular bear market where prices rise and fall 20‑50% within a year but give low growth (1-2%) on average over the long term.  This would be in contrast to the “Great Moderation” –

3

Trading Day

The S&P/ASX 200 Index closed exactly flat today at 4008.6 points. The market has dropped 0.5% in the after hours futures market, whilst Euro and US markets are also set to open down, probably on end of month and end of quarter portfolio re-adjustments. Asian markets were mixed, Japan’s Nikkei 225 closing flat at 8700

4

Trading Day

The S&P/ASX 200 Index closed down slightly after a 1.5% drop in the morning, recovering to finish 0.8% or 31 points lower to 4008. The market has slipped below 4000 in the after hours futures market, whilst Euro markets are set to open flat or slightly down and US to open 1% higher, as all

13

Trading Day

The S&P/ASX 200 Index closed up after a strong rise in the morning, rising 0.9% or 35 points to 4039. The market is steady in the after hours futures market, whilst Euro and US markets are set to open flat or slightly down. Asian markets were mixed, Japan’s Nikkei 225 gaining steady at 8615 points,

25

Chart of the Day: ASX50 = ASX8

Accounting and financial group KPMG has constructed a detailed review of the top 50 listed companies – the ASX50 – following the end of the corporate earnings results. Here are some key findings, which are revealing: Statutory (reported) profits for 12 months ending 30 June 2011 are up 33% Underlying (cash) profits for same period

17

Trading Day

The S&P/ASX 200 Index had a stonking day, rising some 3.6% or 140 points to 4004. This one day reversal – on the back of a possible Euro TARP – has continued in the futures market, with the ASX200 up to 4030 points and all other risk markets responding, in kind. Asian markets experienced slightly

0

Fleeing Asia

The torpor in Europe is spooking the markets, and there is a global rush to find safe havens. That is probably what is behind the drop in the $A — after all about two fifths of the ASX is foreign ownership — and it is behind what is happening in much of the region. An