Australian Shares

8

Market Morning

Note: Market Morning is an update on overnight markets that was previously performed late in the afternoon in the “Trading Day” post. This will be more timely and provide our readers with an overview before the Asian risk markets open. Risk markets surged overnight, with two factors at play: first in Europe, a very successful

4

Cochlear – brazing for a comeback

Cochlear released the following update on the recent recall of its core product, the Nucleus 5 implant, yesterday: The results of our investigation to date point to a loss of hermeticity from unexpected variations in the brazing process during manufacturing. Brazing is the process that joins the feedthrough to the titanium chassis. Variations in the

11

Trading Day

Note: Coverage of overnight markets will now be done as “Market Morning” before the Asian markets open. Trading Day will focus on the Asian session and Australian stocks. After yesterdays walloping, the S&P/ASX 200 Index closed down just over 2 points to 4060 today, after absorbing another night of turbulence on risk markets. As I

32

Brokers very bullish

With the Aussie share market still battening down the hatches and the 85% probability of a Santa Rally sinking hopes each day, its interesting to see what the consensus is saying about where the market should be. The table below comes from ASXIQ who has collated the median price targets of analysts and brokers followed

1

Market Morning

Note: Market Morning is an update on overnight markets that was previously performed late in the afternoon in the “Trading Day” post. This will be more timely and provide our readers with an overview before the Asian risk markets open. Risk markets fell overnight, most likely due to the comments by ECB President Mario Draghi

19

Trading Day

The S&P/ASX 200 Index closed down almost 100 points or 2.43% to 4060 today, after falling sharply in the morning and following the news of the death of North Korean dictator Kim Jong Il. However, its not the death of a despot that has driven markets down. As I suggested last week, the market appeared

21

Billabong dries up

The slow death march of the retailers continue, with Billabong (BBG) added alongside JB Hi-Fi today, announcing an estimated $20-25 million or approx. 25% drop in earnings (before interest and tax) for the six months ending December 2011, compared to the same period in 2010. The clothes manufacturer and retailer noted that this estimate is

5

Trading Day

The S&P/ASX 200 Index closed up nearly 20 points or 0.47% to 4159 today, after a small rally in the afternoon session. The bourse is still within its short term downtrend channel as seen in the daily chart below: The weekly trend, which clarifies the daily noise of the market, shows the downtrend from April

14

Retail downgrade

JB Hi-Fi (Code: JBH), arguably the best retailer in the country, yesterday announced a 5% downgrade of earnings before interest and tax, even on the back of opening new stores, as price deflation of its core goods continued amidst stagnant spending patterns. The downgrade was announced after the close and as a result, the share

17

Trading Day

After another day of “risk off” in Asian markets, the S&P/ASX 200 Index falling sharply at the open, slumping by midday and recovering slightly, but still finishing down 50 points or 1.2% to 4139: It seems likely, save a Santa Rally, that the market will continue to retrace back to the 4000 support level in

11

Where is the Santa Rally?

The Santa Rally meme has been spread through the mainstream media and the various bullhawks, particularly Clifford Bennett who called it on the 1st December, to finish the year a bit more joyfully. First what is “The Santa Rally”, how statistically significant is it, and what are the chances of it occurring this year? I’ll

4

Trading Day

After another night of risk off, the S&P/ASX 200 Index fell at the open and then rallied in the afternoon before slipping right at the close, down only 2 points to 4190 points: Although there is some support at the 4150 point mark, it is likely the market will retrace back to the 4000 support

6

Seven surprises for 2012

The key to reading markets is, of course, to understand surprises, the unexpected. What actually happens in markets is never predictable, otherwise those who are good at using financial analytics would always be right, and they almost never are. A report by Macquarie attempts to look at some possible surprises for next year, which is

10

Trading Day

After a risk off evening, the S&P/ASX 200 Index fell at the open and broadly held on to losses today, down 1.42% or 59 points to 4193 points, continuining a six day reversal, and breaking its short term uptrend: There is some support at the 4150 point mark, but it is likely the market will

11

Apparently, you should buy Qantas

Why exactly one would buy into airlines remains a bit of a mystery, but for institutions focusing on the big stocks it is hard to avoid trading Qantas to some extent. Deutsche has a buy on the stock, citing potential growth in Jetstar and Qantas’ frequent flyer points business. They might as well point to

7

Trading Day

The S&P/ASX 200 Index climbed just over 1% or 46 points higher to 4249 points today after an early morning surge was sold off during the day. The local bourse seems back on track to 4350 points, the resistance level it was unable to breach throughout all of October. Risk abounds as the Italians go

11

The mysterious millionaires factory

It’s been raining Macquaire (MQG) blogs at MB this week and last, so I’m going to add my two cents worth in this week’s equities spotlight article.  Next week, I’ll be followng up with a Bonds Spotlight article on the Macquarie Note MBLHB. The Business Macquarie is a global financial services company with over 15,000 employers, just

15

Chart of the Day: Sell EZ meetings

I’ve bemoaned the state of rumour driven markets for some time and now a chart from Thompson Reuters offers some perspective on just effected European bank shares have been by the Merkozy symposiafest: The lesson? Buy the European rumour  but don’t hold European bank shares going into a meeting called to fix European bank shares.

1

Buying the bourse

It is always amusing to compare how the ASX has performed against the S&P/ASX 200 stocks (which trade on the ASX). ASX shares have done very poorly against the ASX 200 since the GFC, not suprisingly. A Royal Bank of Scotland report notes that the market has been subdued for about three months, even in

19

Buy MacBank (really?)

Macquarie Group is one of the highest profile casualties of the GFC, and is now trading at about a quarter of its peak of $100. Had it not received government backing even that might not have been possible. But according to Merrill Lynch, it is a buy. That is brave — especially with Europe teetering

12

Trading Day

The S&P/ASX 200 Index closed down 1.4% or 59 points to 4262 today, after absorbing the news that the RBA is indeed on an easing cycle, cutting rates by 25 basis points. Note the blip at 2.30pm before resuming the trend: Resistance at 4350 points has proved too strong for the bulls, a level it

2

The road to riches

In Australia’s skewed economy, infrastructure should be a reasonably safe bet given that the ridiculous debt games have largely become a thing of the past. Royal Bank of Scotland has a buy on Toll, with a target price of $5.42. New CEO Brian Kruger is not expected to make large changes to the stategy, although

5

Trading Day

Another positive day for the S&P/ASX 200 Index today, climbing 0.77% or 33 points higher to 4321 points after a late surge in the afternoon session: Resistance at 4350 points is the next critical target, a level it was unable to breach throughout all of October: In after hours trading, the Australian SPI futures have

16

Think uranium

The Labor Party has given the go ahead to sell uranium, and according to Merrill Lynch the timing is good. The Fukushima meltdown has certainly dented sentiment around uranium and only a fool would think it will have no effect, but energy remains the best one way bet in the global economy. In particular China’s

52

Trading Day

The S&P/ASX 200 Index gained further today, climbing 1.4% or 58 points higher to 4288 points after a late surge in the afternoon session: The local bourse seems on its way to 4350 points, the resistance level it was unable to breach throughout all of October as it follows other “undollar” assets around the world

59

Trading Day

A tremendous 24 hours in risk markets around the world as they reacted to the combined liquidity of the world’s biggest central banks. The S&P/ASX 200 Index, jumped over 2% at the open this morning, finishing 2.6% or 108 points higher to 4228 points. Since this has busted through resistance at 4150, the support level

32

Fund manager fat cats

A report by Morningstar sheds some interesting light on share funds that invest in large capitalised companies (for which read most super funds). It should be of great interest to anyone who is letting the professionals manage their savings. Unsurprisingly, given the lack of diversity in in the ASX, it shows that large cap fund maangers

81

Today, equities are right

We all know that the kind of jumps that we see regularly in the equity market these days are a symptom of its illness (at least, we all should). That is, in a healthy bull market, you don’t get 3%+ daily jumps almost ever. These kind of swings are typical of bear markets where the

25

Trading Day

The S&P/ASX 200 Index, after a volatile session, finished up 17 points today, its third positive day in a row, to 4119 points, arguably on the back of end of month window dressing as all the gains came in the last 20 mins of the day. The next target for the local bourse is resistance

11

Trading Day – Risk on again?

The S&P/ASX 200 Index jumped almost 2% today on rumor of another European bailout and following 6 down sessions in a row for “undollar” assets. The market closed 73 points or 1.8% higher to 4058 points, creating a “bullish engulfing candle” with very short term support at 3985 points and overhead resistance at 4150 points: