Australian Shares

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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

20

Silence of the bulls

I notice that yesterday and, so far as I can tell, today as well, none of the usual suspects is out on the hustings suggesting you buy stocks on the dip. Last time we were at similar lows, Eureka Report, Motley Fool, Intelligent Investor and a herd of others bellowed, bawled and mooed a bullish

5

Trading Day

The S&P/ASX 200 Index lost 1% or 39 points to 3863, hitting a 2 year low, after a strange and volatile day with a 50 point rally in the morning that collapsed during the day, even though the banks all put on solid gains. The answer was all that does not shine – gold. In

9

2008 redux for commodities

The signs are looking ominous for commodity prices. Merrill Lynch has a report out anticipating a 2008 style decline in prices. Such historical analogies rarely work, but they do help organise thinking. Merrill analysts are clearly responding to some strong anecdotal evidence from China: With the accumulating anecdotes coming from the coal and property sector

9

Trading Day

The S&P/ASX 200 Index lost 1.5% or 57 points to 3907, after a volatile day from absorbing last night’s crash across Euro and US markets and a “statement” from the G-20. In after hours future trading, the market is slipping below 3900, whilst Euro and US futures point to some minor gains. Asian markets experienced

7

Equities Spotlight – Webjet (WEB)

In this weeks second equities spotlight (what a bonanza!), we take a look at online travel company Webjet (WEB). The Business According to the FY11 annual report, Webjet is an: ..an electronic manager, marketer and credit card merchant of travel and related services utilising the internet and other mediums. Webjet started out as a website-based service that

7

Trading Day

The S&P/ASX 200 Index closed down 2.6% or 106 points to 3964, after a worldwide “risk off” event coming after the US Federal Reserve announced its Operation “Twist” last night. In after hours future trading, the market is slipping whilst Euro and US futures point to similar losses. Asian markets experienced similar moves, Japan’s Nikkei

11

Brokers on the run

  During periods of gloom, analysts like to revert to the obvious. Goldman Sachs has a report out noting that “consistent with periods of high risk aversion investors have moved to discount the potential earnings risk by discounting the prospective pe (price earnings ratio)” Well, yes. It’s called a bear market, I believe. Goldman notes that current

7

Trading Day

The S&P/ASX 200 Index closed up 0.8% or 31 points to 4071, after recovering some mild losses in the morning. In after hours future trading, the market is steady whilst Euro and US futures point to similar gains. Asian markets experienced smaller moves, Japan’s Nikkei 225 closed up 0.2% to 8741 points, whilst the Hang

16

Myer leaves the building

An interesting hypothetical is posed in a Merrill Lynch report. What would happen to Westfield Retail Trust if Myer were to exit its portfolio? It shows just how much the department stores are struggling to hold their position. First, Merrill reckons it would lift the EPS quite substantially: We have been asked by clients what

10

Equities Spotlight – Newscorp

With the recent News of the World scandal and the Australian media inquiry it has prompted, today we’ll take a look at the media empire at the centre of it all – Newscorp. The Business Newscorp is a global, diversified media company which operates in the following areas: Cable Network Programming, Filmed Entertainment Television Direct

7

Trading Day

The S&P/ASX 200 Index closed down 1% or 41 points to 4040, after recovering some mild losses in the morning, slipped after lunch on news of Italy’s rating downgrade and RBA minutes indigestion. In after hours future trading, the market has slipped another 5 points whilst the Euro and US futures point to similar losses.

2

Forward defense

In the current gloom, picking good defensive options is becoming the strategy de jour. Obvious options are gas and uranium, which are yet to kick in, but will surely be just as potent as iron ore and coal in time.  As RBS points out, the Reserve Bank agrees: Recent RBA research reiterates a bright future

39

Australian Share Market Valuation Report

In recent months, pretty much every time there’s been a fall in the share market, a battery of experts have leapt into the press to advise ‘buy the dip’. The assumption behind this advice is the simple platitude that the share market always bounces back. Unfortunately what is never considered is the probability that the next

5

Trading Day

The S&P/ASX 200 Index reversed Friday’s gains and closed down 1.6% or 68 points to 4081, possibly on reaction to President Obama’s deficit cuts and tax hike plan. In after hours trading, the market is steady whilst the Euro and US futures point to similar losses. Asian markets experienced similar moves, although the Nikkei 225

4

Trading Day

The S&P/ASX 200 Index closed up 1.9% or 77 points today in a strong session to 4149. In after hours trading, the market is steady whilst the Euro and US futures point to similar gains. Asian markets experienced similar moves, with the Nikkei 225 up 2.25% to 8864 points, whilst the Hang Seng was up

3

Trading Day

The S&P/ASX 200 Index closed up 1.6% or 66 points today to 4071. In after hours trading, the market is steady whilst the Euro and US futures point to similar gains. Asian markets experienced similar moves, with the Nikkei 225 up 1.69% to 8662 points, whilst the Hang Seng was steady at 19073 points. In

10

Trading Day

The S&P/ASX 200 Index closed down 1.6% or 67 points today to 4005, after a solid up-session in the morning, when the one-two punch of lower inflation and Moody’s downgrade of French banks tipped the bourse into the red. In after hours trading, the market is steady whilst the Euro and US futures point to

7

Trading Day

The S&P/ASX 200 Index closed up 0.8% or 34 points today to 4072. In after hours trading, the market is up another 15 points whilst Euro and US futures point to gains. Asian markets experienced similar moves, with the Nikkei 225 up nearly one percent to 8616 points, whilst the Hang Seng is closed for

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Is the equity market a dill?

Yes, I’d say it is. As FOMC member, Thomas Koenig put it recently in a CNBC video interview with Steve Liesman: …a capitalistic economy – if you really believe in its long-term benefits – has cycles. People do make mistakes. See, the market is valuable not because it’s the smartest in the world, but because

11

Did you hear about Cochlear?

Cochlear (COH, previously covered at MB here) announced a voluntary recall of its Nucleus 5 implant products yesterday.  The share price was promptly massacred, closing down 20% to $57.50.  The main jist of the recall was as follows: COH is undertaking a voluntary recall of the unimplanted Nucleus CI500 cochlear implant range and is currently

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Trading Day

The S&P/ASX 200 closed down 3.7% or 156 points down today to 4038. In after hours trading, the market has slumped another 20 points whilst awaiting the Euro and US sessions, both of which are down 2-4%. Asian markets experienced similar losses, with the Nikkei 225 down 2.3% to 8535 points, now below its earthquake

4

Have AUD, will travel

As the readers of MacroBusiness would know, we’ve been banging on about Dutch disease in the Australian economy for some time.  Namely, the higher Australian dollar (that results from our commodities boom and the weakness of other nations currencies) is hampering our manufacturing and export sectors.  This viewpoint was reinforced by a recent round of

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Trading Day

The S&P/ASX 200 finished flat again today, up only 7 points or 0.2% to 4194 points after a strange session where strong bids pushed the market up over 0.5% before the post-lunch session prompted a sell off going into the weekend. In after hours trading, the market has slipped whilst awaiting the Euro and US

9

Trading Day

The S&P/ASX 200 finished flat today, up 4 points or 0.1% to 4188 points after a volatile session where it breached 4200 points before a disappointing jobs data release. In after hours trading, the market is just holding on to these gains awaiting the Euro and US sessions, which will likely react to both Ben

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The banks are cheap (and?)

Morningstar has come out with a report that argues the market has got Australian banks wrong. Provided Australian house prices hold up — a very big assumption — they may well be right, although whether that is a reason to rush out and buy banks is an arguable point. Their franked dividends are an obvious plus,

4

Trading Day

The S&P/ASX 200 rebounded strongly today, up 107 points or 2.6% to 4183 points. In after hours trading, the market is holding on to these gains awaiting the Euro and US sessions, which are also likely to be bullish. Asian markets experienced slightly smaller gains, with the Nikkei 225 up 1.9% to 8756 points whilst

4

Trading Day

The S&P/ASX 200 fell again today, down 66 points or 1.6% to 4075 points. In after hours trading, the market is up slightly to 4100 points waiting (dreading?) the European market open and a probably gap down when the US re-opens after the long weekend. Asian markets experienced similar losses, with the Nikkei 225 losing