Australian Shares

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

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.