Australian Shares

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

34

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

17

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

1

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

20

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

55

The risks swelling around gas

Australia’s energy sector, or at least LPG and CSG sectors, is not yet creating the impact of iron ore or coal, and in some ways represents more a play on the future than either of the aforementioned commodities. But there is also likely to be a growing polticisation with these industries, if only because of their

7

Seek, and you will find debt

Seek (SEK) released its 2011 results recently.  At Empire Seek has been one of our favourite stocks – a near-wonderful business with good ROE, great branding, total dominance in the Australian and NZ online employment market with a strategy for diversifying revenues through international acquisitions.  Only through lack of a deep competitive moat did it

12

Trading Day

The S&P/ASX 200 slumped over 2% down today, after absorbing Friday’s US job data. The index is down 101 points or 2.4% to 4141 points. In after hours trading, the market is at 4130 points waiting for the European market whilst the US has a day off today. Asian markets experienced similar losses, with the

2

Trading Day

The S&P/ASX 200 closed sharply down today, after yesterday’s poor performance and reaction to overnight markets. The index is down 65 points or 1.5% to 4242 points. In after hours trading, the market is at 4230 points as we wait for US employment figures early Saturday morning (AEST). Asian markets experienced similar losses, with the

11

Trading Day

The S&P/ASX 200 just closed in positive territory today, after a strong morning session. The index is up 11 points or 0.3% to 4307 points. In after hours trading, the market is slightly below 4300 points. Asian markets experienced stronger gains, following EU/US risk markets, with the Nikkei 225 closing up 1.1% at 9060 points

3

Trading Day

The S&P/ASX 200 closed in positive territory today, with strong bids before the close after a mixed session in the morning. The index is up 27 points or 0.6% to 4296 points. In after hours trading, the market is slightly above 4300 points. Asian markets experienced similar gains, with the Nikkei 225 closing steady at

0

Trading Day

The S&P/ASX 200 closed steady today, up only 6 points or 0.1% to 4269 after rallying in the morning to over 4300 points. Asian markets experienced more positive gains, with the Nikkei 225 closing 1.1% higher at 8953 points on the back of bad employment and retail sales numbers whilst the Hang Seng closed up

1

Marginal rubbish

  Reporting season has come in at around expectations, which, it might be added, were not terribly high (outside resources). The question of course is what comes next, and that will heavily depend on what happens in developed economies and China. Deutsche Bank is casting doubt on the expectations of margin growth, which is going in

3

Woolies versus Coles

Woolworths released their FY11 results last Thursday.  The analysts presentation headlined with a 5.1% NPAT increase, which was at the lower end of the 5-8% range given in the last earnings guidance, which was in turn below the 8-10% growth forecast at the start of the year.  As such, the share market reaction was harsh

0

Trading Day

The S&P/ASX 200 closed up strongly today, 63 points or 1.5% to 4263 points. Asian markets experienced similar gains, with the Nikkei 225 closing 0.61% higher at 8851 points, and the Hang Seng up 1.57% at 19891 points. In other risk assets, the AUD increased further and is now above 1.06 against the USD, whilst

7

Optimism won’t save you

The stock broking data train is rolling on, and analysts are mostly hedging their bets, not too keen to be bearish because the predictions do not look too bad. Macquarie states the obvious, that outlooks are all that matters. But by stating it, it does imply that the prospects are not as rosy as they

0

Trading Day

The S&P/ASX 200 closed slightly lower today, down 12 points or 0.3% to exactly 4200 points, recovering most of this week’s losses. Asian markets experienced similar caution, with the Nikkei 225 closing 0.29% higher at 8797 points, and the Hang Seng down 0.16% at 19720 points. In other risk assets, the AUD increased a little

5

Trading Day

The S&P/ASX 200 closed higher today, up 45.2 points or 1.07% at 4212 points, recovering most of this week’s losses. Asian markets experienced similar gains, with the Nikkei 225 closing 1.5% higher at 8772 points, and the Hang Seng up 1.33% at 19724 points. In other risk assets, the AUD remained steady against the USD

11

CBA trumps BofA

An interesting statistic from Bell Potter this morning. Bank of America, the bank that takes in a quarter of America’s deposits is worth less than Commonwealth Bank of Australia. Even adjusting for various factors, such as the obvious stress in the US banking system, which has not happened in Australia, the part nationalisation and the