Australian Stocks: What Happened Today?

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            [0] => ((AQG))
            [1] => ((FOX))
            [2] => ((FXL))
            [3] => ((BBG))
            [4] => ((SGT))
            [5] => ((TRS))
            [6] => ((CDD))
            [7] => ((FOX))
            [8] => ((SIR))
            [9] => ((EHL))
            [10] => ((SBM))
            [11] => ((EVN))
            [12] => ((BDR))
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            [0] => AQG
            [1] => FOX
            [2] => FXL
            [3] => BBG
            [4] => SGT
            [5] => TRS
            [6] => CDD
            [7] => FOX
            [8] => SIR
            [9] => EHL
            [10] => SBM
            [11] => EVN
            [12] => BDR
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)

This story features EMECO HOLDINGS LIMITED, and other companies.
For more info SHARE ANALYSIS: EHL
The company is included in ALL-ORDS

By Stephen Hogan, Senior Private Client Adviser, Equities/Derivatives

Australian Market

The Australian market (XJO) closed down -94.3 points or 1.85% to 5011.3 today. The Australian market took a dive on the open and moved lower all day to finish just off the day's low of 5007.9 at 3:54pm. It looks as though we took the lead from overseas again, overnight the Dow Jones fell -93.39 points or 0.60% to 15,518.70, and the S&P 500 dropped -9.77 points or 0.57% to 1,697.37 with speculation that the Fed will taper stimulus possibly as soon as next month and extremely likely that it will be this year. All market sectors were down over one percent for the day led by the bank shares. The best (least bad) performing sector was the A-REIT sector, falling -1.05% and the worst was Gold, falling -3.89% followed by the Materials sector, falling -2.47%.

In economic news, the number of home loans approved in June has grown 2.7%. According to a report from the ABS, there were 51,001 approvals in the month, up from 49,642 approvals in May. Forecasts for were for a rise of 2.0% in June. Total housing finance by value rose 1.2% in June, seasonally adjusted, to $23.690 billion.

The Australian Industry Group (AIG) Housing Industry Association Australian Performance of Construction Index (PCI) rose 4.6 points to 44.1 for the month of July. Construction activity has now fallen for 38 straight months although the pace of decline has lessened. A reading below 50 indicates contraction. The month saw solid improvements in house building and engineering construction, suggesting the building industry has put the worst behind it.

Deutsche Bank's Australian operation has recruited Senior Goldman Sachs executive James McMurdo to take charge of overseeing the European investment bank's franchise as equity markets are rebounding and deal making activity expected to pick up, starting next year. Mr McMurdo has most recently been a partner at Goldman Sachs based in London running the Wall Street banks' private equity group for Europe. He was previously co-head of investment banking for Goldman's Australian business. The move represents the latest shake-up among the ranks of top investment banks over the past year with Bank of America Merrill Lynch's local boss Craig Drummond recently being named as National Australia's Bank chief financial officer.

Alacer Gold Corp ((AQG)) is selling its Higginsville and South Kalgoorlie mines, which together produced 176,000 ounces in 2012/13, in order to focus on lower-cost mines it is developing in Turkey and  has said it expects to receive bids within a month to sell two gold mines. AQG Chief Executive David Quinlivan said, "Certainly some (potential buyers) are Asian-backed operators that already have an Australasian base. We are expecting indicative bids soon."  Quinlivan declined to name the interested parties when asked about how the sale was progressing. He said he had a put a one-month deadline on offers. A group of seven one-time Australian favourites including Alacer Gold, OceanaGold and Silver Lake Resources And Evolution Mining have clocked up $2.5 billion in write downs this year.

Twenty-First Century Fox Inc ((FOX)) has reported higher revenue and profit because of growth at its cable operations and film studio. The entertainment company's portfolio of cable networks reported a quarterly operating income before depreciation and amortization (OIBDA) soared 25% to U.S. $1.8 billion on higher affiliate fees and advertising revenue. Fox is growing its cable franchise and plans to invest $US200 million next year. It is launching new channels including Fox Sports 1 this month, a competitor to Walt Disney Co's ESPN, and a new channel FXX aimed at young adults. Fox executives said the company's cable networks account for two-thirds of total earnings before interest, taxes, depreciation and amortisation (EBITDA). Some of the networks include the Fox News Channel, FX Networks and National Geographic channels.

Flexigroup Limited ((FXL)) has posted a net profit after tax of $72.1 million, up 18% from last year. FXL managing director and chief executive Tarek Robbiati said, "With full-year [net profit after tax] growth accelerating relative to the [first-half 2013 financial year] growth rate, this is a strong result across the business,"  The financial services group has declared a fully franked final dividend of 7.5c per share.   

AUD is currently trading at $0.8958, down -$0.0028 against the USD.

Top Performers

Billabong International Limited ((BBG)) up $0.045 or 10.11% to $0.49

Singapore Telecommunications Limited ((SGT)) up $0.05 or 1.48% to $3.42

The Reject Shop Limited ((TRS)) up $0.14 or 0.85% to $16.68

Cardno Limited ((CDD)) up $0.05 or 0.83% to $6.05

Twenty First Century Fox Inc ((FOX)) up $0.29 or 0.83% to $35.11

Bottom Performers

Sirius Resource NL ((SIR)) down -$0.24 or -9.30% to $2.34

Emeco Holdings Limited ((EHL)) down -$0.02 or -8.33% to $0.22

St Barbara Limited ((SBM)) down -$0.035 or -7.53% to $0.43

Evolution Mining Limited ((EVN)) down -$0.06 or -7.45% to $0.745

Beadell Resources Limited ((BDR)) down -$0.05 or -7.14% to $0.65

Our Comments

Looking at the past few days on the U.S. markets it seems we had some catching up to do. As mentioned in the morning summary, today we saw the market test its weakness which stalled when approaching the 5000 level. With the reporting season commenced and the election a month away we can expect some volatility but if the U.S. market closes higher tonight we should see a good bouncetomorrow.

(For a more comprehensive summary of last night’s market action see FNArena’s Overnight Report.)
 

Re-published with permission. Views expressed are not by association FNArena's (see our disclaimer).

Stephen Hogan is an Authorised Representative of Novus Capital. Authorised Representative No.345411 – http://www.stephenhogan.com.au

Novus Capital Limited ("Novus") is holder of Australian Financial Services Licence No 238 168. Novus, its directors, officers, associates and employees each declare that they, from time to time, may hold interests in financial products and/or earn brokerage, commission, fees or other benefits from financial products mentioned in this e-mail or attached documents. Unless specifically stated within this e-mail or an attached document, any information communicated by this e-mail constitutes unsolicited general financial product advice which has been compiled without regard to any investor's individual objectives, financial situation or needs. It is not specific advice for any particular investor. Before making any decision about the information provided, you need to consider the appropriateness of this information having regard to your individual objectives, financial situation and needs and consult your adviser. Any indicative information and assumptions used here are summarised and also may change without notice to you, particularly if based on past performance or relate to a future matter.

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