Daily FNArena News - Australia

Ten Network’s earnings fell short of expectations and with the market expecting a slowdown in advertising in coming months most brokers see little reason to stay in the stock.

Sims Group dominates the scrap metal sector but Intersuisse is attracted to the growth potential of CMA Corporation and rates the stock as a Buy at current levels.

Austock Securities has initiated coverage on property developer Sunland Group with a Hold rating but sees earnings upside longer-term from the group’s exposure to the Dubai and UAE markets.

While shares in Sigma Pharmaceuticals appear cheap brokers are yet to get excited as earnings risk remains to the downside and there is little evidence the group’s bundling strategy is working.

ThinkSmart has entered the Italian market with its business to business processing technology and with the US and Spain to follow JP Morgan and ABN Amro see upside from current levels.

Brokers are broadly positive on the proposed merger of Lihir and Equigold, particularly from the Lihir side given the geographical diversification the deal would provide.

AWE has decided to conduct a review of Tui oil reserves, and given strong production numbers analysts are expecting good things.

Financial markets have begun to factor in rate cuts in Australia this year but brokers suggest ongoing inflationary pressures mean the bias remains in favour of higher rates.

The annualised growth rate of the Westpac-Melbourne Institute Leading Index of Economic Activity fell below long term trend in January.

Australia’s unemployment rate has fallen to its lowest level since 1974 and this puts added pressure on the RBA as it tries to bring inflation under control.