Australian Stocks: What Happened Today?

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By Max Ludowici, Equities & Derivatives Advisor, 708 Capital

 The scoreboard:

–          The ASX200 closed up 16 points or 0.35% to 4634

–          The AUD broke below 1.05 overnight. Currently reading 1.0479 vs the USD

–          Index and Equity option expiry resulted in $6.4B worth of stock changing hands

Trading on the ASX was surprisingly resilient ahead of the Christmas and New Year break following on from a nervous session offshore as concerns surrounding the Fiscal Cliff weighed on sentiment. Other Asian markets were weaker across the board in today’s session following on from the US session which ended in the red as investors became increasingly pessimistic that a budgetary deal would be reached in time. Republican House speaker John Boehner spooked markets by declaring he would only approve legislation that protected the current income tax rates for Americans earning less than $1m per year.

Strong gains in the defensives offset mild profit taking in the miners as investors appeared unperturbed by the slower trading environment next week.  

Qantas Airways ((QAN)) and Emirates won approval from Australian competition regulators today for their proposed partnership overcoming the biggest hurdle the two companies faces in sealing their alliance. Though the determination as only in draft form, the ACCC announced it had concern that traffic between Australia and New Zealand would be neglected and that the airlines must agree to maintaining minimum flight capacity on the Trans-Tasman route. In other ACCC news, Carsales.com’s ((CRZ)) proposed takeover of the Trading post website was blocked by regulators as it was determined to reduce competition in the online car classifieds market. QAN closed flat at $1.46, CRZ closed down 1.2% to $7.49.

It was hardly earth shattering news but our economic hero Wayne Swan said the federal budget was unlikely to be in surplus by end of this fiscal year breaking the market’s nice uptrend and pushing the market beneath its highs.

Miners BHP Billiton ((BHP)) and Rio Tinto ((RIO)) closed lower down 0.05% and 0.62% respectively. Fortescue Metals ((FMG)) lost 3.43% to close at $4.50.

Dexus Property ((DXS)) closed up 4.5% to $1.055 following an announcement that It had sold the majority of its industrial assets in the US for $560m above their current value.

ANZ Bank ((ANZ)) gained 0.65% to $24.80 and Westpac Bank ((WBC)) put on 0.66% to $25.97.

DOW futures are pointing to a sharply negative opening currently reading down 40 points
 

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

This article produced at the request of and is published by FNArena with the expressed permission of 708 Capital.

708 Capital is a full service stockbroking and investment advisory firm. 708 offers investment and market advice to high-net-worth Private and Institutional clients in Australia and across the globe. 708's extensive network of contacts gives its clients exclusive access to ground-level fundraising opportunities and new company listings in a variety of small and large cap ASX listed companies. 708 has a longstanding track record of generating exceptional returns for its clients. Click here 708capital.com.au/contact-us/ for a no costconsultation and portfolioreview or to learn more visit www.708capital.com.au. Note: 708 Capital offers wealth management services for Sophisticated and Wholesale Investors only. We can only assist investors who are classified as Sophisticated Investors or have verified assets over AUD$2.5m.

708capital is a holder of AFSL. No. 386279

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