Australia | Mar 26 2013
Download related file: afternoon_report_2013-03-26
The analyst principally responsible for the production of this research report is: Howard Humphreys, Director & Lead Research Analyst, Seismic Research
Asia slumps on Cyprus ‘blueprint’ concern
Asian stocks slumped today amid concerns that Cyprus’ bailout (i.e. imposing heavy losses on depositors) will be used as a blueprint for other struggling European nations. This comes after the newly-appointed leader of the euro-zone finance ministers, Jeroen Dijsselbloem (also the Dutch Finance Minister), said Cyprus’ bailout should be used as a template.
He took it back later in an official release, calling Cyprus a “specific case with exceptional challenges”, but the damage appears to already have been done.
On the local market today, Atlas Iron ((AGO)) slumped over 6% after Macquarie said the price of iron ore will drop in the second half of 2013 on weaker Chinese demand. UGL rallied 12.2% after saying it is considering a split of its engineering and property operations following “significant growth” in its property business, which accounts for ~50% of earnings. Australian boot maker RM Williams could be up for sale, with owner Ken Cowley believed to be seeking offers of ~A$100 million for the 81-year-old business.
To read today's report in PDF in full, see link at the top of this story.
(For a more comprehensive summary of last night’s market action see FNArena’s Overnight Report.)
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