Australian Stocks: What Happened Today?

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            [1] => ((KCN))
            [2] => ((TRY))
            [3] => ((EWC))
            [4] => ((SLR))
            [5] => ((TPI))
            [6] => ((SXY))
            [7] => ((BSL))
            [8] => ((MAD))
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            [7] => BSL
            [8] => MAD
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This story features KINGSGATE CONSOLIDATED LIMITED, and other companies.
For more info SHARE ANALYSIS: KCN
The company is included in ASX200, ASX300 and ALL-ORDS

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

Australian Market

The Australian market (XJO) closed down -38.3 points or -0.78% to 4888.3 today. The market came back from a weak open to hit a high of 4932.8 at around 12:40pm before declining solidly all afternoon and closing on the day's low. Leading our market lower was the state of the Dow Jones on Friday, falling -208.96 points or 1.36% to 15,115.60. The Gold Sector has been the only one to gain anything worth while, adding 3.37%, while all other sectors were flat or down. The Information Technology sector was the clear loser for the day, falling -3.34%.

Some economic news released today:

Inflation rose 0.2 per cent in May, lifted by the prices of fruit, vegetables, rents and books. It was offset by a drop in the prices of fuel, local holiday travel and accommodation, found a survey by TD Securities released today. The latest data came as the manufacturing sector contracted for the 23rd consecutive month in May, according to the Australian Industry Group's Performance of Manufacturing Index, also released today. In the 12 months to May, inflation rose by 2.2%, near the bottom the Reserve Bank's target band of 2-3%. Inflation had risen 0.3% in April and 0.2% in March.

The RP Data – Rismark home values index declined by 1.2 per cent in May after falling by 0.5 per cent in April. Despite consecutive monthly falls, values remain higher at just over 1 per cent since the start of 2013.

Highlights over the quarter:

Best performing capital city: Perth +1.9 per cent
Weakest performing capital city: Melbourne, -1.9 per cent
Highest rental yields: Darwin houses with gross rental yield of 6.2 per cent and Darwin units at 6.3 per cent
Lowest rental yields: Melbourne houses with gross rental yield of 3.7 per cent and Melbourne units at 4.6 per cent
Most expensive city: Sydney with a median dwelling price of $580,000
Most affordable city: Hobart with a median dwelling price of $321,000

Retail sales rose 0.2 per cent in April, slightly below expectations for a 0.3 per cent rise. Company operating profits jumped 3 per cent in the first quarter, outpacing predictions of a 1.5 per cent rise. But ANZ job ads posted another drop, falling 2.4 per cent in May, from 1.7 per cent in April.

Source: SMH

The head of Transpacific Industries Group ((TPI)) has resigned as the waste management company downgrades its profit forecast. Chief executive Kevin Campbell informed the company's board he believed he was unable to provide the longer term commitment needed to drive the continuing transformation of the business, Transpacific said. The announcement was made as the company said it expects to make a net profit of between $46 and $53 million in the year to June 30, including one-off costs of $14 million.

Expectations of a rate cut tomorrow have been increasing; however the majority of people don't think it will be tomorrow's RBA meeting.

AUD is currently trading at $0.9631, up $0.0019against the USD

Top Performers

Kingsgate Consolidated Limited ((KCN)) up $0.235 or 14.42% to $1.865

Troy Resources Limited ((TRY)) up $0.23 or 13.33% to $1.955

Energy World Corporation Limited ((EWC)) up $0.03 or 7.69% to $0.42

Silver Lake Resources Limited ((SLR)) up $0.057 or 7.04% to $0.867

Medusa Mining Limited ((MML)) up $0.12 or 4.74% to $2.65
 
Bottom Performers

Cochlear Limited ((COH)) down -$11.12 or -17.23% to $53.42

Transpacific Industries Group Limited ((TPI)) down -$0.108 or -12.13% to $0.782

Senex Energy Limited ((SXY)) down -$0.048 or -7.87% to $0.562

Bluescope Steel Limited ((BSL)) down -$0.335 or -6.36% to $4.935

Maverick Drilling and Exploration Limited ((MAD)) down -$0.025 or -6.10% to $0.385

Our Comments

For what seemed like a day that was going to turn out quite good considering the SPI futures were down 57 points over the weekend we ended pretty negative albeit only 38 points compared to 57. We sent out the first Australian Market Digest video report today which highlighted the fact we thought the market will either find support here at 4900 or continue to decline to 4760 in some sort of ABC decline which would last either 45 or 90 days.

I sensed a little bit of panic out there today so it is a good sign we may be near a low, if you're really worried then take a short position or two and trim back some of the riskier assets or write a few calls.

Here is a link to the video – https://www.youtube.com/watch?v=HEctv4Fjad4

(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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