Australia | Jun 05 2013
By Stephen Hogan, Senior Private Client Adviser, Equities/Derivatives
Australian Market
The Australian market (XJO) closed down -65.6 points or 1.34% to 4835.2 today. The market made its move down to the low of the day, 4831.3, before 12pm. There were a few small rallies back but none were strong enough to last. All market sectors were in the red today except for Telecommunications, posting a 0.21% gain. The Gold sector has dropped the most losing -3.40% followed by the Financial-X-A-REIT, falling -2.06%. Overnight the Dow Jones fell -76.49 points or 0.50% to 15,177.50 with predictions of the Federal Reserve reducing the stimulus as early as September.
The Australian Bureau of Statistics has released the first quarter Gross Domestic Product (GDP) figures today, coming in below expectations. The economy has expanded 0.6% over the quarter and 2.5% over the year, down from 3.1%. The expectations were for a 0.7% rise for the quarter and 2.7% for the year.
The Australian Federal Chamber of Automotive Industries VFACTS report showed total vehicle sales in May were 96,788, up 12.6% on April's 85,117. After adjusting for seasonal factors, sales were up 5.1%, said VFACTS. Solid household income growth, low interest rates on car loans and a high local dollar have all combined to make vehicles more affordable.
Federal Treasurer Wayne Swan said the new figures showed that the Australian economy was remaining resilient despite continued international economic uncertainty and a transition away from mining-dependent growth locally. "Australia has also managed to achieve solid growth when around half of all advanced countries that have released March quarter results contracted over the year," Mr Swan said this afternoon.
Federation Centres ((FDC)) has struck a deal to sell to Challenger ((CGF)) a half-share in six assets to raise $602 million, with the proceeds being used to shore up the balance sheet for future redevelopment and acquisitions. The deal will see Federation, formerly Centro Properties; retain the management of the regional centres at Bankstown and Roselands in NSW, and the convenience centres at Toormina and Lennox in NSW, Sunshine in Victoria and Karratha in Western Australia. These assets are currently owned by Federation and Retail Direct Property (RDP) syndicates (previously the MCS Centro syndicates) and have a gross value of $1.2 billion.
AUD is currently trading at $0.9597, down $0.0051 against the USD.
Top Performers
Coalspur Mines Limited ((CPL)) up $0.015 or 6.67% to $0.24
OZ Minerals Limited ((OZL)) up $0.21 or 4.95% to $4.45
Atlas Iron Limited ((AGO)) up $0.03 or 3.61% to $0.86
Monadelphous Group Limited ((MND)) up $0.57 or 3.53% to $16.70
Silver Lake Resources Limited ((SLR)) up $0.03 or 3.33% to $0.93
Bottom Performers
FKP Property Group ((FKP)) down -$0.10 or -7.49% to $1.235
Horizon Oil Limited ((HZN)) down -$0.025 or -6.67% to $0.35
Billabong International Limited ((BBG)) down -$0.015 or -6.52% to $0.215
Qantas Airways Limited ((QAN)) down -$0.09 or -5.75% to $1.475
Newcrest Mining Limited ((NCM)) down -$0.80 or -5.28% to $14.35
Our Comments
Well we have a definite break of the obvious support level around 4900/4880. The good news is I think the downside is limited to 4760 which is less than 100 points away. Tough to watch at the moment but the market does not go up in a straight line.
(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
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