Australian Stocks: What Happened Today?

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            [1] => ((RIO))
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            [3] => ((MAD))
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            [1] => RIO
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This story features NEWS CORPORATION, and other companies.
For more info SHARE ANALYSIS: NWS
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 up 47 points or 0.98% to 4861.4 today. The market started the day strong and had managed to keep moving higher throughout the day closing near the day's high. Taking a lead from overseas last night the Dow Jones rose 138.38 points or 0.91% to 15,318.20. All of the market sectors were up today with the Industrials sector gaining the most with 2.07% followed by Consumer Discretionary adding 1.94%. Confidence is high going into Federal Chairman Ben Bernanke's press conference during the U.S. session tonight.

Whitehaven Coal Limited ((WHC)) has had large shareholder change with Nathan Tinkler selling around half of his holdings in the company (101 million shares) to U.S. investment firm Farallon Funds for $2.96 each. The shares closed yesterday at $2.11. The other half of Tinkler's holdings in WHC are expected to be sold by the end of today to various funds and investors.

News Corporation ((NWS)) has had its first day trading separately from newly listed New NewsCorp Inc (NNC). NNC is taking over the digital and print with some aspects of pay TV Foxtel and will be backstopped by a $US500 million buyback which will provide support. NWS is to become 21st Century Fox and take over control of the TV and Movie assets.

Lehman Brothers Australia's creditors have failed to reach an agreement on a proposal to return $210 million to clients and local councils. The investment bank's U.S. counterpart has stated that is will oppose the deal. The liquidators had previously agreed to a deal that made sure that councils were given back 50 cents for every dollar. The lawyers for the U.S. arm have taken up rights to the debt on the weekend, giving them the chance to vote against the proposal.

Transfield Services Limited ((TSE)) work on the NBN has been extended for another two years, worth $366 million. TSE was working with the NBN to roll out fibre optic cable in Sydney and now has also been given a separate two year contract to do the construction of the connection devices outside of the homes worth $66 million.

Our international merchandise imports numbers are in for May, rising with increases in consumption goods and oil offset a fall in capital imports. The ABS today reported imports on a seasonally adjusted balance of payments basis increased by 2% in May to $20.44 billion. The imports of consumer goods rose 7% or $357 million, while imports of intermediate goods, like fuel, rose 4%, or $351 million. Imports of capital goods fell 5%, or $290 million.

WorleyParsons Limited ((WOR)) has been given a U.S. $100 million offshore oil and gas contract in Nigeria by South Korean company Samsung Heavy Industries. The contract is a design and engineering contract for a floating production, storage and offloading vessel, which will operate at an offshore deepwater oil field in Nigeria. WorleyParsons chief executive Andrew Wood said ''a strong development of our ability to locally support the offshore oil and gas business in West Africa''.

Rio Tinto Limited ((RIO)) has cut around 50 people from their Western Australian Iron Ore division. The division has been reported as the most profitable business within Australia's most lucrative export industry. It is also Rio's flagship division, contributing close to 80% of earnings in recent years. Some of the workers are expected to be redeployed within Rio Tinto's global business, but the majority are expected to depart the company after being made redundant.

AUD is currently trading at $0.9498, up $0.0012against the USD.

Top Performers

Boart Longyear Limited ((BLY)) up $0.065 or 9.70% to $0.735
Mirabela Nickel Limited ((MBN)) up $0.01 or 8.33% to $0.13
Imdex Limited ((IMD)) up $0.055 or 8.21% to $0.725
Bradken Limited ((BKN)) up $0.35 or 8.18% to $4.63
FKP Property Group Limited ((FKP)) up $0.085 or 7.91% to $1.16

Bottom Performers

News Corporation ((NWS)) down -$2.39 or -7.29% to $30.40
Perseus Mining Limited ((PRU)) down -$0.065 or -7.18% to $0.84
Billabong International Limited ((BBG)) down -$0.01 or -6.25% to $0.15
Maverick Drilling and Exploration Limited ((MAD)) down -$0.01 or -2.70% to $0.36
Virgin Australia Holdings Limited ((VAH)) down -$0.01 or -2.22% to $0.44

Our Comments

Nice day on the market today. Still seeing good buying opportunities around. We have added some TOL and SVW to the model portfolio today, which can be viewed in the member section of www.stephenhogan.com.au

All eyes are on Ben Bernanke's speech, we should see the U.S. markets rally on the back of his expected decision to keep the stimulus package in place for at least the short term.

(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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