Australian Stocks: What Happened Today?

Array
(
    [0] => Array
        (
            [0] => ((AMP))
            [1] => ((GNC))
            [2] => ((MTS))
            [3] => ((RIO))
            [4] => ((LEI))
            [5] => ((WRT))
            [6] => ((CAB))
            [7] => ((IPL))
            [8] => ((CSL))
            [9] => ((LNC))
            [10] => ((SIR))
            [11] => ((MML))
            [12] => ((PRU))
        )

    [1] => Array
        (
            [0] => AMP
            [1] => GNC
            [2] => MTS
            [3] => RIO
            [4] => LEI
            [5] => WRT
            [6] => CAB
            [7] => IPL
            [8] => CSL
            [9] => LNC
            [10] => SIR
            [11] => MML
            [12] => PRU
        )

)

This story features AMP LIMITED, and other companies.
For more info SHARE ANALYSIS: AMP
The company is included in ASX100, ASX200, ASX300 and ALL-ORDS

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

Australian Market

The Australian market (XJO) closed down -69.7 points or 1.47% to 4669.1 today. The SPI was -33 points lower and the XJO took about 8 minutes to push down through that level. The market made a low of 4662.3 at 12:15 with a small rally in the afternoon but was pushed back down near the lows. One market sector managed to keep its head above water, Health Care gained 0.95% while the rest fell. The Gold sector dropped -7.99% followed by Metals and Mining, falling -3.66%.

AMP ((AMP)) has reported a drop in their half yearly estimated earnings, now looking at between $415 and $435 million. The company is stating that there is a $26 million loss in insurance claims, to total $32 million for the five months to May. AMP said it anticipated some strengthening of best estimate assumptions for income protection claims at the half year, although the financial effects should be largely offset by future premium rate increases.

Graincorp Limited ((GNC)) is supporting a takeover offer from Archer Daniels Midland Australia by recommending that all shareholders take up the offer. After releasing an official response today, GNC states that under the agreement shareholders will receive $13.30 per share, $12.20 from ADM Australia and a $1 dividend. The dividend is said to be fully franked.

Metcash Limited ((MTS)) have raised their underlying full year profit to $281 million or now 6.9% higher. The company promised a review of its food and grocery operations as it recorded revenue of $13.1 billion for the year to April 30 and a reported net profit after tax of $206 million. This is up $129 million on the last year. The retailer behind the IGA and Franklins supermarket chains suffered a 2.3% fall in sales in its core food and grocery business to $9.1 billion as it closed stores but achieved 35% earnings growth, to $47 million, in its liquor business.

Rio Tinto Limited ((RIO)) will retain its diamond businesses. The Diamonds and Minerals chief executive Alan Davies said the medium to long-term market fundamentals for diamonds remained robust, fuelled by growing demand for luxury goods in Asia and continuing strong demand in North America. ''We have valuable, high-quality diamonds businesses that are well-positioned to capitalize on the positive market outlook,'' Rio said in a statement on Monday. ''After considering a number of alternative strategic ownership options it is clear the best path to generate maximum value for our shareholders is to retain these businesses.''

Leighton Holdings Limited ((LEI)) have secured a deal with Fortescue Metals Group Ltd (FMG) worth $1.3 billion for working at the Kings deposit at the Solomon Hub. In addition to the previous Solomon Hub work the contract now stands at $2.8 billion, the company's biggest single contact awarded. Leighton secured the full service, five-year plus two-year extension option contract to deliver whole-of-mine management at the Pilbara iron ore project in September 2012. The initial award was to mine the Firetail deposit, valued at $1.5 billion. Fortescue's decision to award the Kings deposit activates the full scope of the contract.

AUD is currently trading at$0.9177, down -$0.0037against the USD.

Top Performers

Metcash Limited (MTS) up $0.22 or 6.40% to $3.66

Westfield Retail Trust ((WRT)) up $0.065 or 2.23% to $2.975

Cabcharge Australia Limited ((CAB)) up $0.08 or 2.08% to $3.92

Incitec Pivot Limited ((IPL)) up $0.05 or 1.80% to $2.83

CSL Limited ((CSL)) up $1.03 or 1.78% to $58.92

Bottom Performers

Linc Energy Limited ((LNC)) down -$0.235 or -20.43% to $0.915

Sirius Resources NL ((SIR)) down -$0.365 or -15.53% to $1.985

Medusa Mining Limited ((MML)) down -$0.22 or -13.86% to $1.365

AMP Limited (AMP) down -$0.69 or -13.86% to $4.29

Perseus Mining Limited ((PRU)) down -$0.103 or -13.29% to $0.672

Our Comments

SPI futures were down 33 points over the weekend and to be honest I expected the market to put up a better fight than that today and it has gone the opposite way. The Shanghai is getting belted today by 5% so it is a faire indication why we are down so hard.

We did expect global markets to go lower here in the short term so it is no surprise we are down today. We are edging closer to that 50% retracement level which is now our downside target. We do not want to see the market break 4620 level impulsively as this would be very negative.

(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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