Australian Stocks: What Happened Today?

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This story features TELSTRA GROUP LIMITED.
For more info SHARE ANALYSIS: TLS
The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

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

Australian Market

The Australian market (XJO) closed up 32.2 points or 0.67% to 4809.5 today. A promising result today, markets moved much higher even with poor data being released. Overnight the Dow Jones rose 88.85 points or 0.59% to 15,224.70. The XJO opened strong and continued steadily higher most of the day. We hit a daily high of 4894.5 at around 3:30 and close slightly lower. Only one sector finished negative today, Telecommunications fell -0.55%. The best performing sectors were Information Technology and Financials rising 2.17% and 1.88% respectively.

In economic news, the NAB monthly business survey has hit a 4 year low, falling to -8 in June after a -4 reading in May.

Chinese inflation data released today shows consumer prices (CPI) jumped 2.7% in June from last year, up from the 2.1% rise in May, beating the forecasted 2.5% rise. However producer prices (PPI) are still falling in China, dropping 2.6% in June, after a 2.9% fall in May. Furthermore Citi has downgraded China's growth outlook from 7.6% to 7.4% for 2013, and from 7.3% to 7.1% in 2014, with risks of even slower growth if there are policy missteps amid a period of reform by the government.

Goodman Group ((GMG)) have raised $775 million in new equity via the European operations. The company said most of the equity was raised via a rights issue to existing investors, with additional equity raised through demand from new investors. Separately, to facilitate the excess demand, Goodman Group will sell down part of its European holdings, operating under the banner of Goodman European Logistics Fund (GELF), the group's largest European real estate investment vehicle. The sell-down will result in Goodman Group holding approximately 20% of GELF.

Ramelius Resources Limited ((RMS)) has announced that the June quarter production from its Mt Magnet gold in WA is at a record level, up 17,100 ounces, 17.5% higher than the previous quarter. RRL has begun to reduce operating costs as the price of gold declines. Its Production guidance for the 2013/14 financial year will be provided in the June 2013 quarterly report.

Telstra Corporation Limited ((TLS)) is going to cut up to 170 jobs as part of an initiative to send back office operations to India. In May TLS signalled that it was about to reorganise its internal structure into 5 groups, three of which – Networks, IT Solutions and Customer Service Delivery – are new additions. It also said about half of its 30,000 domestic employees would be affected by the changes.
 

AUD is currently trading at $0.9141, up $0.0008 against the USD.

Top Performers

Discovery Metals Limited ((DML)) up $0.03 or 19.35% to $0.185
Buru Energy Limited ((BRU)) up $0.16 or 11.94% to $1.50
Silver Lake Resources Limited ((SLR)) up $0.05 or 8.26% to $0.655
Resolute Mining Limited ((RSG)) up $0.03 or 5.66% to $0.56
Henderson Group PLC ((HGG)) up $0.14 or 5.41% to $2.73

Bottom Performers

Billabong International Limited ((BBG)) down -$0.045 or -15.79% to $0.24
Medusa Mining Limited ((MML)) down -$0.20 or -12.12% to $1.45
Mineral Deposits Limited ((MDL)) down -$0.23 or -11.39% to $1.79
Sirius Resources NL ((SIR)) down -$0.09 or -4.21% to $2.05
Caltex Australia Limited ((CTX)) down -$0.67 or -3.58% to $18.04

Our Comments

Macquarie Group ((MQG)) looks very good here from a technical perspective.

Has recently found a high close to $48 and pulled back with the rest of the market over the last 6-8 weeks. The level price action come back to is the last swing high and has now started to move impulsively to the upside. This indicates a clear uptrend and I would expect the share price as a minimum to go up and retest the recent high of $47.37

(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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