Australian Stocks: What Happened Today?

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(
    [0] => Array
        (
            [0] => ((IAG))
            [1] => ((DOW))
            [2] => ((BBG))
            [3] => ((BBG))
            [4] => ((ASL))
            [5] => ((BLY))
            [6] => ((KCN))
            [7] => ((EVN))
            [8] => ((LYC))
            [9] => ((PRU))
            [10] => ((MTU))
            [11] => ((HZN))
            [12] => ((LNC))
            [13] => ((BHP))
            [14] => ((RIO))
        )

    [1] => Array
        (
            [0] => IAG
            [1] => DOW
            [2] => BBG
            [3] => BBG
            [4] => ASL
            [5] => BLY
            [6] => KCN
            [7] => EVN
            [8] => LYC
            [9] => PRU
            [10] => MTU
            [11] => HZN
            [12] => LNC
            [13] => BHP
            [14] => RIO
        )

)

This story features INSURANCE AUSTRALIA GROUP LIMITED, and other companies.
For more info SHARE ANALYSIS: IAG
The company is included in ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

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

Australian Market

Top Performers

Billabong International Limited ((BBG)) up $0.085 or 34.00% to $0.335

Ausdrill Limited ((ASL)) up $0.17 or 16.35% to $1.21

Boart Longyear Limited ((BLY)) up $0.065 or 13.13% to $0.56

Kingsgate Consolidated Limited ((KCN)) up $0.135 or 8.82% to $1.665

Evolution Mining Limited ((EVN)) up $0.055 or 8.21% to $0.725

Bottom Performers

Lynas Corporation Limited ((LYC)) down -$0.03 or -6.90% to $0.405

Perseus Mining Limited ((PRU)) down -$0.03 or -5.83% to $0.485

M2 Telecommunications Group Limited ((MTU)) down -$0.33 or -5.67% to $5.49

Horizon Oil Limited ((HZN)) down -$0.02 or -5.33% to $0.355

Linc Energy Limited ((LNC)) down -$0.075 or -4.49% to $1.595

Our Comments

BHP Billiton ((BHP)) and Rio Tinto ((RIO)) have both released their production reports over the last two days causing both stocks to rally. Both were good however RIO took the honours for exceeding expectations. I would view any break to the upside on BHP above the previous short term double bottom high of $34.45 a strong buy. Let's take a quick look at those reports.

BHP Billiton beat its guidance for iron ore production but fell short in its petroleum business, in figures released this morning. Iron ore remains in focus and BHP's slightly exceeded expectations here. BHP had previously forecast full-year iron ore production of 183 million tonnes, including third-party tonnes, but actually delivered 187 million tonnes. That number is expected to jump to 207 million tonnes this time next year.

BHP said expansion of its Jimblebar iron ore mine in the Pilbara was ahead of schedule, but the cost had blown out by $US340 million. The September quarter is traditionally a poor one for iron ore exporters as Chinese importers draw down on inventories, but the benchmark iron ore price has been unusually resilient in recent weeks and was worth a very healthy $US129 per tonne this morning.

Rio Tinto, the world's second-largest producer of iron ore, said it is on track to deliver the first ore from the expansion of its mines in the remote Pilbara region of Western Australia to 290 million metric tonnes a year by the end of the third quarter. It's due to decide by the end of this year whether to spend around $5 billion on increasing capacity further to 360 million tonnes annually. Rio Tinto's mines in Australia and a smaller operation in Canada produced 66 million tons of iron ore in the three months through June, up 7 per cent on a year ago and 8 per cent higher than the previous quarter.

Please visit http://www.stephenhogan.com.au/blog/ for the full production report.

(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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