Australian Stocks: What Happened Today?

Array
(
    [0] => Array
        (
            [0] => ((RIO))
            [1] => ((MLX))
            [2] => ((BSL))
            [3] => ((BEN))
            [4] => ((AZJ))
            [5] => ((AMC))
            [6] => ((DXS))
            [7] => ((YAL))
            [8] => ((CGF))
            [9] => ((FDC))
            [10] => ((KCN))
            [11] => ((BBG))
            [12] => ((SBM))
            [13] => ((PRU))
            [14] => ((RSG))
            [15] => ((FWD))
            [16] => ((BSL))
            [17] => ((ARI))
            [18] => ((LNC))
            [19] => ((TLS))
        )

    [1] => Array
        (
            [0] => RIO
            [1] => MLX
            [2] => BSL
            [3] => BEN
            [4] => AZJ
            [5] => AMC
            [6] => DXS
            [7] => YAL
            [8] => CGF
            [9] => FDC
            [10] => KCN
            [11] => BBG
            [12] => SBM
            [13] => PRU
            [14] => RSG
            [15] => FWD
            [16] => BSL
            [17] => ARI
            [18] => LNC
            [19] => TLS
        )

)

This story features RIO TINTO LIMITED, and other companies.
For more info SHARE ANALYSIS: RIO
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 down -1.4 points or 0.03% to 5112.5 today. We had a somewhat choppy start to the week, seeing small pops above and below opening price as the market fought back against the wake of TLS and CBA trading ex-divided. The low of the day 5098.9 came in at 10:03am before a rally into the black and then was almost retested again around 3:30pm followed by another rally into the close. The best performing sector was Gold followed by Health Care, gaining 2.63% and 1.50%, while the worst sector was Telecommunications, falling -3.53% (TLS went ex-dividend today).

In economic news, the ABS reports that new motor vehicle sales for July came in at 93,797 or -3.5%, beating estimates for a figure of -3.6%. Total sales are still 3% higher year-on-year. 

Rio Tinto Limited ((RIO)) has sold its interests in the Mt Davies joint venture in South Australia for $500,000 to minerals explorer Metals X Limited ((MLX)).  The Mt Davies tenement was previously subject to an agreement with Rio in which Metals X earned a 51% interest. MLX said the acquisition also involved 870,000 fully paid shares. MLX chief executive Peter Cook said there was significant potential for additional resources at Wingellina and Claude Hill. Cook said, "Although the current nickel price is depressed, these projects are extremely long life and of a magnitude that means they will definitely be developed at some time in the future."

Reporting season continues with BlueScope Steel Limited ((BSL)) posted a sharply lower year to June net loss of $84.1 million as redundancy and restructuring charges declined. In the year earlier period BSL lost $1.04 billion. Revenue totalled $7.3 billion, down from $8.4 billion a year earlier. The loss per share for the year fell to 15.1c from 234.6c. BSL stated that it is to buy the Orrcon and Fielders units of Hills Industries for a combined $87.5 million, with expected integration costs of $15 million. Domestic flat steel product sales fell to 1.78 million tonnes from 2.00 million tonnes in the prior year due to lower sales of both hot rolled coils along with steel plate. Sales in the second half of 877,000 tonnes was little changed from the first half, indicating some stabilisation at the lower level. 

Bendigo Bank and Adelaide Bank Limited ((BEN)) reported a net profit of $352.3 million, an 80.7% increase on the previous year's $137.1 million. BEN had a 7.7% rise in cash earnings, to $348 million, raising its final dividend to 31c a share, up 3.3%. BEN managing director Mike Hirst said demand for credit was low, and competition for household deposits was "very strong," but the bank still managed to increase its net interest margin. Commenting on the outlook, he said credit growth would remain "subdued" but the bank was confident in its business model, under which branches are operated jointly by the bank and the local community. 

Aurizon Holdings Limited ((AZJ)) posted a net profit of $447 million for FY13, up 1% from $441 million for the previous year. Formerly QR National, AZJ reduced the size of its workforce by 11% during the year, cutting the number of total staff from 8969 to 7969. Underlying profit, which excludes one-off costs, was up 16% to $487 million.

Amcor Limited ((AMC)) reported a net profit before one-offs rose to $689.5 million for FY13, up 8.6% from $634.9 million a year earlier. Net profit after one-off items jumped 45.6% to $600.6 million. AMC said its business would deliver increased earnings in 2014. 

Dexus Property Group ((DXS)) reported a net profit after tax of $514.5 million for FY13, up 184.1% from the year before. The profit increase included a $218 million, or 3.1%, rise in the value of its investment properties. DXS was involved in $2.9 billion worth of transactions during the financial year, although revenue fell nearly 14% to $653 million. DXS chief executive Darren Steinberg said they expect to lift earnings by 5.2% for FY14. 

Yancoal Australia Limited ((YAL)) posted a net loss of $522.7 million for the six months to June 30, after more foreign exchange losses and an asset write-down. A foreign exchange loss of $492.7 million was included in the result along with a $343 million asset write-down. YAL is the subject of a takeover offer by its majority owned shareholder.

Challenger Limited ((CGF)) reported a net profit of $416.8 million for FY13, 180.7% higher than the previous year. CGF also declared an unfranked final dividend of 10.5c (same as last year) for September. 

Federation Centres ((FDC)) reported a net profit after tax of $212.7 million for FY13 up from a net loss of $222.9 million for the previous year. Formerly called Centro Retail Australia, FDC declared a final dividend of 7.5c for the end of August. 

AUD is currently trading at $0.9210, up $0.0030 against the USD.

Top Performers

Kingsgate Consolidated Limited ((KCN)) up $0.345 or 17.47% to $2.32

Billabong International Limited ((BBG)) up $0.08 or 14.81% to $0.62

St Barbara Limited ((SBM)) up $0.09 or 13.53% to $0.755

Perseus Mining Limited ((PRU)) up $0.095 or 12.10% to $0.88

Resolute Mining Limited ((RSG)) up $0.10 or 10.99% to $1.01

Bottom Performers

Fleetwood Corporation Limited ((FWD)) down -$0.73 or -17.68% to $3.40

BlueScope Steel Limited ((BSL)) down -$0.77 or -14.08% to $4.70

Arrium Limited ((ARI)) down -$0.06 or -5.74% to $0.985

Linc Energy Limited ((LNC)) down -$0.075 or -4.46% to $1.605

Telstra Corporation Limited ((TLS)) down -$0.19 or -3.73% to $4.91

Our Comments

Considering we had the likes of CBA and TLS going ex dividend today which is quite a large drag down on the market we finished only just in the red. A pretty good effort overall.

Gold stocks are really trading well this quarter as we predicted albeit still a long way to go to get back to where they came from, technically looking very bullish at the moment.

(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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