Australian Stocks: What Happened Today?

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            [0] => ((ANZ))
            [1] => ((MND))
            [2] => ((VAH))
            [3] => ((TSE))
            [4] => ((CDU))
            [5] => ((NWH))
            [6] => ((AGO))
            [7] => ((DML))
            [8] => ((PRU))
            [9] => ((NST))
            [10] => ((AQG))
            [11] => ((SUL))
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            [0] => ANZ
            [1] => MND
            [2] => VAH
            [3] => TSE
            [4] => CDU
            [5] => NWH
            [6] => AGO
            [7] => DML
            [8] => PRU
            [9] => NST
            [10] => AQG
            [11] => SUL
        )

)

This story features ANZ GROUP HOLDINGS LIMITED, and other companies.
For more info SHARE ANALYSIS: ANZ
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 -35.0 points or 0.67% to 5161.6 today. The Aussie market reacted to the U.S. on the news that the House of Reps showed support for President Obama's military action against Syria. Overnight the Dow rose 0.17% and the S&P 500 gained 0.42%. We saw a sharp drop on the open and range around -30 points for a few hours. The low of the day was 5152.7 at 11:42am but price moved off that as GDP data was released. We rallied to be within 20 points of flat in the last hour of trade but sold off into the close. The best performing sector was Gold followed by Industrials, gaining 1.55% and 0.32%, all the rest were negative with the worst sector being Health Care, falling -1.49%.

In economic news, Australia's GDP for the June quarter came in at 0.6%, expectations were for 0.5%, Year on year was 2.6%, expectations were for 2.4%

The Australian Industry Group Australian Performance of Services Index (PSI) has fallen to 39.0 in August, down 0.4 points. As a number below 50 shows contraction and the lower the figure, the faster the contraction, so activity in the services sector is at its lowest level since the global financial crisis. AIG chief executive Innes Willox said, "Cautious consumers are keeping their hands in their pockets and are reluctant to take on debt. This is keeping a lid on discretionary spending on retail goods, entertainment services and hospitality, which has consequences in turn for wholesale traders and freight transport."

The World Economic Forum's global competitiveness report for 2013-14 sends Australia down one place to a ranking of 21, compared to the previous year. Out of 148 countries, Australia's labour market efficiency ranking fell to 54, from 13. On flexibility on wage determinations Australia now ranks 135th, down from 123 last year, while on burden of government regulation it stands at 128, down from 96.Similarly, pay and productivity has fallen to 113 from 80, and the total tax rate ranking dropped to 109 from 106.

In China, the Markit/HSBC Services Purchasing Managers' Index (PMI) rose to a seasonally adjusted 52.8 in August, up from 51.3 in July. A sub-index representing employment was lower but the main gauge is at its highest since March. 

Australia and New Zealand Bank Limited ((ANZ)) has been given an A+ credit rating by credit rating agency Standard & Poor's. The A+ rating is the fifth highest on S&P's scale. "It has been the beneficiary of strong investment and support from ANZ in recent years and we envisage a continuation of this trend, over the medium-to-long term," S&P said. ANZ's China business holds 4.5 billion RMB ($812 million) in required capital, which the lender plans to use to fund expansion in its network and increased customer lending.

Monadelphous Group Limited ((MND)) has another project under their belt, winning a $235 million construction contract for Rio Tinto Limited (RIO).  MND will build an iron ore port for RIO's Cape Lambert Port B Project in Western Australia which involves structural mechanical and piping works for the supply and installation of a screen house, two car dumpers and associated conveyor and transfer stations. MND said the contract will support solid sales revenue momentum into the new financial year. Work is scheduled for completion in the final three months of 2014.

Virgin Australia Holdings ((VAH)) has a new large share holder this week. Etihad Airways has increased its stake from 10.5% to 12.3% of VAH according to a shareholder notice to the ASX. Etihad received approval in late June from the Foreign Investment Review Board to build on its cornerstone stake in VAH, with an overall target of 19.9%.  

AUD is currently trading at $0.9104 up $0.0045 against the USD.

Top Performers

Transfield Services Limited ((TSE)) up $0.105 or 8.37% to $1.36

Cudeco Limited ((CDU)) up $0.10 or 6.41% to $1.66

NRW Holdings Limited ((NWH)) up $0.09 or 6.08% to $1.57

Atlas Iron Limited ((AGO)) up $0.045 or 5.70% to $0.835

Bottom Performers

Discovery Metals Limited ((DML)) down -$0.015 or -10.71% to $0.125

Perseus Mining Limited ((PRU)) down -$0.07 or -9.15% to $0.695

Northern Star Resources Limited ((NST)) down -$0.075 or -7.81% to $0.885

Alacer Gold Corp ((AQG)) down -$0.17 or -4.79% to $3.38

Super Retail Group Limited ((SUL)) down -$0.58 or -4.60% to $12.02

Our Comments

As discussed yesterday, the XJO has started a run at the May high of 5246.9 so we expect to see some resistance however if the market clears this level then we should see some clear sky for a while. I have added the same XJO chart from yesterday but added a trend line, showing a clear short term direction. We may see some more volatility while the Syria situation unfolds as well as the much talked about tapering of the Fed bond buying program.

(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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