Australian Stocks: What Happened Today?

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            [1] => ((NCM))
            [2] => ((CCV))
            [3] => ((EHL))
            [4] => ((MGX))
            [5] => ((BLY))
            [6] => ((SXY))
            [7] => ((DML))
            [8] => ((MMS))
            [9] => ((MND))
            [10] => ((BBG))
            [11] => ((HZN))
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            [1] => NCM
            [2] => CCV
            [3] => EHL
            [4] => MGX
            [5] => BLY
            [6] => SXY
            [7] => DML
            [8] => MMS
            [9] => MND
            [10] => BBG
            [11] => HZN
        )

)

This story features CASH CONVERTERS INTERNATIONAL LIMITED, and other companies.
For more info SHARE ANALYSIS: CCV
The company is included in ALL-ORDS

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

Australian Market

The Australian market (XJO) closed up 36.5 points or 0.71% to 5181.5 today. The first day of the new Government was positive, although the rise in the market did not appear to happen until after the Chinese CPI and Australian Home loan data was released around 11:30am. The XJO never hit negative territory but was hovering prior to the economic news; it then pushed higher til around 1:30pm and slowed down again. We saw a strong close, finishing at the high of the day. On Friday the U.S. finished flat with the Non-farm payroll figures coming in slightly below expectations. The best performing sector Gold followed by Metals and Mining, gaining 3.43% and 1.40% and the worst sector was Utilities, falling -0.58%. 

In economic news, Australian home loan approvals for July rose 2.4%, better than expected forecasts for a 2.2% rise. The ABS states that 52,204 loans were approved last month, compared to 50,983 approvals in June. Total housing finance by value rose 1.1% in July, seasonally adjusted, to $24.180 billion. 

ANZ job advertisements fell 2.0% in August, more than the 1.1% fall in July. This makes 6 consecutive months of decline, and the figure is 19% lower than August last year. 

In China the annual CPI rose 2.6% in August, meeting analysts' forecasts, from the National Bureau of Statistics. Also released was China's PPI falling 1.6% last month from a year earlier, after a fall of 2.3% last month, expectations were for a 1.7% drop. Month-on-month, consumer prices were up 0.5% versus an expected rise of 0.4%. Also, on Sunday, China's trade balance was released, coming in at 28.6 billion, via the CGAC. 

Australia has maintained its AAA/A1+ ratings with a stable outlook from ratings agency Standard & Poor after its change of Government. S&P said Australia's top-notch ratings reflect its significant fiscal and monetary flexibility, economic resilience, and public policy stability. "The stable outlook reflects our view that conservative fiscal policies will remain in place, leading to declining budget deficits and general government debt remaining low," S&P said in a report. 

RHG Limited ((RHG)), formerly RAMS, has an increased takeover bid by Pepper Australia this morning. Pepper, who is battling Resimac in the takeover, has lifted its bid to 50.8c a share. The offer is comprised of 36c in cash and the remainder in shares in listed fund manager Cadence Capital Limited (CDM). With the closing price for CDM last week the Pepper bid is 1.3c higher than the Resimac bid of 49.5c a share. RHG directors are assessing the latest tilt at the company and urged caution to shareholders. 

Newcrest Mining Limited ((NCM)) chief executive Greg Robinson's pay has been cut from $3.69 million in FY12, to $2.73 million in FY2013. The pay cut included reductions like no short-term bonuses. This comes as NCM reported a net loss of U.S. $5.77 billion for the 2013 financial year, on the back of more than U.S. $6 billion worth of asset write downs and restructuring costs. 

Cash Converters International ((CCV)) wants to raise $50-$60 million to repay part of the group's existing debt and to fund further investments. CCV plans to use an issue of corporate bonds, offering unsecured notes at a minimum subscription of $50,000. 

AUD is currently trading at $0.9194 up $0.0013 against the USD.

Top Performers

Emeco Holdings Limited ((EHL)) up $0.025 or 11.11% to $0.25

Mount Gibson Iron Limited ((MGX)) up $0.065 or 8.50% to $0.83

Boart Longyear Limited ((BLY)) up $0.04 or 7.77% to $0.555

Senex Energy Limited ((SXY)) up $0.05 or 6.45% to $0.825

Kingsgate Consolidated (KCN) up $0.05 or 5.99% to $0.885

Bottom Performers

Discovery Metals Limited ((DML)) down -$0.01 or -7.69% to $0.12

McMillan Shakespeare Limited ((MMS)) down -$0.72 or -5.37% to $12.68

Monadelphous Group Limited ((MND)) down -$0.80 or -3.86% to $19.90

Billabong International Limited ((BBG)) down -$0.015 or -3.37% to $0.43

Horizon Oil Limited ((HZN)) down -$0.01 or -2.94% to $0.33

Our Comments

Can't say it is a surprise that we had a positive day the day after the election; however it looks like the market hasn't really taken that into account as the big move looked to be supported by the data out of China. Over the past five elections, equity markets have improved by 2.7% in the three weeks after elections.

We still remain mildly cautious here on the market at the moment just because we think the U.S. markets can come back a little deeper here first. We have only gone slightly into cash though and remain very bullish on the market long term. 

I don't want to sit on both sides of the fence here but we will either get a pull back towards 4900 which will be a great buying level or the market will break to a new high and then could really accelerate towards 6000. We will be looking for both.

(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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