Australian Stocks: What Happened Today?

Array
(
    [0] => Array
        (
            [0] => ((TWE))
            [1] => ((MQG))
            [2] => ((BLY))
            [3] => ((PRU))
            [4] => ((IAG))
            [5] => ((SGN))
            [6] => ((AGO))
            [7] => ((JBH))
            [8] => ((EWC))
            [9] => ((PDN))
            [10] => ((AQG))
            [11] => ((NCM))
            [12] => ((SLR))
        )

    [1] => Array
        (
            [0] => TWE
            [1] => MQG
            [2] => BLY
            [3] => PRU
            [4] => IAG
            [5] => SGN
            [6] => AGO
            [7] => JBH
            [8] => EWC
            [9] => PDN
            [10] => AQG
            [11] => NCM
            [12] => SLR
        )

)

This story features TREASURY WINE ESTATES LIMITED, and other companies.
For more info SHARE ANALYSIS: TWE
The company is included in ASX100, ASX200, ASX300 and ALL-ORDS

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

Australian Market

The Australian market closed down -24.19 points or 0.46% at 5252.50 today. The XJO is lower on rising speculation the Fed will begin tapering stimulus in October, but the market was able to regain some of its losses after stronger than expected Chinese manufacturing data. The market opened with a fast slide to over 40 points south, hitting the daily low of 5227.4 at around 10:30am. Price was lifted on the release of some Chinese economic data (more below). On Friday in the U.S. the Dow Jones fell -1.19% and the S&P 500 dropped -0.72% as the debt ceiling battle grows. The best performing sector for the day was Consumer discretionary, rising 0.1% and the worst was Gold followed by Consumer Staples, falling -6.2% and -1.2%.

In economic news, in China, the flash HSBC Purchasing Managers' Index (PMI) climbed to 51.2 last month from August's 50.1, the highest since March. A breakdown of the data showed ten of 11 sub-indices rose in September. Beating forecasts for a rise of 0.8 points in to 50.9. The flash PMI gives the earliest reading of China's monthly economic performance, and should cheer investors worried about a sharp economic slowdown after a previous rebound in activity proved short-lived. New export orders jumped to a ten-month peak of 50.8, up sharply from the August reading of 47.2. It was the first time in six months that exports had shown accelerating growth in the PMI.

A report from the RP Data home price indices shows that home prices posted solid weekly gains in the past week, with prices increasing across all major capital cities.  In seasonally adjusted terms, the strongest monthly home price gains to 22 September were in Sydney and Melbourne (+2.0% m/m), followed by Adelaide (+1.4% m/m). Auction demand and clearance rates remained extremely strong in both Sydney and Melbourne in the past week on elevated auction numbers. Sydney in particular posted the highest weekly clearance rate in the last five years at 88% while Melbourne's clearance rate also posted a strong 77%.

Treasury Wine Estates Limited ((TWE)) is having a bad day with chief executive David Dearie leaving the company with immediate effect. Dearie had spent just two years in the job. TWE chairman Paul Rayner said the board had decided to search for a new chief executive in the wake of a major writedown of aged and excess stock in the U.S., he said, "Following the write down of excess U.S. inventory announced on 15 July 2013, the board has undertaken a review and concluded that now is the right time to look for a new CEO. In particular, having established a solid platform since demerger, the board believes Treasury needs a leader with a stronger operational focus to deliver the company's growth ambitions."

Macquarie Group Limited ((MQG)) has maintained its profit guidance for the current financial year, saying it expects earnings to increase provided market conditions do not deteriorate sharply. MQG says it expects results for the current first half to be matched in the second half, in line with previously issued guidance.  Shares in MQG hit $50 last week for the first time since 2010.

Boart Longyear Limited ((BLY)) says it will reduce the size of its revolving credit facility from U.S. $450 million to U.S.$140 million, subject to its completion of a U.S. $300 million debt offering. The change comes a week after ratings agency Standard and Poor's cut the company's credit rating from B+ to B, and revised its ratings outlook from stable to negative. BLY recorded a loss of U.S. $329 million for the first half of 2013, driven largely by massive falls in earnings in its drilling services division as mining companies continue to slash their exploration budgets.

Perseus Mining Limited ((PRU)) shares are moving lower as two of the company's founding directors announced they will depart in November. Rhett Brans and Neil Fearis will leave their positions at the PRU annual general meeting on November 15, each ending a decade on the board. Mr Fearis, who helped float the company, will not be seeking re-election after coming to end of his current term as director. Mr Brans, instrumental in putting together the Edikan development team and overseeing the construction and commissioning of the gold plant, will step down to enable the board to maintain a majority of independent directors.

Insurance Australia Group Limited ((IAG)) chief executive Michael Wilkins has sold $4.3 million worth of the company's shares. Mr Wilkins sold the 750,000 odd shares on market last Thursday, according to a filing with the stock exchange. The sale comes after a 33% rise in IAG shares to $5.85 in the last year, helped by big price rises in insurance premiums. Mr Wilkins still holds $4.9 million IAG shares directly and $3.5 million shares indirectly, the filing said.

AUD/USD is currently trading at $0.9420, up $0.0027 against the USD.

Top Performers

STW Communications Group Limited ((SGN)) up $0.075 or 3.73% to $1.67

Atlas Iron Limited ((AGO)) up $0.04 or 3.64% to $0.855

JB Hi-Fi Limited ((JBH)) up $0.59 or 3.19% to $20.38

Energy World Corporation Limited ((EWC)) up $0.015 or 3.09% to $0.50

Paladin Energy Limited ((PDN)) up $0.025 or 2.83% to $0.545

Bottom Performers

Perseus Mining Limited (PRU) down -$0.005 or -15.67% to $0.565

Alacer Gold Corp ((AQG)) down -$0.19 or -12.40% to $3.18

Newcrest Mining Limited ((NCM)) down -$0.47 or -8.17% to $12.03

Silver Lake Resources Limited ((SLR)) down -$0.03 or -7.74% to $0.775

Boart Longyear Limited (BLY) down -$0.025 or -7.14% to $0.025

Our Comments

No comments today.

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.

Novus believes that any information or advice (including any financial product recommendation) contained in this document is accurate when issued but do not warrant its accuracy or reliability. Novus is not obliged to provide you with updated information or advice if circumstances change. Novus, its directors, officers, associates and employees exclude to the full extent permitted by law, all liability of any kind whether in negligence, contract, under a fiduciary duty or otherwise, for any loss or damage, whether direct, indirect, consequential or otherwise, whether foreseeable or not, arising from or in connection with this e-mail or an attached document.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.

Click to view our Glossary of Financial Terms