Australian Stocks: What Happened Today?

Array
(
    [0] => Array
        (
            [0] => ((ANZ))
            [1] => ((TLS))
            [2] => ((DJS))
            [3] => ((NUF))
            [4] => ((ASX))
            [5] => ((EVN))
            [6] => ((TEN))
            [7] => ((NST))
            [8] => ((TPM))
            [9] => ((MGX))
            [10] => ((BSL))
            [11] => ((GMG))
            [12] => ((CMW))
        )

    [1] => Array
        (
            [0] => ANZ
            [1] => TLS
            [2] => DJS
            [3] => NUF
            [4] => ASX
            [5] => EVN
            [6] => TEN
            [7] => NST
            [8] => TPM
            [9] => MGX
            [10] => BSL
            [11] => GMG
            [12] => CMW
        )

)

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 closed up 41.7 points or 0.80% at 5275.9 today. The market broke its 3 day losing streak, bucking some weaker global leads as U.S. consumer confidence dropping and a looming debt ceiling deadline. The XJO opened the session strong and is rose for the first half of the day. We hit a high of 5283.8 just after 1pm and level off for the afternoon into the close. Overnight in the U.S. the Dow Jones fell -0.43%, and the S&P 500 dropped -0.26% making a four day consecutive drop as concerns over budget talks and economic growth as investors weighed prospects for easing tensions in the Middle East. The best performing sector for the day was Consumer Staples, rising 1.44% and the worst (and only negative) sector was Telecommunications, falling -0.05%.

In economic news, the Reserve Bank of Australia has encouraged the nation's lenders to maintain loan standards as record-low interest rates spur households' investment appetite. The Central bank said in its financial stability review, "There are some signs that households are taking on more risk in their investment decisions, and it is important that banks do not respond to pressures to boost revenue by imprudently loosening their lending standards, or by making ill-considered moves into new markets or products."

The Department of Employment's internet vacancy index fell to a seasonally adjusted 62.4 points in the month to be 15.5% lower than a year ago. The report showed that job advertisements on the internet declined by 1% in August, indicating continuing weakness in the labour market. Five of the eight occupational groups monitored by the department all fell in August. The largest decline of 4.9% was for clerical and administrative workers. However, demand for sales workers rose with advertisements up 1.5%.

ANZ Limited ((ANZ)) has dropped out of bidding for Lloyds Banking Group's Australian assets, according to the Wall Street Journal and Bloomberg. ANZ decided against submitting a final binding offer as it judged a purchase wouldn't add significant clients, Bloomberg quotes a source as saying. Final bids for the assets, which include a finance unit and a loan portfolio, are due September 30.

Telstra Limited has ((TLS)) just announced it will shed 1100 jobs as part of a restructure of its Australian operations. The bulk of the job losses are expected to come from Telstra Operations, the business unit that handles the design, construction, and operation of Telstra's networks, plus the delivery of some customer services.

David Jones Limited ((DJS)) has reported a net profit of $95.2 million for the 52 weeks to July 27 2013, down from $101.1 million for the same period last year. The profit slide includes a $9.1 million pre-tax charge relating to the company's move to hand over control of its electronics division to retailer Dick Smith. In a statement, David Jones said it continued to face tough retail conditions due to weak consumer sentiment and aggressive discounting. DJS has watched its profit slide in the past three years, since recording an underlying profit $170.8 million in 2010.

Nufarm Limited ((NUF)) says challenging seasonal conditions and a tough Australian market have affected its full year net profit, despite it lifting by 11.6% to $81 million. The agricultural chemicals and seeds supplier says a poor result in Australia was partially offset by earnings growth in all other geographic regions as well as in its seeds technologies business. Nufarm managing director Doug Rathbone said a strong recovery in demand for agricultural chemicals is expected in Australia as wetter, normal seasonal conditions return, "We've had an extremely good August for the total company, driven largely by Australia but also Brazil."

ASX Limited ((ASX)) chairman Rick Holliday-Smith says the stock exchange is set to shift its focus from domestic to international regulations in fiscal 2014, as changes in global regulation are particularly important for the markets derivatives business. Mr Holliday Smith says the ASX needs to observe local regulatory standards when dealing with European and American banks, while changes to international regulations also provide new business opportunities. 

AUD/USD is currently trading at $0.9398, down -$0.0024 against the USD.

Top Performers

Linc Energy Limited up $0.13 or 9.15% to $1.55

Evolution Mining Limited ((EVN)) up $0.055 or 6.71% to $0.875

Ten Network Holdings Limited ((TEN)) up $0.015 or 5.45% to $0.29

David Jones Limited up $0.14 or 4.91% to $2.99

Northern Star Resources Limited ((NST)) up $0.04 or 4.82% to $0.87

Bottom Performers

TPG Telecom Limited ((TPM)) down -$0.13 or -2.92% to $4.32

Mount Gibson Iron Limited ((MGX)) down -$0.02 or -2.56% to $0.76

Bluescope Steel Limited ((BSL)) down -$0.10 or -2.02% to $4.79

Goodman Group ((GMG)) down -$0.02 or -2.02% to $4.85

Cromwell Property Group ((CMW)) down -$0.02 or -1.96% to $1.00

Our Comments

We are feeling very bullish at the moment as today's price action proved to be a great move for the market. As you can see from the XJO chart below the market is reacting perfectly with the trend line (light blue, faint line) we outlined a few weeks back. As September comes to an end, we feel that the market will continue moving up nicely.

(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