Australia | Nov 20 2013
By Henry Jennings, Private Client Advisor, BBY Ltd
• Another dismal day bringing up three in a row this week as we knock on the door of 5300. Closing down 45 at 5308.Fatigue and apathy has set in and as we approach the end of the year, punters are taking some money off the table especially in the engine room stocks of the market ie. the banks. With all the money being sucked out of the market for the pre Xmas IPO rush ,it’s hardly surprising that we are seeing some weakness The big four have turned a nasty shade of red on my market map with Westpac Banking Corporation (A$32.42, -0.4%),Commonwealth Bank of Australia (A$76.72, -0.6%),National Australia Bank Limited (A$33.80, -0.8%) and Australia and New Zealand Banking Group Limited (A$31.56, -1.1%) all taking it badly today. Not wanting to feel left out others joined in too with Macquarie Group Limited (A$53.08, -0.1%),Platinum Asset Management Limited (A$6.05, -0.5%),Magellan Financial Group Limited (A$9.94, -3.5%),Bt Investment Management Limited (A$4.85, -2.2%) all suffering. Material stocks also took it hard today with BHP Billiton Limited (A$37.55, -0.9%),RIO Tinto Limited (A$64.73, -0.7%),Woodside Petroleum Limited (A$38.11, -1.0%),Fortescue Metals Group Ltd (A$5.79, -1.5%) ,Santos Limited (A$14.26, -1.7%) and Iluka Resources Limited (A$9.08, -4.3%) falling in a heap. News out of WorleyParsons Limited (A$16.00, -25.9%) didn’t help the market struggling to come to grips with AGM downgrade season. Telstra Corporation Limited (A$5.07, -0.8%) got walloped as did WOW.
• Retailers like Kathmandu Holdings Limited (A$3.31, -2.6%),JB Hi-Fi Limited (A$20.54, -3.1%),Super Retail Group Limited (A$13.72, -2.0%),Harvey Norman Holdings Limited (A$3.17, -1.6%),David Jones Limited (A$2.98, -0.3%) and Myer Holdings Limited (A$2.84, unch) had some pre Xmas nerves on Click Frenzy day plus the Dick Smith float is focusses the harsh light of day on the sector. Healthcare stocks were trapped in the casualty ward today with Csl Limited (A$67.55, -1.2%),Ramsay Health Care Limited (A$37.66, -1.3%) and Sonic Healthcare Limited (A$16.38, -1.8%) all falling away as industrials also underwent a similar fate. ALS Limited (A$9.17, -2.2%)Asciano Limited (A$5.75, -2.0%),Aurizon Holdings Limited (A$4.66, -0.6%),Leighton Holdings Limited (A$16.32, -2.2%) all on the nose but Csr Limited (A$2.68, +1.1%),Amcor Limited (A$11.02, -0.5%),Brambles Limited (A$9.30, +0.8%) and Maca Limited (A$2.45, +0.8%) bucking the trend. Mining services took things to heart today following Monadelphous Group Limited (A$17.01, -5.3%) comments at its AGM,WorleyParsons Limited (A$16.00, -25.9%) wanted to get in on the act and promptly crashed on their update dragging other service companies with it, Boart Longyear Limited (A$0.37, -5.1%),#NRW#,UGL Limited (A$6.84, -3.0%),Decmil Group Limited (A$2.06, -4.6%),Cardno Limited (A$6.93, -2.5%) and Ausenco Limited (A$1.26, -5.6%).
• Big cheesy grinners today were Ainsworth Game Technology Limited (A$4.60, +8.2%),Peet Limited (A$1.46, +4.3%),Drillsearch Energy Limited (A$1.30, +4.8%),Senex Energy Limited (A$0.80, +3.9%),Qantas Airways Limited (A$1.15, +2.2%),Aquila Resources Limited (A$2.15, +1.9%) and Regis Resources Limited (A$3.18, +2.3%) whilst sitting in the corner wearing a pointy hat and fingers pointed at them were WorleyParsons Limited (A$16.00, -25.9%),Monadelphous Group Limited (A$17.01, -5.3%),Sirius Resources NL (A$2.42, -4.0%),Iluka Resources Limited (A$9.08, -4.3%),Magellan Financial Group Limited (A$9.94, -3.5%),Mount Gibson Iron Limited (A$1.08, -3.6%) and Pacific Brands Limited (A$0.68, unch).
• Around the grounds Asia took a flesh wound with the region down around 0.4% across the board. Volume was pathetic again as many players seem reluctant to get involved after such a stellar year and its only November.
Stocks and Stories
• GrainCorp Limited (A$11.15, -2.8%) were in the Clive Palmer spotlight as he is pushing a private members bill to ensure this one does not fall into foreign hands. It seems that Joe is going to be able to knock this one back easily as every politician seems to be against it.# WCB# no problem but Graincorp ,not so open for investment Australia after all! Would take a brave Treasurer no to approve it ,so Joe are you that brave!
• In house stocks #CSS# took a tumble following a profit update on the 11th and a speeding ticket form the exchange following a big blip up. Chorus Limited (A$1.65, -2.7%) continued their falls as they withdrew their dividend guidance.
• Following our life science conference yesterday, #RGS# has had another stellar day adding to impressive gains since we floated the company a few months ago. A 100% return so far!#PAB# also had a positive day as did #NEU#
• WorleyParsons Limited (A$16.00, -25.9%) maybe the less said about this the better as they updated the market on the state of play.
• Atlas Iron Limited (A$1.18, -2.9%) will recommence royalty payments at its Mt Dove project to De Grey.
• Australand Property Group (A$3.75, -3.4%) has gone into a trading halt amid suggestions its 59-per cent shareholder, CapitaLand is looking to sell about 115m shares in an overnight book build.
• Kathmandu Holdings Limited (A$3.31, -2.6%) AGM and trading update sending them backwards. Sales rise of barely 1% was in line with company expectations but apparently not investor ones.
Henry Jennings
Private Client Advisor
BBY Limited
Participant of the Australian Securities Exchange
Authorised and Regulated by the Financial Services Authority
Level 17, 60 Margaret St
Sydney NSW 2000
D +61 2 9226 0067
M +61 414 345 137
E hcj@bby.com.au
W www.bby.com.au
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