Daily FNArena News - Australia

A positive trend in private health insurance membership is a good sign for private hospital operators, reports Southern Cross Equities.

Commonwealth Bank believes the Australian federal budget forecast of an 18.5% drop in business investment is way too panicked.

The May survey by Westpac has in essence revealed no major changes from April about consumers’ views on unemployment or inflation.

Stockbroking analysts suggest it remains too early to look into buying James Hardie shares.

After a strong gain in April the Westpac-Melbourne Institute survey of Consumer Sentiment fell in May in response to a Federal Budget seen as offering little to consumers.

Southern Cross Equities analyst Stuart Roberts reports the come back of risk appetite has been good for biotechnology stocks this year.

Tougher retail conditions has seen surfwear group Billabong cut earnings guidance and raise equity, the result being brokers no longer see the stock’s share price premium as justified.

The “green shoots” stock rally and signs of credit market easing were enough for the RBA to decide on a wait-and-see approach at this month’s meeting.

The latest skilled labour survey by recruitment group Clarius shows the gap between labour demand and skilled workers has now closed in Australia, suggesting unemployment will trend higher.

Operationally the company is performing as expected but brokers struggle to find value in Paladin at current levels.