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Sean K

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I've really enjoyed bigdog's DJI finish up thread and thought this thread may be a good way of getting orientated before the open also. Will update it each morning, when possible. Cheers, kennas


0711 [Dow Jones] WALL STREET: Stocks end lower, reversing from early gains that saw Dow hit a fresh record high of 14,198.10, with technology stocks hard hit by the mid-session swoon; "The epicenter was certainly technology, with Baidu taking the lead after J.P. Morgan shaved its third-quarter revenue estimate," said Jim Paulsen, at Well Capital Management. "Given that tech stocks have done so well, they have become sensitive to any negative news." Chinese Internet giant Baidu.com's ADRs ended down 10%, after being up as much as 4.7%, as word of Morgan's call got out; among other tech stocks Apple lost 2.7% after it had earlier been up 3.1% as Goldman Sachs lifted its price target and 4Q sales forecasts; PepsiCo fell 2.5% as the beverage maker's results beat Wall Street's expectations but the market noted weaker-than-expected volumes in North America. Wal-Mart gained 2.9% as the retailer boosted its 3Q earnings outlook, alleviating some concern about consumer spending; teen retailer Aeropostale added 9% as it posted a rise in September sales, while women's-wear retailer AnnTaylor Stores rose 5.2% as its sales also beat Wall Street's projections. But J.C. Penney dropped 7% as its same-store sales fell 4.6% in the month. In late trading Electronic Arts fell 0.5% as the videogame maker reached an agreement with Elevation Partners to acquire VG Holdings; content delivery netowork services provider Limelight Networks rose 9.5% on raising its 3Q revenue forecasts. Dow ended down 0.5%, Nasdaq down 1.4%, Philly Semicons down 2.3%. (SRO)

0804 [Dow Jones] AUD/USD pushes into fresh 23-year highs in New York trade on strong Wall Street lead before pulling back on equities rally reversal, says Macquarie Bank foreign exchange associate director Jo Masters. Pair hit 0.9060, highest since May 1984. AUD/USD unlikely to breach recent high in Asian trade ahead of tonight's U.S. retail sales data but will move higher in longer term, Masters says. Expects support at 0.8980 level today. Weak Wall Street lead could weigh on Australian stocks, hindering AUD/USD push higher. Pair last at 0.9004.(SRH)

0827 [Dow Jones] STOCK CALL: UBS cuts CSL (CSL.AU) to Neutral from Buy and price target to A$105.32 from A$108.70 to reflect weaker USD/AUD. "Despite FX impact, we continue to rate CSL as a core portfolio holding given the rollout of liquid IVIG as a key catalyst," UBS says. "Over the next three years we expect core EPS to offer 25% compound annual growth rate with FY10 core net profit almost doubling. Liquid IVIG capacity could double again post 2010. Short-term catalysts include Gardasil September 2007 quarter sales result (Oct. 22), 3:1 stock split (Oct. 24) and 4.5% buyback (not commenced)." Last trade A$101.67. (ABH)

0829 [Dow Jones] Weakness in Asian equities could push AUD/USD down to 0.8940, says National Australia Bank senior currency strategist John Kyriakopoulos. Wall Street rally reversal overnight pulled pair back from fresh 23-year high in late U.S. trade; Asian equities markets could follow weak U.S. lead, reducing risk appetite for high-yielding currencies. Kyriakopoulos says, "The yield story for the AUD remains supportive but will need to see an RBA hike to push AUD/USD up significantly." Pair last at 0.9015. (SRH)

0835 [Dow Jones] STOCK CALL: Merrill Lynch cuts Qantas (QAN.AU) to Neutral, says stock trading above price objective of A$5.82. "We see potential for value creation from Qantas' planned restructuring but we think this is largely reflected in the current share price," analyst says. Sees risk that timing and value creation of restructure could fall short of some expectations. Also points to upside risk to market's fuel cost forecasts based on recent fuel price strength. QAN last at A$5.97. (LMF)

0841 [Dow Jones] STOCK CALL: Merrill Lynch says while Bank Of Queensland's (BOQ.AU) FY result was solid on strong volumes, stock looks overvalued and there are no catalysts. "We struggle paying 19x (sector around 14x) for a stock delivering only marginally better than sector EPS growth historically," analyst says. Keeps Sell rating on BOQ, stock last at A$19.40. (LMF)

0843 [Dow Jones] UBS raises Tattersall's (TTS.AU) FY08 and FY09 EPS estimates 1.7% to 21.9 cents from 21.5 cents and 0.6% to 25.6 cents from 25.4 cents to reflect lower depreciation and amortization costs in FY08 given a 10-year lottery license extension in Victoria state and the removal of costs associated with its instant lotteries business there. Tattersall's yesterday gained a license renewal for its lotto products in Victoria, but the instant lottery ticket license was awarded to rival Intralot (INLOT.AT). "Whilst the lottery monopoly was broken, we note the products foregone were more marginal in terms of profitability," UBS says. Keeps at Neutral, A$4.65 price target. Last trade A$4.13. (ABH)

0853 [Dow Jones] S&P/ASX 200 offshore leads mixed. DJIA down 0.5% at 14015.12, Nasdaq down 1.4%, S&P 500 down 0.5%. Nymex crude up US$1.78 to US$83.08. Comex gold up US$10.70 at US$756.70. U.S. 10-year bond yield down 0.7 point at 4.64%. AUD/USD up at 0.9008. LME copper down 1.2%, nickel up 1.9%. London-listed BHP Billiton up 4.4%, Rio Tinto up 3.5%. SPI futures down 26 points at 6800. S&P/ASX 200 last 6771.9. (ABH)

0858 [Dow Jones] STOCK CALL: ABN AMRO cuts Austereo (AEO.AU) to Hold from Buy on the back of recent share price rally, which has pushed stock above broker's A$2.42 price target. "The stock is now trading in line with peers and we believe it is fairly valued at current levels," analyst says. AEO last at A$12.15. (LMF)

0905 [Dow Jones] AUD/USD to hold close to 0.90 in Asia on scant local data, Citigroup director of economics Stephen Halmarick says; adds pair could be sold on weaker lead for equities but likely well supported by fundamentals in longer-term. "A lot of interest in the commodity price story and obviously the data flow suggests the RBA needs to put rates up again." Trade to remain subdued before U.S. retail sales, PPI date later, G7 meeting next week; pair now at 0.9011.(SRH)
 
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Re: Australian Equities (Pre Open) Roundup

g'day Kennas

Great post. Keep them coming.

Cheers

Dutchie
 

Sean K

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Re: Australian Equities (Pre Open) Roundup

0631 [Dow Jones] COMMODITIES ROUNDUP: Crude futures rose to new settlement record, gaining for 4th straight session on concerns of potentially big shortfall in supplies ahead of Northern Hemisphere winter; November Nymex up 61 cents to $83.69 /bbl, Brent on ICE up 40 cents to record-high $80.55. "We're still looking at a draw in inventories for the fourth quarter, which is constructive for prices," said Andy Lebow of MF Global. Gold futures down on profit-taking after recent highs; December gold down $2.90 to $753.80/oz on Comex, down $3.10 to $753.90 on CBOT. "Gold prices retreated from Thursday's lofty peaks as a mild bounce in the U.S. dollar tempered the bullish tone just a bit," said Jon Nadler of Kitco Bullion Dealers in research note. December silver down 8.2 cents to $13.903/oz on Comex, down 10 cents to $13.898 on CBOT; Nymex platinum, palladium fell on profit-taking; January platinum down $6.20 to $1,414.20/oz, December palladium down $6.45 to $379.50. LME base metals rallied on general USD weakness, but fundamental drivers expected to return this week, keeping metals mixed; more record highs ahead for lead, with stocks low, falling, although "there's a question of how much higher it can go," said Daniel Smith of Standard Chartered Bank. Copper down $15 to $8065, lead down $70 to $3820, zinc up $61 to $3125, aluminum up $39 to $2505, nickel up $505 to $32000, tin up $470 to $16445. (BRD)

0637 [Dow Jones] WALL STREET: Stocks rose Friday, helped by gains in blue-chips and better-than-expected September retail sales data; McDonald's rose 1.4% on 5.9% on-year rise in September global same-store sales; BEA Systems jumped 38% after Oracle made a $6.66 billion offer for the business-management software maker; Oracle shed 2 cents to 22.44. General Motors +6.6% on news its market share in Latin America, Africa and the Middle East increased to 17.5%, representing best 3Q share since 1997. General Electric lost 1.4% despite a 14% rise in 3Q profit as analysts noted that profitability in some of GE's divisions dipped a bit; Citigroup dropped 0.9% after Deutsche Bank cut its rating on stock to sell from buy following CEO Charles Prince's move to shake up Citigroup's top ranks; in late trade, Merck rose 1.5% on news an FDA panel had approved company's new type of HIV drug. Dow closed +0.6%, Nasdaq +1.2%, Philly semicons +1%. (SHN)

0758 [Dow Jones] AUD/USD pushes to new 23-year high of 0.9071 in early Asian trade as investors focus on strong economic fundamentals, commodity price surge, notes Grange Securities chief economist Stephen Roberts; says as-expected U.S. retail sales data, Wall Street strength are allowing AUD to rally on positive global growth outlook. Expect pair to trade in 0.9040-0.9070 range on day, unlikely to push above 0.9100. Roberts says Australian federal election date announcement is unlikely to have significant impact on AUD/USD. Pair last at 0.9067, up 20 points from Friday. (SRH)

0835 [Dow Jones] Announcement of Australian election date for Nov. 24 could scale back expectations of November interest rate rise, says National Australia Bank senior currency strategist John Kyriakopoulos; adds AUD/USD pullback could be good buying opportunity, with "a lot of good news factored into the AUD". NAB says "RBA most likely to hike of major central banks," risk-appetite improved. Expect 1-month target of 0.9050. Pair last at 0.9062.(SRH)

0837 [Dow Jones] Both Australia's ruling Liberal-National coalition, main opposition Labor party likely to spend "an awful lot of money" in attempt to secure victory in Nov. 24 federal election, says ICAP senior economist Matthew Johnson, lifting near-term inflation prospects, risking more RBA rate hikes in 2008. Adds that if, as opinion polls suggest, Labor wins and scraps Australian Workplace Agreements, or individual contracts, employment growth will probably slow but wage growth will be slightly higher - again risking higher rates. Thinks RBA will hold off on November rate hike, while campaign in full swing, but will hike in December. (RAP)

0843 [Dow Jones]Goldman Sachs JBWere says September sales for board sport retailers in U.S were mixed. "It is encouraging to see a solid sales result in PacSun (given their issues) and continued strong momentum in Zumiez," analyst says. "However, we note that sales momentum for the Pacific Sunwear group remains patchy, with momentum declining over September and that the U.S. mall-based branded boardsports retailers reported mixed sales." Adds it will be very important for sentiment towards BBG that it maintains solid growth in the U.S. following the issues highlighted at its FY07 result and the general macro concerns over the U.S. consumer. Maintains Buy; price target A$20.91 vs last trade A$16.21. (SVM)

0859 [Dow Jones] Australia's ruling Liberal-National coalition faces strong chance of defeat in Nov. 24 federal election, latest Newspoll published in the Australian newspaper shows. Main opposition Labor party maintains 12-point lead on two-party preferred basis of 56% vs 44% for coalition in poll taken Oct. 12-15 steady on previous poll Sept. 28-30; if repeated on election day Labor will win office in landslide victory. Analysts say election poses inflation, rate hike risk as both sides roll out generous spending packages in bid to win voter support. (RAP)


0903 [Dow Jones] AUD/USD retreats 20 points from recent 23-year high on reduced expectations of 25bp RBA hike in November as Australian election campaign commences, says Westpac senior currency strategist Robert Rennie; adds U.S. data have been predominantly above expectations, reducing prospects of further Fed rate cuts. "Rogue low" 3Q NZ CPI earlier today prompting expectations Australian 3Q CPI due Oct. 24 could be also be low. "There's going to be turbulence and there's going to be airpockets, and I think we hit a bit of an airpocket this morning." AUD last at 0.9043.(SRH)

0904 [Dow Jones]Merrill Lynch maintains buy on Perpetual (PPT.AU) after announcing its funds under management. "While up A$400 million or 1% on the A$39.1 billion balance at August 07, in our view, the result is disappointing in that the benefit of buoyant equity markets was largely offset by the impact of A$600 million in institutional outflows over the month," analyst says. However, expects 1H08 profit guidance due at PPT's AGM on Oct. 30 will surprise.(SVM)

0911 [Dow Jones] AGL Energy (AGK.AU) downgrades its earnings guidance for FY08 as margins squeezed in its energy retail business. Now expects FY08 earnings between A$330 million and A$360 million; previous guidance for between A$380 million and A$400 million. AGL also cites strong AUD, lower oil profits from PNG, depreciation on its Torrens Island power station and higher wholesale gas costs. Earnings downgrade likely to weigh on shares at open. Investors may also react negatively to news AGL is now reviewing its outlook for medium term earnings per share growth of between 15% a year. AGL last traded at A$15.63.(APW)
 

Sean K

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Re: Australian Equities (Pre Open) Roundup

0552 [Dow Jones] Global markets likely to remain volatile over coming weeks after Citigroup's (C) 57% slump in 3Q profits, dour comments on 4Q outlook, says ANZ Bank in report; "Further bad news could well trigger another round of risk aversion, with U.S. equities likely to bear the brunt given its sharp moves higher over recent weeks." Says warning from Citigroup that late payments on home loans, consumer credit may worsen in 4Q has spooked market; investors now likely on edge as Bank of America (BAC), JP Morgan Chase & Co, which have significant consumer, leveraged loan operations, due to report results this week. (SHN)

0624 [Dow Jones] COMMODITIES ROUNDUP: Crude soared above $86/bbl, continuing Friday's rally as Turkey-Iraq tensions mounted, USD weakened, signs of tight supply situation ahead boosted prices to new records. November Nymex ended up $2.44 to $86.13, Brent on ICE up $2.20 to $82.75. Possible Turkish assault on Kurdish rebels in Iraq gives "image of troops waiting to go into northern Iraq, inflating expectations," said Brad Samples of Summit Energy Services; adds conflict is "probably what's giving us the impetus for this strong move up today." Combination of factors pushed spot gold to 28-year high, futures to 17-month high; weak USD, higher crude plus speculative buying supported. December gold up $8.40 to $762.20/oz on Comex, up $8 to $761.80 on CBOT; December silver down 4.8 cents to $13.855 on Comex, off 3.2 cents to $13.859 on CBOT after earlier $14.111 high; January platinum up $9.20 to $1,423.40, December palladium down $2.35 to $3.7715. LME base metals slipped from Monday's speculation-driven intraday highs as high crude price, precious metals strength added to bullish sentiment. Base metals "relatively bullish" after LME week, said Calyon Financial at Michael Widmer; added metal supply, demand going forward will largely be affected by China's metal consumption, production. Copper up $85 to $8150, lead down $5 to $3815, zinc up $10 to $3135, aluminum down $12 to $2493, nickel down $50 to $31950, tin up $105 to $16550. (BRD)

0635 [Dow Jones] AUD/USD lower early in New Zealand on selloff in AUD/JPY in sympathy with rising risk aversion; traders say selloff in U.S. stocks overnight, Citigroup's dour 4Q outlook comments following sharp 3Q profit fall combine to weigh on high yielders. But AUD remains supported on dips with gold prices soaring to new highs overnight; pair last 0.8992 vs 0.9053 late in Sydney yesterday. Liberal-National coalition government's pledge of A$34 billion in tax cuts if re-elected next month also has slightly raised prospect of RBA hiking in November. AUD/JPY last 105.55 vs 106.49 in Sydney yesterday. (SHN)

0730 [Dow Jones] WALL STREET: Stocks finished sharply lower on worries sparked by disquieting comments from Citigroup; "I think people are wondering whether the message that Citigroup sent about uncertainty will be the exception or the rule during earnings season," said Larry Adam, chief investment strategist at Deutsche Bank. "And oil at record highs stands to put pressure on corporate margins and the holiday shopping season." Citigroup lost 3.4% after the largest U.S. bank by market cap posted a 57% decline in 3Q profit, delivered lukewarm comments on its outlook and cautioned that the market for some fixed-income products may not rebound; other investment banks followed Citigroup lower with Lehman Brothers losing 3.6%, Merrill Lynch off 2.1%, and Bear Stearns down 2%. Surging crude oil prices pushed stocks of oil companies like ExxonMobil by 1.4%, while airlines suffered; US Airways slumped 6.5%. Strong gains were led by Biogen Idec, +19% as the maker of multiple-sclerosis drugs said it's evaluating a possible sale of the company after receiving several expressions of interest from potential buyers. Electronic test and measurement company Tektronix leapt 34% after its sale to industrial conglomerate Danaher; Danaher dropped 1.2%. Dow closed down 0.8%, Nasdaq off 0.9%, philly semicons flat at 487.37. (SHN)

0809 [Dow Jones] Spot gold builds on strong overnight gains, up at fresh 28-year high of $758.90, up $2.00 vs NY close, gains on other commodity price rises, including oil scaling record highs of over $86/bbl; IMF states USD remains overvalued, pushing gold higher, notes HSBC analyst James Steel. Threat of Turkish invasion in Northern Iraq lends support. Creation of a $75 billion bank fund to buy mortgage-linked securities does little to stem safe-haven buying in gold, stirs disquiet on credit crisis fallout. (EFB)

0816 [Dow Jones] AUD/USD likely to be capped at 0.9050 on weaker equities performance, National Australia Bank strategist John Kyriakopoulous says; adds AUD/USD hit fresh 23-year high of 0.9080 in U.S. trade on speculation of further RBA hikes fueled by government tax cut pledges. Soft guidance for CitiGroup in U.S. has weighed on equity markets, likely to add sell tone to Australian stocks keeping cap on AUD/USD. Pair last at 0.9001.(SRH)

0832 [Dow Jones] Day 3 of Australia's federal election campaign has main opposition Labor Party under pressure to match ruling Liberal-National coalition's A$34 billion tax cut plan; both Labor leader Rudd, shadow Treasurer Swan agree lower taxes are good for economy, but say they need to study latest budget figures released yesterday before unveiling their own plan. While surprise announcement of coalition's tax plan may have given them upper hand early in campaign, it leaves room for Labor to trump the deal to secure its lead in recent voter surveys. That'll keep RBA on guard for impact of increased fiscal stimulus in already stretched economy. (RAP)

0833 [Dow Jones] STOCK CALL: Goldman Sachs JBWere cuts AGL Energy (AGK.AU) target price to A$13 from A$16.36 on earnings downgrade. GSJBW also cuts earnings per share forecasts by 14% for FY08, 17% for FY09 and 15.9% for FY10. Says the downgrade seems to have surprised management, who have not yet quantified flow on effects for FY09 and beyond. "We believe the market will take time to get confidence back in the stock," GSJBW says. Maintains hold rating. AGL last traded at A$13.03. (APW)

0836 [Dow Jones] STOCK CALL: UBS downgrades Commonwealth Bank (CBA.AU) to Neutral from Buy on the back of recent share price performance. Keeps 12-month share price target at A$60, notes stock is best performing bank year to date and since January, 2006 and is now on 5% premium to sector. "While we remain confident of CBA's outlook, this now appears to be reflected in its price," analyst says. CBA last at A$59.38. (LMF)

0840 [Dow Jones] LME copper steady after initial strong start overnight on back of dollar weakness, higher oil prices, generally bullish sentiment following LME Week, says Standard Bank. But lower U.S. equities, concerns over credit crunch clip gains. U.S. data tonight include industrial production, expected up 0.1%; tomorrow sees release of CPI, housing starts, Fed's Beige Book. Optimistic bias will support base metals in short term, likely to shrug off inventory increases, react well to price-supportive news, says trader. Market will continue to eye fresh concerns from the credit sector, prompting metals price dips. LME 3-month copper last trade at $8,160/ton, up $10 vs PM kerb. (EFB)

0841 [kennas] HLX looks set to run to about $26.00 on the back of the AQA JORC ann on the Yalleen JV. Better go out and sell a liver and put it on this baby. Those who have read to the end, I hope you've had a laugh. ;-) LOL.
 
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Re: Australian Equities (Pre Open) Roundup

0841 [kennas] HLX looks set to run to about $26.00 on the back of the AQA JORC ann on the Yalleen JV. Better go out and sell a liver and put it on this baby. Those who have read to the end, I hope you've had a laugh. ;-) LOL.

Nice one ;)
 

prawn_86

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Re: Australian Equities (Pre Open) Roundup

lol. so a gap up to $20 then up to 26 by the end of the day kennas? :p:
 

Sean K

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Re: Australian Equities (Pre Open) Roundup

0620 [Dow Jones] COMMODITIES ROUNDUP: Crude hit intraday record of $88.20/bbl, higher for 6th straight session on Turkey-Iraq concerns, forecast 4Q supply deficit. November Nymex up $1.48 to $87.61, Brent on ICE up $1.41 to $84.49. "When we broke through the ($78-$84) trading range, we saw a lot of people covering shorts as well as new buying as we started another leg up," said Eric Wittenauer of A.G. Edwards. "The trend remains higher." Gold, silver futures pared overnight gains on profit-taking spurred by stronger USD; December gold down 20 cents to $762 on Comex, up 40 cents to $762.70 on CBOT; December silver off 19.7 cents to $13.658 on Comex, down 20.6 cents to $13.656 on CBOT. "Silver was under pressure a little more than gold," said Dave Meger at Alaron Trading. "Certainly, both had a bout of profit-taking on the slightly firmer dollar and weakness in the foreign currencies." January platinum down $1 to $1,422.40, December palladium off $1.85 to $375.30. LME base metals mostly lower on profit-taking sparked by weaker gold, lack of bullish news; "Weaker equity markets and a stronger U.S. dollar dealt metals a blow," said BNP Paribas analyst David Thurtell. "Comments by the U.S. Fed Chair (that slower U.S. housing growth likely to drag on economy next year) and rising copper and lead stocks did nothing to help." Copper down $100 to $8050, lead down $175 to $3640, zinc down $95 to $3040, aluminum up $6.50 to $2499, nickel down $155 to $31795, tin down $50 to $16500. (BRD)

0637 [Dow Jones] AUD/USD hammered along with other high yielders as investors exit risky bets, with liquidation of yen-funded carry trades gaining momentum; Bank of NZ FX strategist Danica Hampton says comments from Japan's Vice Finance Minister for International Affairs Shinohara, who reportedly said "Europeans have expressed concern about the EUR" appear to have triggered the carry trade liquidation. Weaker U.S. stocks, more bad news on U.S. housing, record high oil prices also heighten risk-aversion. AUD/USD trading at 0.8860 early in NZ vs 0.9004 late in Sydney yesterday after sliding to near 2-week low of 0.8824 offshore; AUD/JPY also down sharply, now 103.38 vs 105.76 yesterday. (SHN)

0655 [Dow Jones] Asian stock markets likely to weaken today as Asian ADRs fell 2.3% during North American trading on renewed rise in risk aversion, says Brown Brothers Harriman in report; thinks U.S. stocks will remain volatile after falling overnight on ongoing concerns about weak earnings, while Fed Chairman Bernanke's warning of risks ahead also negative. Adds Indian ADRs hammered by news Indian regulators considering restricting offshore derivative-based participatory notes. (SHN)

0734 [Dow Jones] WALL STREET: Stocks closed lower for 2nd straight session as more bad news on housing front, renewed credit worries and high oil prices spooked market. Investors were rattled by U.S. Treasury Secretary Henry Paulson "saying housing is starting to impact everything else, because you usually don't get administration officials taking a more negative view," said Marc Pado, U.S. market strategist at Cantor Fitzgerald. "And every day oil hits a new record, which has become alarming." Most banking companies struggled with Wells Fargo off 3.9% as a 4.1% rise in 3Q profit was accompanied by mortgage-related write-downs, big reduction in value of mortgage-servicing rights. KeyCorp fell 5.9% after 3Q net income plunged 33%; Merrill Lynch lost 2.5% and Lehman Brothers dropped 2.7%. L.M. Ericsson Telephone's American depositary shares slumped 24% after saying fewer than expected capacity upgrades, lower software sales would hit profits; news hurt rivals including Nokia, down 3.1%. In late trading, shares of Intel rose 5% after posting 43% rise in 3Q earnings as strong demand for notebook computers drove sales of the company's microprocessors. Yahoo rose 8.8% as company's 3Q profit topped expectations, IBM fell 1.4% on news its 3Q gross profit margin fell to 41.3% vs 42% year-ago. Dow finished down 0.5%, Nasdaq off 0.6%, Philly semicons down 0.1%. (SHN)

0806 [Dow Jones] AUD/USD expected to find base of about 0.8850 as risk aversion increases on more worries following U.S. bank results, says Grange Securities chief economist Stephen Roberts; adds "credit crunch is going to be slow to go away". Wall Street slide prompts investors to pull out of high-risk currencies, weak Australian equities lead will add to sell tone. Pair pulls back from above 0.9000, plumbs to 0.8826. "Carry trades are on the nose for the time being." Roberts expects "very, very choppy" AUD/USD trend on more short cycles of risk aversion in near-term but for broad direction to be up. Pair last at 0.8887.(SRH)

0817 [Dow Jones] Asia stock markets have negative cue from Wall Street fall overnight, but this may be offset to some extent by after-hours rise in U.S. stock futures; Nasdaq futures now +0.7% in screen trade. This due to after-hours gains in big techs including Seagate, Yahoo, Intel, on earnings reports; Intel shares gained 5% in late trade as 3Q net income jumped 43% amid strong worldwide demand for its chips and record microprocessor shipments, while it boosted full-year margin expectation. World's largest chipmaker is barometer for sector and results may thus support Asian names on expectation for solid seasonal demand in 4Q. For 4Q, Intel expects margins of 57% on revenue of $10.5-11.1 billion, vs Wall Street's revenue expectation of $10.42 billion.(RXM)

0821 [Dow Jones] STOCK CALL: Credit Suisse cuts Commonwealth Bank (CBA.AU) rating to Underperform from Neutral on back of recent share price strength. Keeps target at A$55.00 on 12-month view; CBA shares latest A$58.90. (LMF)

0822 [Dow Jones] AUD/USD could make run for 0.8500 if it falls below 0.8820, says Suncorp treasury analyst Peter Pontikis; adds current risk aversion trends "should help the bears" this week. Bearish drivers include further oil price surge, comments from ECB's Trichet, weak U.S. data. Pontikis says "salient risk" exists that more bad news in equity markets could push AUD/USD below 0.8820. Expect wider range of 0.8845-0.8900 in Asian trade. (SRH)

0827 [Dow Jones] Australian Finance Minister Nick Minchin attempts to discredit main opposition Labor Party's election pledge to improve housing affordability by releasing surplus government land; says A$6 billion figure quoted by Labor leader Rudd yesterday includes all land owned by government, not just surplus land; "Rudd has not grasped the detail and clearly has not grasped the difference between land owned by the Commonwealth and surplus land which might be available for housing." Adds housing policy appears to have been quickly put together to counter ruling Liberal-National coalition's A$34 billion tax cut plan announced Monday. Although voter polls show Labor will win landslide victory if election was held now, pressure is mounting for center-left party to match or better coalition's tax plan to cement its lead. (RAP)

0827 [Dow Jones] STOCK CALL: Credit Suisse cuts Coates Hire (COA.AU) to Neutral from Outperform on back of recent share price strength; analyst says stock has gained 20.7% since Aug. 30, vs 9.1% rise for benchmark S&P/ASX 200 index. Targets COA at A$6.60; last at A$6.46. (LMF)

0902 [kennas] Had a tough day today. Did some Spanish study this am and some stock research before going out for a long lunch with Rach, and 2 friends. Watched Lost in Translation this arvo for the 100th time and now have Wall Street on in the background. LOL. Having a wine and cheese night tonight.....yum yum.
 
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Re: Australian Equities Pre Open Roundup

Thank you for posting this information Kennas, it is much appreciated.
I also enjoy the personal touch at the end. :)
Have a good trading day everybody.
 

Sean K

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Re: Australian Equities Pre Open Roundup

0614 [Dow Jones] COMMODITIES ROUNDUP: Crude slightly lower after hitting new record intraday high of $89/bbl, as larger-than-expected increases in U.S. petroleum inventories outweighed worries about Iraq-Turkey tensions. November Nymex down 21 cents to $87.40, Brent on ICE down 68 cents to $82.91. "Finally we hit a price level that people decided all the worries were priced in, and decided to book some profits," said Phil Flynn at Alaron Trading Corp. Gold futures gave up early gains on long liquidation after initial support from softer USD, higher crude; December gold up 30 cents to $762.30 on Comex, up 80 cents to $763.20 on CBOT; December silver up 9.2 cents to $13.75 on Comex, up 9.5 cents to $13.749 on CBOT. "You saw the metals stall a little," said Charles Nedoss of Peak Trading Group. "They've had a very good run... The trend is still very strong (because of) tensions between Turkey and Iraq." January platinum up $15.80 to $1,438.20, underpinned by South Africa safety issues after accidental death of Northam mine worker; December palladium range-bound, up 10 cents to $375.35. LME inventory build pushed base metals prices down; lower-than-expected U.S. housing data added to bearish sentiment; copper down $90 to $7960, lead down $90 to $3550, zinc off $70 to $2970, aluminum up $11 to $2510, nickel unchanged at $31795, tin down $125 to $16375. LME copper still seeking direction as nearby support has eroded by rapidly increasing inventory stocks, end of strike action in Peru, said Walter de Wet at Standard Bank; added longer-term outlook bullish, with tight concentrates market underpinning prices. (BRD)

0746 [Dow Jones] AUD/USD trades higher in Wellington early after another rocky ride offshore, recovering along with euro as USD struggled to make headway after weak U.S. housing market report; AUD likely to remain whippy today, investors probably eye Asian market for cues. Pair now 0.8901 vs 0.8824 late Sydney yesterday, but off overnight peak of 0.8970 as markets still nervous about credit conditions, while trepidation ahead of Friday's G7 meeting continues to pace trading. Another uninspiring Wall Street performance also keeps carry-trade demand at bay though these trades made partial comeback overnight. AUD/JPY now 103.92 vs 102.67 yesterday. (SHN)

0731 [Dow Jones] WALL STREET: Stocks end mixed after a volatile session as investors navigated through a confluence of positive and negative news; "we're in a very reactive market," said Bill Sutherland, director of equity research at Boenning & Scattergood. "So on a day like today with a lot going on, you're going to see a lot of bouncing around." Market was buffeted by some solid earnings, poor housing data plus prospect of military action by Turkey in Iraq that pushed oil briefly to the $89 a barrel mark. Mortgage insurer MGIC Investment plunged 15% after 3Q swung to a loss from profit year-ago, expects market conditions to affect results through 2008; diversified manufacturer United Technologies fell 3.6% on bearish outlook comments after posting 3Q profit rise of 20%. While Dow fell, tech-heavy Nasdaq rallied on back of strong 4.9% gain by chip maker Intel, 8.9% jump by Internet giant Yahoo; Intel posted solid 43% rise in 3Q earnings, with positive news pushing rival Advanced Micro Devices up by 1.1% Yahoo's earnings, which down on-year, exceeded Wall Street's forecast and CEO Jerry Yang remained upbeat on company's broad reorganization efforts. J.P. Morgan Chase gained 2.8% on 2.3% rise in 3Q profit as it managed to weather a turbulent market environment better than peers like Citigroup. In late trade, eBay advanced 3.2% after 3Q sales rose 30%. Dow closed down 0.2%, Nasdaq +1%, Philly semicons +0.1%. (SHN)

0811 [Dow Jones] Weak U.S. data overnight "likely to equal a weak USD", says BNP Paribas. EUR/USD to re-test 1.4240/80 peaks, with break above that level creating potential for rise to 1.4545 in medium term; last quoted at 1.4212. GBP/USD also likely to benefit from USD weakness, given its high-yield status, solid U.K. labor market data, BNP says. Expects GBP/USD to target 2.0435/95. Global risk appetite on rise, implying bounce for high yielders. If AUD/USD breaks above 0.8965, would confirm corrective bottom has been established, with focus on recent high of 0.9080. Last quoted at 0.8917. In medium term, potential for rise toward 0.92/0.94. (ILM)

0821 [Dow Jones] Resignation of Michael Kay, CEO of Suncorp Metway's (SUN.AU) AAMI business, is a negative for Suncorp and could drain morale at group at a critical time in merger of Suncorp and Promina businesses, Merrill Lynch says. Also says while not unexpected, there is anecdotal evidence of potential integration concerns at Suncorp. Keeps Neutral rating on SUN, says group's AGM is the next possible catalyst for stock. Shares yesterday down 1.6% at A$20.18. (LMF)

0823 [Dow Jones] STOCK CALL: Transfield Services (TSE.AU) upgraded to Buy from Neutral by UBS, noting purchases of Horizon and Whelan's, 2 U.S. east coast facilities management businesses, "seem to us to be excellent fits, both with each other and with U.S. Maintenance." Lifts earnings forecasts by up to 8% in first year of ownership, raising target price to A$15.25 from A$14.00, and says in "highly fragmented and immature" U.S. market, "TSE looks well placed to win large, relatively high-margin contracts." Shares yesterday up 3.0% at A$13.76. (WEL)

0825 [Dow Jones] AUD/USD likely to get a boost once risk appetite returns via AUD/USD 2-year swap yield spread widening out to fresh 3-year highs above 240 bps, says NAB currency strategist John Kyriakopoulos. Stronger Asian stocks today could see test of 0.8950; now 0.8916. Investors will no doubt remain jittery about equity markets and any further sharp declines will weigh on AUD. Notes IMF World Economic Outlook overnight showed China and India making largest contributions to global growth, which supports bullish AUD view. AUD/USD latest 0.8915. (JEG)

0827 [Dow Jones] If Australia's ruling Liberal-National coalition wins Nov. 24 federal election, delivers A$34 billion in tax cuts pledged earlier this week, there's a "very good chance" RBA will need to hike rates to at least 7.0%, says TD Securities global strategist Stephen Koukoulas. Notes Labor Party still to unveil its tax policy, though it's "indicated a more conservative approach to fiscal policy." Adds pre-election rate hike to 6.75% Nov. 7 "near certain" as a result of tax cuts announced in May budget, along with "other well-documented issues" adding to inflation pressures at present. (RAP)

0833 [Dow Jones] Former RBA board member Bob Gregory has warned further RBA rate hike could be overzealous, undermining a historic chance to create full employment in Australia. Labor market academic Gregory argues that inflation remains meek. "Nobody is seeing big inflation rates, it's hard to see any evidence in the labor market, so we're only talking about small uplifts, if at all," Gregory told ABC radio. Comments come as markets price in 50/50 chance RBA will hike rates in November from current 10-year high of 6.50%. (JEG)

0842 [Dow Jones]UBS says confirmation the ASX (ASX.AU) will offer trading in a range of CFDs from early November is positive for volumes. "When CFDs were introduced into Australia in mid-2002, ASX option volumes were impacted by some investors substituting towards the newer product. Moreover, OTC issuers typically only hedged their unwanted net exposure back to the options market," analyst says. "A successful exchange traded CFD offering should attract back some of this volume, and assist overall market growth, in our view." Maintains Neutral. "However, we recognise the valuation optimality of this initiative, which leverages ASX's regulatory and operational strengths." (SVM)

0909 [kennas] Is watching Golden Eye at the moment. Brosnan was a good Bond. Today booked in to do a paragliding pilot course starting next week. Should be fun!
 
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Re: Australian Equities Pre Open Roundup

It would be better there are someone guru here help us how to understand the news above. I find we can not read the news by its word. e.g. gold price hit new high, does not necessarily mean gold share is going to have a good day.
I find the roundup is helpful but I still do not know how to use it. :rolleyes:
 

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Re: Australian Equities Pre Open Roundup

It would be better there are someone guru here help us how to understand the news above. I find we can not read the news by its word. e.g. gold price hit new high, does not necessarily mean gold share is going to have a good day.
I find the roundup is helpful but I still do not know how to use it. :rolleyes:
For a start, Golden Eye is a good movie. :)

The rest is just a news heads up. Orientation for the day...

For detail go to the threads... :dunno:
 

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Re: Australian Equities Pre Open Roundup

Sorry, was out having drinks during pre-open.


0941 [Dow Jones] Australian Treasurer Costello says the Coalition's proposed tax cuts are not inflationary. "I wouldn't have done it if it wasn't consistent with our other economic goals which are low inflation and continuing growth," he tells ABC radio in Melbourne. Costello says the drought will see food prices rise and that the proposed tax cuts will help people deal with the impact. "The best thing to do is to put the money back in people's pockets so they have the capacity to adjust," Costello says. Some economists disagree with Costello and have said the Coalition's tax policy could help tip the balance at the RBA toward further interest rate hikes. The RBA next meets Nov. 6 with markets pricing in a 40% probability that it will hike. (APW)

0946 [Dow Jones] CSL (CSLDA.AU) may outperform Friday after strong 3Q results and improved FY earnings guidance from U.S. peer Baxter. Baxter shares rose 7.8% after company lifted FY guidance to US$2.75-US$2.77/share from US$2.65-US$2.70 previously. CSL retreated slightly yesterday after rising 8.5% from Tuesday's low of A$32.00 (deferred settlement basis). Expect test of next resistance at A$35.30 on break of A$34.74 today. Support now A$34.30. Analyst consensus price target A$35.84, based on Thomson ONE data. (DWR)

0947 [Dow Jones] STOCK CALL: Citi downgrades Iluka (ILU.AU) to Hold, cuts target price to A$5.30 due to higher AUD. "Earnings could evaporate entirely on any further AUD appreciation," Citi says. Says upgrades to currency forecasts since its last note have driven a 50% earnings downgrade for 2007. Says 3Q production was steady but meeting shipping schedule may be a challenge in 4Q given tight ship availability and soaring freight costs. Iluka last traded flat at A$5.13. (APW)

1000 [Dow Jones] S&P/ASX 200 should see early weakness in line with 21-point fall in overnight futures. Sale of A$590 million stake in Goodman Fielder will need to be soaked up. But traders are expecting good support on dips. Chart support 6725.0, resistance 6800.0. Surging oil prices may trigger short-term correction on Wall Street, but shouldn't derail global stock markets as Fed remains in easing mode. Local currency strength should help insulate Australian market. Strong results from Google - up 3.0% after hours - might help Wall Street tonight. And major drivers of yesterday's strength in S&P/ASX 200 - resources, banks, Woolworths - should be well supported. BHP Billiton comments on tight demand/supply conditions should underpin BHP , Rio Tinto and surging oil price should support Woodside. Woolworths strong before expected jump in sales data next week. Index last 6767.7. (DWR)

1003 [Dow Jones] STOCK CALL: JPMorgan keeps Overweight rating on Commonwealth Bank (CBA.AU) with A$60.23 target, notwithstanding stock's strong performance so far this year. "CBA have potential sources of excess EPS growth from improving distribution performance, lifting operating cost efficiency, further leveraging retail deposits and longer term capital management," analyst says. CBA last at A$60.09. (LMF)

1008 [Dow Jones] AWB (AWB.AU) clears up some uncertainty about fiscal performance, firming up guidance for underlying profit to a range A$80 million to A$90 million from February guidance at lower end of analyst's consensus of A$67 million to A$116 million. MD Gordon Davis attributes upgraded guidance to favorable international commodity trading operations, particularly towards end of fiscal year on Sep. 30. Investors, who drove AWB to an all-time low of A$2.23 early October, halving price in 3 months, on relentless spate of drought-related news, react positively, drive AWB 9.1% higher to A$2.51. (RCB)

1014 [Dow Jones] New Zealand billionaire Graeme Hart has begun a selldown of his 20% stake in Goodman Fielder (GFF.AU), GFF spokesman confirms. Valued at A$591.0 million based on last market trading price of A$2.23, stake was released from escrow following Goodman FY result in August, so market was waiting to see what Hart would do with his holding. Stake is being sold in an institutional bookbuild from A$2.12 a share upward and is expected to be completed today, people familiar with situation say. GFF shares last traded on market at A$2.23. GFF requested a trading halt late yesterday, saying planned announcement about shares in company. Hart not immediately available for comment; has been buying up assets in packaging sector, is expected to continue to build on his portfolio. (RBT, SVM)

1025 [Dow Jones] Iluka (ILU.AU) downgrades earnings guidance as profits come under pressure from strong Australian dollar and soaring shipping costs. Full year net profit guidance cut to between A$45 million and A$50 million, down from A$55 million to A$60 million. Shares down 4.3%. MD David Robb says the "challenging" conditions will not affect its commitment to growth projects. Some analysts tipping there may be further downgrades to come with Citi Friday warning that further appreciation of the Australian dollar could wipe out earnings altogether. (APW)

1039 [Dow Jones] STOCK CALL: Citi cuts Cochlear (COH.AU) to Hold from Buy to reflect share price appreciation since initiating coverage in July. "The company's leading position as the world's top implant company, its accelerating growth profile, leading edge technology and strong management are key reasons we retain a positive outlook on COH," Citi says. "The primary risk for a device company is that a better device will replace the existing one. Future optically based cochlear implants (OCI) may stimulate nerve fibers more accurately because optical pulses in different places on the nerve wouldn't interfere with each other, allowing listening to more subtle tones and nuances. Because OCI can complement residual hearing a larger target population could be helped." Last trade down 1.0% to A$73.43. (ABH)

1041 [Dow Jones]Citi notes the High Court appeals against the NZ regulator's decision to reject clearance to bid for the Warehouse (WHS.NZ) are due to start next week. Woolworths (WOW.AU) and Foodstuffs are both appealing the decision. "We believe the market is underestimating the potential for the appeals to succeed," analyst says. "We believe the Commerce Commission's findings are highly subjective and will be heavily contested in the High Court." Notes recent news including WHS decision to put on hold the roll out of further Extra format stores supports the appeals. "Moreover, the potential for international players to enter the NZ grocery market was highlighted last week when Costco announced its impending Australian entrance." Estimates WOW is best placed to acquire WHS, should the appeals succeed, for up to N$7.10 per share, (SVM)
 

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0713 [Dow Jones] WALL STREET: Stocks marked 20th anniversary of Black Monday by going into tailspin on Friday after Caterpillar warned of a recession and Wachovia said it sees more credit troubles ahead; DJIA ended off 2.6%, biggest decline since Aug. 9 as all 30 members fell (down 4.1% for week), Nasdaq off 2.6%, largest drop since Feb. 27 and down 2.9% for week, Philly semicons off 4.3%. "The comments out of Caterpillar put a spotlight on weakening domestic growth in the industrial sector, catching investors by surprise," says analyst; "it shows the tendrils of credit problems are becoming more invasive." Caterpillar lost 5.3% after saying U.S. economy has weakened in 2H07 and may be "near to, or even in, recession" next year. Vulnerability to a weak economy and competitive pressures in turn pushed 3M down 8.6%; it posted 7.4% rise in 3Q net income but said it'll cut prices on optical films for some customers. Wachovia off 3.6% as 3Q net income fell 10%; loan-loss provisions quadrupled and it recorded $1.3 billion in losses and write-downs, plus it signaled increasing credit troubles ahead. Majors mostly quiet in after-hours trade.(RXM)

0715 [Dow Jones] COMMODITIES SUMMARY: Crude took breather Friday after breaching $90 early in day, moving lower as traders took profits after week of stunning gains; November Nymex crude off 87 cents or 1% at $88.60/bbl, before expiry Monday, with Brent crude on ICE futures exchange off 81 cents at $83.79. Futures climbed to intraday record of $90.07 early Friday, briefly holding the level as USD hit all-time low vs EUR, but then oil pulled back; dollar is "the horse that's pulling the cart of crude oil," says analyst. Futures have been on upswing since cracking record $78.40 that had held for a year and piercing $80 in mid-September; perceptions of supply tightness, along with rising oil demand globally, have underscored higher prices. NY gold prices oscillated on both sides of unchanged before finishing near steady; December Comex gold off 30 cents at $768.40/oz, silver off 16.8 cents at $13.635. Metals prices higher early on weakness in USD but crude pullback dented sentiment and USD came off lows; "the market was very volatile. It's caught between a tendency for longs to take profits, as we've been up sharply in the last two weeks. But on the other hand, there are still compelling reasons to buy gold as a safe haven," says analyst. January platinum +$1 at $1,448.60; December palladium off $1.45 at $372.50. LME metals mostly higher though some warned recent inventory rises may weigh on some of complex in coming week; copper closed kerb +$9 at $7,869/ton with lead +$40 at $3,700, aluminum +$6 at $2,557, nickel off $300 at $32,200, zinc off $16 at $2,954. "We mainly attribute the strength of industrial metals to the rising oil price, the weak U.S. dollar and overall brisk demand for commodity derivatives," says Commerzbank.(RXM)

0813 [Dow Jones] AGL Energy (AGK.AU) reportedly set to announce departure of Managing Director Paul Anthony in wake of last week's profit downgrade. Australian Financial Review says Anthony has lost support of board and senior management and departure will be announced today. AGL not immediately available for comment. Some analysts have been predicting Anthony's departure after embarrassing downgrade to earnings guidance last week. Sudden departure of its MD may further weigh on a stock that has been punished since the downgrade. (APW)

0813 [Dow Jones] AUD/USD not expected to gain much ground in coming week as risk aversion, prompted by uncertain U.S. economic outlook, will temper any bid tone, says ANZ strategist Tony Morriss. Notes weak USD will lead to better JPY buying, unwinding of carry trades; countering any rush for AUD/USD. But expects firm bid support for AUD/USD on the dips. AUD/USD now 0.8888 from a high of 0.8920 overnight. (EGC)

0848 [Dow Jones] Kevin Rudd, leader of Australia's main opposition Labor party attempts to boost his economic management credentials in 90 minute televised debate Sunday against PM John Howard; says Labor's election pledges more fiscally conservative than those of ruling Liberal-National coalition; adds if elected Nov. 24 Labor will aim to ease skills shortages, boost spending on infrastructure in effort to ease capacity constraints, inflation pressures. Howard struck back saying Rudd an "election eve convert to economic conservatism," but PM forced to defend the way coalition policy, particularly tax cuts, have contributed to domestic demand pressures, RBA's tightening bias. Some economists say spending promises from both side of politics may push RBA over line toward rate hike when it next meets Nov. 6. (RAP)

0856 [Dow Jones] AUD/USD opens lower as traders take advantage of thin trading conditions ahead of Australian 3Q PPI data due 0130 GMT, say strategists at OzForex. Expects PPI to indicate any supply side inflationary pressures ahead of headline CPI data due Wednesday; CPI seen as make or break for RBA rate hike call. AUD/USD now 0.8877 from 0.8868. (EGC)

0857 [Dow Jones] Departure of AGL Energy (AGK.AU) MD Paul Anthony may not quell investor fears in wake of last week's downgrade, one analyst says. Embarrassing downgrade followed quickly on from recent bullish comments, and has led to Anthony's replacement, effective immediately, with senior AGL executive Michael Fraser replacing. AGL is carrying out a review in wake of downgrade and one analyst says departure of Anthony of its own won't deal with concerns about impact of retail margin squeeze on future earnings. "I think that is going to weigh on a lot of people's minds - that there is still something worse out there," analyst says. AGL last traded at A$13.05. (APW)

0902 [Dow Jones] STOCK CALL: UBS upgrades Computershare (CPU.AU) to Buy. Analyst says CPU has significantly underperformed recently despite reporting a strong FY07 result. "A scale presence in the U.S., more diversified income streams, some countercyclical opportunities and more disciplined and rigorous management are some of the reasons for our improving comfort levels," analyst says. "Cyclicality remains a risk, however (for example) a 3% price rise across its registry services book would more than offset a 20% fall in corporate activity revenues." Price target A$11.25 vs last trade A$8.95. (SVM)

0906 [Dow Jones] STOCK CALL: Credit Suisse starts Australian Agricultural Company (AAC.AU) with an Outperform rating and A$2.85 12-month target price. "The key driver of future value increases is that we expect global consumption of meat will continue to increase at 3% per annum as it has for the past three decades, while available grazing land remains static or falls," analyst says. AAC last at A$2.54. (LMF)

0907 [Dow Jones] S&P/ASX 200 set to suffer from Wall Street's plunge on weak earnings and high oil prices, with overnight SPI futures down 155 points or 2.3% at 6591.0. DJIA down 2.6% at 13522.02, Nasdaq down 2.7% at 2725.16, S&P 500 down 2.6% at 1500.63 on broad losses, with disappointing earnings and outlook statements from Catapiller, 3M, Honeywell and Wachovia. Catapiller predicted U.S. recession. Energy fell 4.3% while financials and industrials fell 2.9%. Base metals mostly up slightly. U.S. 10 year bond yield down 10 bps at 4.39% on safe haven buying/recession fears. AUD/USD down at 0.8876 vs 0.8968. Nymex crude down 87 cents at US$88.60 after hitting US$90.07 early Friday. Comex gold down 30 cents at US$768.4. BHP (BHP.AU) ADRs at A$46.55 vs A$47.10. Index last 6706.3. (DWR)
 
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Re: Australian Equities Pre Open Roundup

Can anyone here give me an answer on the following two question?
what makes investo give upgrade or downgrade advice without any charge?
When does this upgrade and downgrade advice from investos start?
 

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0905 [Dow Jones] STOCK CALL:Goldman Sachs JBWere downgrades Foster's (FGL.AU) to Hold from Buy. "Shift in Australian supply-demand cycle is positive for domestic pricing power but sharp currency appreciation cruels underlying double-digit earnings momentum," analyst says. Downgrades earnings forecasts, with broker now 3-6% below consensus for FY08-09. (SVM)

0907 [Dow Jones]Goldman Sachs JBWere says Lion Nathan's (LNN.AU) revenue growth is likely to slow due to impact of smoking bans/equine flu impact on NSW/QLD pub market. "Drought impact on barley means worst-case FY08 COGS inflation outlook to become reality; with modest upside risk to NZ beer (July's 3.3% price increase appears to have stuck) not enough to offset," analyst says. Notes LNN to clarify position on M&A vs capital management by FY07 result on Nov. 21. Maintains Hold.(SVM)

0908 [Dow Jones] Primary's (PRY.AU) intention to vote against Symbion's (SYB.AU) revised plan to sell its diagnostic assets to Healthscope (HSP.AU) is unlikely to derail the sale, says Merrill Lynch. However, value of Symbion's remaining vitamin-making and drugstore distribution assets may not be realized, given Primary's stated intention to also vote against this motion, ML says. "As the consumer and pharmacy portion of the offer represents less than half (about 41%) of the transaction, we expect that the emphasis of decision will reside with the diagnostics assets, and in the absence of a superior offer at the time of the shareholder vote expect greater than 50% approval," ML says. Keeps Neutral recommendation on SYB and HSP, Buy on PRY. SYB last trade A$4.05, HSP A$5.34, PRY A$11.77. (ABH)

0909 [Dow Jones]Goldman Sachs JBWere says upgrades to broker's currency assumptions is a clear structural negative for McGuigan Simeon (MGW.AU) given around 60% of revenue is generated from exports & little (if any) pricing power in key export markets. "Profit outlook is out of MGW's hands as higher bulk wine prices not sufficient to overcome double whammy of lower volumes & stronger AUD," analyst says. "Key downside risk is failure of volumes to rebound if drought impacts 2009 vintage." Maintains Hold. (SVM)

0912 [Dow Jones] Oxiana (OXR.AU) says gold-copper output at Sepon steady during 3Q, to meet annual forecast on output and costs. Same for Gold Grove polymetallic mine; higher average gold, silver, copper prices during quarter offset lower average zinc prices. Unit costs at Sepon copper steady, direct cash costs forecast to remain within forecast 65-70 cents/lb range but costs for remainder of year to be slightly higher due to planned five-day maintenance shutdown. (EFB)

0917 [Dow Jones] BHP Billiton (BHP.AU) posts record quarterly iron ore output, no nasty surprises on costs or timing of projects. Copper output 10% down on previous quarter, coking coal down 14%, thermal coal slips 8% and BHP says infrastructure constraints will continue to impact Australian coal sales. Petroleum production in line with previous quarter at 30.34 million barrels. No cost blowouts in development project pipeline; BHP says Neptune to be a little late and Stybarrow a little early. Market may be disappointed with copper and coal but maintenance of iron ore and petroleum output at times of high prices should be a positive. (APW)

0921 [Dow Jones] STOCK CALL: ABN AMRO downgrades Aristocrat (ALL.AU) to Hold from Buy. "Aristocrat's latest profit warning is disappointing but what is more problematic is predicting the next upturn in its operating cycle," analyst says. Notes Aristocrat's guidance that North American unit sales are likely to be 15-20% lower than in FY06 is a major concern. "We know the North American replacement cycle is weak and Aristocrat has cited a shift from video back to traditional stepper but the question is whether Aristocrat is now losing market share." Price target cut to A$13.35 from A$16.55 vs last trade A$11.55. (SVM)

0926 [Dow Jones] BHP Billiton (BHP.AU) posts 1Q production lower than JPMorgan forecasts for many commodities. JPMorgan analysts David George says exceptions were petroleum, slightly above, and iron ore, in line. "Pretty much everything else was lightly softer than our forecast or a lot softer," he said. Says nickel, copper, coking coal and thermal coal production all below JPMorgan forecasts. "That is quote a chunk of their earnings." (APW)

0930 [Dow Jones] S&P/ASX 200 offshore leads mostly bullish, with overnight futures up 47 points at 6660.0. DJIA up 0.3% at 13566.97, Nasdaq up 1.1%, S&P 500 up 0.4%. All major indexes closed near their highs amid mixed corporate results, albeit with optimism about Apple's results, which beat expectations after closing bell. Apple was up 6.0% after hours. LME copper down 1.4%, zinc down 2.5%, aluminum down 1.1%, nickel down 1.6%. U.S. 10-year bond yield down 0.8 point at 4.39%. AUD/USD near flat at 0.8886. Nymex crude down US$1.04 at US$87.56. Comex gold down A$8.40 at US$760.00. Index last 6577.3. (DWR)

0932 [Dow Jones] AUD/USD losing ground early on, driven by selling from Tokyo as markets remain nervous, Macquarie Bank strategist Jo Masters says. Notes whilst all attention on 3Q CPI data due Wednesday, "bar is very high" for RBA to hike rates as prospects for Fed rate cut next week quicken, combined with Australian election mean no certainty that hike on cards. Says dip in AUD/USD no surprise as markets remain "fickle". Pair now 0.8877, below high of 0.8891. (EGC)
 

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Re: Australian Equities Pre Open Roundup

0852 [Dow Jones] STOCK CALL: Goldman Sachs JBWere upgrades Telstra (TLS.AU) to Hold from Sell, ups 12-month target to A$4.78 from A$4.69 after raising earnings estimates. Raises FY08 EPS forecast by 0.6%, FY09 by 4.8%, FY10 by 6.9 and FY11 by 2.8%, points to a number of factors, including changes to industry forecasts and incorporation of distributions from Foxtel, partly offset by higher business transformation cost estimates. Still, says a number of issues need to be resolved before can move to a positive recommendation, including near-term success of IT transformation, upcoming federal issues and technical issues associated with installment receipts in coming months. TLS last at A$4.64. (LMF)

0853 [Dow Jones] Merrill Lynch says Newcrest (NCM.AU) 1Q production is solid and the performance of the Telfer mine is set to continue improving. Says drilling at Goswong prospect has returned "fantastic intercepts" and further drilling is underway. "With likely reserve increases (Kencana and Cadia East), planned production growth (15% on-year) and robust gold and copper prices, we see further upside over the coming 12 months," ML says. Price objective set at A$30. NCM last traded at A$28.94. (APW)

0854 [Dow Jones] STOCK CALL: Goldman Sachs JBWere downgrades Woolworths (WOW.AU) to Hold from Buy. Analyst says momentum in key business remains extremely strong, but notes Woolworths will start cycling strong comparable store sales growth over FY08; relative p/e also now trading near record levels at over a 30% premium to the Large Industrials ex-banks FY08 p/e. "The expected deceleration of a key retail metric like comparable store sales growth combined with high p/e rating is likely to be a negative catalyst over the coming six months." Price target A$32.55 vs last trade A$32.74. (SVM)

0859 [Dow Jones] STOCK CALL: ABN AMRO says acquisition of Rubicon by Allco Finance (AFG.AU) looks likely to benefit Rubicon's shareholders more than AFG's. AFG gains scale but Rubicon's trusts have underperformed substantially and deal is only anticipated by management to be EPS neutral for AFG. "With little chance of raising additional equity capital in the near term and debt financing almost exhausted, we believe that Rubicon's assets under management growth would likely have stalled in FY08." Keeps Hold rating on stock, lifts target price slightly to A$8.98 from A$8.82. AFG last at A$8.62. (RBT)

0859 [Dow Jones]Credit Suisse upgrades Woolworths (WOW.AU) to Neutral from Underperform; price target raised to A$35.00 from A$30.30. "This rating reflects the offsetting nature of the company's high pricing multiple of 24x FY08 EPS against its strong strategic position in the Australian Food & Liquor market, potential for further upside from strategic acquisitions and the long-term potential for the group's financial services and international growth avenues," analyst says. Last trade A$32.74. (SVM)

0900 [Dow Jones] Boral (BLD.AU) declines comment on a New Zealand newspaper report BLD will join with Fletcher Building (FBU.NZ) to bid for assets of Carter Holt Harvey being sold by NZ billionaire Graeme Hart. The Dominion Post reports, without citing sources, FBU plans to acquire the bulk of the NZ assets and BLD will pick up the Australian unit in a deal expected to top NZ$2 billion (A$1.69 billion). FBU and BLD's main competition comes from international buyout firm CVC Capital Partners, the newspaper says. BLD last trade A$7.11. (ABH)

0900 [Dow Jones] STOCK CALL: JPMorgan reckons Ten (TEN.AU) has the capacity to undertake a capital return of A$700 million-A$975 million, expects company to announce capital management initiatives at tomorrow's annual result. Will also be watching for any commentary on major shareholder CanWest's intentions and strategy for group. Expects group to book FY television revenue growth of 4.8% on year to A$801.5 million, with television EBITDA seen up 1.3% on year to A$232.1 million. "We expect ongoing cost pressures to continue to impact EBITDA growth in the television segment," analyst says. Tips group EBIT at A$230.9 million, flat on year. Keeps Neutral rating on stock. TEN last at A$2.85. (LMF)

0905 [Dow Jones] Goldman Sachs JBWere has cut its earnings forecast for BHP Billiton (BHP.AU) in the wake of weak 1Q production figures. "This was a weak quarter compared to our estimates, with copper and nickel particularly disappointing," GSJBW says. Cuts FY08 earnings by 3.8%. Says there is nothing structurally wrong at BHP and that tie-ins of new expansions and maintenance shutdowns are having an impact. Price target set at A$47.65. BHP last traded at A$46. (APW)

0909 [Dow Jones] Australian core 3Q CPI expected +0.8% on quarter, +2.8% on year, making November rate hike line-ball call; most economists expect 0.9% rise to trigger hike but bar could be higher as RBA policy meeting is just 3 weeks before Nov. 24 election with credit concerns lingering. RBA clearly retains tightening bias, backed by domestic data; has warned election campaign no barrier to rate changes. Markets have priced in just over 50% probability of hike. Headline CPI expected to be +0.9% on quarter, +2.1% on year; data due 0130 GMT. (JEG)

0909 [Dow Jones] Goldman Sachs JBWere says Newcrest (NCM.AU) 1Q output broadly in line with its expectations. "The absence of any negative operational news flow highlights that operationally things are improving," GSJBW says. Maintains Buy rating with A$35.00 target price. Newcrest last traded at A$28.94. (APW)

0940 [kennas] Great day in Lima today. Summer is on its way!! :)
 

Whiskers

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Re: Australian Equities Pre Open Roundup

0940 [kennas] Great day in Lima today. Summer is on its way!! :)

Same here near Bundaberg Queensland. Very comfortable now, not too hot.

Shaping up to be a good day in the market too. Should get a chance to take a bit of profit again in the next few days before things turn sour again.
 

Sean K

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Re: Australian Equities Pre Open Roundup

0550 [Dow Jones] COMMODITIES ROUNDUP: Crude shot higher on unexpected falls in U.S. crude, gasoline, distillate investories shown in DoE data; December Nymex up $1.83 to $87.10/bbl, Brent on ICE up $1.57 to $84.42. "I don't think anybody expected such a big draw in crude stocks - there's nothing bearish about this report," said Tony Rosado of IAG Energy Brokers. "Draws in all energy sectors caused a $2 push to the upside" from $85/bbl pre-data. Precious metals mixed as gold, silver recovered losses on rising crude price, but silver weighed by more industrial nature. December gold up $2.50 to $765.60 on Comex, up $2.60 to $765.60 on CBOT; December silver down 6 cents to $13.59 on Comex, off 4.5 cents to $13.591 on CBOT; Nymex January down $10 to $1,443, Nymex December palladium off $3.75 to $362.65. "Precious metals were mostly weaker today as the U.S. dollar firmed," BNP Paribas said in report. But "early losses were largely recovered, as a jump in oil prices encouraged those who like gold as an inflation hedge." LME base metals lower as credit crunch weighs on 3Q earnings, but losses likely limited; zinc followed LME copper to month lows; tin, aluminum dropped to 2-week lows. "There's still a lot a lot of uncertainty about the U.S. housing market and (September's 8% fall in house sales) doesn't ease concerns," related to demand for industrial metals, said analyst Kevin Norrish of Barclays Capital. Copper down $104 to $7690, lead down $97 to $3493, zinc off $81 to $2830, aluminum down $25 to $2495, nickel down $950 to $30800, tin off $210 to $16090. (BRD)

0721 [Dow Jones] AUD/USD opens stronger after wild ride overnight, tracking gyrations on Wall St. ANZ strategist Tony Morriss says upward momentum developing; increased likeliood of Fed cut Nov. 1, RBA hike Nov. 7 offering support. Only thing that could short-circuit bullish scenario would be renewed sub-prime strains. Morriss says Australian 3Q CPI data Wednesday presented compelling case for rate hike but ongoing U.S. market jitters may limit market moves to price in multiple RBA hikes. AUD/USD now 0.9027, up from overnight low of 0.8937. (JEG)

0754 [Dow Jones] AUD/USD poised to rally sharply in Asia if risk appetite revives on back of speculation of 50bps Fed rate cut next month, says John Kyriakopoulos, currency strategist at National Australia Bank. If China 3Q GDP healthy, indicating demand for commodities likely to stay strong, then risks are to upside. AUD/USD now 0.9038, up from overnight low of 0.8937. No major domestic data due today. (JEG)

0810 [Dow Jones] WALL STREET: DJIA ended flat after early 200 point fall though Merrill, Amazon.com remained weak; index finished off just 0.98 point with Nasdaq off 0.9%, Philly semicons off 3.5%. No clear catalyst spurred afternoon recovery in Dow but market did begin turning as talk spread Fed could step in with emergency rate cut; this not given much credence by traders as Fed already meeting next week, anyway. "Action by the Fed would certainly help because it would help spur the economy along," says analyst; "there has been a lot of concern about the quality of earnings and ongoing credit problems. But I would be shocked if the Fed did act before its meeting." Merrill off 5.8% as took write-downs of $7.9 billion for CDOS, subprime mortgages, in deeper-than-forecast hit that exceeded its earnings for all of 2006. Amazon.com off 12%, its biggest percent fall since July 2006, amid concerns about margins. Tough day for chips with Broadcom off 17% as reported 75% fall in 3Q profit amid higher R&D costs; Altera off 16% with 3Q earnings falling. Countrywide Financial off 8.1% on WSJ report subprime mortgages aren't only challenge - some loans classified as prime when they were originated are now going bad. Eli Lilly down 4% after-hours with WSJ reporting it's suspending two studies of most promising drug in pipeline; Microsoft flat in late trade on reports it'll take minority stake in Facebook.(RXM)

0814 [Dow Jones] S&P/ASX 200 offshore leads bearish. DJIA little changed at 13675.25. Nasdaq down 0.9%, S&P 500 down 0.2%. Nymex crude up US$1.83 at US$87.10. Comex gold up US$2.50 at US$765.60. U.S. 10-year bond yield down 5.7 points at 4.35%. AUD/USD 0.9037. LME copper down 1.4%, nickel down 3.0%. London-listed BHP up 3.4%, Rio up 1.9%. SPI futures up 6 points at 6673. S&P/ASX 200 last 6634.4. (ABH)

0831 [Dow Jones] Merrill Lynch cuts its forecast for Alumina (AWC.AU) 2007 underlying earnings by 10% to A$441 million on impact of strong AUD. Maintains Buy rating on Alumina for its pure play on an emerging shortage of bauxite and alumina. Target price set at A$8.20 versus last trade of A$6.61. (APW)

0837 [Dow Jones] STOCK CALL: Merrill Lynch cuts Amcor (AMC.AU) FY09 and FY10 earnings forecasts by 3.1% to A$469 million from A$484 million and by 4.4% to A$543 million from A$568 million to reflect new currency assumptions and lower operating margins for Amcor's Australasian and Sunclipse units. "All divisions appear to be tracking in line with the commentary given at the FY07 result briefing in August," ML says. "Despite rising input costs (Flexibles) and soft demand (Australian fiber), all businesses are expected to post earnings growth in FY08." Keeps at Neutral, A$7.31 valuation. Last trade A$7.18. (ABH)

0903 [Dow Jones] S&P/ASX 200 may rise 10-15 points led by banking and industrial stocks, despite a bearish leads from commodity prices and Wall Street. Lower metal prices may lead to a selldown of resource stocks, such as Rio (RIO.AU), although energy stocks, like Woodside (WPL.AU), may benefit from crude's overnight gain, says Ben Clark, private client adviser at TMS Capital in Sydney. Retail banks, such as ANZ (ANZ.AU), which earlier posted a 13% rise in FY07 net profit, may gain as the banks head into their annual reporting season and insurance stocks, which have been oversold in recent days, may also rise, he says. Allco Finance's (AFG.AU) AGM today may also shine light on investment banks, which have been under pressure on the back of US credit crunch, and their growth outlook, and may lead to buying in Macquarie Bank (MBL.AU) and others, Clark says. Index last 6634.4. (ABH)

0907 [Dow Jones] STOCK CALL: Credit Suisse restarts Coca-Cola Amatil (CCL.AU) at Neutral; price target A$10.30 vs latest A$9.35. Notes latest CPI data showed a deceleration of soft drink price growth to 4% in the third quarter on year. "The CPI requires closer scrutiny," analyst says. "We have been aware that the two major supermarkets have become more aggressive in certain categories in order to defend market share and avoid criticism of fueling inflation." (SVM)

0920 [Dow Jones] ANZ (ANZ.AU) FY result looks roughly in line with forecasts, net profit rises 13% to record A$4.18 billion, cash profit up 9.4% at A$3.926 billion, just below consensus forecast of A$3.926 billion. However, investors could be disappointed by lack of guidance, new CEO Mike Smith tells journalists he doesn't believe in giving forecasts. Final dividend of 74 cents a share also at bottom end of analysts forecasts, which could create further pressure. Company says to continue to focus on growth domestically and in Asia, investors likely to want more information on strategy in upcoming 10.30 am (0030 GMT) analysts briefing. (LMF)
 
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