Morning Market Report

The market is down 46. Dow Jones down 108. SFE Futures were down 25 this morning.

The Dow was down 116 at worst and up 23 at best as the index fell off its five-year high and posted its worst day of the year. The US dollar rallied to session highs on Tuesday after the release of the FOMC minutes suggesting that the US Central Bank may slow or stop buying bonds — it has opened the discussion at least. With the end of QE up for discussion gold ended down $41 and US bond yields ended up.

Worst sectors — Basic materials (-2.8%), Energy (-1.8%), Technology (-1.6%) and Financials (-1.5%).

European market mixed  — UK FTSE up 0.26%, German DAX down 0.3%, France down 0.69%, Spain down 0.76%, Italy down 0.82%. Dividend cuts by the UK’s biggest business insurer RSA (down 14.2%) and airline Lufthansa (down 6.2%) weighed on sentiment.

• Origin Energy (ORG) — Underlying profit of $362 million down 26% and below an expected $406.5 million. It also downgraded financial year earnings guidance. Dividend 25c. APLNG costs rise 7%. ORG is down 8.64% to 1131c.
• Qantas (QAN) — Underlying net profit of $223 million, up 21% and above an expected $215.9 million. Net profit of $111 million. International losses cut by 65%. QAN is up 4.64% to 169c.
• AMP — Underlying profit of $955 million, up 5% and above an expected $930.7 million. Net profit of $704 million beating a forecast of $687 million. Final dividend of 12.5c down from 14c. Removes discount of 1.5% applied to dividend reinvestment plan. AMP is up 0.74% to 548c.
• Insurance Australia Group (IAG) — Insurance profit of $815 million. NPAT of $461 million, up from $144 million. Cash profit of $684 million. Insurance margin 19.9% ,up from 7.7%. IAG is up 3.78% to 562.5c.
• iiNET (IIN) – NPAT of $31.9m up 122% and above an expected $29m. Revenue up 30% to $474m. IIN is up 2.44% to 503c.
• ASX   — Net profit of $171.1 million, down 2.5% but result was in line with a forecast of $171.5 million. Dividend 87c, down 5.3%. Profit drops on weaker trading volume. ASX is down 1.38% to 3651c.
• Brambles (BXB) — Net profit of $US302.5 million, up 26% and above an expected $US292.7 million. Interim dividend of 13.5c. Expects financial year profit to be in the range $US1.03bn-$US1.06bn. BXB is up 1.29% to 862c.
• Cabcharge (CAB) — NPAT up 28.5% to $33.3 million but below $35.8 million. Interim dividend 5.9% to 18c. Revenue up 1.2% to $99.8m. CAB is down 2.34% to 501c.
• Echo Entertainment (EGP) — Net profit of $66.5 million down 5.3% and below an expected $78 million. Interim dividend of 4c. EGP is down 0.29% to 347c.
• Fairfax (FXJ) — Net profit of $83 million down from $135.7 million and above an expected $80.4 million. Dividend cut to 1c. Weakness in ad market is expected to continue. FXJ is down 2.75% to 53c.
• Iluka (ILU) — $363.2 million down 33%. Dividend 10c. Forecasts 2013 mineral sands output of 420,000. Expects to cut output and jobs. ILU is up 2.22% to 1056c.
• PanAust (PNA) — Net profit $US142.3 million up 89% and below an expected $US151.1 million. Dividend of 4c. Forecasts Ban Houayxai to produce 100,000 ounces of gold in 2013. PNA is down 2.85% to 273c.

Categories: Markets, Morning Market Report