Good start to the week. The market is up 17 the SFE Future were down 2 this morning. There is a Bank Holiday in NSW today … it is a no settlement day on the ASX.
Wall Street closed up 17 on Friday. The Dow was up 64 at best and down 21 at worst. The NASDAQ closed down 0.29%. Both Gold and Oil finished higher. It was a strong session for Bonds — 10 year yield at 3.501% down from 3.641%. Aussie dollar up to 83.47c from 82.53c.
Big week ahead. Reporting season gets going and we have the RBA Meeting tomorrow with a statement and interest rate decision at 2.30pm. Almost no chance of a rate cut or rise. Statement will be interesting after the surprisingly optimistic commentary from Glenn Stevens last week which pretty much confirmed that interest rates have bottomed.
In the news…
- GrainCorp (GNC) up 6% after announcing a profit upgrade. It now expects a profit of $53-$63m compared to $37m-$42m. They have higher than expected grain receivals and export sales to thank.
- Computershare (CPU) announces it has spent $US16.2m on transfer agency business of the National City Bank, a subsidiary of PNC Financial Services Group. It may cost them more depending on the amount of revenue generated over the next 12 months.
- Aquarius Platinum (AQP) up 8.4% after releasing their 4Q production figures which showed 98,258 ounces of platinum group metal produced in the quarter, up 1% from the 3Q.
- Woolworths (WOW) has announced plans to enter the telecommunications market by offering a no-frills mobile phone services. It has teamed up with Optus.
- Linc Energy (LNC) has completed a $54.7m institutional share placement and plans to raise another $20 with an underwritten SPP which is scheduled to take place on August 7. LNC down 6c to 149c.
- Westpac Bank (WBC) said it will reduce both consumer and business exception fees to $9.
- Argo Investments (ARG) has announced a $64.4m FY loss. Revenue fell 12.7% due to lower interest rates and dividend cuts from companies in which it was invested.
Also in the news…
- The AIG Manufacturing index increased by a seasonally adjusted 6.1 points in July to 44.5, its highest level since September 2008. It is below 50 which separates expansion from contraction.
- Job Advertisements fell (-1.7%) for the 15th straight month in July, but the rate of decline slowed from the 6.7% fall registered in June.
- Minara Resources (MRE), Mincor Resources (MCR), MEO Australia (MEO) and The Reject Shop (TRS) have all hit fresh yearly highs.
- Sandfire Resources (SFR) up 3.5% to 235c — now up almost 50 times from the 5c it was trading at in March.
- BANKS UP — GSJB Were become the third broker in a week to lift their recommendation on big four banks. The NAB, WBC and ANZ are all Buys with CBA lifted to Hold from Sell.
The SFE Futures down 10 points.
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