Feb 17, 2014

Morning Market Report

Mixed figures in the latest round of reports during results season.

The market is up 21 points. The Dow Jones was up 127 points at 16,154 -- the market strengthened early after good European growth data and continued to rise during the day in a 190 point range. Volume was lower than average. US economic data was mixed, with industrial production falling 0.3%, worse than the 0.3% gain expectedBut the data was again believed to be weather-affected and inconsistent with other reports and regional surveys. Consumer sentiment was unchanged. The S&P rose 9 points to 1,839. Oil fell 0.05% to US$100.30. Gold rose US$18.50 to US$1,318.60 per ounce. The US$ was mixed against most major currencies. The Australian dollar was stronger and is currently trading at US90.58c. VIX Volatility index fell 4.03% to 13.57. US treasury markets were weaker -- the yield on the 10 year bond rose two basis point to 2.749%. European shares were stronger -- The UK FTSE rose 0.06%, the French CAC rose 0.63% and the German DAX rose 0.68% after positive eurozone GDP data. European bonds were weaker -- the yield on the Euro 10 year bond rose one basis point to 1.675% and the UK 10 year bond yield largely unchanged at 2.793%. Base metal prices were stronger -- zinc rose 0.99%, lead rose 0.89% and copper was 0.553% higher. Iron ore rose US$1.20 to US$123.20 a tonne. STORIES
  • Bendigo & Adelaide Bank (BEN) -- First half net profit of $180.7 million down 4.6% but was above the consensus forecast of $178.9 million. First half cash earnings up 9.5% at $185.9 million. Interim dividend was 31c.
  • Ardent Leisure (AAD) -- Core earnings were up 13.4% to $33.45 million which was in line with guidance. Profit was up 5% to $22.49 million. Interim distribution of 6.8c.
  • Australand Property (ALZ) -- Profit of $148 million which was in line with expectations. Distribution of 12.5c in line with guidance. Gearing 27.7%.
  • Ansell (ANN) -- Profit was up 15% to $US65.6 million which was broadly in line with market expectations for a $US66.9 million profit. Sales were up 9% to $703.6 million. EBIT was up 20% to $82.7 million. Dividend was US17c. The company overcame setbacks from unfavourable currency swings to the Pentagon's plans to pull US troops out of Afghanistan.
  • Aurizon Holdings (AZJ) -- Underlying profit of $263 million which was down 18% but roughly in line with an expected $266 million. The figure included a one off impairment of $197 million. Net profit was down 39% to $107m. Interim dividend of 8c. Financial year coal haulage guidance lifted to 207-212 million tonnes.
  • Cash Converters (CCV) -- Profit of $9.88 million down 46.6%. Interim dividend of 2c. EBITDA down 28.5% to $21.7 million.
  • G8 Education (GEM) -- Profit up 62% to $31.07 million. Revenue was up 53% to $275.1 million. 252 owned centres in Australia and Singapore, with a further 48 managed in Singapore. The company also that they will  undertake a second senior unsecured note offering to raise up to $50 million by mid‐March 2014. The offering will diversify G8 Education's current debt funding sources and provide additional tenure to G8 Education’s debt maturity profile.
  • Imdex (IMD) - Net profit was $15.3 million down 8%. Revenue was down 25% to $101.9 million. Strong balance sheet.
  • UGL -- Underlying profit of $49.7 million which in line. First half net profit was up 13.5% to $29.5. No dividend declared. Sees financial year underlying profit at lower end of guidance. They now expect underlying profit of around $120 million. UGL says they have received takeover interest in DTZ Asset and continue to prepare for the planned DTZ Demerger.

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