Australasian Investment Review (AIR) is a free daily news service with a weekly online magazine covering global financial markets with a focus on Australia, New Zealand and Asia.
It's going to be another week where some important economic figures in the US and elsewhere will drive sentiment around the world.
The market is up 114 points – drifting back from its early high of 161 - underperforming the 170 point rise the SFE Futures predicted this morning. All sectors up. Resources outperforming – BHP and RIO up 6.4% and 7.0%. Oz Minerals up 2.2%, Fortescue Metals up 5.9% after being up 8.0% early, Paladin Energy up 8.9% and Woodside up 5.2%. Newcrest and Lihir up 5.7% and 9.3% on the higher gold price overnight. Financials up 2.8% - St George shareholders voted in favour of the Westpac bid – 'exit' the dragon – Monday is the last day of trading in St George.
Commonwealth Bank shares took a hiding yesterday after the company's first quarter update saw first half earnings estimates (and those for the full year) put under enormous pressure.
Negative reactions were the order of the day to yesterday's flood of downgrades or other news. A near 6% drop in the market, after Wall Street's lurch set the tone.
Normally big end tech stocks like Intel, Nat Semi, Applied Materials and the like don't feature all that much in investor thinking in Australia.
It's been a big week for China and its attempts to stabilise and then kick start its slowing economy.
In several ways, Australia is better placed than many other countries to withstand the global recession now underway.
The market is having another shocker – down 153 or 4% - on the back of heavy falls on Wall Street overnight. Resources are doing most of the damage – down 6.5% overall – BHP down a big 8% and RIO down 4.7%. All the big four banks are struggling as well. Macquarie Group down 7.4%. Asciano which fell 70% on Monday is up 40.9% today.
Is this a precursor to a bigger play, or a clever raid aimed at putting a foot on a solid portfolio of businesses currently not in the acquirer's asset base?
Incitec Pivot Ltd, the country's major fertiliser group, is expecting a slower, but still solid earnings in the 2009 year after tripling net profit after tax (NPAT) (including individually material items) to $614.3 million in the year to September 30, compared with $205.3 million in 2007.
