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Markets Live: Retailers sink

Date

Patrick Commins

Shares closed higher despite a late, sharp slump in the benchmark index, while The Reject Shop and Pacific Brands plunged on profit downgrades.

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That’s it for Markets Live today.

You can read a wrap-up of the action on the markets here.

Thanks for reading and your comments.

See you all again tomorrow morning from 9.

Despite giving up most of its early gains, the sharemarket eked out a small increase as the continued appeal of high yielding stocks, such as the big four banks and Telstra, offset the gloomy mood from a raft of disappointing local economic indicators and profit downgrades from the retail sector.

The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each added 0.1 per cent on Tuesday to 5469.7 and 5448.5 respectively, after having traded as much as 0.6 per cent higher in the morning.

"Investors became more cautious in late trade that there could be more profit downgrades to follow today's news from The Reject Shop and Pacific Brands," CMC chief market analyst Ric Spoonersaid.

Local shares took a positive lead from offshore. In the United States the S&P 500 and the Dow Jones Industrial Average both closed at record highs on Monday, while in Europe bond yields sunk to record lows following last week's decision by the European Central Bank to increase its stimulus.

Asian markets provided mixed cues in the afternoon as China's Shanghai Composite Index and Hong Kong's Hang Seng Index lifted after a report from China's National Bureau of Statistics showed inflation growth is exceeding expectations as the consumer price index quickened 2.5 per cent in May. At the local market close Japan's Nikkei was trading lower.

A monthly National Australia Bank measure of business confidence was steady at 7 points in May, in contrast to consumer confidence which has slumped following the federal budget. A monthly ANZ Bank - Roy Morgan survey showed new job advertisements declined sharply in May for the first time in five months.

Read more.

And here are the best and worst performers in the ASX 200 today.

Best and worst performing stocks in the ASX 200 today.

Best and worst performing stocks in the ASX 200 today.

And some of the winners:

  • Telecommunications: +0.5%
  • IT: +0.5%
  • Materials: +0.1%
  • Industrials: +0.1%
  • Energy: +0.2%

Following some profit downgrades in the sector, consumer staples and discretionary were amongst the biggest losers for the day.

  • Consumer discretionary: -0.7%
  • Consumer staples: -0.7%
  • Healthcare: -1.3%
  • Gold: -0.6%

Despite the torrid day for retailers, the benchmark S&P/ASX200 finished up for the day, adding 5.7 points, or 0.1 per cent, to finish at 5469.7. The broader All Ords gained 5 points, or 0.1 per cent, to 5448.5.

Seven Network has announced redundancies across its news and public affairs team, amid rumours that it is panicking about a revival at rival Nine.

Departure numbers are unclear, although are expected to reach double digits.

It's believed there are no savings figures sought through the redundancies, and the network is seeking to redeploy staff as it bulks up in the traditional Seven strongholds of Adelaide and Perth.

Seven says it has between 480 and 500 people in its news and public affairs department. Seven today also advertised new positions across the capital cities.

Rob Raschke, network director of news at Seven Network, told Fairfax Media the changes were about "delivering better news services for our audience" and "being number one in news."

Nine Network in January quietly extended its 6pm news bulletin to one hour and shifted A Current Affair to 7pm, to compete against Seven's popular soap Home And Away.

Seven then ditched its 6.30pm current affairs program Today Tonight on the east coast in favour of a one-hour news bulletin.

Mr Raschke said Seven had been in a "pitched battle with Nine" for years, although Nine's performance had improved of late.

Read more.

Channel Seven is cutting staff numbers as part of a rationalisation of its news operations.

Channel Seven is cutting staff numbers as part of a rationalisation of its news operations. Photo: Viki Lascaris

It's not every day that a broker initiates coverage of a stock with a 'sell' recommendation, but that is exactly what Bell Potter has done with Mayne Pharma, saying it likes the stock -  just "not at this price".

"The core business of Mayne is generic medicines where it has businesses in the US, Australia and Europe," it told clients in a note today.

"Generic medicines are a $US60bn market in the US, notwithstanding the generics industry suffers from ongoing price deflation and participants are required to constantly backfill with new and improved product.

"A very significant portion of the valuation of Mayne is dependent upon the future earnings from the development pipeline.

"There is relatively little disclosure regarding this asset and yet it is arguably the most important asset on the balance sheet

"At 29x FY15 earnings based on our earnings forecast, and with poor visibility on longer term earnings growth and the associated risks, we initiate coverage with a sell recommendation."

It reckons the shares are worth 84c - and with the shares down 4.5c at 87.7c so far today, that call may end up being on the money.

Investors have dumped retailers' shares over the past month as a tough budget and warm weather have hit sales.

Investors have dumped retailers' shares over the past month as a tough budget and warm weather have hit sales.

As we approach financial year end, retailers are coming to the market with tales of slowing sales amid plunging consumer confidence and unseasonably warm weather.

Investors have been quick to dump their shares - including The Reject Shop and Pacific Brands today on profit downgrades.

But Funtastic is the worst performer over the past month, plunging 40 per cent over the past month against the benchmark index's return of 0.4 per cent.

Expectations are high that major miners Rio Tinto and BHP Billiton will pursue large buybacks over the coming two years, but analysts and investors are wondering whether the recent iron ore price pullback puts capital management at risk.

UBS analysts expect Rio Tinto to announce a $4 billion buyback in February 2015, using mounting free cash flow to return capital to shareholders.

The broker reckons Rio should have $9 billion free cash flow in 2015 and another $11 billion in 2016, based on an iron ore price of $US114 ($121) a tonne and $US105 a tonne.

But the iron ore price has dropped to its lowest level since 2012 this month, falling to $US94.30 a tonne on Monday from $US135 a tonne in January. At these spot prices, UBS says free cash flow would fall to $2 billion in 2015 and $5 billion in 2016.

“In our opinion, Rio’s buyback is only at risk if the iron ore price averages around $US80/t in 2015/16, assuming the prices for the other commodities are at spot (no synchronised collapse) and the A$ is slightly weaker,” the analysts told clients on Tuesday morning.

Citi analysts have also run the numbers over the week. The broker said Rio could grow its dividend yield, so long as iron ore was above $US70 a tonne.

The nation's $111 billion food and grocery sector is being pincered between rising manufacturing costs and the unstoppable dominance of the biggest retailers to erode the financial health of suppliers stuck in the middle, a report commissioned by the Australian Food and Grocery Council has found.

Mounting labour, energy and regulatory costs were also chipping away at balance sheets while the growing weight of rebates paid by suppliers back to retailers has escalated to the extent where one dollar in every four earned by suppliers is finding its way back to retailers to fund discounts and promotions to shoppers.

Touted as the most detailed financial health check of the sector, the competitiveness and sustainable growth report conducted by KPMG on behalf of the peak suppliers group, has tracked the cost pressures for the sector over 2010-2013.

The suppliers claims of being squeezed by retailers comes as the competition regulator has taken court action against the nation's No.2 supermarket chain Coles over its alleged mistreatment of 200 suppliers by using commercial threats to demand rebates.

Coles has denied the allegations, but suppliers have complained for years about the behaviour of both Coles and Woolworths over trading terms, rebates, discounting and supply deals.

AFGC chief executive Gary Dawson said the new report found Australia now has the highest manufacturing costs in the world, and that retailers are extracting even greater payments from suppliers to fund discounts and promotions.

Read more.

"The two major retailers extract an additional 5 per cent more from suppliers than other retailers." Australian Food and Grocery Council chief Gary Dawson. Photo: Meredith O'Shea

"The two major retailers extract an additional 5 per cent more from suppliers than other retailers." Australian Food and Grocery Council chief Gary Dawson. Photo: Meredith O'Shea Photo: Meredith O'Shea

Food prices were the key drivers of China's CPI in May. Source: ANZ

Food prices were the key drivers of China's CPI in May. Source: ANZ

China's consumer inflation edged up to a four-month high of 2.5 per cent in May while factory price deflation eased, reinforcing signs of stabilisation in the economy.

Still, inflation remained well within the governments' comfort zone, giving Beijing ample room to step up targeted policy support if necessary to ward off any threat of a sharp economic growth slowdown.

China's consumer price index (CPI) rose 2.5 per cent in May from a year earlier, quickening from a 1.8 per cent rise in April. The number slightly exceeded market expectations of 2.4 per cent, data from the National Bureau of Statistics showed on Tuesday.

Food prices rose 4.1 per cent in May from a year earlier, quickening from April's 2.3 per cent rise, the data showed.

Month-on-month, consumer prices rose 0.1 per cent versus a forecast for a 0.1 per cent fall.

"The recovery of pork prices, together with last year's low base, helped the faster price rises," said Li Huiyong, an economist at Shenyin & Wanguo Securities in Shanghai.

"The comfortable inflation figure will provide sufficient room for the central bank to loosen its monetary policy in coming months to shore up the economy."

The government has set a inflation target of around 3.5 per cent this year.

Read more.

The flurry of activity from investors continues to come at the expense of first home buyers (FHBs), with this price-sensitive buyer group now accounting for just 12.3 per cent of new loan commitments, equaling the prior all-time low, reports JP Morgan.

Increasingly unfavourable price/income metrics and the fact that many FHB incentive schemes have been scaled back over the past few years suggest that this buyer group will continue to face headwinds through 2014, the bank’s economists say.

Investors are crowding out first-home buyers. Source: JP Morgan

Investors are crowding out first-home buyers. Source: JP Morgan

New home loan figures show the property market boom is cooling off.

Home loan approval numbers were flat in April, just shy of the 0.2 per cent rise the market had expected, figures from the Australian Bureau of Statistics show.

The figures confirm that the boom seen in the second half of 2013 was slowing down, JP Morgan economist Tom Kennedy said.

‘‘We’ve seen building approvals, house prices, auction clearance rates and now loan data all signalling that things are moderating a bit and suggesting that things have softened from very quick growth rates,’’ Mr Kennedy said.

CommSec chief economist Craig James said it was encouraging that growth in the housing market had slowed.

‘‘What we’re seeing in terms of the housing market is consistent with the home price data - the higher prices are causing people to become a little more circumspect,’’ Mr James said.

‘‘That’s an encouraging development.

‘‘It does look as if we’re slowing to a more sustainable pace.’’

Loans issued for the construction of new homes continued to grow, and building activity should continue to rise in 2014, Mr Kennedy said.

‘‘We are still seeing a pick up in residential building activity, even though things may be slowing down from the pace we’ve seen over the past six months,’’ he said.

The value of total housing finance rose 1.7 per cent in April, seasonally adjusted, to $27.89 billion, the ABS said. There were 52,109 approvals in the month, compared to 52,104 approvals in March.

New home loans eased in April.

New home loans eased in April. Photo: Tamara Voninski

The Aussie traded lower into this morning's worse-than-expected job ads figures and flat business confidence data, but bounced a modest 0.2 of a US cent following their releases at 11:30am.

It's now trading at session highs of 93.63 US cents.

The Aussie dollar has received a bit of a boost after poor job ads numbers and flat business confidence data.

The Aussie dollar has received a bit of a boost after poor job ads numbers and flat business confidence data.

NSW households are to be hit with an average 17.8 per cent hike in gas prices from next month after a final decision from the Independent Pricing and Regulatory Tribunal.

The regulator's decision, which confirms a draft recommendation several weeks ago, means the typical household gas bill will jump by between $155 and $225 a year from July 1, depending on location and gas use, according to the regulator.

Gas prices across eastern Australia are being driven higher by the huge jump in gas demand from LNG export projects being built in Queensland, the first of which is due to start shipments to China late this year.

Worsening the pressure on local supplies is the slow development of coal seam gas resources in NSW, where projects have been slowed by changing regulations amid fierce opposition to the sector by environmental and some local community and farming groups.

IPART chairman Peter Boxall acknowledged concerns about affordability but said the LNG export trend was driving "a fundamental change" in the wholesale gas market in eastern Australia.

"As gas starts to be exported from eastern Australia for the first time, the rising costs faced by retailers to supply gas to consumers need to be recouped," Dr Boxall said.

Read more.

Job advertisements have declined sharply in May, the first time in five months, a new survey released today has found.

The data signals the demand for labour is weaker and coincides with a 12 per cent decline in consumer confidence for the month, according to research from ANZ-Roy Morgan.

Job ads for May were down 5.6 per cent from a 2.2 per cent rise in April and 1.4 per cent in March, ANZ’s monthly survey of job advertising in newspapers and online found.

ANZ has attributed the decline in confidence and job advertising to the tough federal budget.

“The key question now is whether the fall in job ads is largely temporary,” said ANZ Senior economist, Justin Fabo. “If it isn’t, this will be a risk to our forecast that labour demand will improve slowly this year amid modestly better economic conditions, with the unemployment rate expected to remain close to 6% for some time.”

“The survey measures where the trend is going we know that in recent times there has been a pretty clear softening in a few indicators and we are seeing this today with these figures “, said Deutsche Bank economist, Phil O’Donoghue.

Newspaper job ads were down across the country, with only New South Wales, the Northern Territory and South Australia delivering between 0.7 and 1.4 percentage points increases. 

The survey is seen as a forward indicator of the labour market ahead of the release of unemployment data on Thursday by the Australian Bureau of Statistics (ABS).

The seasonally adjusted unemployment rate remained steady at 5.8 per cent in March and April.

The participation rate edged up slightly 0.1 pts to 64.8 per cent in April, according to the ABS.

Other methods of reaching job seekers such as social media are not counted in the survey, weakening ANZ’s job survey correlation to employment figures in recent years.

 

Business confidence has held up. Source: NAB

Business confidence has held up. Source: NAB

Australian businesses are holding onto last month’s bump up in confidence despite fears among consumers following the unveiling of the federal budget.

NAB’s measure of business confidence stayed flat in May, despite the Coalition government’s first federal budget, which has been widely credited with a sharp drop in consumer confidence.

“That result was surprising, with firm’s still discounting persistently soft levels of business conditions and the negative sentiment surrounding the Federal budget - including the post-budget collapse in consumer confidence,” NAB chief economist Alan Oster said.

Importantly for business, forward orders gained back much of the fall record in April, jumping 5 points to zero, although this still suggest only moderate activity in the near-term.

Business conditions fell slightly in May, as employment and profits remain soft.

Illustration: John Spooner

Illustration: John Spooner

It's all about hot property - for now, writes BusinessDay columnist Adele Ferguson:

If there was any doubt that Australia's listed property trust sector is getting red hot, take a look at Singapore-listed Fraser Centrepoint's nose-bleeding takeover proposal for the multibillion-dollar Australand.

The all-cash offer - a counter-bid to an already generous offer from Stockland - set at a whopping 21 per cent premium to Australand's unaudited and estimated net tangible assets at June 30, 2014, sets a post-global financial crisis record.

It comes as the globalisation of the property market gathers pace and low interest rates - locally and globally - fuel demand for the relatively higher-yielding property yields. This was given a further boost last week when the Reserve Bank left interest rates unchanged yet again.

Indeed, some of the bigger super funds are increasing their asset allocation from 8 per cent to 10 per cent in property, which translates into billions of dollars flowing into the property sector. Some of the big US pension funds have also been increasing their asset allocation into property.

At least one fund manager recently wrote to investors in a property fund that it had been approached by anoverseas fund to buy a number of units at 2.5 per cent above valuation. It was not a hostile approach and the fund wasn't distressed, it merely indicates the growing interest in Australia.

Read more.

Supermarket chain Coles faces a demand for pay increases well above inflation for thousands of its workers after one of Australia's biggest unions declared last week's minimum wage decision had set a new bottom line for wage claims.

The union representing most Coles workers, the Shop, Distributive and Allied Employees' Association (SDA), is seeking a 5 per cent pay rise from the ­Wesfarmers-owned Coles, which is in the early stages of bargaining with the unions representing some 80,000 workers.

SDA national secretary Joe de Bruyn said a successful wage claim in retail, including Coles, would need to include annual raises in excess of the 3 per cent increase granted in the national minimum wage case.

"We absolutely are looking at over 3 per cent as a wages settlement. Our claim is 5 per cent," he said.

The agreement is important because it is seen as setting broader conditions in the retail sector.

A Coles spokesman said the ­company looked forward to ­discussions with the unions and declined to comment on pay claims.

"We will continue to work towards an agreement which includes a ­satisfactory pay increase for team members based on the overall package and the proposed flexibility improvements," he said.

Investors are demanding to know how the new-look Coles leadership will continue the strong earnings growth of the past five years amid signs the ­business is slowing down.

New Coles managing director John Durkan has pledged to cut more costs out of the business.

Read more.

Inspectors identified multiple breaches at a Coles distribution centre in Sydney.

Inspectors identified multiple breaches at a Coles distribution centre in Sydney. Photo: Nic Walker

The bid by multibillionaire Kerry Stokes for troubled explorer Nexus Energy appears to be doomed, with Thursday's meeting of shareholders likely to vote the proposal down, leaving the family with a rare black eye.

The opponents also include the corporate raider Sir Ron Brierley, who intends to vote against the proposal put forward by the Stokes family's investment vehicle, Seven Group Holdings.

The size of Sir Ron's holding is unclear, although it is believed to run to several million Nexus shares.

Seven Group Holdings is seeking to gain control of Nexus via a scheme of arrangement, offering shareholders just 2¢ a share, which requires the support of 75 per cent of shareholders to succeed.

This typically makes it easier for a bidder to gain control, since it sets a high hurdle for dissident shareholders to reach.

Even so, in votes lodged with the company so far, Nexus said investors holding more than a quarter of its share capital have voted against the proposal so that, unless their stance changes and they opt to support the scheme at Thursday's meeting, the proposal will fail.

Shareholders opposed to the Seven Group Holdings proposal warned that litigation is likely.

''It would be one option we could pursue,'' a spokesman for the dissident shareholders said. ''We have some funding, but would need to raise more."

Read more.

Shares have enjoyed a strong start to the day's trading, with most sectors rising on the back of a bullish global investor sentiment.

The ASX 200 is 28 points, or 0.5 per cent, higher at 5492.4, with the All Ords up a similar amount to 5470.5.

Banks and miners are leading the market higher, with Telstra also up.

Health care is the biggest lagger after CSL, Ramsay Health Care and Sonic Healthcare all lower in early trade.

Retailers The Reject Shop and Pacific Brands are down 8.9 and 12.1 per cent, respectively, after unveiling profit forecast downgrades, while Super Retail Group is also 2 per cent lower.

Apple shares have jumped as investors remain upbeat on the US tech giant in the first day of trading after a 7-for-1 stock split.

Apple gained 1.6 per cent to close Monday at $93.70. Before the split Friday, shares edged lower to $645.57 but remained close to its all-time highs.

The stock split, announced earlier this year, has no impact on the underlying value of Apple, but such a move can give a company a psychological boost by lowering the cost of each share.

Under the split, the fourth in Apple's history, shareholders received seven of the new shares for every old share they owned.

Apple chief executive Tim Cook has said the split would make Apple stock "more accessible to a larger number of investors".

Michael Walkley, analyst at Canaccord Genuity, said he was optimistic Apple would rally further this year as it unveils new devices, especially a long-anticipated larger version of its iconic iPhone.

"We maintain our belief Apple will win back meaningful high-end smartphone market share in the second half of 2014 following the launch of the iPhone 6," Walkley said in a note to clients.

Apple CEO Tim Cook walks off stage after speaking during the Apple Worldwide Developers Conference in San Francisco.

Apple CEO Tim Cook walks off stage after speaking during the Apple Worldwide Developers Conference in San Francisco.

Only a fraction of the natural gas export projects being developed around the globe will become reality as high costs and weakening gas prices torpedo those that until recently promised huge returns on investment.

Large natural gas field discoveries on and offshore have prompted several countries to plan liquefied natural gas (LNG) export projects, including in North America, Australia, East Africa and the east Mediterranean.

But high development costs and low profit margins in the gas sector mean most of the projects will failRoyal Dutch Shell's director of projects and technology said in an interview.

"There is always so much talk about these big LNG projects around the world, but only a small fraction of them will get built," said Matthias Bichsel, who is also a member of Shell's executive committee.

"Costs in the oil and gas sector are still on the rise and outpacing inflation, and gas projects are extremely price-sensitive because the margins are so thin," he added.

European forward gas prices, which are used to make investment decisions for big pipeline and gas field projects, have dropped more than 15 per cent since the beginning of the year.

They are close to five-year lows, and most analysts expect further declines as new producers flood markets with gas. Analysts have said many new gas projects will struggle to make the return on investment necessary to receive the required financing.

In Asia, where 70 per cent of global LNG trading takes place, spot LNG prices have fallen more than 35 per cent this year to their lowest since late 2012.

Read more.

'The next big thing': Australia is poised to be the biggest exporter of LNG in the world by 2017.

'The next big thing': Australia is poised to be the biggest exporter of LNG in the world by 2017. Photo: Bloomberg

Also joining the "retail downgrade club" this morning is The Reject Shop.

The seller of trinkets and discount goods is blaming warm weather and slumping consumer confidence for its profit downgrade, as the discount retailer continues to struggle with anaemic sales growth.

The Reject Shop chairman William Stevens announced the company is unlikely to meet its full-year profit guidance of $17 million to $18 million, instead downgrading expects to between $14.5 million and $15.5 million.

The profit downgrade comes after reporting a near 16 per cent decline in its half year profit, following a poorer-than-expected Christmas trading period.

Read more.

Expect some early share price action in Pacific Brands, after the maker of Bonds clothing and Sheridan bed linen and towels this morning cut its full-year earnings forecast because of “challenging markets and declines in consumer sentiment”.

It also said it expects net debt to rise in financial 2014.

The company said it expects its full-year earnings before interest and significant items to be in the range of $90 million-$93 million for the year ending June 30; at the time of its interim results it “implied” full-year EBIT before significant items of about $105 million. It said it expects sales growth of about 3 per cent compared with the previous year.

“A combination of challenging markets, declines in consumer sentiment and a warm autumn” helped contribute to “lower-than-expected sales growth and increased margin pressure”, the company said in a statement to the Australian stock exchange.

Net debt is expected to climb to about $250 million-$260 million this financial year because of “reduced earnings, higher working capital and capital expenditure and additional restructuring costs,”  the company said.

US stocks rose, with benchmark indexes extending records, as small-cap shares rallied and pushed higher by more deal activity.

The S&P 500 added 0.1 percent to 1,951.3, capping its seventh record close in the past eight sessions. The Dow Jones gained 18.82 points, or 0.1 percent, to a record 16,943.10. The Russell 2000 Index of small companies climbed 0.9 percent for a fourth day of gains.

“There’s a fair amount of skepticism over if we are at peak valuations,” Michael Arone, the chief investment strategist at State Street Global Advisors’ US Intermediary Business, said. “My view is the Goldilocks economy is back - not too cold, not too hot, but just right. What we’re starting to see is companies starting to do capital expenditures and M&A to invest in their businesses.”

The S&P 500 advanced 1.3 percent to a record 1,949.44 last week as the European Central Bank lowered interest rates and a report showed that the US economy created more jobs than expected.

The index has continued to climb to records even as the US economy contracted for the first time in three years during the first quarter.

Federal Reserve officials are watching the labour market as they move to complete their bond-purchase program late this year and start considering the timing of the first interest-rate increase since 2006. Central-bank stimulus has helped propel the S&P 500 higher by as much as 188 percent from its bear-market low in March 2009.

The ECB’s stimulus sent European bond yields to all-time lows and helped boost the region’s equities to near the highest in six years.

The US stocks benchmark has rebounded 7.5 percent since a sell-off in small-cap and internet shares spread to the broader market, dragging the index to a two-month low in April. The measure trades at 16.5 times the projected earnings of its members, up from a multiple of 14.8 at the start of February.

Read more at Bloomberg.

Local stocks are poised to open higher as both the Dow and S&P 500 closed at highs yet again.

Here's what you need2know:

  • SPI futures up 24 points to 5502
  • AUD at 93.51 US cents, 95.88 Japanese yen, 68.81 Euro cents and 55.67 British pence
  • On Wall St, S&P 500 +0.1%, Dow +0.1%, Nasdaq +0.2%
  • In Europe, Euro Stoxx 50 +0.3%, FTSE +0.2%, CAC +0.2%, DAX +0.2%
  • Spot gold up 20 US cents to $US1253.43 an ounce
  • Iron ore loses 0.2% to $US94.30 per metric tonne
  • LME 3-month copper is at $US6670 a tonne
  • Brent oil up $US1.27 to $US109.88 per barrel

 

What's on today:

  • Australia: housing finance, NAB Business survey, ANZ job advertisements
  • China: CPI

 

Stocks to watch:

  • ANZ may sell its 39 per cent stake in Indonesia's Panin Bank: Australian
  • BHP cuts 180 jobs at Whaleback ore mine
  • Computershare seeks $900 million syndicated revolving loans
  • Fonterra: NZ milk output seen increasing after herd expansion
  • James Hardie trades ex-div
  • Karoon Gas agrees on key terms for $100m bridge facility with NAB
  • The Reject Shop trading update
  • Pacific Brands trading update

 

Read more.

Good morning and welcome to the Markets Live blog for Tuesday.

Your editor today is Patrick Commins.

This blog is not intended as investment advice.

BusinessDay with wires.

 

Quotes Search

Sort comments by:
  • Pacific Brands great strategy of cutting costs and making their products as cheaply as possible is working great for them! I love my new hush puppy shoes full of PVC.

    Commenter
    Andrew
    Location
    Brisbane
    Date and time
    June 10, 2014, 5:16PM
  • "First home buyer loans at record low"

    Housing boom!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    June 10, 2014, 4:39PM
    • Yeah. But overshadowed by way overvalued equity markets, low volatility, debt saturation, distorted bond and commodity markets, and.....to cap it all off.....now the bloody printer's not working properly.

      Commenter
      Nobody
      Location
      Nowhere
      Date and time
      June 10, 2014, 5:09PM
  • How does the weather affect the Reject Shop? Last time I looked they didn't sell weather related products like clothes.

    Commenter
    Catherine
    Location
    Date and time
    June 10, 2014, 4:28PM
    • I stopped shopping there after my wife told me that having their wares around our house was attracting poverty. Now I just save plastic bottles instead of recycling them and leave them around the house. It has the same interior design feel of Reject Shop products.

      Commenter
      Homeless Man
      Location
      Date and time
      June 10, 2014, 4:52PM
  • Close MYR short for 19%. Negative NTA and going nowhere.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    June 10, 2014, 4:12PM
  • Uh oh... who went long today!? BULL TRAP!

    Commenter
    Liberator
    Location
    SEQLD
    Date and time
    June 10, 2014, 3:52PM
  • What's the point. Another ridiculous day.

    Commenter
    ASX
    Location
    Sydney
    Date and time
    June 10, 2014, 3:44PM
  • The story on Mayne Pharma & generic medicine. I took some scripts to the chemist for some elderly relatives. Out of 7 items, both brand name & generic, not one was made locally. India, NZ & Philippines. Let's hope our trade routes never get disrupted o/wise we will run out of medicines. Those scripts will be $35 more expensive under the Budget because the relatives don't have Seniors Health Care card. They feel betrayed by Abbott & co.

    Commenter
    mitch of ACT
    Location
    Date and time
    June 10, 2014, 3:35PM
  • Versace vanishes into thin air:

    "Crown Casino's high-rollers are finding it harder to splurge on luxury watches and handbags after marquee brand Versace has shuttered the doors of its only Melbourne boutique."

    They're finding it harder to splurge because...Crown's got their money! And that's why Versace is gone...not the other way around. You cannot 'beat' the house. GG.

    Bling gloom!

    See: http://www.smh.com.au/business/retail/versace-packs-its-bags-and-leaves-melbourne-after-falling-behind-on-the-rent-20140610-39uio.html#ixzz34D0VQLi8

    Commenter
    Gordon Gekko
    Location
    Greg Coffey World
    Date and time
    June 10, 2014, 2:56PM
  • Potash will replace coal as BHP's 'fourth pillar'

    Commenter
    Fred
    Location
    Date and time
    June 10, 2014, 2:39PM
    • not this century!

      Commenter
      Mabel
      Location
      Date and time
      June 10, 2014, 3:35PM
  • Another good day for short term traders, in and out with money in the bank, can't beat that uncle frank!

    Commenter
    cyril
    Location
    Date and time
    June 10, 2014, 2:27PM
  • Blah cant get any allocation in the upcoming Monashivf IPO as not moving in the right circle....when is an IPO not an IPO...when its a closed shop, so change the definition...to broker only or BoPO,drat.

    Commenter
    BearshapedBull
    Location
    On the Fence
    Date and time
    June 10, 2014, 2:13PM
    • And then you have that horrible feeling that buying into the bidding frenzy on the first day of trade only adds to the wealth of those who got privileged access. No thanks. Likely to end up with stock that I paid way too much for, along with everyone else. I'll continue to hunt for the real bargains instead.

      Commenter
      mitch of ACT
      Location
      Date and time
      June 10, 2014, 3:02PM
    • It is despicable when IPO are closed shops, why do they call it a public offering, when the public is not being offered anything. It is a stain on free markets...regulators need to open this up.

      Asaleo is a peculiar case, they are offering shares through a "Priority Public Offer', only offered to nominated individuals in the public made by the company, what the heck?

      Commenter
      me
      Location
      sydney
      Date and time
      June 10, 2014, 3:41PM
  • This "Housing Boom!" situation is going to worsen in the next decade. Get used to it. Governments now, worldwide, have become totally dependent on rising house prices and all the taxes associated with property. Real estate itself has now become a world-wide game, with international payment easy.

    Commenter
    Housing
    Location
    Boom!
    Date and time
    June 10, 2014, 2:10PM
    • always has been always will so no change really.

      Commenter
      BearshapedBull
      Location
      On the Fence
      Date and time
      June 10, 2014, 2:33PM
  • Pacific Brands writing off 'decline in consumer sentiment'.

    Couldn't happen to a better company.

    Suppose all that off-shoring of production to lower costs but not prices, was a worthwhile venture then.

    Commenter
    Joe the POM
    Location
    Geelong
    Date and time
    June 10, 2014, 2:06PM
    • I bought a new Samsung S4 Zoom about a year ago on eBay from a seller in Hong Kong. It wasn't half the price of Australian retailers because Australian retailers hadn't even released it/stocked it yet. They started stocking it months later and selling it for double the price lol

      So there was a fault with the phone where dust settled behind the glass in front of the zoom lense about a year after I got it. I googled it and found it was a fault with that product. So I contacted the seller to make a warranty claim. They organised the phone to be picked up and returned to Hong Kong with TNT on 2 June. Today (10 June) it was returned by TNT from Hong Kong fixed perfectly (The Zoom replaced).

      Morals of the story:

      1. Australia is a notorious rip off market in global trade that has been exposed by the rapid growth in online trade. Retailers here are so far off global bench marks in range of products, price, and service it's a bad joke.

      2. The notion that you should pay extra because you get some fantastically superior level of customer service from Australian retailers is a laughable myth that only the truly thickest people believe.

      3. Australian shopping malls are now just places to grab a Grill'd burger and a Lick Pier for lunch and to grab some decent clothes, bedding and crystal glasses in the increasingly frequent Myer and DJ 50% off the already 40% marked down price of goods sales.

      Commenter
      Elon Musk
      Location
      Date and time
      June 10, 2014, 2:37PM
  • "Sharp drop in job ads as consumer confidence struggles"

    Housing boom!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    June 10, 2014, 2:03PM
    • Meanwhile back at the stock market the ASX200 continues on its merry way....up!

      Can't wait for some positive news, then it's ll the way to 6000.

      Commenter
      Captor
      Location
      Date and time
      June 10, 2014, 2:37PM
    • just wait for the first down day in the US, there'll be a humungous sell off here.

      Commenter
      j
      Location
      syd
      Date and time
      June 10, 2014, 3:28PM
    • Cap - Not so sure about that. 6000 is more unlikely by years end.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      June 10, 2014, 3:36PM
  • Central Banks around the world cannot see any signs of inflation, while asset prices are sky rocketing?
    I wonder what asset classes the world connected are invested in?

    Commenter
    Blind Man
    Location
    Date and time
    June 10, 2014, 1:53PM
    • It just shows you the absolute folly of central bankers. Housing prices rise causing available spending money for ordinary folks to go down, i.e. no consumer price inflation. Central banks worried about low inflation and decide to print more money out of thin air putting it on the balance sheets of governments. This leads to bigger asset bubbles, lower spending for families to keep up, and so it goes on until the national economy blows up under its debt.

      The US Federal Reserve and the ECB is the current biggest geopolitical threat to the Western world.

      Commenter
      Dr No
      Location
      Sydney
      Date and time
      June 10, 2014, 2:24PM
    • They are all investing in Sydney property.

      Commenter
      DR
      Location
      syd
      Date and time
      June 10, 2014, 4:12PM
  • "Costs in the oil and gas sector are still on the rise and outpacing inflation, and gas projects are extremely price-sensitive because the margins are so thin,"

    Oh dear.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    June 10, 2014, 1:23PM
    • extract from WPL balance sheet ...yea thin yea right...not
      Net Profit ($ million) 1,083.6 1,107.4 1,427.0 1,030.2 1,786.0 1,824.0 1,549.7 1,483.9 2,872.7 1,954.6

      Commenter
      BearshapedBull
      Location
      On the Fence
      Date and time
      June 10, 2014, 2:29PM
    • Good point @BSB, WPL $42.40 and heading north, $45 on the way to $50. Great company!

      Commenter
      desmond
      Location
      Date and time
      June 10, 2014, 2:41PM
    • Short at 42.05, looks toppy to me.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      June 10, 2014, 4:09PM
  • "BHP is sweating its assets hard and trimming all possible fat across its operations in part to better protect the company from volatility in the iron ore price but also to make up for past management mistakes."
    So lets hope these mistaken managers are for the axe...not just the common fall guy the ol production worker...easy target,easy fix.shame on you BHP

    Read more: http://www.smh.com.au/business/mining-and-resources/bhp-cuts-170-mount-whaleback-jobs-20140609-39smz.html#ixzz34Cdj9bhZ

    Commenter
    BearshapedBull
    Location
    On the Fence
    Date and time
    June 10, 2014, 1:22PM
  • "Thousands of near-new homes are cracking up in Melbourne's western and northern suburbs, leaving their owners facing financial ruin and long battles to fix them."

    Housing boom!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    June 10, 2014, 1:20PM
    • Slap up homes in nothing areas. This will continue and grow as a major problem whilst we expand housing in to areas not fit for such foundations.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      June 10, 2014, 3:49PM
  • One of those days huh? Finally have a decent start only to drift downwards all day.

    Commenter
    Gumly
    Location
    Mackay
    Date and time
    June 10, 2014, 12:54PM
    • It is only 10 points down from the day's high and holding very well compared to Tues, Wed & Thur last week.

      I am tipping we will finish at least 5495 today mainly because the big index players are responsible for the rise pre open and news is neutral to slightly positive

      Commenter
      cyril
      Location
      Date and time
      June 10, 2014, 1:37PM
    • Cyril. Thanks for the TIP.

      Commenter
      Steve
      Location
      Sydney
      Date and time
      June 10, 2014, 3:33PM
    • Any other tips Cyril :o) ?

      Commenter
      Peter
      Location
      Oz
      Date and time
      June 10, 2014, 4:26PM
  • "NSW households are to be hit with an average 17.8 per cent hike in gas prices from next month after a final decision from the Independent Pricing and Regulatory Tribunal." Markets live 10/6/14

    Rising utility bills. Inflation is here. Hyperinflation next. GG.

    Housing boom!
    Jobs doom!
    Inflation boom!

    Commenter
    Gordon Gekko
    Location
    Greg Coffey World
    Date and time
    June 10, 2014, 12:37PM
    • Hyper inflation is stage 2 of the GFC when asset owners have to work out a way of paying back their acquisitions made at excessive cost!

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      June 10, 2014, 1:28PM
    • Not just households but any company that uses substantial amounts of gas, eg brickworks, cement, food processing, heating in offices & hospitals, electricity generation. Of course they will pass on the extra cost to their customers so the cost of living will get hit with a double whammy. What little you stand to save from the abolition of the carbon tax you will pay in higher gas prices. I am hoping that Shell is right and the gas projects fail. Corporate greed at the expense of the rest of us and the environment in extracting CSG.

      Commenter
      mitch of ACT
      Location
      Date and time
      June 10, 2014, 1:34PM
    • If LNG projects are going under due to falling prices in the market. Why do we continue to see massive rises in the retail market? Do we use a different type of gas?

      Commenter
      DR
      Location
      syd
      Date and time
      June 10, 2014, 2:26PM
  • What's up with the job ad numbers? Can't we find some more growth in jobs like banking, finance broking, real estate, conveyancing, and accounting?

    Do we really have to start producing jobs that actually produce something of real economic value first before we worry about avoiding tax with elaborate loss making investments?

    Commenter
    Tom Brady
    Location
    Seeking Excellence
    Date and time
    June 10, 2014, 12:32PM
    • Like carpenters who can actually use timber??? These so called 'real' jobs have died a slow and steady death because there has been no value adding in the Australian economy for 20+ years. Instead everyone is working out everybody else's problems via computers or off shoring anything that does not involve quick computer management...

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      June 10, 2014, 1:04PM
    • We need more jobs like the 150k a year trucker driver that frequent these forums.

      Commenter
      DR
      Location
      syd
      Date and time
      June 10, 2014, 1:23PM
    • Companies boost profit by culling jobs and cutting costs rather than through real organic growth. There is no mention of new value add jobs being created in Australia. However on the contrary, we see jobs being culled on a weekly basis in one sector or another in Australia. The senior corporate executives and CEO's must be loving this as long as they keep getting their bonuses and could'nt care less if if the younger generations flipped burgers for a living.

      Commenter
      Ash
      Location
      Sydney
      Date and time
      June 10, 2014, 1:27PM
  • @11.55 comment

    Now I know why STX is stronger today, upside in gas prices to NSW market.
    If production testing goes well this month and next upside in share price will be huge.
    Sitting on a massive gas reservoir in thick coals under Moomba gas pipeline!
    Just got to get gas out of coals and to market!

    Commenter
    Ox
    Location
    Kensi Pk
    Date and time
    June 10, 2014, 12:29PM
  • WPL still going strong despite recent reports that the big end of town was going to short it!

    Commenter
    dewf hart
    Location
    Date and time
    June 10, 2014, 12:24PM
  • Watched a documentary on “Extrapolation” and all columnists, Mathematician, Physicist, Archaeologist, all agreed that when we extrapolate analysis we always input our own bias. I thought a brave thing to say for these people who earn a living extrapolating data.
    Of course I agree with their conclusion that all projections, particularly stock market ones, are inherently biased by our own beliefs.
    Including this one!

    Commenter
    Harry Rogers
    Location
    Date and time
    June 10, 2014, 12:19PM
    • Where as you're average economist / analysis only ever predict with 100% certainty (and then update that prediction each day/month/year as needed to ensure the prediction remain 100% accurate)

      Commenter
      Peter
      Location
      Oz
      Date and time
      June 10, 2014, 1:53PM
  • According to ASX website, the market cap on Oct 2007 with index at 6754 was 1,582,092m.
    As at Apr 2014 index was 5489 with market cap 1,565,911.
    We probably went close to all time highs when the index got to 5530.

    Commenter
    Stop complaing about the index
    Location
    Date and time
    June 10, 2014, 11:50AM
    • I think you will find a dollar in 2014 is worth less than a dollar in 2007

      Commenter
      economist
      Location
      Date and time
      June 10, 2014, 12:26PM
    • Really economist? So if you bought something for AUD$6.9 million in 2006 and sold it for AUD$6.6 million in 2014 that's not "about the same" is it? That's actually a truly sickening loss isn't it?

      "Gold Coast-based farmer Alan Frost has paid $6.6 million for an up-market ­beachfront home on Hedges Ave, in the biggest deal on millionaires’ row in two-and-a-half years.

      The double block, at 103-105 Hedges Ave, was owned by Mark Howard who purchased the property for $6.9 million in 2006."

      Commenter
      Edith Abbott
      Location
      Date and time
      June 10, 2014, 12:42PM
    • @Edith, i think if you take the time to read my comment properly I think you will find that is exactly the point I was making!

      Commenter
      economist
      Location
      Date and time
      June 10, 2014, 1:15PM
    • @economist, yes I know. Many of my comments are facetious in tone with the intent of trying a new approach to achieve something traditional methods have failed; educating lesser lights.

      As Carl Icahn states on his Twitter bio: "Some people get rich studying artificial intelligence. Me, I make money studying natural stupidity."

      Commenter
      Edith Abbott
      Location
      Date and time
      June 10, 2014, 1:53PM
  • I needs to be said that the story the Herald has just published on the Apple share split contains one of the most inane, click-bait journalism headlines I've ever read.

    Commenter
    Westie
    Location
    Date and time
    June 10, 2014, 11:50AM
  • Time for retailers to wave the white flag, looking forward to some bargains soon. Aussies have been paying way to much for way to long. There will be no need to go to Hong Kong for a shopping trip when the sales start.

    Commenter
    Aussie Bob
    Location
    Date and time
    June 10, 2014, 11:48AM
  • Time to short CBA

    Commenter
    dunno
    Location
    Date and time
    June 10, 2014, 11:39AM
    • ok

      Commenter
      which bank?
      Location
      Date and time
      June 10, 2014, 11:54AM
    • Charlie said banks were too expensive a few weeks ago, but changed his mind when the prices went higher.

      Commenter
      Follow the Heard
      Location
      Date and time
      June 10, 2014, 11:56AM
    • In a world where cash earns negative interest, a government protected company that generates 5% dividends (ignoring franking) is going to be a popular global investment. You'd have to be brave to short CBA.

      Commenter
      Elric
      Location
      Melnibone
      Date and time
      June 10, 2014, 12:08PM
    • You would also be brave to buy it here. Short term sell.

      Commenter
      Ridgy
      Location
      Date and time
      June 10, 2014, 12:20PM
    • when the house price is down or Chinese stop buying Oz houses, then all banks will go down a lot.
      anyway, if anyone buy CBA at 82.50, they are insane. i think it is short term sell as well, i am sure you can get it cheaper, say below 80, in next two weeks.

      Commenter
      Wil
      Location
      melb
      Date and time
      June 10, 2014, 12:50PM
    • Eiric

      Your point is taken and is hard to disagree however sometimes sentiment moves prices higher or lower and at this point of time I believe lower.

      Commenter
      dunno
      Location
      Date and time
      June 10, 2014, 12:59PM
  • Reject Shop blaming warm weather for its declining sales .....Spare me some slack, folks ...... why not just be honest about it. The simple fact is that people are just not spending as they used to in the past. In fact, the trends emerging from the Reject shop profits might be a harbinger of the declining trends for the retail sector in the near future, but then the markets hardly care about such ground realities

    Commenter
    Ash
    Location
    Sydney
    Date and time
    June 10, 2014, 11:37AM
    • TRS - The Real Situation

      TRS is a shop for the Aussie battler, there aren't any coins left in the piggy bank!

      Commenter
      bill
      Location
      Date and time
      June 10, 2014, 11:58AM
    • @Bill, alternate view, times are not as tough as TRS expected so people havent moved that far down the bargain bin

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      June 10, 2014, 1:32PM
    • I think you nailed it @Wwwish Lion

      Commenter
      craig
      Location
      Date and time
      June 10, 2014, 2:23PM
  • Australia Post sacks 600 staff to save $60M a year. Then its disclosed the CEO is paid $4.8M. Is it just going to be the CEO's left that will actually have any money to buy anything in the over priced country?

    Commenter
    Too much
    Location
    Melbourne
    Date and time
    June 10, 2014, 11:34AM
  • AWE has just about run out of gas and now the shorters have started, be careful!

    Commenter
    cyril
    Location
    Date and time
    June 10, 2014, 11:29AM
    • I think I read this AM that AWE has been downgraded to a HOLD by Intelligent Investor.

      Commenter
      YIn or yang
      Location
      Date and time
      June 10, 2014, 2:53PM
  • @1103am comment
    ready.........property boom!

    Commenter
    BearshapedBull
    Location
    On the Fence
    Date and time
    June 10, 2014, 11:23AM
  • When Matthias Bichselhere says only a small number of the big LNG projects will get built he must be talking about the short term.
    Gas is THE fuel of this century and demand is set to soar with the shift from fuel oil to LNG in the shipping industry alone. The sooner senseless subsidies for other energy sources are dropped the better off we'll all be.

    Commenter
    Engineer
    Location
    Scam City
    Date and time
    June 10, 2014, 11:18AM
  • Cant see how ASX will get to 6000 -
    Mining & Materials down
    Banks & Telco's over valued
    Retail struggling...
    And this makes up > 70% !!

    Commenter
    clueless
    Location
    wonderland
    Date and time
    June 10, 2014, 11:05AM
    • It is possible. Only one scenario where this happens and that is if the O/S markets are pushed to hysterical highs, and the QE money STILL requires a home to go... well our market will no doubt benefit from this option. O/S markets cannot go up proportionally for the continued QE investment... at some point other markets will look more attractive (ours being one). 6000 though is a hard call

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      June 10, 2014, 11:22AM
    • QE still pumping $US35billion a month into the financial systems worldwide, and interest rates are still at record low levels. It is possible for this bull run to continue for months to come as QE comes to an end late 2014 and I.Rates are expected to hike in 2015, so Ceterus Paribus, situations will change dramatically from there, and I'm expecting a major correction anytime now with the probability of that happening heightening going forward. GG.

      Jobs boom!

      Commenter
      Gordon Gekko
      Location
      Greg Coffey World
      Date and time
      June 10, 2014, 11:22AM
    • 6000, or thereabout, could be on. I can't see interest rates rising anytime soon, the data published at 11:30 is definitely on the gloomy side. If anything there'll be a rate cut, making shares a little more attractive.

      Commenter
      JJ
      Location
      NSW
      Date and time
      June 10, 2014, 12:01PM
  • CBA - Doing much of the heavy lifting this morning. Brand new high of $82.56! Nice.

    Commenter
    It's All About Making Money
    Location
    Lennox Head
    Date and time
    June 10, 2014, 10:53AM
    • The CEO organised a meeting on the weekend with the entire staff and they all decided to work a little harder, therefore the share price has one up.

      Commenter
      Bullheaded
      Location
      Date and time
      June 10, 2014, 11:21AM
  • Applied for 1 of those NAB 0% for 12month credit cards saturday,got a call from +91 country code saying is that all the limit you need [6k] you're approved today.......tempting.

    Commenter
    BearshapedBull
    Location
    On the Fence
    Date and time
    June 10, 2014, 10:49AM
    • Nothing is free in life. You can bet your boots they aim these incentive cards to people who have historically shown they can never pay a card down. 12 months of holding for years of repayments at high rates. Good idea to suck in a few more peasants with poor money skills! Just my thoughts.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      June 10, 2014, 10:58AM
    • I have a firm belief in always using someone else's money for free while keeping my own cash in the bank earning interest or invested earning a good dividend. Just keep an eye on payment due dates. Failure to make a full payment when due can generate a whole world of woe.

      Commenter
      mitch of ACT
      Location
      Date and time
      June 10, 2014, 11:34AM
    • If you have debt on other cards that you can balance transfer (and close the old card), sure why not, if you are thinking of racking up 6k debt and thinking you will pay it off before you get charged interest, I wouldn't. You know what they say about best intentions

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      June 10, 2014, 11:40AM
  • NEA moving seamlessly in the right direction now after integration into Google Earth...pinpointing tax havens will be an added feature.....but GOOG seem to be able to find those wiithout falter.

    Commenter
    BearshapedBull
    Location
    On the Fence
    Date and time
    June 10, 2014, 10:44AM
    • OBJ is another small stock that has had a good run recently, worth looking into. I made some money on this baby back a couple of years ago.

      Commenter
      Dr No
      Location
      Sydney
      Date and time
      June 10, 2014, 11:39AM
    • I regret that i only bought a small. I am a bit worried about that P/E

      Commenter
      NEA
      Location
      Date and time
      June 10, 2014, 11:54AM
  • It's that time again. The dogs are getting a lift. Time to sell.

    Commenter
    Ridgy
    Location
    Date and time
    June 10, 2014, 10:44AM
  • We were told last week was going to be very important for key data to come out. Good European news and the US Non Farm Payroll numbers good and our little ASX after all that started last week at 5530 and is now after all that good news at 5494. Someone is having a lend !

    Commenter
    Goldfinger
    Location
    Sydney
    Date and time
    June 10, 2014, 10:36AM
  • BEN - almost a new 52 week high this morning at 12.07. 52 week high is 12.09.

    Commenter
    It's All About Making Money
    Location
    Lennox Head
    Date and time
    June 10, 2014, 10:29AM
    • $12.10 new 52 week high at 1.42pm. Very good! Much money to be made if it betters its all time high or around $17!

      Commenter
      IT's All About Making Money
      Location
      Lennox Hd
      Date and time
      June 10, 2014, 1:56PM
  • this forum is full of the biggest bears out there...

    I wonder what looming disasters people will be spruiking today ?

    Commenter
    no materials, no party
    Location
    Date and time
    June 10, 2014, 10:25AM
    • Does Tony Abbott being let back in to the country after his trip o/seas count.

      Commenter
      mitch of ACT
      Location
      Date and time
      June 10, 2014, 10:43AM
    • Bears or Realists?
      Nothing wrong with being optimistic on an individual stocks prospects based on good product, good management and cheap price, but being bullish because share prices in US and Europe are rising due to stimulus programs is naïve imo.
      I agree some comments are overly bearish, but share prices are overly bullish and have very big downside risk in the event of any shocks even minor ones.

      Commenter
      Takes 2 to Tango
      Location
      Date and time
      June 10, 2014, 10:45AM
    • Their foil hats need chin straps to stop them slipping off.

      Commenter
      Groucho
      Location
      Date and time
      June 10, 2014, 10:47AM
    • No need. It's pretty much mainstream now. Way after it being impossible to deny. Everyone's an expert AFTER the fact.

      Commenter
      JohnBB
      Location
      Date and time
      June 10, 2014, 10:48AM
    • Not just this forum mate! Australia as a whole!

      Commenter
      Gumly
      Location
      Mackay
      Date and time
      June 10, 2014, 10:59AM
    • ASX 5025 April 15th 2010.
      ASX 5481 June 10th 2014.
      And you wonder why.

      April 15th date used as the second time Global Equities started to fall after GFC Ist one was 15th Oct 2009..

      Commenter
      Bruce
      Location
      Sydney
      Date and time
      June 10, 2014, 11:59AM
    • Market has lost 90% of it's gain after all the good news and you wonder why.

      Commenter
      Steve
      Location
      Sydney
      Date and time
      June 10, 2014, 3:37PM
  • I've been convinced for what seems like an eternity that international markets must come down soon, they can't keep defying gravity in this environment... but maybe with all the QE funny money pumping into the system, maybe defying gravity is now possible?

    Commenter
    Fred
    Location
    Date and time
    June 10, 2014, 10:22AM
    • confirmation bias there? or forum comments having there affect...its all going along fairly well contrary to those who see everything in a negative tense...broken records playing broken predictions.

      Commenter
      BearshapedBull
      Location
      On the Fence
      Date and time
      June 10, 2014, 10:37AM
    • thanks for that wisdom fred, don't let facts get in the way of feelings as i always say, this is a sound way to approach investing. QE is funny money. and the little worm that wiggles its way up the table graph each day is in fact defying gravity. awesome. so if we pumped the funny money inside a vaccum it should then be impervious to this enemy of the stock worm, gravity.

      Commenter
      i feel there
      Location
      for i am
      Date and time
      June 10, 2014, 10:42AM
    • @BSB. There's nothing positive about having spent yesterday's, today's and tomorrow's money and then desperately having to convince Canadians to buy more of our junk. Don't be the last one to work out what's going on.

      Commenter
      JohnBB
      Location
      Date and time
      June 10, 2014, 11:33AM
  • With any mid year correction in bankstock prices a non event and the added O/S buying pressure from latest ECB policy. Does that make it a 50/50 buy in now for FOMO or are there some other forces at work to see some SP downside before june 30th.Historically the big 4 have sailed away for the rest of the year after that date. Looking for an in its getting harder as trends keep changing and geopolitical forces brush aside any past data correlation to entry.

    Commenter
    BearshapedBull
    Location
    On the Fence
    Date and time
    June 10, 2014, 10:16AM
    • I reckon June will end with a bang once Bank stocks go ex !!

      Commenter
      clueless
      Location
      wonderland
      Date and time
      June 10, 2014, 10:54AM
    • Aren't prices getting ahead of earnings and so yield. That makes for expensive and risky dividends. No thanks. This surge in prices is being built on stimulus o/seas while our economy is set for contraction. You are already seeing that in the steady stream of profit warnings.

      Commenter
      mitch of ACT
      Location
      Date and time
      June 10, 2014, 10:58AM
    • Big4 are the protected species and will profit / benefit until a real RECESSION hits. Bandage policy making and poor lending criteria and speculative investments will always have an end game...

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      June 10, 2014, 11:04AM
    • @clueless banks gone ex in may......if ya look.

      Commenter
      BearshapedBull
      Location
      On the Fence
      Date and time
      June 10, 2014, 11:19AM
    • BSB

      Intelligent thinking. Although most stocks seem to be priced too high are we kidding ourselves that we havent entered a new paradigm because of QE and the dister that is Europe.

      Australia looks a very safe haven on any measure and its easy to suggest that any dividend is a good dividend compare to negative interest rates.

      I sold TLS just because I believed the sentiment turned in the weeks leading up to June for no logical reason but will be very happy to buy back in on the dips.

      Still have BDR ...no concern.

      Good luck

      Commenter
      Harry Rogers
      Location
      Date and time
      June 10, 2014, 12:27PM
  • Glad I never got suckered into the Newstat (NWT) "satellite story". Have been watching it though, and down 20% today :O

    Commenter
    GS
    Location
    Date and time
    June 10, 2014, 10:10AM
    • I'm bought more at $0.28 hahahaha. Greedy when others are fearful or maybe I'm just losing it. The Optus 10 satellite which delayed the launch, delayed a previous launch which was eventually successful with another co passenger satellite instead of Optus 10. I am not stressed until a rocket blows up.

      Commenter
      FANATICAL
      Location
      Greedy
      Date and time
      June 10, 2014, 10:39AM
    • Whatever makes you happy but these sort of stocks always struggle up until a they get what they are set to achieve. The success or failure of NWT depends only on 1 factor - launch of Jabiru so until then its all noise.
      Time will tell if yesterday was a good time to sell or today a great opportunity to buy :)

      Commenter
      clueless
      Location
      wonderland
      Date and time
      June 10, 2014, 10:45AM
    • Sold half of mine @ 45.5 for a really nice profit so looking at buying on the big dip in a day or so. Let's just hope that satellite soars instead of dipping.

      Commenter
      mitch of ACT
      Location
      Date and time
      June 10, 2014, 10:46AM
  • Should be two lots of GAINS for us today ????????

    Commenter
    Macca
    Location
    Sydney
    Date and time
    June 10, 2014, 9:55AM
    • As expected ASX continues on its Merry way backwards.. Up 30 points only lose most of them as usual. No wonder we've gone nowhere for 5 years. 2 days of supposed growth down the toilet.

      Commenter
      Macca
      Location
      Sydney
      Date and time
      June 10, 2014, 3:25PM
  • House prices have crashed in Sydney!
    Bought a house on the weekend 30% below what they wanted for it. No competition out there, only one at the auction also, wow the market is in a real state of fear atm.
    Also just in election promises do come true!

    Commenter
    can't
    Location
    lie straight in bed!
    Date and time
    June 10, 2014, 9:49AM
    • I like good humor first day back at work.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      June 10, 2014, 10:05AM
    • Don't they pass houses in if its 30% below? I guess the long weekend and the weather kept people away?

      Commenter
      DR
      Location
      syd
      Date and time
      June 10, 2014, 10:08AM
    • mate if you think property prices in Sydney have crashed you need ya flippin' head read. come to the auctions I have been attending and you will soon realise the only opportunity for fair value lie outside Sydney all together.

      Commenter
      Izzy
      Location
      Burwood
      Date and time
      June 10, 2014, 10:13AM
    • some poeople cant see the sarcasm through the cynicism

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      June 10, 2014, 10:38AM
    • Did you go to an auction in Dreamworld - Sydney ?? Good joke mate ;)

      Commenter
      clueless
      Location
      wonderland
      Date and time
      June 10, 2014, 10:47AM
    • Surely the market will drop by 60%? I'm waiting until ANOTHER 30% goes and then I'll buy that that house from you cant :o)

      Commenter
      Peter
      Location
      Oz
      Date and time
      June 10, 2014, 10:48AM
    • Well that joke was posted out of fustration. I decided not to enter Sydney property market as far back as 2003, people were always of the opinion that prices are to high and now is not the right time to buy, all these people buying are in for a nasty fright, here we are post GFC 2008 and I'm still waiting! For these bears that profess that prices and yields.. blah blah blah.. haven't kept up with inflation, I don't care anymore! Smart advice to any "young" people, get in when you can "afford" it. yes it may go down, side ways ect... but eventually you will be better off than renting, another argument, rents have been falling, what a self serving argument! if i had of bought in 2004 my mortgage would be less than the rent im payingn now living 3 surburbs away. bears? what are they good for? really? investors continue to get rich not listening to the BS, but late comers to the party like myself have to navigate through all the BS! so im waiting for this next correction hopefully it will be enough for me to squeeze into the market.

      Commenter
      Leah
      Location
      Rockdale
      Date and time
      June 10, 2014, 11:32AM
    • And if you were renting you'd have $300K cash in the bank.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      June 10, 2014, 4:10PM
  • lol @ the Reject Shop blaming "warm weather" for a profit downgrade.

    Commenter
    GS
    Location
    Date and time
    June 10, 2014, 9:42AM
  • 600 jobs to go in the Post.

    170 to go from BHP's Whaleback.

    500,000 need emergency assistance. [Anglicare].

    "Get a job" [Kevin Andrews]

    Housing doom!

    Commenter
    Gordon Gekko
    Location
    Greg Coffey World
    Date and time
    June 10, 2014, 9:36AM
    • There's going to be plenty of work at global rates. $5 an hour. We all knew this was where it was going right?

      Commenter
      JohnBB
      Location
      Date and time
      June 10, 2014, 10:20AM
    • AP has the most expensive CEO and excutives then any postal service in the world including US.
      The only way they know is to sack people which they have been doing it from last three years
      and cut services. They have no problem in lining their pockets with millions.
      If they could cut their perks and salaries and sack their mates working as contractors then they will
      not have to cut services and sack people.

      Commenter
      xyz
      Location
      Date and time
      June 10, 2014, 10:27AM
    • The sooner AP is privitised the better...A strong buy in my opinion

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      June 10, 2014, 10:40AM
    • Let us have 457 visas for CEO's,,Excutives and Pollies .

      Commenter
      John
      Location
      Date and time
      June 10, 2014, 10:48AM
  • Bull's Ride the High. There is no doubt American Bull's are on something that makes them High. I had a burger on the weekend with a beef patty... was not very high if you ask me!!!

    Commenter
    Liberator
    Location
    SEQLD
    Date and time
    June 10, 2014, 9:33AM
Comments are now closed