Australian Share Market Update march 18, 2010

admin — Thu, 18 Mar 2010 07:57:31 +0000

The All Ordinaries Index gained 10.8 points to end the day 0.2% higher at 4877.7.

Kathmandu Holdings Limited (KMD) gained 9.8% to close at $1.91 after reporting its inaugural first half Net Profit after Tax of NZD$4.4m, excluding the one-off costs associated with its initial public offering (IPO) of shares in November 2009. As stated in the prospectus, KMD did not declare an interim dividend.

Major stock rises:

Iluka Resources Limited (ILU) $4.14 +5.88%
Orica Ltd (ORI) $26.72 +3.53%
James Hardie Industries (JHX) $7.86 +2.48%
Westfield Group (WDC) $12.10 +2.20%
Incitec Pivot Limited (IPL) $3.70 +1.93%

Major stock falls:

Transfield Services Limited (TSE) $4.09 -3.31%
QBE Insurance Group (QBE) $20.76 -2.17%
BlueScope Steel Limited (BSL) $2.84 -2.07%
Leighton Holdings Limited (LEI) $39.10 -1.88%
Downer EDI (DOW) $7.47 -1.71%

Please Note:

This publication has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, you need to consider (with or without the assistance of an adviser) whether this information is appropriate to your needs, objectives and circumstances. This information is provided for persons in Australia only and is not provided for the use of any person who is in any other country.

Australian Share Market Update, March 17th, 2010

admin — Wed, 17 Mar 2010 07:00:14 +0000

The All Ordinaries Index gained 57.8 points to end the day 1.2% higher at 4866.9.

AWB Limited (AWB) fell 11.4% to close at $0.93 after downgrading its full year profit guidance. AWB now expects its profit before tax and significant items for FY10 to be within the range of $85-$110m, down from its previous guidance of $115-140m. The weaker than expected guidance is mainly due to the sale of Landmark Financial Services loan and deposit books earlier this year.

David Jones Limited (DJS) gained 1.2% to close at $5.13 after reporting first half Profit after Tax of $100m, 10.2% higher than 1H09. DJS declared an interim dividend of 12cps (ff), 9% higher than the pcp.

Major stock rises:

Energy Resources of Australia Limited (ERA) $19.85 +5.59%
Billabong International Limited (BBG) $10.74 +4.27%
WorleyParsons Limited (WOR) $26.20 +4.01%
Oil Search Limited (OSH) $5.88 +3.89%
Leighton Holdings Limited (LEI) $39.85 +3.86%

Major stock falls:

AWB Limited (AWB) $0.93 -11.37%
GPT Group (GPT) $0.56 -1.75%
Mirvac Group (MGR) $1.47 -1.67%
Ansell Limited (ANN) $11.65 -1.60%
Wesfarmers Limited (WES) $31.10 -1.43%

Please Note:

Australian Share Market Update March 15, 2010

admin — Tue, 16 Mar 2010 07:55:24 +0000

The All Ordinaries Index gained 9.7 points to end the day 0.2% higher at 4809.1.

Telstra Corporation Limited (TLS) gained 2.3% to close at $3.11, after announcing the successful issue of a 10-year benchmark 1 billion Eurobond, with a 4.25 per cent annual coupon rate.

Major stock rises:

UGL Limited (UGL) $15.02 +4.23%
Paladin Energy Limited (PDN) $3.80 +3.26%
Lihir Gold Limited (LGL) $3.06 +3.03%
Seek Limited (SEK) $7.71 +2.80%
Telstra Corporation Limited (TLS) $3.11 +2.30%

Major stock falls:

Intoll Group (ITO) $1.14 -3.38%
OZ Minerals Limited (OZL) $1.13 -2.99%
Aristocrat Leisure Limited (ALL) $4.30 -2.49%
Billabong International Limited (BBG) $10.30 -2.18%
Leighton Holdings Limited (LEI) $38.37 -1.51%

Please Note:

Australian Share market update, 12th March 2010

admin — Sat, 13 Mar 2010 20:47:09 +0000

The All Ordinaries Index ended the day 6 points higher to close at 4831.5.

Warehouse Group Limited (WHS) ended the day 1% lower to close at $2.97 after reporting Net profit after tax (excluding unusual items) of $57m, up 0.4% compared to 1H09. WHS declared an interim dividend of 17cps.

Insurance Australia Group Ltd (IAG) gained 0.2% to close at $3.96, after announcing it had received in excess of 24,000 claims following severe weather in Victoria during the past week. Consequently, IAG has downgraded its FY10 insurance margin guidance to 10.5% – 12.0%, from 11.5% – 13.0%.

Major stock rises:

Lihir Gold Limited (LGL) $3.01 +3.79%
Nufarm Limited (NUF) $8.70 +3.20%
Arrow Energy Limited (AOE) $5.20 +2.77%
Caltex Australia Limited (CTX) $11.43 +2.60%
OZ Minerals Limited (OZL) $1.18 +2.16%

Major stock falls:

Billabong International Limited (BBG) $10.60 -2.48%
Brambles Limited (BXB) $7.29 -2.41%
Ansell Limited (ANN) $11.53 -2.12%
Harvey Norman (HVN) $3.87 -1.53%
James Hardie Industries (JHX) $7.47 -1.32%

Please Note:

The Australian Share market, one year on

admin — Thu, 11 Mar 2010 08:03:30 +0000

This week sees a year since the share market lows of the Global Financial Crisis were reached.

Given that it is far easier to predict the past than the future, it is interesting to note that this time last year, the Australian Financial Review ran a headline in their weekend edition (I think it was the last weekend in February) that basically stated that the love affair Australians had with stocks was finally over.

At the time, we did not know it, but I guess we can now say that that was as close as you would get to having a bell being rung to signal the bottom of the share market.

Fast forward one year and after the savaging we saw in 2008 and early 2009, many investors are now sitting on returns for the last 12 months that are some of the highest we have ever seen.

I just hope that not too many people took the advice of the nay Sayers and bandwagon jumpers to sell out at the bottom only watch the markets take off again. I hope that the sensible investors stuck to their long term plans and didn’t realize major losses – realized losses can be hard to make up.

Of course we are still not out of the woods and just as in the depression years, there is always the chance that markets may turn down again, and I have no idea what the possibility is of that happening, but even so as it is beyond my control, I wont stress too much about something I cannot control, what will you do?

Please Note:

Australian Share Market Update, March 11, 2010

admin — Thu, 11 Mar 2010 07:49:44 +0000

The All Ordinaries Index ended the day 4.3 points lower to close at 4825.5.

Myer Holdings Limited (MYR) ended the day 0.9% lower to close at $3.44 after announcing its first half net profit after tax of $115m, up 38% on 1H09. MYR declared a fully franked interim dividend of 10.5cps.

Leighton Holdings Limited (LEI) gained 1.7% to close at $39.65, after securing a $463m contract for the construction of tunnels and ventilation buildings for a proposed high-speed rail link between Hong Kong and China.

Major stock rises:

Lend Lease Group (LLC) $8.66 +3.71%
Telstra Corporation Limited (TLS) $3.07 +2.68%
Caltex Australia Limited (CTX) $11.14 +2.58%
Tatts Group Limited (TTS) $2.47 +2.49%
Orica Ltd (ORI) $25.87 +2.21%

Major stock falls:

Lihir Gold Limited (LGL) $2.90 -2.68%
Seek Limited (SEK) $7.41 -2.63%
Downer EDI (DOW) $7.68 -2.54%
Computershare Limited (CPU) $12.17 -2.17%
Transurban Group (TCL) $5.16 -1.71%

Please Note:

Australian Share Market Update for March 10, 2010

admin — Wed, 10 Mar 2010 08:05:06 +0000

The All Ordinaries Index ended the day 0.5 points higher to close at 4829.8.

Alesco Corporation Limited (ALS) ended the day 31.6% lower to close at $3.12 after downgrading its full year profit estimates. ALS now expects earnings (EPS) for FY10 to be in the range of 24-27 cents, materially lower than the previous guidance of 34-36 cents.

Aurox Resources Limited (AXO) gained 172.2% to close at $0.73, after receiving a $143m takeover offer from Atlas Iron Limited (Atlas). AXO share holders will receive one AGO share for every three AXO shares held upon implementation. The Aurox Board unanimously recommends security holders vote in favour of the proposal. AGO gained $0.10 to end the day 4.5% higher at $2.31.

Major stock rises:

Computershare Limited (CPU) $12.44 +3.49%
Lihir Gold Limited (LGL) $2.98 +3.11%
Boral (BLD) $5.58 +2.76%
Telstra Corporation Limited (TLS) $2.99 +2.75%
Qantas Airways Limited (QAN) $2.84 +2.53%

Major stock falls:

Alesco Corporation Limited (ALS) $3.12 -31.58%
Nufarm Limited (NUF) $8.38 -8.91%
Mirvac Group (MGR) $1.50 -3.53%
Stockland Group (SGP) $4.07 -2.63%
Coca-Cola Amatil Limited (CCL) $11.17 -2.53%

Please Note:

Australian Market Update for March 9th, 2010

admin — Tue, 09 Mar 2010 09:19:19 +0000

The All Ordinaries Index gained 0.2 per cent to end the day 9.7 points higher at 4829.3.

Billabong International Limited (BBG) gained 2.2% to close at $10.90 despite announcing it is subject to a civil claim in Indonesia by its former Indonesian licensee regarding the termination of its licence to distribute products in Indonesia. BBG’s business in Indonesia represented approximately 0.7% of the Group’s global sales in FY09.

Centrebet International Limited (CIL) gained 10.4% to close at $1.80, after announcing it has received a number of non-binding proposals from various parties regarding the acquisition of the Company. CIL is currently in discussion with the prospective parties.

Major stock rises:

Brambles Limited (BXB) $7.50 +4.02%
ConnectEast Group (CEU) $0.44 +3.53%
WorleyParsons Limited (WOR) $25.17 +2.78%
Billabong International Limited (BBG) $10.90 +2.25%
QBE Insurance Group (QBE) $21.10 +2.13%

Major stock falls:

Intoll Group (ITO) $1.17 -3.69%
Energy Resources of Australia Limited (ERA) $18.60 -2.92%
OneSteel Ltd (OST) $3.60 -2.70%
Ansell Limited (ANN) $11.77 -1.92%
Lihir Gold Limited (LGL) $2.89 -1.70%

Please Note:

Trivia, panic, or are we just getting old?

admin — Mon, 08 Mar 2010 06:49:16 +0000

Did you know that our global population is ageing so fast that within 10 years, the number of people aged over 65 will outnumber all the children in the world under the age of 5?

A useless fact no doubt – but those over 65 cost more to keep alive than those under 5, and generally neither of those age groups are working. Although for all those 5 years old out there, given our increasing medical costs, they may find themselves back in the salt mines or cleaning chimneys.

Please Note:

Fees versus Commission

admin — Mon, 08 Mar 2010 01:37:15 +0000

This is an update to a blog posted nearly 2 years ago and the issue is still being discussed, but in relation to finding a Financial Planner what does and should matter to you, the client?

The topic of fees versus commission was written about by every financial columnist over the past 2 – 3 years, but more so during the height of the Global Financial Crisis. The call being for fees to be the method of payment – by the client, and commissions – payable by the product provider being stopped.

In a nutshell financial advisers receive payment from their employer, the client, through either commissions or by charging a fee for the service provided. The fee may be fixed or based on an hourly rate, or a combination of both which is used by many financial advisers. In reality the client pays the commission – the product provider will recoup this amount from the fees they charge over time anyway.

So what should you look for in terms of fees when seeking out a financial adviser? There are plenty of independent websites and organisations that can give you tips and advice, so look around and do your homework. But what’s important here is that consumers should be given a choice. Not all consumers want to pay fees for services up front and are happy to pay adviser fees in the form of commissions.

Providing clients are kept informed of commissions and fees, such a strategy may suit a client. The down side is that advisers may be influenced to recommend investments with higher commissions and the client may not always be told of alternative investments that may be equally as good with lower fees. An adviser may also continue to receive trail commissions even if a client chooses to no longer use their services but retain their investment. However recent changes to a number of product providers means that the client may be able to turn off trailing commissions where there is no service being provided - this is a great thing for consumers.

When engaging an adviser who charges a fee for service, make sure you discuss and agree on the costs to be charged. Charging directly for a service is a good incentive for a planner to give good advice and service but costs come straight out of your pocket and are often charged in advance.

While there will always be a debate of the pros and cons of commission versus fees, scrapping commission completely from the industry removes the right for consumers to choose.

The true issue is transparency.

Please Note: