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Australian Share Market Update, June 24, 2010

admin — Thu, 24 Jun 2010 08:08:40 +0000

What a day, the Mini Movers Van gets called to the Lodge and we get a new PM, oh and by the way, the All Ordinaries Index fell 5.3 points to close 0.1% lower at 4504.1.

Macquarie Group (MQG) ended the day 4.7% lower at $40.65 after stating uncertain market conditions are adversely impacting certain business units. MQG did not issue any FY11 profit guidance.

Transfield Services Limited (TSE) gained 5.6% to close at $3.36 after reaffirming its FY11 profit guidance for net profit after tax to be flat to modest against the prior financial year.

Major stock rises:

Transfield Services Limited (TSE) $3.36 +5.66%
Downer EDI (DOW) $4.20 +5.53%
Challenger Financial Services (CGF) $3.45 +5.18%
UGL Limited (UGL) $14.13 +3.90%
Rio Tinto Limited (RIO) $71.73 +1.69%

Major stock falls:

DUET Group (DUE) $1.65 -7.54%
Macquarie Group (MQG) $40.65 -4.73%
Caltex Australia Limited (CTX) $10.35 -4.52%
Stockland Group (SGP) $3.78 -3.82%
Brambles Limited (BXB) $5.60 -2.95%

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

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, June 23rd, 2010

admin — Wed, 23 Jun 2010 07:53:35 +0000

On a day when we would all have been better served playing golf, the All Ordinaries Index fell 71.9 points to close 1.6% lower at 4509.4.

Perpetual Ltd (PPT) ended the day 1.5% lower at $29.93 after announcing the resignation of Managing director, David Deverall. Mr Deverall will stay on until a new CEO is appointed or until 31 March 2011.

Seven Group Holdings (SVW) ended the day 2.9% lower to close at $5.98 after announcing plans to invest $US250m as a cornerstone investor in the IPO of Agricultural Bank of China as part of a broad strategy to underpin the development of the group’s WesTrac business in China.

Major stock rises:

Telecom Corporation of New Zealand (TEL) $1.57 +1.95%
Amcor Limited (AMC) $6.47 +1.25%
Ansell Limited (ANN) $13.43 +0.98%
Coca-Cola Amatil Limited (CCL) $11.73 +0.95%
Telstra Corporation Limited (TLS) $3.29 +0.92%

Major stock falls:

Incitec Pivot Limited (IPL) $2.88 -5.26%
Iluka Resources Limited (ILU) $4.69 -4.87%
Challenger Financial Services (CGF) $3.28 -4.65%
Boral Limited (BLD) $4.96 -3.69%
Nufarm Limited (NUF) $5.50 -3.51%

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

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Australian Share Market Update, June 18, 2010

admin — Fri, 18 Jun 2010 08:20:25 +0000

On a day when the CEO of BP was grilled by the US Congress and the CEO of David Jones resigned, the All Ordinaries Index gained 27.1 points to end the day 0.6% higher at 4574.1.

David Jones Limited (DJS) ended the day 0.4% lower to close at $4.49 following the unexpected resignation of Chief Executive Officer, Mark McInnes. Mr McInnes has admitted to behaving “in a manner unbecoming of a chief executive to a female staff member” at recent Company functions. The board of DJS has appointed Paul Zahra as the new CEO of the Company, effective immediately.

Major stock rises:

Downer EDI (DOW) $4.34 +4.58%
Origin Energy (ORG) $15.84 +2.26%
Telstra Corporation Limited (TLS) $3.23 +2.22%
Mirvac Group (MGR) $1.41 +2.17%
Lihir Gold Limited (LGL) $4.35 +2.11%

Major stock falls:

Brambles Limited (BXB) $5.89 -5.15%
ConnectEast Group (CEU) $0.39 -3.66%
WorleyParsons Limited (WOR) $22.36 -3.25%
Metcash Limited (MTS) $4.15 -3.04%
Caltex Australia Limited (CTX) $10.85 -2.95%.

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

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Australian Share market Update, June 17th 2010

admin — Thu, 17 Jun 2010 09:02:54 +0000

A fairly uninspiring day with little overseas lead saw the All Ordinaries Index end the day 0.5% lower to close at 4547.

UGL Limited (UGL) ended the day unchanged at $13.85 after announcing it has secured more than $280m in new works and project extensions with a range of blue chip customers in the resources sector. UGL also reaffirmed its previous profit guidance.

Leighton Holdings Limited (LEI) gained 2.2% to close at $33.01 after securing a $1.1bn, 6-year contract extension for the expansion of the mining services at the MSJ coal mine in Indonesia.

Major stock rises:

Asciano Group (AIO) $1.66 +2.46%
Leighton Holdings Limited (LEI) $33.01 +2.17%
Nufarm Limited (NUF) $6.00 +1.69%
Newcrest Mining Limited (NCM) $34.64 +1.41%
Lihir Gold Limited (LGL) $4.26 +1.19%

Major stock falls:

AWE Limited (AWE) $2.07 -2.82%
Aristocrat Leisure Limited (ALL) $3.97 -2.70%
WorleyParsons Limited (WOR) $23.11 -2.49%
Billabong International Limited (BBG) $9.45 -2.48%
Lend Lease Group (LLC) $7.67 -2.42%

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

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Australian Share Market Update June 16th, 2010

admin — Wed, 16 Jun 2010 07:57:03 +0000

After a good night on the overseas market, the All Ordinaries Index gained 54.5 points to close 1.2% higher at 4572.1.

Rio Tinto Limited (RIO) gained 2.8% to close at $71.34 after announcing plans to invest US$469m to construct the Kennecott Eagle nickel and copper mine in Michigan’s Upper Peninsula (USA), following receipt of final environmental approvals. First production from the mine is expected in late 2013.

News Corporation (NWS) gained 4.3% to close at $18.66 after launching a US$11.5bn takeover proposal to acquire all shares it does not already own in British Sky Broadcasting Group Plc. NWS currently already owns 39.1% of BSkyB’s issued capital.

Major stock rises:

OneSteel Ltd (OST) $3.20 +4.58%
AWE Limited (AWE) $2.13 +4.41%
News Corporation (NWS) $18.66 +4.33%
SIMS Metal Management Limited (SGM) $19.24 +3.55%
Qantas Airways Limited (QAN) $2.47 +3.35%

Major stock falls:

Downer EDI (DOW) $4.23 -5.16%
Foster’s Group Limited (FGL) $5.77 -2.70%
Coca-Cola Amatil Limited (CCL) $11.75 -1.09%
CFS Retail Property Trust (CFX) $1.95 -1.01%
QBE Insurance Group (QBE) $18.95 -0.58%

Finally go Queensland, 5 in a row tonight.

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

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Cost of Living Increases – the Past decade and the implications for investors

admin — Fri, 11 Jun 2010 09:15:22 +0000

For the past 2 years we have heard how tough all people are finding it in the real world.

An article in the Financial Review on Saturday June 5 actually quantified price increases for the past decade – given my view that we are now post GFC more accountable for meeting our income needs in retirement and this actually made me a bit nervous – am I doing enough, are you doing enough, but look at the table below to see what has increased by how much over the past decade:

Item	10 year Increase
Fruit and Vegetables	60%
Milk	36%
Cheese	66%
Bread	49%
Beef and Veal	44%
Lamb and Mutton	109%
Beer	64%
National Electricity Prices	91%
*Wages*	*44%*

In the past 10 years, household indebtedness as a percentage of disposable income – what you owe divided by what you earn has grown from 90% to 156% – this is far greater than in the UK and the US – and they are supposed to be the basket cases – we better hope China does not slow down.

Interestingly, according to RP data, house prices have risen by 146% nationally in that time with Brisbane showing the highest gain of 185%. Melbourne rose by 153% and Sydney by only 83% – I think this could be the better than building a gate at the border to stop the southerners coming on – they simply won’t be able to buy a house here, actually none of us will, last person out, please turn off the overpriced electricity.

What this means for the average investor is that you really do need to ensure you discuss with your advisor the strategies you can employ to ensure that your portfolio manages to keep pace with inflation, capital growth needs to be an important part of your forward planning.

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

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Australian Share Market Update June 11th, 2010

admin — Fri, 11 Jun 2010 09:08:10 +0000

Following on again from strong overseas leads, the All Ordinaries Index gained 68.1 points to end the day 1.53% higher at 4516.5.

Amcor Limited (AMC) said it has received approval from the US Department of Justice to acquire Alcan’s Medical Flexibles operations from Rio Tinto Limited (RIO) as part of the Alcan Packaging acquisition.

AV Jennings (AVJ) said it has entered into a conditional contract to sell its contract building division to the Japanese listed company, Sekisui House Limited. The Australian residential development company said the arrangement would also see the two companies form an alliance around land and the use of the AVJennings brand, ownership of which would remain with AVJennings Limited.

Major stock rises:

Centennial Coal (CEY) $4.43 +5.23%
Macquarie Group Ltd (MQG) $44.72 +3.93%
Fortescue Metals Group (FMG) $4.11 +3.79%
Westpac Banking Group (WBC) $23.43 +3.49%
Perpetual Limited (PPT) $30.48 +3.39%

Major stock falls:

GPT Group (GPT) $2.78 -2.46%
Commonwealth Property Office Fund (CPA) $0.965 -1.53%
Transfield Services (TSE) $3.41 -1.16%
AXA Asia Pacific (AXA) $5.70 -1.04%
Downer EDI Ltd (DOW) $4.46 -0.89%

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

Please Note:

Australian Market Update, June 9th, 2010

admin — Wed, 09 Jun 2010 08:40:28 +0000

Despite a stronger overnight lead from Wall Street, the All Ordinaries Index gained 1.4 points to close at 4402.6.

Wotif.com Holdings Limited (WTF) gained 1.8% to close at $4.99 after stating it expects FY10 net profit after tax of $56m, 29% higher than FY09 on the back of strong occupancy levels in Australia.

Avoca Resources Limited (AVO) gained 8.3% to close at $2.35 after announcing its 100% owned South Kalgoorlie Operations has produced a record 12,222 ounces for the month of May 2010. AVO also announced plans to increase its consolidated production profile to 400,000 ounces per annum from FY13.

Major stock rises:

GPT Group (GPT) $2.74 +4.18%
Sonic Healthcare Limited (SHL) $10.81 +3.44%
Primary Health Care Limited (PRY) $3.86 +2.93%
Mirvac Group (MGR) $1.31 +2.75%
Foster’s Group Limited (FGL) $5.75 +2.13%

Major stock falls:

CSR Limited (CSR) $1.63 -4.39%
Transfield Services Limited (TSE) $3.47 -3.61%
APA Group (APA) $3.56 -3.26%
Downer EDI (DOW) $4.57 -2.56%
Brambles Limited (BXB) $6.10 -2.56%

Please Note:

Australian Market Update, June 7th 2010

admin — Mon, 07 Jun 2010 08:31:41 +0000

After a very ordinary day on Friday, the All Ordinaries Index fell 121.7 points to close 2.7% lower at 4350.7.

National Australia Bank (NAB) closed 3% lower at $23.62 after its wholly owned subsidiary in the US – Great Western Bank announced the acquisition of certain assets and liabilities of TierOne Bank from the Federal Deposit Insurance Corporation for a cash payment of approximately US$76m.

Major stock rises:

Pacific Brands Limited (PBG) $0.90 1.69%
Eldorado Gold Corporation (EAU) $20.47 1.69%
AGL Energy Limited (AGK) $14.49 0.76%
Metcash Limited (MTS) $4.10 0.24%
CSL Limited (CSL) $32.85 0.09%

Major stock falls:

Fortescue Metals Group Ltd (FMG) $3.88 -6.51%
Caltex Australia Limited (CTX) $10.17 -5.92%
Incitec Pivot Limited (IPL) $2.92 -5.81%
Seek Limited (SEK) $7.13 -5.31%
AMP Limited (AMP) $5.51 -5.00%

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?

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