Overseas Market Report – U.S. Stocks End Higher after Fed Rate Signal
U.S. stocks ended higher Wednesday after the Federal Reserve left monetary policy unchanged but signaled a rate increase is still on the table at its next meeting in December.
The main indexes initially dipped into negative territory immediately after the Fed announcement, but bounced back to rally into the close.At the close, the Dow was up 1.1%, the S&P 500 lifted 1.2% and the NASDAQ was 1.3% higher.
For Australian ADRs listed on the NYSE, BHP Billiton slipped 24 cents (0.70%) to $34.13, ResMed gained 29 cents (0.51%) to $57.70, Telstra Corporation added 5 cents (0.25%) to $19.82, Spark New Zealand slipped 14 cents (1.25%) to $11.03 and Westpac lifted 14 cents (0.61%) to $22.94.
At 7:45 AM (AEDT), the 10-year Treasury note yield was 2.10% and the 5-year yield was 1.46%.
Shares of Apple Inc. (AAPL) rose after the iPhone maker reported solid fourth-quarter results that were ahead of Morningstar's expectations.
Twitter Inc. (TWTR) shares plunged after the social media site reported third-quarter results that showed strong advertiser growth, but very slow user growth.
Shares of Southern Co (SO) were up after the company reported higher adjusted third-quarter earnings per share. Southern also announced more charges stemming from construction delays at the Kemper County IGCC plant, and a settlement of all ongoing disputes among the construction consortium partners building the new Vogtle nuclear units.
Walgreens Boots Alliance Inc (WBA) shares fell after the company announced it would acquire Rite Aid (RAD). Walgreens also reported a profit in its fiscal fourth quarter.
Shares of American International Group Inc. (AIG) rose after Carl Icahn announced that he has taken a large stake in AIG and has sent a letter to CEO Peter Hancock advocating changes. First, he wants the company to split into three companies, with one focused on P&C insurance, one on life insurance, and one on mortgage insurance. Second, he thinks cost-cutting efforts should be stepped up.
European markets were higher.
The FTSE 100 rose 1.1%, the French CAC 40 rose 0.9%, while Germany's DAX was up 1.3%.
Asian shares were mixed.
The Shanghai Composite slid 1.7%, the Nikkei 225 rose 0.7% and the Hang Seng was off 0.8%. India's Sensex was down 0.8%.
Australian Market Report – Local Market Expected To Open Higher
Ahead of the local open, SPI futures were 43 points higher at 5,349.
Wednesday 28 October – close. The Australian market continued its losing streak since this week amid growing speculation on the RBA's next interest rate decision. The index heavyweight NAB fell more than 2 per cent as its cash profit failed to cheer investors, while energy suppliers experienced broad-based losses following the fall of oil prices overnight. There were mixed results from the sectors; health care gained most significantly while energy lagged behind the rest. The Australian dollar depreciated against most major currencies.
The All Ordinaries lost 10.20 points to 5,374.40 while the S&P/ASX 200 fell 11.00 points to 5,335.20.
Transfield Services (TSE)
Transfield Services advised shareholders at its AGM held on 28 October 2015, that despite market conditions remaining challenging, it has reaffirmed its FY2016 guidance for flat EBITDA year on year. In August 2015, the Company reported underlying EBITDA of $265m for FY2015, up 22% against the FY2014. The Company will also be seeking the approval of the shareholders on 28 October 2015 to change its name to "Broadspectrum", to reflect the wide range of services the Company offers its clients. TSE fell 2 cents to $1.01.
National Australia Bank (NAB)
National Australia Bank announced results for the year to 30 September 2015. During the FY2015 net profit attributable to the owners of the Company was $6.34bn, an increase of $1.04bn or 19.7%. Excluding discontinued operations, statutory net profit increased 22.7% to $6.36bn. Cash earnings were $5.84bn, an increase of $0.78bn or 15.5%. Excluding specified items, the increase was 2.4% over the year and 2.8% compared to the March 2015 half year. Revenue increased 4%. Group net interest margin declined 4 basis points, mainly due to competition for business lending. The final dividend is 99 cps fully franked, unchanged from the 2015 interim and 2014 final dividends. The Group maintains a well-diversified funding profile and has raised $26.5bn of term wholesale funding in the FY2015. NAB dropped 70 cents to $31.72.
In This Issue
Argonaut Research | MZI Resources (MZI) | BUY
MZI Resources (MZI) has raised $43m via a three tranche placement and a $2m share purchase plan (SPP). Proceeds from the raising will be used to repay US$25.5m Resource Capital Fund (RCF) bridging loans, further expansion and improved recovery projects and for general working capital. The Company’s flagship Keysbrook mineral sands project is commissioning this quarter, ahead of schedule and on budget. MZI is our preferred mineral sands exposure amongst ASX juniors, located in a low sovereign risk jurisdiction with operational simplicity, a high value mineral assemblage and low slimes. Unlike other mineral sands projects, Keysbrook’s valuable heavy mineral content (VMH) is not dominated by low payability ilmenite.
Recent Contacts & Presentations
Matrix (MCE), Southern Cross Electrical (SXE), Tox Free Solutions (TOX), AWE Limited (AWE), Ausdrill (ASL), GR Engineering (GNG), Medusa (MML), Resolute (RSG), Kingsgate (KCN), Troy (TRY), Northern Star (NST), Sandfire (SFR), Regis (RRL), Saracen (SAR), Sino Gas & Energy (SEH), Dacian (DCN), Buru Energy (BRU), Carnarvon Petroleum (CVN), Otto Energy (OEL), Empire Oil & Gas (EGO), FAR Limited (FAR), Central Petroleum (CTP), Senex Energy (SXY)