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This material has been produced by RBS sales and trading staff and should not be considered independent.
The Round Up
15 September 2009
Issue No. 176
The Round Up is a comprehensive daily note produced by the RBS Warrantsteam providing an overview of market movements along with quality ideas forwarrant traders and investors.
In today’s issue
Global Market Action
Scoreboard, commentary
Aussie Market Action
SPI Comment, Events & Dividends
PDN (PDNKZJ) Trading Update
– Capital raising
WDC (WDCKZG) MINI Investment Buy
 – Bottom of cycle?
CSR (CSRKZA) MINI Trading Buy
– A sweet trade
Round Up Corner MINIs approaching stop loss
Equities
Move Last % Move Range Volume
ASX 200-65.04531.1-1.4% 
-77 to + $0.0 bn(L)
SPI - yesterday+46.0 4575.0 +1.0%
-16 to +52 11,747(L)
Dow Jones+21.4 9626.8 +0.2%
-69 to +26 Avg
S&P 500+6.6 1049.3 +0.6%
-8 to +7 Avg
Nasdaq+10.9 2091.8 +0.5%
-15 to +11 Avg
FTSE+7.4 5018.9 +0.1%
-58 to +9 Low
Commodities
Move Last % Today % Past Month
Oil-WTI spot-0.468.9-0.6%+2.0% Gold Spot-0.11000.1-0.0% 
+5.4% 
Nickel (LME)-11.1767.3-1.4% -12.9%  Aluminium (LME)-0.482.2-0.5% -4.4%  Copper (LME)-1.9282.8-0.7% 
+3.4% 
Zinc (LME)-2.583.5-2.9%+3.0% Silver-0.216.5-1.2%+12.4% Sugar+0.9 22.1 +4.0%
+0.4% 
 
 
Dual Listed Companies (DLC’s)
Move %Move Last AUD Terms Diff to Aus
NWS (US)0.10 0.01
+13.8 c
16.03
+34.0 c
RIO (UK)-13.50 -0.01
+26.1 c
50.12
-793.0 c 
BLT (BHP UK)-16.50 -0.01
+17.0 c
32.67
-517.0 c 
BXB (UK)-2.52 -0.01
+3.9 c
7.41
-9.3 c 
American Depository Receipts (ADR’s)
Move %Move Last AUD Terms Diff to Aus
BHP (US)-0.48 -0.01
+66.1 c
38.36
+51.6 c
AWC (US)0.01 0.00
+5.7 c
1.65
+3.4 c
TLS (US)-0.63 -0.01
+105.0 c
24.37
+27.8 c
ANZ (US)-0.65 -0.03
+24.4 c
28.32
+22.2 c
WBC (US)-0.64 -0.02
+26.0 c
3.02
-0.1 c 
NAB (US)-0.11 0.00
+45.8 c
5.31
+1.2 c
LGL (US)-0.71 -0.02
+30.6 c
7.09
-2.8 c 
RMD (US)-0.09 -0.02
+4.2 c
4.48
+1.8 c
JHX (US)-0.48 -0.01
+66.1 c
38.36
+51.6 c
PDN (CAN)0.01 0.00
+5.7 c
1.65
+3.4 c
Overnight Commentary
United States Commentary
 
A possible trade dispute over tyre tariffs weighed on the US overnight but the Dow managed a gain of 0.2% to send it to 2009 highswith rumoured merger activity adding support. The S&P500 climbed 0.6% with the NASDAQ up 0.5%.
Financials
- Rumoured M&A activity boosted the sector with JP's up 2.9% Bank of New York Mellon climbed 1.2%, Wells Fargo added1.7% but Citigroup fell 2% and BoA was flat. The S&P500 Financials added 1.5% as a group.
Industrials
- Not surprisingly US tyre manufacturers were stronger. Goodyear was up 2.95%, Cooper jumped 7.1% but Hankook, thelargest overseas tyre manufacturer in China, sank 8.1%. Rubber futures slumped on the back of the tariff news.
Industrials
- General Electric was the best on the Dow up 4.6% after a broker wrote that the fall in the $US would boost earnings.
Telcos
- Sprint Nextel jumped 10.1% after a British newspaper reported Germany's Deutsche Telekom AG was considering a bid for itsU.S. rival.
Eco
- Joseph Stiglitz, the Nobel-prize winning US economist, had added to concerns about the economy when he said in an interviewon Sunday that underlying problems still lingered in the US banking system following the collapse of Lehman Brothers.
United Kingdom & Europe Commentary
The FTSE closed up 0.2% or 7pts as banks and defensives added support with miners and energy stocks weighed with concerns overthe amounts of speculative money in those sectors. The FTSE Eurofirst 300 fell 0.3% whilst the DAX and CAC both fell 0.1%.
UK Banks
- Banks added the most points to the index, rebounding from falls earlier in the session, with HSBC, Standard Charteredand Lloyds up between 0.3% and 1%. Moody's, however, said the credit outlook for British banks remains negative for the next 12-18months, reflecting weakness in the domestic economic environment.
Euro Banks
- Concern over the ECB's new capital requirements and some profit taking saw weakness. Deutsche Bank was off 0.9%,Commerzbank fell 1.6%, BNP was 1.6% lower and SocGen ended the session down 2.4%.
Food
- Cadbury, which has soared this month after it rejected a bid approach from Kraft, advanced 1.4% on the possibility the U.S.company could go hostile with a higher bid or that Hershey could counter.
Defensives
- Vodafone put on 0.7%, while GlaxoSmithKline added 0.6% and Imperial Tobacco rose 0.3%. Defence companies alsogot a lift with BAE Systems and Cobham both gaining 2.1%.
 
 
Resources Commentary
Miners
- The sector was under pressure from weaker metal prices. Copper fell to 1 week lows as falling Chinese imports and thepossibility of increased Chinese exports hurt the price. BHP fell 1%, Rio was off 0.5%, Vedanta dropped 1.9% and Antofagasta ended0.8% lower.
Energy
- Energy stocks suffered as crude eased below $69 a barrel. BG Group, BP and Tullow Oil dropped between 0.1% and 2.3%.In Europe Total was off 0.3%, Statoil dropped 1.35% but Repsol added 1.4%
SPI Commentary
The SPI traded down 69pts or 1.5% to 4529. Open at 4585 with a high of 4593 and a low of 4519. Volume 79,284. Overnight the SPItraded up 46pts to 4575.
SPI Intraday SPI Daily
 
*SPI report taken from the 9:50am open to the 4:30pm close on the previous trading day. Charts taken from IRESS 
Upcoming Economic Events for the Week
MondayAUSUSTuesdayAUS
Dwelling commencements, RBA Board Minutes
US
PPI, retail sales, NY Fed Empire PMI, Business inventories
WednesdayAUSUS
CPI, Current account balance, Industrial production
ThursdayAUS
RBA Bulletin, customs imports
US
NAHB survey, housing starts
FridayAUSUS
Philadelphia Fed Index
*Dates are indicative only and may change 
Upcoming Dividends
ExDivDate Security Description Div (c) Yield Frk(%) PayDate
21-Sep-09 BBG Billabong 18 4.3% 50 23-Oct-0921-Sep-09 NCM Newcrest Mining 15 0.44% 0 16-Oct-09
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