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This material has been produced by RBS sales and trading staff and should not be considered independent.
The Round Up
6 October 2009
Issue No. 190
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
BSL (BSLKZI) MINI Trading Buy
– Poised for recovery
ASX (ASXKZI) MINI Trading Buy
 – Volume and EPS growth
AGK (AGKKZE) MINI Investment Buy
– Value in contract wins
Round Up Corner RBS Monthly Market Review – September 09
Equities
Move Last % Move Range Volume
ASX 200-28.44573.3-0.6% 
-28 to +17 $2.3 bn(L)
SPI - yesterday-26.04583.0-0.6% 
-35 to +19 15,338(L)
Dow Jones+112.1 9599.8 +1.2%
-7 to +137 Avg
S&P 500+15.2 1040.5 +1.5%
+1 to +17 Avg
Nasdaq+20.0 2068.2 +1.0%
+1 to +27 Avg
FTSE+35.6 5024.3 +0.7%
-12 to +36 Avg
Commodities
Move Last % Today % Past Month
Oil-WTI spot+0.4 70.4 +0.6% +3.4%Gold Spot+13.6 1016.4 +1.4%
+2.2% 
Nickel (LME)+12.1 792.1 +1.5%-0.6%  Aluminium (LME)-0.779.6-0.8% -3.4%  Copper (LME)+1.8 267.6 +0.7%
-5.8%  
Zinc (LME)-0.483.7-0.5% -3.1%  Silver+0.4 16.6 +2.8% +2.3%Sugar+0.5 23.7 +1.9%
+9.5% 
 
 
Dual Listed Companies (DLC’s)
Move %Move Last AUD Terms Diff to Aus
NWS (US)0.27 0.02
+13.5 c
15.40
+9.0 c
RIO (UK)58.50 0.02
+25.6 c
46.58
-1027.0 c 
BLT (BHP UK)32.00 0.02
+16.6 c
30.14
-618.1 c 
BXB (UK)7.50 0.02
+4.3 c
7.73
+8.0 c
American Depository Receipts (ADR’s)
Move %Move Last AUD Terms Diff to Aus
BHP (US)1.91 0.03
+64.5 c
36.78
+46.3 c
AWC (US)0.27 0.05
+6.3 c
1.78
+3.6 c
TLS (US)0.49 0.04
+14.4 c
3.29
+5.2 c
ANZ (US)0.35 0.02
+20.6 c
23.48
+38.1 c
WBC (US)1.84 0.02
+109.8 c
25.03
+35.9 c
NAB (US)0.51 0.02
+26.0 c
29.61
+41.4 c
LGL (US)1.15 0.05
+25.8 c
2.94
+4.6 c
RMD (US)-1.10 -0.02
+43.2 c
4.93
-19.2 c 
JHX (US)0.44 0.01
+31.9 c
7.28
+6.7 c
PDN (CAN)0.05 0.01
+4.1 c
4.31
+7.2 c
Overnight Commentary
United States Commentary
 
After a tough week, a return to economic form in the US overnight. A better than expected showing from ISM Non-Manufacturing andthe first expansionary reading in 12 months, had the growth names back in vogue and leading the days gains. By the bell, the Dow offhighs but up 112pts, the S&P added 1.5% and the Nasdaq finished 1% higher.
Eco
- ISM Non Manufacturing for September came in a 50.9, ahead of expectations sitting at 50.0, back up through 50 level(the firsttime in a year) signalling expansion and an improvement on 48.4 in August.
Growth -
After being last weeks biggest casualty, the Non-M'fing number restored some faith in the bellwether growth proxies. Alcoaled the way up nearly 5%(reporting Thursday morning our time), Caterpillar, GE, DuPont all up c3% and Boeing finished 2% higher.Financials - Banks also back in favour overnight, together with above mentioned cyclicals, made up most of the days gains(c50% of theDow's). Capital One up 8.3%, Wells nearly 7% higher and the S&P100's best and on the Dow, JP's up nearly 5% and BofA finished3.8% higher.
United Kingdom & Europe Commentary
The FTSE climbed 0.7% or 36pts as positive eco data in the UK and out of the US boosted miners and increased risk appetite sawbanks also move higher. The FTSE Eurofirst 300 added 0.8% whilst the DAX and CAC were both up 0.7%.
UK Banks
- RBS climbed 4.1% as it meets with investors to finalise a share issue this week. HSBC added 0.5%, Lloyds was up 0.2%,Standard Chartered climbed 1% and Barclays ended 1.4% higher as it is set to enter into exclusive talks with insurer Standard Life tonegotiate a £250mn deal to purchase its banking division.
Eco
- Britain's service sector expanded at its fastest pace for two years in September and firms were more optimistic about the next 12months than at any time since April 2007, purchasing managers' data showed.
Telcos
- Norway’s Telenor surged 14.6% after the company ended a long-running dispute with Moscow-based Alfa’s telecoms arm,Altimo. The news helped Nordic rival TeliaSonera climbed 2.5% with Spain’s Telefónica adding 3.5%.
Financials
- RSA added 4.3% after a weekend newspaper reported it had scrapped plans for a rights issue to fund major M&A andwould instead refocus on smaller, bolt-on deals.
Commodiites Commentary
Miners
- RBS upgrades to metal prices coupled with the positive US data point saw the sector stronger. BHP climbed 2%, Anglo added4% and Rio was up 2.3% while Antofagasta rose 3.7% and Vedanta ended 1.9% higher after both being upgraded to buy by RBS.
 
 
Energy
- Crude was steady overnight which saw the majors subdued. Shell fell 0.2%, BG Group added 0.4%, BP was flat and Tullowwas also flat. In Europe Statoil climbed 0.6%, Total fell 0.4% and Repsol finished 1.1% higher.
SPI Commentary
The SPI traded down 27pts or 0.59% to 4582. Open at 4593 with a high of 4628 and a low of 4574. Volume 16,076. Overnight the SPItrading up 41pts to 4624.
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
MondayAUS
(Daylight saving begins Sunday 4
th
), NSW Public Holiday, AIG/CBA services PSI, ANZ job ads
USTuesdayAUS
Trade balance, RBA Cash Rate Decision
US
Non-manufacturing ISM
WednesdayAUS
AIG/HIA construction PCI, investor housing finance, owner occ housing finance
USThursdayAUS
Employment, unemployment rate
US
Consumer credit
FridayAUSUS
Wholesale inventories, traqde balance
*Dates are indicative only and may change 
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