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This material has been produced by RBS sales and trading staff and should not be considered independent.
The Round Up
8 October 2009
Issue No. 192
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
 – September Update
AGK (AGKKZE) MINI Investment Buy
– Value in contract wins
Round Up Corner New MINIs listing today
Equities
Move Last % Move Range Volume
ASX 200+104.1 4695.7 +2.3%
+21 to +117 $4.9 bn(A)
SPI - yesterday+115.0 4716.0 +2.5%
+53 to +119 27,526(A)
Dow Jones-5.79725.6-0.1% 
-56 to +9 Avg
S&P 500+2.9 1057.6 +0.3%
-5 to +3 Avg
Nasdaq+6.8 2110.3 +0.3%
-8 to +7 Avg
FTSE-29.15108.9-0.6% 
-33 to +18 Avg
Commodities
Move Last % Today % Past Month
Oil-WTI spot-1.169.8-1.5%+2.3% Gold Spot+1.4 1043.5 +0.1%
+4.8% 
Nickel (LME)+23.9 842.3 +2.9% +5.0%Aluminium (LME)+0.9 82.0 +1.1%-1.4%  Copper (LME)-0.9275.5-0.3% 
-3.8%  
Zinc (LME)+0.6 86.6 +0.7% +1.4%Silver+0.2 17.5 +1.0% +7.5%Sugar-1.122.6-3.8% 
+4.4% 
 
 
Dual Listed Companies (DLC’s)
Move %Move Last AUD Terms Diff to Aus
NWS (US)0.08 0.01
+13.7 c
15.36
+8.6 c
RIO (UK)-2.00 0.00
+27.4 c
49.06
-1169.0 c 
BLT (BHP UK)4.50 0.00
+17.4 c
31.17
-663.8 c 
BXB (UK)-25.75 -0.06
+4.0 c
7.10
+6.3 c
American Depository Receipts (ADR’s)
Move %Move Last AUD Terms Diff to Aus
BHP (US)0.95 0.01
+67.1 c
37.67
-13.9 c 
AWC (US)0.19 0.03
+6.5 c
1.83
-1.4 c 
TLS (US)-0.21 -0.01
+14.4 c
3.24
-1.8 c 
ANZ (US)0.07 0.00
+21.1 c
23.69
-15.9 c 
WBC (US)4.00 0.04
+113.5 c
25.49
-1.9 c 
NAB (US)0.39 0.01
+26.5 c
29.76
-26.3 c 
LGL (US)0.32 0.01
+27.8 c
3.12
-1.7 c 
RMD (US)-0.43 -0.01
+43.5 c
4.89
-11.3 c 
JHX (US)-1.23 -0.04
+32.7 c
7.35
-5.3 c 
PDN (CAN)0.30 0.07
+4.3 c
4.59
+10.9 c
Overnight Commentary
United States Commentary
 
Consolidation ahead of reporting season and a big couple of days. The Dow finished fractionally lower(-6pts) on weakness from theheavyweight telcos and a breather from some of the cyclical/growth names. Elsewhere, S&P 0.3% despite pain amongst thehomebuilders and the Nasdaq 0.3% higher.
Resources
- First pass, the perennial disappointer in Alcoa looks to have snapped the losing streak. Post the close, reporting 3Q epsex-items of 4cps vs consensus expecting a 9cps loss. The stock up 2.2% in normal trade and for the 3rd consecutive session finishedat the top of the Dow leaderboard.
Homebuilders
- The sector down 3% and constituents featuring heavily amongst the S&P's worst on speculation Congress wontextend tax breaks for first time homebuyers. Hardest hit were Pulte down nearly 4%, Lennar 3.7% and Dr Horton finished 2.7% lower.
Telcos
- Weighing heavily on the Dow, AT&T down 3.6% and Verizon 2.6% lower, the worst performers and among the bigget pttakers. AT&T lower on a policy reversal that will allow iphone users access to cheaper phone calls .
Financials
- Investment banks continued to track higher, BofA and GS up another 2%, JP's 1.8% and Morgan Stanley finished 1.2%higher post a couple of upgrades and an upbeat broker report.
Eco
- A slow night on the economic front, Mortgage Applications up 16.4% in October following a 2.4% fall in September. ConsumerCredit -$12.0bln vs. -$10.0bln expected. 
United Kingdom & Europe Commentary
The FTSE dropped 0.6% or 29pts as the oil majors gave back some of yesterdays gains and a weak result from Sainsbury saw thefood retailers lower. The FTSE Eurofirst 300 was off 0.4%, the DAX fell 0.3% and the CAC ended 0.4% lower.
UK Banks
- HSBC, up 0.6%, rose despite saying it may delay raising its dividend if new capital rules were applied too heavily orquickly. Barclays was up 0.1% but RBS, Lloyds and Standard Chartered were off between 0.9% and 2%.
Eco
- In the UK, Nationwide Consumer Confidence for Sep was 71 coming in ahead of the forecast 68 and up from 63 prior. On thecontinent Europe’s economy contracted more than estimated in 2Q as consumer spending, investment and exports were weaker thanearlier reported. GDP in the 16-nation euro region fell 0.2% from 1Q, when it dropped 2.5%.
Retail
- Sainsbury fell 3.3% after releasing its second-quarter trading update, which met forecasts with a slight slowdown in quarterlysales growth. Peers WM Morrison lost 0.8%, while Tesco , which posted its first-half results on Tuesday, shed 2.3%. In Germany,Metro fell 3.2% after co-founder Otto Beisheim placed a 5.2% stake in the company.
Insurers
- Aviva, up 3.8%, was higher after announcing plans for a secondary listing on the New York Stock Exchange on October 20.Continued M & A speculation helped the sector with Standard Life, Prudential and Old Mutual up between 1.4% and 2%.
 
 
Commodiites Commentary
Miners
- Generally stronger base metal prices helped but the sector was mixed. BHP added 0.3%, Rio edged down 0.1%, Anglo wasalso off 0.1%, Xstrata fell 0.75% but Vedanta climbed 0.9%.
Energy
- US crude inventories fell but gasoline inventories rose more than expected seeing the crude price come back a touch and thesector moved lower on profit taking. BP was off 1.7%, Shell fell 1.25% and Tullow dropped 3.2%. In Europe Total was 0.8% lower,Statoil fell 1.4% and Repsol ended down 0.4%.
SPI Commentary
The SPI traded up 114pts or 2.48% to 4715. Open at 4660 with a low of 4655 and a high of 4720. Volume 30,441. The SPI tradeddown 6pts to 4710 in overnight trading
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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