• Embed Doc
  • Copy Link
  • Readcast
  • Collections
  • CommentGo Back
Download
 
 
This material has been produced by RBS sales and trading staff and should not be considered independent.
The Round Up
14 October 2009
Issue No. 196
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
CSL (CSLKZG) MINI Update
– Getting back to buy zone
RMD (RMDKZD) MINI Trading Buy
– Acquisition of Narval
Banks (NAB,ANZ,WBC) Sector Update
– Pre-results form guide
Round Up Corner Strategy – Acquisition candidates
Equities
Move Last % Move Range Volume
ASX 200+45.9 4785.7 +1.0%
u.c to +57 $4.6 bn(L)
SPI - yesterday+35.0 4793.0 +0.7%
+12 to +50 16,251(L)
Dow Jones-14.79871.1-0.1% 
-71 to +9 Low
S&P 500-3.01073.2-0.3% 
-9 to -1 Low
Nasdaq+0.8 2139.9 +0.0%
-11 to +7 Low
FTSE-56.05154.2-1.1% 
-56 to +11 Avg
Commodities
Move Last % Today % Past Month
Oil-WTI spot+0.9 74.2 +1.2% +7.0%Gold Spot+5.7 1062.8 +0.5%
+5.6% 
Nickel (LME)-29.8820.5-3.5%+6.9% Aluminium (LME)-1.884.9-2.1%+3.2% Copper (LME)-6.3277.7-2.2% 
-1.8%  
Zinc (LME)-3.190.6-3.3%+8.5% Silver+0.1 17.8 +0.4% +6.1%Sugar+1.3 22.2 +6.3%
+4.8% 
 
 
Dual Listed Companies (DLC’s)
Move %Move Last AUD Terms Diff to Aus
NWS (US)0.24 0.02
+14.3 c
15.77
+12.8 c
RIO (UK)-50.50 -0.02
+28.5 c
49.99
-1219.6 c 
BLT (BHP UK)-20.50 -0.01
+17.7 c
30.98
-725.7 c 
BXB (UK)-12.00 -0.03
+4.1 c
7.19
-12.2 c 
American Depository Receipts (ADR’s)
Move %Move Last AUD Terms Diff to Aus
BHP (US)-0.17 0.00
+68.7 c
37.94
-30.4 c 
AWC (US)-0.15 -0.02
+6.8 c
1.86
-3.7 c 
TLS (US)0.02 0.00
+14.5 c
3.21
+1.7 c
ANZ (US)0.23 0.01
+22.3 c
24.57
-7.1 c 
WBC (US)0.00 0.00
+118.5 c
26.17
-14.4 c 
NAB (US)0.09 0.00
+28.2 c
31.13
-35.1 c 
LGL (US)0.54 0.02
+29.1 c
3.21
+1.0 c
RMD (US)0.66 0.01
+47.5 c
5.25
-10.4 c 
JHX (US)0.43 0.01
+35.6 c
7.86
+1.2 c
PDN (CAN)0.01 0.00
+4.5 c
4.76
+0.2 c
Overnight Commentary
United States Commentary
 
Another slow day of trading in the US, an understandable reluctance to place any big bets ahead of JP's tonight and the rest of thebanking heavyweights later in the week. The Whitney downgrade to GS combine with a revenue miss from J&J kept a lid onproceedings, the Dow down 15pts, the S&P down 0.3% and the Nasdaq more or less flat.
Financials
- Goldman Sachs 1.5% lower on the Meredith cut to hold and recommendation to lock in profits. Elsewhere, BoNY down3%, Morgan Stanley 1.8% and BofA 1.1% lower, cautious ahead of tonight's numbers.
Healthcare
- Johnson&Johnson down 2.5%, the Dow's worst and accounting for around 80% of days fall. Mgmt reported slowing salesof drugs and consumer items, which meant a 5.3% drop in revenues and numbers falling on the wrong side of consensus.
Techs
- After mkt, Intel posted a 3Q profit of 33cps ahead of consensus sitting at 27cps, revenue ahead and gross margins 58% vs54.6% expected. Going forward, mgmt expect 4Q revenue of $9.7-$10.5bln vs forecasts for $9.5bln and have flagged expectations fora further improvement form marrgins. The stock halted in after market. 
United Kingdom & Europe Commentary
The FTSE fell 1.1% or 56pts with banks weighing whilst in Europe banks also weighed on the market and a poor consumer confidencenumber in Germany hurt sentiment. The FTSE Eurofirst 300 was off 1% with the DAX and the CAC both falling 1.2%.
UK Banks
- A downgrade of Goldman Sachs to neutral by an influential analyst saw the sector weaker. Barclays, Lloyds, RBS andStandard Chartered were off between 0.3% and 2.9%. HSBC was down 1.9% after its Saudi affiliate SABB reported a worse-than-expected 19.8% fall in 3Q net profit.
Euro Banks
- Dexia fell 2.8% after the Belgian government announced plans to charge financial services companies in return forguaranteeing deposits and certain insurance products. Peer Fortis was off 2.1%, Commerzbank dropped 0.1% despite a brokerupgrade, Swedbank fell 3% after completing a $2.2bn rights issue, the third one this year, and Deutsche Bank dropped 1.2% after talkof a rights issue.
Eco
- Germany’s ZEW index of economic sentiment fell slightly in October, to 56 from 57.7 in September, but analysts had forecast arise to 58.3.
Retail -
The sector was hit with analysts saying weakness in sterling driving costs higher and an uninspiring presentation by M&S alsohurt. M&S sank 4.3%, Next fell 2.9% while food retailers Tesco, WM Morrison and J Sainsbury were off between 1.4% and 1.7%.
 
 
Commodiites Commentary
Miners
- Metal prices were weaker seeing the sector come off. BHP fell 1.15%, Rio dropped 1.7%, Anglo fell 0.9% and Vedanta wasoff 0.2%. Lonmin climbed 1.9% after it was rumoured Xstrata, off 1.1%, would have another shot. The Lonmin move followed news thatXstrata sold its majority stake in a Chilean copper and gold mine for $465m cash.
Energy
- Despite a good performance from crude the oil majors gave back some of yesterdays gains. BP fell 1%, Shell was off 0.9%,BG Group dropped 0.3% and Tullow ended 2% lower. In Europe Total fell 0.7%, Statoil was 0.5% lower and Repsol dropped 1.2%.
SPI Commentary
The SPI traded up 35pts or 0.74% to 4793. Open at 4771 with a low of 4771 and a high of 4808. Volume 18,567. Overnight the SPItraded down 13pts to 4780.
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
MondayAUSUS
Columbus Day holiday
TuesdayAUS
NAB Business confidence, NAB Business conditions
USWednesdayAUS
WMI consumer confidence
US
Import price, retail sales
ThursdayAUS
RBA Governor speaks, RBA bulletin
US
Business inventories, FOMC minutes, CPI, NY Fed Empire PMI
FridayAUSUS
Philadelphia Fed index, industrial production, Michigan consumer sentiment
*Dates are indicative only and may change 
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...