daytrade diaries... august 21 part 2, page-2

Asian markets traded mixed early, with exporters dragging down Japan as the U.S. dollar fell below the 94-yen level. But in South Korea, banks extended gains to prop up shares on news six local lenders had signed an agreement to form a "bad bank" to buy up toxic assets.

Investors were still keeping a close watch on how Chinese shares perform later in the day, after the Shanghai Composite index bounced 4.5% Thursday. Chinese stock moves have been a key driver of Asian market sentiment this week, and traders were uninspired by the DJIA's 0.8% rise Thursday.

The Australian market has absorbed over $5.5 billion of new equity issues and sell-downs this week (BLY, BOQ, PGA, AMC, SKE, GRR, TLS), and the fact the market has absorbed $5.5 billion of supply can been seen in two ways. You can either see it as very bullish that $5.5 billion gets absorbed so easily, or you can see it as $5.5 billion of latent equity demand which just got filled.

It’s been a huge week of results in Australia, in fact, too much to truly digest. Any stock that saw FY10 consensus upgrades on the back of FY09 results rallied (ie BXB, AMP, QBE, DOW, WPL, PPT), while those who didn’t see FY10 consensus upgrades came under profit taking pressure (WES, CSL, MIG, BLD, SGM, LLC etc).

Anyhow, it’s been a huge week of results in Australia, in fact, too much to truly digest. Any stock that saw FY10 consensus upgrades on the back of FY09 results rallied (ie BXB, AMP, QBE, DOW, WPL, PPT), while those who didn’t see FY10 consensus upgrades came under profit taking pressure (WES, CSL, MIG, BLD, SGM, LLC etc).

Australian stocks eased on Friday, led by Telstra Corp TLS after a major shareholder sold a chunk of its stake, and Westpac Banking Corp WBC, after it announced an increase in bad debts.

All Ordinaries had fallen 64.7 points, or 1.47 per cent, to 4326.7.

Some analysts are saying "Their bad debt provisions have risen quite a lot and the market is taking heed of that,"

Surfwear group Billabong International Ltd BBG has posted a 13.3 per cent fall in annual profit and reduced its final dividend.Net profit for the year ended June 30 was $152.84 million, down from $176.38 million in the previous year.(Bought 9.41 Sold at 9.60.good profit)

Rio Tinto Ltd (ASX:RIO) has posted a 65 per cent drop in net profit for the first half.Net earnings for the six months to June 30 came to $2.5 billion, down from $6.9 billion recorded in the first half of 2008.Underlying earnings fell 54 per cent to $2.6 billion from $5.5 billion the year before.

As a result of the miner’s recent rights issue, the company has reduced its net debt by $14.8 billion.Net capital expenditure fell 22 per cent to $2.8 billion; Rio forecast capital expenditure to be approximately $5 billion in 2009.Rio confirmed it would not pay an interim dividend but says it expects to make a 2009 final dividend payment.

The most-traded stock by volume was Telstra with 879 million shares worth $2.7 billion changing hands. Telstra shares were down 13 cents, or 2.74 per cent, at $3.52.

The best performing sector at midday is the Health Care index up 46 points to 8,330. Shares in CSL up 1.07 per cent at $32.26. Shares in Primary Health Care and Ansell are also stronger at noon.

One of the worst performing sectors at midday is the Telco Services index, down 42 points at 1,208. Shares in Telstra down 3.56 per cent to $3.52. Shares in Macquarie Telecom Group and Singapore Telecommunications are also lower at noon.

http://www.marketwatch.com/
http://www.thebull.com.au/
http://www.news.com.au/business/

Did you know?

One of the Common Mistakes Made by Investors
(Cashing in small, easy-to-take profits, and holding onto small losses. This tactic is the exact opposite of correct portfolio management strategy)