Australian Stock Market News – BHP, TPG, Telstra Shares & more
The Market Last Week, Next Week and Stock tips - 13th April 2017
Believe It or Not – Business conditions are the best since the Global Financial Crisis (NAB survey) – Just who runs BHP, Hedge Funds or Management? TPG Could it be the Mouse that Roared? – CIMIC (nee Leightons) goes to the Sub-Continent – Housing comes off the boil.
NAB Survey skewers the doomsayers again.
Despite geopolitical tensions, local business conditions have emerged from the depths and are now at the best levels seen since the onset of the GFC in 2008. Not to be completely outdone, business confidence is also at solid levels but not quite as robust as business conditions (a somewhat curious result). All sectors are firing except retail.
Who’s the Boss - BHP or Hedge Fund Elliot Associates?
In my younger days, I thought that hedge funds was paper money placed under the Lily Pillis at the front fence. But no, it is in fact financial house that believes that it can provide protection from the financial visitudes of the marketplace – Well that’s what they say - This time, its Elliott Associates who provided gratuitous advice to BHP that they sell off oil interests in the US and shift their home base in the City of London - Not surprising BHP quickly rejected this proffered advice saying that the costs outweighed the benefits. Time will tell. In the meantime BHP looks at attractive resource stock.
The Mouse that Roared – It’s not Litchenstein.
TPG which is a relative minnow in the telco arena ($5 billion market cap compared with Telstra’s $50 billion), it announced it will spend about $1.8 billion over 3 years to roll out mobile phone towers covering 80% of the population. It seems a tall order to me but Telstra’s share price still fell 7% in the minutes after the announcement.
My view: - Reserved for clients
CIMIC – An Indian Giver
After last week announcing that it would build Hong Kongs airport terminal, this week, its building an IKEA store in Hydreabad in India which will provide CIMIC with over $70 million in revenue – Not bad work if you can get it.
For all intents and purposes, it looked like the market was cruising towards 6,000 points before Good Friday. However, TPG spoilt the party causing a significant hiccup in Telstra share price. But after the markets digestive system settles down I believe we will again shift into cruise control in the lead up to the May reporting season (for the 3 major non-CBA banks and Macquarie), and of course the Commonwealth Budget on the 9th May. Look out for more updates on Australian stock market news next week.
Reserved for clients
Looking ahead in Australia
On Tuesday – Reserve Bank minutes of its last meeting
On Wednesday – Motor Vehicle sales and Westpac’s leading indicator
On Thursday – National Banks quarterly business survey.
Looking ahead in the US
Manufacturing and industrial production and capacity utilisation figures, housing sales, Central Banks economic outlook and surveys of the services, construction and manufacturing sector.
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