Jump to content

IDS World Markets Thurs 20th October 05


Guest

Recommended Posts

  • Replies 311
  • Created
  • Last Reply

t?s=^AORD

 

Well here I was expecting mayhem on the US market and I was fooled completely. However all is not lost as far as the Oz bears are concerned: a support on the daily All Ords chart gave way yesterday and today is looking like a dead cat bounce. All Ords currently +0.7% and the action is less than inspired so at this stage I'm thinking that resistance will hold.

 

Utilities are in the lead, +1.4% followed by Financials, +1.2%. Energy is the laggard but only down -0.2% and the only other red sector is Healthcare, -0.1%.

 

In the miners, BHP & RIO have plenty of buyers but the gold producers are friendless. The Materials index looking pretty good, +1%.

 

Energy mostly being dragged down by Woodside, -1.5% with the other major oils showing minor losses.

 

Asia also seeing a bounce...

Link to comment
Share on other sites

Thanks aussiebear.

 

Even with the price of natural gas down only slightly from its peak, natural gas stocks have taken a beating lately - until today.

 

big.chart?symb=eca&compidx=aaaaa:0&ma=0&maval=9&uf=0&lf=1&lf2=0&lf3=0&type=2&size=2&state=8&sid=1102165&style=320&time=3&freq=7&nosettings=1&rand=1857&mocktick=1&rand=1640

 

EnCana Shares Jump

On Rumors of Shell Interest

 

By TAMSIN CARLISLE in Calgary, Alberta, MARK HEINZL in Toronto and BHUSHAN BAHREE in New York

Staff Reporters of THE WALL STREET JOURNAL

October 20, 2005

 

Is Canada's biggest natural-gas company about to be a takeover target?

 

Shares of EnCana Corp. jumped nearly 10% in heavy trading in Toronto and New York amid rumors that Royal Dutch Shell PLC may be seeking to buy the company.

 

A spokesman for Shell in London declined to comment on the market speculation, as did a spokesman for EnCana in Calgary, Alberta.

 

EnCana director Michael N. Chernoff said the first he heard of the Shell takeover rumor was from a broker after the market closed yesterday afternoon. "I know nothing about it," Mr. Chernoff said.

 

http://online.wsj.com/article/SB112977335671274011.html

 

Fund Pro Seeks All that Glitters

 

By GREG BARTALOS

 

WITH THE PRICE OF GOLD near an 18-year high, gold bugs are gaining grudging respect from the mainstream investment crowd.

 

Rising inflation, a weakened dollar, growing deficits and international turmoil have all played a role in boosting gold from a low of $255.80 in 2001 to almost twice that level today.

 

Frank Holmes, chief investment officer for San Antonio-based U.S. Global Investors, has certainly delivered sparkling results leading the team that manages the World Precious Minerals Fund.

 

The fund has outperformed the MSCI World Metals & Minerals Index by 32 percentage points and 19 points during the past three and five years, respectively, investing primarily in small- and mid-sized gold and copper companies. And the fund, which seeks out firms that are increasing their resources, production and cash flow, offers a generous 2.4% dividend yield. Holmes oversees almost $3 billion in 13 funds.

 

Barron's Online: At about $475 per ounce, gold is close to an 18-year high. What's your outlook for the metal?

Holmes: The price of oil and copper, adjusted for inflation, is basically at 1980 price levels. But gold is substantially less. So we think that gold is undervalued relative to other commodities.

 

Q: What will make gold rise further?

A: I think that there is a mispricing. Also, we have seen petrodollars flowing back into gold. But the real move that takes place is when the general public is fearful. You are not seeing big demand domestically for gold. But you are seeing continued consumption in Asia. The Chinese government is buying gold, and you are seeing a lot in the Middle East where they are diversifying out of U.S. dollars and buying gold.

 

http://online.barrons.com/article/SB112964...html?mod=crnews

 

Top 10 Holdings (as of Sept. 30, 2005):

U.S. Global Investors World Precious Minerals Fund (UNWPX)

Goldcorp Inc. GG

Northern Orion Resources NTO

Bolivar Gold BGC.TO

Lundin Mining LNDF.PK

Meridian Gold MDG

Randgold Resources GOLD

African Platinum AFRPF.PK

Silver Wheaton SLW

Ivanhoe Mines IVN

Bema Gold BGO

 

Source: U.S. Global Investors

 

--------------------------------------------------------------------------------

 

Fund Facts

Assets: $277 million

Expense Ratio: 1.48%

Front Load: None

Annual Portfolio Turnover: 55%

Yield: 2.4%

Link to comment
Share on other sites

w?s=^AORD

 

Oops, not a good look. All Ords withered away to close flat so quite a few sellers took advantage of the push up early in the day to offload unwanted shares. Sectorwise it's 5 green and 5 red. Utilities came in first, +0.8% and Energy dropped further to close last, -1.4%.

 

The miners not looking great including BHP & RIO which lost a lot of their gains, the latter closing up a mere +0.2%. Oils looking bearish.

 

Some reasonable gains in Asia but not enough to offset the losses of yesterday..

 

Europe about to open:

 

t?s=^FTSE

 

t?s=^GDAXI

 

t?s=^FCHI

 

http://quote.yahoo.com/m2?u

Link to comment
Share on other sites

I don't know but it's a nice little start, especially after night session opened higher

 

maybe the All Ords gap 'N' crap tonight helped out

 

Nikme and HongDong fizzled out nicely too

 

Europe still drinkin' the KoolAid though right now

Link to comment
Share on other sites

I don't know but it's a nice little start, especially after night session opened higher

 

maybe the All Ords gap 'N' crap tonight helped out

 

Nikme and HongDong fizzled out nicely too

 

Europe still drinkin' the KoolAid though right now

 

Maybe they're drinking Fizzies instead. (Anybody but me remember that? Like an artificial fruit-flavored Alka-Seltzer for kids :P )

Link to comment
Share on other sites

China continues to have strong growth, which helps support strong commodity prices (think copper still at all time highs). Although their figures are somewhat suspicious, their money suppy is growing at 18% per year (The China Syndrome - in case you missed it) confirms the strong growth.

 

China's Economy Expanded

By 9.4% in First Nine Months

 

Trade Surplus More Than Doubles

A WALL STREET JOURNAL ONLINE NEWS ROUNDUP

October 20, 2005 4:56 a.m.

 

BEIJING ? China's economy grew at a blistering 9.4% rate in the first three quarters of 2005 as investment surged and the country's politically volatile trade surplus more than doubled, the government said Thursday.

 

But the government report expressed concern about "oversized and irrational" investment in fixed assets, the relatively low level of farmers' incomes and the nation's bulging trade gap.

 

In an attempt to slow growth, Beijing wants to do more to curb investment in unneeded factories and shopping malls, said Zheng Jingping, spokesman for the National Bureau of Statistics.

 

The government also has no plans to let China's currency, the yuan, rise sharply in the near future, he said.

 

China's gross domestic product expanded 9.4% in the third quarter from a year earlier, slightly higher than market expectations, which had centered on growth of 9.3%. The growth rate was little changed from previous quarters and suggests the economy will maintain a growth rate of between 9% and 10% in 2005 after growing 9.5% in 2004.

 

GDP grew 9.5% in the second quarter and 9.4% in the first quarter. "The economy should grow by about 9% or more, giving next year a good start," said Zheng Jingping, a spokesman for the National Bureau of Statistics.

 

Driving strong growth is a continued surge in fixed-asset investment. Total investment in fixed assets shot up 26.1% in the first nine months of the year to $700 billion, the government said.

 

http://online.wsj.com/article/SB1129783757...e_whats_news_us

Link to comment
Share on other sites

China Economy Grows 9.4% as Spending, Investment Jump

 

Oct. 20 (Bloomberg) -- China's economy grew 9.4 percent in the third quarter as rising wages spurred consumer spending and the government encouraged investment in coal mines and railways.

 

The Chinese economy, which accounted for a 10th of global growth in 2004, has defied expectations for a slowdown as consumers spent more on goods such as Nokia cell phones and services including China Eastern Airlines flights.

 

Today's release showed investment in coal mines jumped 77 percent in the first nine months of the year, that in railway construction surged 41 percent and inflation reached a two-year low in September.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Tell a friend

    Love Stool Pigeons Wire Message Board? Tell a friend!
  • Recently Browsing   0 members

    • No registered users viewing this page.
  • ×
    • Create New...