The ASX was down 38.2pts, or .6 per cent, at 5908.4pts on Wednesday. Chinese quarterly growth data was in line with expectations but still came in at a 6-year low. The Chinese economy is showing signs of slowing this year and may record the slowest year of growth in over twenty years by the end of 2015. Iron ore prices moved above the $US50 per tonne mark, sparking a rally in mining sector. The Metals and Mining industry was up 1.09 per cent. However, the rise in mining was not enough to curtail the drop-offs in the Financials, Information Technology and Telecommunications Services sectors. Info Tech led the decline, falling 1.75 per cent. Telecomm Services fell 1.47 per cent while Financials fell 1.03 per cent.
International markets were mixed in the previous trading day. The Dow Jones was up .33 per cent while the S&P 500 rose .16 per cent. In Europe, the DAX was down .9 per cent while the FTSE 100 was up .16 per cent. The Nikkei 225 is down .2 per cent near the end of trading hours on Wednesday. Chinese markets continue to rally despite a Chinese slowdown. The Hang Seng is up .61 per cent so far on Wednesday. The Shanghai Composite is continuing its strong rally, rising .62 per cent so far. The Shanghai Composite has been receiving extra attention in the past year due to its meteoric rise. Some investors have cautioned against the rally, noting that it has risen over 100 per cent in the last 12 months.
PanAust Limited (ASX:PNA) was down .5c, .29 per cent, $1.74 per share. The copper and gold miner rejected a $1.1bn take over bid from Guangdong Rising Assets Management, calling the purchase amount “inadequate”.
Woodside Petroleum (ASX:WPL) was up 16c, or .45 per cent, at $35.41 per share. The energy company released its March quarterly revenue report on Wednesday. Revenue was down 20.1 per cent while production was down 6.8 per cent due to cyclones inhibiting production.
National Australia Bank (ASX:NAB) was down 40c, or 1.01 per cent, at $39.03 per share. The bank’s troubled Clydesdale bank in Britain has been fined $40.12m after mis-selling income protection products.
BHP Billiton (ASX:BHP) was up 39c, or 1.34 per cent, at $29.51 per share. Iron ore prices rose above the $US50 per tonne mark overnight giving some confidence to Australian miners.
Rio Tinto (ASX:RIO) was up 87c, or 1.58 per cent, at $55.83 per share.
Author: Simon Herrmann
Apr 15, 2015
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.