What is of Interest in the Market today

A daily newsletter from Kinetic Securities well worth reading.

updated 12 March 2010

SPI Report from Kinetic Securities. An interesting report, will be updated most days. last updated 11 March 2010

Kinetic Securities reports kindly contributed by:

- Samantha Mackin

                1300 664 045 or 07 5562 9415

                s.mackin@kineticsecurities.com

Extract from Money Morning (First Prudential Markets) updated 12 March 2010

Mining company Cape Lambert Resources (CFE) is expected to soon announce that it will sell its Lady Annie copper mine in Queensland to Hong Kong's China Sci-Tech Holdings for around A$130 million. Last year, China Sci-Tech purchased the Martabe gold and silver project in Indonesia for US$211 million, before selling the asset to Owen Hegarty's G-Resources. Mr Hegarty is expected to soon be appointed to the board of China Sci-Tech.

 Oil and gas company Beach Energy (BPT) has signed an agreement with United States firm General Atomics to examine the creation of biofuels from algae. Beach wants to use waste water and carbon dioxide from its Cooper Basin project in South Australia to grow the algae, with Beach managing director Reg Nelson yesterday saying that "most of the elements you need are there."

 Luxury goods company OrotonGroup (ORL) yesterday announced first-half results, with net profit increasing almost 24 percent to A$15.4 million. The strong result saw Oroton shares rise 8.76 percent to A$6.83, their highest closing price since listing in 1987. Chief executive Sally MacDonald said the company was looking for acquisitions that could add value to the company, but added that "we are in absolutely no hurry."

 Kerry Stokes' investment company, Seven Network (SEV), yesterday said the information memorandum for its proposed merger with Mr Stokes' private equipment group, WesTrac, had been lodged with the Australian Securities and Investments Commission, and would be distributed to Seven shareholders in the next few days. Seven director Peter Gammell, who is expected to head the combined group, said he believed the deal would gain shareholder approval.

 Internet service provider iiNet (IIN) yesterday suspended its shares from trading, saying it was discussing possible acquisitions. The Perth-based company confirmed that it was in talks with Victorian rival Netspace, but said that its valuation of the company was well below the A$75 million that has been mentioned in the media. The company has previously said that it plans to increase its base to a million customers before the Federal Government completes the planned national broadband network.

 Online entrepreneur Dominic Holland this week contacted Westpac Banking Corporation (WBC), attempting to sell the bank the rights to the online domain name http://Westp.ac. Mr Holland has previously tried to sell the domain name Qant.as to Qantas Airways. Both Qantas and Westpac have sent letters to Mr Holland claiming trademark infringement, while a spokesperson for Westpac yesterday said, "we believe his approach is opportunistic and unethical."

 Two of Australia's largest insurance providers, Insurance Australia Group (IAG) and Suncorp (SUN), are expected to suffer sharply reduced financial results for the second half of the year due to recent storms in Queensland and Victoria. Analysts say both companies will have to pay the maximum amount that they have set aside for claims arising from major catastrophic events, before their re-insurance policies pay for further costs.

 A Federal Court decision last month found that telecommunication company Telstra's (TLS) Yellow Pages and White Pages directories are not protected by copyright laws, as they were created by computers rather than identifiable authors. The decision has led to media industry calls for the Federal Government to swiftly change copyright legislation to protect investment in databases.

Commodities

Copper steadied on Thursday, but was undermined by production and inflation data from China, which stoked concerns of monetary tightening from the world's top metals consumer.  But falling inventories of copper in London Metal Exchange warehouses helped support prices.  Benchmark copper  on the London Metal Exchange ended at $7,464 a tonne from $7,440 at the close on Wednesday and compared with a session low at $7,356.

 GOLD

 U.S. gold futures for April delivery  on the COMEX division of the New York Mercantile Exchange eased $1.40 to $1,106.70.  Spot gold  was bid at $1,107.30 an ounce, against $1,107.85 late in New York on Wednesday. Earlier it fell as low as $1,100.04 an ounce

 OIL

 U.S. crude oil futures fell on Thursday, as high inflation in China raised fears it may tighten monetary policy soon and as traders tracked the dollar's movements. On the New York Mercantile Exchange, April  crude was down 14 cents, or 0.17 percent, at $81.95 a barrel, trading from $81.33 to $82.32.

Market Roundup up-dated 4 March 2010 (extract from Money Morning)

Yesterday the S&P/ASX 200 ended the day up 31 points, closing at 4,735.70.

The Dow Jones Industrial Average ended the day down 9 points closing to 10,396.76. According to the US Federal Reserve, the US economy improved in nine of the 12 Federal Reserve regions.

In the UK, the FTSE ended the session higher by 49 points to 5,533.21.

A quick note before I go on. You may have noticed yesterday that I got my cents and my pence in a muddle. You can rest assured that one Australian dollar will get you around 60 pence. Not the other way around.

Thanks to the heaps of readers who pointed this out. It's good to see that you keep reading after finishing Kris's daily rumblings! This morning the Aussie dollar is trading at 59.95 pence.

The Nikkei was up 31 points, ending the session at 10,253.14.

Gold enjoyed another rally overnight, gaining by USD$5 per ounce.

The price of spot gold in Australian dollars is trading at $1,261.61 while in US Dollars it is trading at $1,142.14. The price of silver in Aussie dollars is $18.98 and in US Dollars it is $17.15.

The Aussie dollar versus the US dollar is USD$0.9050, against the Japanese Yen JPY80.10.

Crude Oil closed at USD$80.90.

For up to date market information click here...

Extract from Investors Hub updated 12 March 2010)

Australia’s All Ordinaries, which held mostly above the unchanged line until late afternoon trading, receded into negative territory thereafter. The index closed down 4.30 points or 0.09% at 4,826. Most sectors, barring defensive healthcare, telecommunication, consumer staple and utility stocks, showed weakness.

A report released by the Australian statistical bureau showed that employment growth slowed in February. The economy added 400 jobs compared to the 56,500 jobs added in January.

Commodities, Currencies

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