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| Weekly Commentary Archive | | For archival copies of the Weekly Commentary click here... | | | | 15th April 2010 | Stronger performances from resource and finance stocks helped drive the Australian All Ords index twice through the 5,000-point barrier during the week. The index had broken through 5,000 for the first time in 18 months on Monday before falling prey to profit taking, but it quickly bounced back. Trading in BHP Billiton and Rio Tinto was volatile, reflecting doubts about the future of their much-vaunted Pilbara joint venture. However, the overall direction in both stocks remained an upward one. There was also plenty of activity in the mid-tier resource stocks, particularly Fortescue, which rallied. The big four banks - ANZ, Westpac, National Australia Bank and Commonwealth Bank were all firmer. In gold mining, takeover target Lihir was steady while its suitor, Newcrest, dropped away. Energy stocks were mixed, with Woodside and OilSearch easing while Santos gained. In media, News Corp was stronger while its peers were mostly flat.
The New Zealand share market continued to break through fresh 18-month highs, driven by gains in market leaders Telecom, Fletcher Building and Contact Energy. On the downside, shares in specialised resins maker Nuplex (NPX) were soft in the wake of news that the Securities Commission had filed civil proceedings against the company and six current and former directors. The commission alleges that NPX broke its continuous disclosure obligations by failing to disclose to the market a breach of a banking covenant. NPX has gained sharply in recent months in the aftermath of a large, but ultimately successful, capital restructure. Few believe that NPX’s share price will stay down for long, given the company appears to be in the midst of a robust earnings rebound. Clothing retailer Hallenstein Glasson piled on more gains. Fish exporter Sanford firmed, despite the spoiling effect that ongoing strength in the NZ dollar has on the company’s earnings.
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