ORD MINNETT - MARKET UPDATE
The Australian stock market has been up for six consecutive weeks on the back of strong commodity prices, lower Australian dollar, healthy data sets locally and abroad, and lastly the RBA rate cut. However,investors remain wary of global growth prospects as uncertainty lingers over China and renewed talks about the US Federal Reserve increasing interest rates.
Australia’s jobs data printed close to expectations, with the unemployment rate holding steady at 5.7% (expectation: 5.8%). The Australian dollar remained soft, currently trading at US$0.7230. Oil Search recently announced plans to buy Papua New Guinea-focused InterOil for $US2.2 billion ($A3.04 billion) with the aim of boosting its liquefied natural gas development.
Key Investment Ideas
Company Recommendation Note
Origin Energy Accumulate Potential Spin-Off
Credit Corp Accumulate Hinting Acquisitions
JB Hi-Fi Hold The Good Guys
James Hardie Hold Full-Year Results
To discuss further, please contact Kieran Hailes of Ord Minnett on (02) 8216 6337 or khailes@ords.com.au.