Australian Stock Market Report – Afternoon 11/27/13

Afternoon Market Report

Local stocks were on a greasy slope from late morning until the close of trade on Wednesday, with the ASX 200 ending at the lows of the session on reasonable volume. Almost $4.3 bln shares trade on the session.

Financials were the reason the market the market didn't fall any further. Bank of Queensland (BOQ) was measured in its assessment of current conditions. The QLD lender said it will be at least another year before it sees any benefits from a lower Australian dollar. Chief Executive Stuart Grimshaw said it will be 2015, late ´14/15 before the benefit of lower exchange rate will begin to be realised.

Figures released today showed construction activity rose to fresh record highs in the September quarter, driven by a rise in commercial and engineering activity. The broad-based lift in activity is certainly encouraging, particularly given the latest figures are a reflection of the lead up to the Federal Election - a period of uncertainty that had resulted in businesses not keen to spend, invest or employ. Construction work done in the September quarter rose by 2.7 per cent to a record high of $53.4 billion. Commercial building work done rose by 3.7 per cent in the September quarter with residential work flat while engineering work rose by 3.5 per cent.

Archer Daniels is attempting to overcome political and grower opposition to its $3 billion takeover bid for Australian grain handler GrainCorp (GNC). The U.S. agribusiness is promising to spend more on rail infrastructure and to limit charges for access to silos and ports. Australia´s Foreign Investment Review Board is due to decide by Dec. 17 whether to approve the deal, impose conditions on it or reject it altogether. GNC shares rose by 1.3%

Bega Cheese is considering whether it will join legal efforts to stall Canadian firm Saputo´s takeover offer for Warrnambool Cheese and Butter (WCB). Dairy cooperative Murray Goulburn has taken steps to stop Saputo acquiring shares in WCB alleging a recent change in the Saputo offer means some Warrnambool shareholders were misinformed. WCB ended at $9.25, down 1 cent.

Economic releases in the US tonight include; Initial and Continuing Jobless claims, U of Michigan Consumer Sentiment, Leading Indicators and the Chicago PMI.

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