Australian Stock Market Report – Evening 11/29/13

EVENING REPORT
(5pm AEDT)

Despite a modest improvement from the lows hit at midday, the All Ordinaries Index (XAO) still finished in the red by 0.25 per cent. The miners struggled this week; however a modest 0.5 per cent rise within the sector helped minimise the broader losses somewhat. The Aussie market slumped by 2% in November (only month of losses since June)

Dairy processor, Warrnambool Cheese and Butter (WCB) eased by 0.75 per cent, while Saputo increased its stake in WCB from a previous 4.8 per cent to 9.65 per cent. Saputo (a Canadian food company) still has a $9.20 per share offer on the table, $0.30 lower than Australia's largest dairy processor, Murrary-Goulburn's.

BHP Billiton (BHP), edged higher by 0.54 per cent, Fortescue Metals (FMG) improved by 0.53 per cent and iron ore focused, Rio Tinto (RIO) surged by 2.55 per cent.

Graincorp (GNC) ended 22 per cent worse off by close, following the $3.4 billion takeover offer by US firm Archer Daniel Midland being rejected by the Australian government.

There was plenty of news and economic numbers this week; however the better than expected capital expenditure/business investment (CAPEX) reading plus a stronger than forecast rise in construction were amongst the highlights. Both readings plug in to the quarterly growth reading which will be issued next Wednesday.

Next week, the highlight globally will be the November non-farm payrolls. This is the most important monthly report on the state of North America's jobs market. The creation of 190,000 jobs is expected by the market; however a stronger reading is likely to reignite stimulus tapering discussions sooner rather than later. This result has the potential to move sharemarkets globally and in particular currencies. A stronger than expected result could push the Australian dollar lower.

On Tuesday, the Reserve Bank will make its decision on interest rates with the market expecting rates to remain on hold at 2.5 per cent. Retail sales, growth & trade numbers will also be highlights. Across the region, China's HSBC Final Manufacturing PMI on Monday (out at 12.45pm AEDT) will demand some attention. Australia exports around a third of its exported goods to China each year.

The Aussie dollar buys US90.9 cents.

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