The Northern Territory news Mon 29 Aug 2016
The Northern Territory news; NewspaperNT
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Community newspapers -- Northern Territory -- Darwin; Australian newspapers -- Northern Territory -- Darwin
News Corp Australia
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News Corp Australia
MONDAY AUGUST 29 2016 BUSINESS 27 V1 - NTNE01Z01MA July retail trade data will be released on Thursday and closely scrutinised by markets Brent crudeIrOn Ore WtI -0.007 -0.002 -0.00 +0.37 -0.26 -0.35 +0.14 +0.67 0.756 0.6750.576 77.01 61.44 49.49 47.59 GOLd OIL 1320.85 MARKETS AUSSIE DOLLAR ASX200 DOW JONES FTSE100 US DOLLAR BRITISH POUND JAPANESE YEN EURODAX 18395.45515.5 10587.776838.05 -26.40 -53.01 +21.15 +58.18 GOLd Slow start for markets THE Australian share market is set for a soft start to the week after US stocks dipped as senior Federal Reserve officials left the door open for a rate hike as early as next month. US stocks initially rose on the back of Fed chair Janet Yellens more upbeat assessment of the economy, before ending Fridays session lower as rate hike expectations moved higher. The Dow Jones Industrial Average lost 0.29 per cent while the S&P 500 dipped 0.16 per cent. AMP Capital chief economist Shane Oliver said the ASX 200 futures fell four points or 0.1 per cent, reflecting the US lead, which points to a soft start to trade on Monday for the Australian share market. Dr Yellen told a monetary policy conference that the case for a rate increase has strengthened in recent months.In an interview after the speech, Fed Reserve vicechair Stanley Fischer said Dr Yellens comments were consistent with expectations for interest rate hikes this year. Asked whether people should be on the edge of our seat for a rate hike in September and for more than one policy tightening before the end of the year, Dr Fischer said: I think what the chair said today was consistent with answering yes to both of your questions, but these are not things we know until we see the data. Dr Oliver said while Dr Yellens comments are consistent with a possible September hike, as emphasised by Dr Fischer, there was no clear guidance as to timing. Among a raft of Australian economic data to be released this week, the June quarter capital expenditure data and July retail trade data on Thursday will be closely scrutinised by markets. Dr Oliver said capital spending intentions data will be watched closely for any improvement in the outlook for non-mining investment. BIGGEST LOSERS BEST PERFORMERS 7.13% Select Harvest Japara Health 7.21% 6.74% BWP Trust Altium Ltd 6.18% 6.31% Bellamys Aus Super Retail 6.01% 5.92% Aconex Ltd St Barbara 5.12% 4.81% APN News Asaleo Care 7.25% POPULAR STOCKS WEEK IN REVIEW AMP 0.03 5.47 ANZ Banking 0.18 26.67 ASX 0.33 51.32 BHP Billiton 0.15 20.88 CBA 0.74 73.26 IAG 0.01 5.65 Nat Aust Bank 0.22 27.46 News Corp 0.21 18.69 Qantas 0.01 3.35 QBE Insurance 0.10 9.86 Rio Tinto 0.28 48.82 Telstra 0.05 5.30 Westpac Bank 0.26 30.10 Wesfarmers 0.67 44.33 Woolworths 0.27 24.90 CBA 73.26 -0.74 -1.00 BHPBilliton 20.88 -0.15 -0.71 Wesfarmers 44.33 +0.67 1.53 Woolworths 24.90 -0.27 -1.07 ANZ Banking 26.67 -0.18 -0.67 Macquarie Grp 79.75 -1.09 -1.35 CSL Limited 109.05 -0.36 -0.33 Nat Aust Bank 27.46 -0.22 -0.79 Newcrest Min 23.34 0.00 0.00 Rio Tinto 48.82 -0.28 -0.57 Fortescue Met 4.88 +0.05 1.04 MOST ACTIVE Atlas Iron 0.011 +0.001 10.00 Fortescue Met 4.88 +0.05 1.04 Telstra Corp 5.30 +0.05 0.95 Incitec Pivot 2.82 +0.02 0.71 BHPBilliton 20.88 -0.15 -0.71 Alumina 1.395 +0.025 1.82 Qantas Airways 3.35 -0.01 -0.30 Oil Search 6.91 -0.11 -1.57 Woolworths 24.90 -0.27 -1.07 Beadell Res 0.41 +0.02 5.13 Lynas Corp 0.062 -0.002 -3.13 Percentage rises and falls exclude shares under 20 cents. By Value Close Move Move% By Volume Close Move Move% YEARLY HIGHS & LOWS Highs Week Price BlueSkyAccFnd +.03 1.27 Clearview +.125 1.10 Clinuvel +.15 5.15 DempsMin +.01 .08 EnergyOne +.07 .40 FiducianGrp +.09 3.04 Flagship +.015 1.645 GPT Metro +.01 2.50 MainstreamBPO +.12 .75 MalabarCl +.01 .14 OceaniaCP +.21 1.84 ParadigmBio +.02 .41 ScotPacif +.03 3.49 AHAlife -.02 .15 BuildingIQ -.21 .14 ClariusGp -.01 .15 Enzumo -.05 .12 Frontier Cap -.05 .10 JC Intl -.15 .75 Netccent -.01 .07 NidoPetro -.01 .10 Plukka -.011 .03 USResProp -.08 1.99 USPrivOpF2 -.02 2.10 Lows Week Price UGLS chiefexecutive RossTaylor is farmore publicity-shy than his pre-decessor RichardLeupen. And thisis exactly the quality that shareholders of the engineering contractor are paying for in an environment of consolidation and cost-cutting. Taylor also has the reputation of being a straight-shooter. We look for these qualities from a busi ness that has been picking itself up from the canvas and sorting out big problems. You want to hear the problems as they are, and in good time. At Under The Radar we look for stocks to cover that are analogous to a fallen track star trying to rebuild a career. You know the talent is there, its a matter of getting the mechanics together. These are large companies that have fallen on hard times. UGL is a good example, a big company trading at a small cap price. UGLs previous head Leupen might have simplified the group by selling the property services group DTZ for $1.2 billion, but back when we covered the stock in early May last year, its shares were at multi-year lows with fund managers taking the capital return and bugging out. The companys market capitalisation went from being in the billions in the preceding years to being in Under The Radars sweet spot at around $300 million, based on its price when we tipped it off $1.89. We read broker after broker issuing sell recommendations and abandoning the stock. When expectations are so low, our reasoning is that the company doesnt have to do much to outperform. The big risk for UGL in May 2015 and today remains the troub led Ichthys LNG project in the Browse Basin, offshore Western Australia. This time last year it had provided $175 million for loss on the Darwin power station being built as part of the project. UGL is a joint partner on this project and jointly responsible for the structural, mechanical and piping construction of the Ichthys project. In June its stock climbed as high as $3.70 before it plummeted back to $2 after it said it might need to write off an additional $200 million from its two contracts. It now trades at $2.52 after its announcement last week of a strong profit for the year to 30 June. But Taylor made it clear that its Ichthys problems aint goin away any time soon. The claims continue to get bigger and the timeline on the project continues to be pushed out. The stock still looks cheap, but now that its shares have bounced significantly off its lows, even more bravery is required for an investor to jump into the company run by the shy but straight shootin Ross Taylor. Richard Hemming is an independent analyst who edits undertheradar report.com.au, focusing on small cap companies. This column is general information and readers should seek their own investment advice. UGLS new CEO Ross Taylor Picture: JAMES CROUCHER UNDER RADAR Expert analyst Richard Hemming THE Expert analyst Richard Hemming UNDERRADARTHE UGL needs a straight shooter - o - o - o - o 0 0 0 0 0 - o 0 - o