Top 200: Movers and Shakers
ASX Code Company Name Market Cap JUNE
1MCC MacArthur Coal 556.2 5.90 6.80 15.3
2QGC Queensland Gas 1192.2 2.43 2.75 13.2
3ERA Energy Resources 1354.1 18.65 20.89 12.0
4SMY Sally Malay Mining 770.9 3.95 4.36 10.4
5ILU Iluka Resources 1429.8 5.72 6.29 10.0
6MMG Macquarie Media 762.9 4.40 4.82 9.5
7CGF Challenger F.S.G.Ltd 2541.8 5.66 6.16 8.8
8PDN Paladin Resources 5600.3 8.30 9.03 8.8
9CSM Consolidated Mineral 555.3 2.63 2.84 8.0
10SDG Sunland Group Ltd 578.8 3.80 4.08 7.4
ASX Code Company Name Market Cap
201IGO Independence Group 806.5 7.90 7.05 -10.8
200TEN Ten Network Holdings 931.0 3.10 2.83 -8.7
199BEN Bendigo Bank Limited 2277.6 16.48 15.41 -6.5
198BDG Bendigo Mining Ltd 153.6 0.33 0.31 -6.1
197BXB Brambles Limited 17638.4 12.55 11.85 -5.6
196CTX Caltex Australia 3780.0 26.49 25.10 -5.2
195SIP Sigma Pharmaceutical 1951.4 2.32 2.20 -5.2
194CMR Compass Resources NL 480.3 4.94 4.70 -4.9
193KCN Kingsgate Consolid. 450.7 5.72 5.48 -4.2
192GNS Gunns Limited 1129.0 3.39 3.26 -3.8
Produced by Commonwealth Research based on information available at the time of publishing. We believe that the information in this report is correct and any opinions, conclusions
or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law,
neither Commonwealth Bank of Australia ABN 48 123 123 124 nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report.
The report has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on
the information in this report, consider the appropriateness of the information, having regard to the individual's objectives, financial situation and needs and, if necessary, seek
appropriate professional advice. In the case of certain securities CBA is or may be the only market maker.
This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 a wholly owned but not guaranteed subsidiary of Commonwealth Bank
of Australia. This report is approved and distributed in the UK by Commonwealth Bank of Australia incorporated in Australia with limited liability. Registered in England No. BR250
and regulated in the UK by the Financial Services Authority (FSA). This report does not purport to be a complete statement or summary. For the purpose of the FSA rules, this report
and related services are not intended for private customers and are not available to them.
Commonwealth Bank of Australia and its subsidiaries have effected or may effect transactions for their own account in any investments or related investments referred to in this
Point of view Macquarie Airports Group and All Ordinaries
22-Jun-06 22-Oct-06 22-Feb-07 22-Jun-07
All securities adjusted to a common base.
Macquarie Airports Group: Premium prices received, premium stock
At the beginning of this week Macquarie Airports (MAp) announced it had reached conditional agreement to dispose
its 34.2% stake in Aeroporti di Roma (AdR), Rome Airport. MAp, through its direct and indirect interests, has agreed to
dispose of its stake for 946m. MAp acquired its interest in AdR for 480m in March 2003.
CommSec estimates the total proceeds from the sale of Rome airport as well as Birmingham airport, which MAp
announced earlier this year would be sold, will be $1.83b. These values are at significantly higher premiums to MAp's
book values as at 31 December⎯ 78% for Rome and 58% for Birmingham.
Importantly the sale prices achieved signal a step change in the value of MAp's other assets. MAp will review its
remaining asset values (for Sydney, Copenhagen, Brussels and Bristol airports) at 30 June. There may therefore be
further share price valuation upside with pending revaluation of MAp's remaining assets.
MAp is well placed financially to distribute surplus cash through buy backs or other means or to make further
It has previously indicated French regional airports are likely to be the next airports privatised and to be potential
acquisition targets. French regional airports are currently owned by the national government. The national government
is in the process of vesting 20% of its stakes to local authorities and 20% to local chambers of commerce. The
remaining 60% will then be sold down, most likely in a two-stage sell down.
MAp has confirmed preliminary distribution guidance for the year to December 2007 of 26 cents per stapled security.
MAp will continue to adhere to its policy to distribute at least 100% of its operating earnings.
In terms of a buyback there are some current regulatory limitations being reviewed by the Australian Securities and
investments Commission. A decision is expected in August/September. This should co-incide with receipt of cash from
the airport sales and MAp can then determine its approach.
Senior Industrials Analyst
Australian market wrap
Discretionary 5.8% Overweight Recent Budget was mildly positive for retailers, childcare centre
operators. Some media consolidation still possible.
Staples 6.4% Indexweight Coles still in play. The Budget was mildly positive for consumer
stocks. But the sector is well priced.
Energy 5.1% Indexweight Upside risks remain for oil prices, especially refined products.
Financials 32.0% Indexweight Risk of rate hike remains, despite good inflation data. Housing
market to begin modest recovery later in 2007.
Health Care 2.7% - -
Industrials 9.8% Indexweight Mixed prospects. Valuations stretched in a number of areas but
construction and mining-focussed areas retain solid outlook.
Technology 0.6% - -
Materials 21.3% Overweight
Building material stocks supported by record engineering work
and prospects for housing recovery. Mining stocks underpinned
by strong global demand, low inventories.
Real Estate 10.4% Negative Sector is expensive and offers a relatively low dividend yield
premium compared to historical average
n Services 3.7% Indexweight Outlook dependent on 3G take-up and trends in margins.
Utilities 2.2% Underweight Interest buoyed by merger & acquisition activity. But investors
still adopting growth, rather than defensive posture
The Australian sharemarket ended the day with mixed results across sectors. Caltex (CTX) fell on disappointing margins,
while banking stocks fell after regional lender Bendigo Bank (BEN) rejected a bid from a rival. The All Ordinaries fell by a
minor 2.6pts to end the week at 6409.3pts.
BHP Billiton (BHP) announced earlier in the week that coal exports at its Newcastle port were almost back to capacity
following the recent storms. There were rumours that BHP had hired Merrill Lynch & Coto explore the possibility of taking over
aluminium producers Alcoa Inc. or Alcan Inc. BHP ended the week up slightly by 0.8% at $35.39.
On Monday Rio Tinto (RIO) became the first Australian company to hit the $100 mark. RIO has finished uponly short of the
mark at $98.90.
Murchison Metals (MMX) made a positive gain early in the week after announcing that it was joining forces with Japan's
Mitsubishi in a $3 billion deal to develop iron ore in Western Australia. However, MMX has declined by 2.2% to end at $5.72.
Ten Network (TEN) has had a very eventful week. Shares were placed in a trading halt on Monday at $2.97. They
subsequently came back online on Tuesday, after its parent company CanWest Global decided to abandon the sale of its
controlling stake in the TV station. On Wednesday TEN posted a 20.0% rise in earnings for the third quarter of the year, but
announced that profits for the year-to-date were lower. TEN has closed the week up 0.71% at $2.83.
Multiplex (MXG) won a $715 million contract in Dubai to build an 80 storey hotel for Emirates Airlines. MXG risen 0.2% to end
the week at $5.05.
Coles Group (CGJ) shares suffered as a result of rumours that its sales process has all but collapsed. Investors remain
cautious that Wesfarmers (WES) is now the only remaining contender for CGJ despite reassurances to the market that the
private equity group led by Texas Pacific Group is still interested. CGJ finished 0.12% lower at $16.53, and WES has declined
by 1.96% to $44.01.
Within the banking sector, Bendigo Bank's shares (BEN) fell after the regional lender rejected a second takeover offer by rival
Bank of Queensland Ltd. The bank's shares declined 5.7% to $15.43, which was close to their biggest one- day drop in almost
Caltex (CTX) has recorded it largest decline in more than five years, after forecasting a smaller than expected gain in first-half
profit. CTX fell by a phenomenal 9.6% to $25.40.
Economic growth (ann %) 2.6 2.7 2.8 3.5
Inflation (CPI, ann %) 2.4 3.2 2.3 2.5
Unemployment rate (end June %) 5.0 4.9 4.3 4.0
(June 15 2007)
90 day bills (%) 6.42 6.42 6.35 6.35
10 year bonds (%) 6.27 6.35 6.25 6.10
AUD/USD 0.8485 0.8200 0.7900 0.7800
All Ordinaries index 6409.3 6450 6500 6700
The Reserve Bank has recently shifted its focus to supply-side issues such as the migrant-driven boost in population
growth rather than traditional demand-side indicators like consumer spending. So it is appropriate that the major
statistical release in the coming week is the first tranche of Census figures. Results from the 2006 Census will be
released on Wednesday. Also in the coming week, ABARE will release its latest commodity forecasts on Monday, with
new home sales data on Tuesday, job vacancies figures on Thursday while private sector credit (or lending) data is
issued on Friday.
The economic calendar is far busier in the US, with the Federal Reserve interest rate decision the highlight on Thursday
(Friday morning, Sydney time). The other items of interest include existing home sales on Monday and consumer
confidence and new home sales on Tuesday. On Wednesday durable good orders data is released with final GDP
estimates on Thursday and personal income/spending figures on Friday.
The Australian Census data is important for a number of reasons, but a key factor being because the data is
comprehensive. Most data like employment and retail spending is survey-based, meaning that the results won't be
totally accurate. But you can't fault the accuracy of the Census.
And because the data is so comprehensive, it has value in getting accurate assessments of housing and infrastructure
demands, income levels, and checking the accuracy on retail spending and employment trends. It is already apparent
that the Bureau of Statistics has substantially under-estimated the size and growth of Australia's population, helping to
explain among other things why the rental market has been so tight.
Of the other data released in the coming week, the figures on job vacancies will merely confirm the strength of the job
market. And private sector credit probably rose by 1.1 per cent in May or 14.3 per cent annual with business lending
continuing to grow near the fastest rate seen in the past 16 years.
In the US, the spotlight will be on the two-day meeting of the Federal Reserve's Open Market Committee. At the last
meeting, the FOMC said that the economy was likely to expand at a moderate pace but noted that the principal risk was
that inflation may not ease as expected. These judgments are unlikely to radically change although the FOMC may be a
little more upbeat about inflation in light of recent data. Still, the bottom line is that interest rates are on hold and are
likely to remain that way over most of 2007.
The other indicators of most interest in the coming week will be the data on house sales, released over Monday and
Tuesday and the inflation component of Friday's personal income release. While sales of existing homes probably
remained near three-year lows in May, new home sales probably came back to earth after the huge 16 per cent rise in
April. Overall, the weak housing market will remain in the spotlight for the remainder of the year.
There should be better news on inflation in the US. If the core consumption deflator rose just 0.1 per cent as expected,
the annual rate will fall into the top end of the Fed's unstated comfort band of 1-2 per cent.
Chief Equities Economist
Corporate and economic calendar week beginning 24 June 2007
Coming week's economic news
27 June Census release 25 June US Existing home sales (May)
29 June Private sector credit (May) 26 June US New home sales (May)
27 June US Durable good orders (May)
27/28 June US FOMC meeting
29 June US Personal income (May)
Date Description Security Div Amt -
cents Date Description Security Div Amt
25 June Aurora Buy-Write ABW 70 25 June Kresta Holdings KRS 1
25 June Australian Education AEU 3.7 25 June ALE Property Group LEP 16.8
25 June Australian Hotel AHO 2.1 25 June MAFCA 1.153
25 June Australian Infrastr. AIX 8 25 June Macquarie Airports MAP 13
25 June Australand Property ALZ 4 25 June Macquarie Communica. MCG 21
25 June Aurora Sandringham AOD 37 25 June Macquarie Countrywid MCW 7.8
25 June Aspen Group APZ 3.5 25 June Macquarie DDR Trust MDT 2.5
25 June Allco Max Securities AXQ 1.425 25 June MFS Diversified MFT 2.25
25 June Australian Enhanced AYF 18 25 June Deferred MFTN 2.25
25 June Units $1 Paid $1Unpd AYTCA 5.91 25 June Macquarie Goodman. MGQ 7.875
25 June Babcock & Brown Infr BBI 7.25 25 June Mirvac Group MGR 7.975
25 June Babcock & Brown Pwr BBP 14 25 June Macquarie Infra. MIG 10
25 June Babcock & Brown Wind BBW 6.25 25 June Mariner Pipeline MIT 6.06
25 June Babcock & Brown BJT 6.15 25 June Mirvac Industrial MIX 4.875
25 June Babcock & Brown Res. BLP 3.75 25 June Macquarie Leisure MLE 9.1
25 June Bass Strait Oil BSO 19.3292 25 June Macquarie Media MMG 24.5
25 June Bunnings Warehouse BWP 6.47 25 June Macquarie Office MOF 2.8
25 June Commonwealth Divers. CDF 16.26 25 June Multiplex Acumen MPF 2.7
25 June Challenger Div.Pro. CDI 3.88 25 June Macquarie Private MPG 2
25 June Carindale Property CDP 12.5 25 June Macquarie ProLogis MPR 2
25 June Centro Retail Group CER 6.4 25 June MacarthurCook Prop. MPS 0
25 June CFS Retail Property CFX 5.9 25 June Mariner American MRA 2.32
25 June New CFXN 3.98 25 June Mirvac Real Estate MRZ 2.575
25 June Charter Hall Group CHC 5.23 25 June Mirvac Real Estate MRZ 1
25 June Challenger Infrast. CIF 17.7 25 June Metcash Limited MTS 10
25 June Cheviot Kirribilly CKP 7 25 June Multiplex Group MXG 10
25 June $1.50 Pd, 50C Unpaid CKTCA 1.42 25 June Anz Rabinov Pr Trust RAB 5.4
25 June Cromwell Group CMW 2.25 25 June Rubicon America RAT 2.845
25 June Centro Properties CNP 20.5 25 June Reef Casino Trust RCT 15.5
25 June Commonwealth Prop CPA 4.87 25 June Rubicon Europe Trust REU 2.575
25 June Centro Shopping CSF 5.09 25 June Rubicon Japan RJT 4.26
25 June Challenger Winetrust CWT 2.285 25 June Reckson New York RNY 4.35
25 June DB RREEF Trust DRT 5.7 25 June Spdr 50 Fund SFY 0
Date Description Security Div Amt -
cents Date Description Security Div Amt
25 June Duet Group DUE 12.5 25 June Stockland SGP 22.8
25 June Eb&B Alt.Inves.Trust EBI 20.3 25 June Stapled New SGPN 15.2
25 June European Investors EIG 2.1936 25 June Spdr S&P/ASX Prop Fu SLF 0
25 June Esplanade Property EPF 0.4 25 June Spdr 200 Fund STW 0
25 June FKP Property Group FKP 16.5 25 June Trinity Group TCQ 6
25 June Galileo Japan Trust GJT 3.95 25 June Trafalgar Corporate TGP 15.4
25 June Hastings Diversified HDF 6.65 25 June Tishman Speyer TSO 8.5
25 June Hastings High Yield HHY 4.2 25 June Van Eyk Blueprint VBP 35
25 June ING Real Estate Ente IEF 4.85 25 June Viridis Clean VIR 4.9
25 June ING Real Estate IHF 4.2 25 June Valad Property Group VPG 5.67
25 June ING Industrial Fund IIF 4.35 25 June WOTCA 0.97
25 June ING Re Com Group ILF 2.675 26 June Aberdeen Leaders ALR 3.75
25 June ING Office Fund IOF 2.675 26 June Ramelius Resources RMS 0.5
25 June Investa Property IPG 8 26 June Deferred Ex Option RMSN 0.5
25 June International Wine IWI 10
What's new at CommSec
Run your own show with CommSec SMSF Manager
If you have a self-managed super fund (SMSF) or you're thinking of starting one, CommSec SMSF Manager could be
just what you've been looking for.
CommSec SMSF Manager takes the hard work out of running an SMSF. We'll look after most of the day-to-day
administration and compliance requirements, leaving you free to concentrate on managing your fund's investments.
Of course, as trustee of the fund, you remain ultimately responsible for ensuring your fund remains compliant. But with
SMSF Manager, your job is a whole lot easier.
Enjoy ongoing compliance supportCommSec's highly experienced team of industry specialists will help you keep your
Value for moneyPay a one-off establishment fee of $330, and a flat, annual administration fee of
Direct serviceA dedicated administration team will service CommSec SMSF Manager funds.
Focus on investing, not administrationLeave us to do the bulk of important but less interesting administration work, while
you enjoy choosing the best possible investments for your fund.
Expertise at your fingertipsWe'll provide an auditor if you need one, or you can use your own auditor or
accountant**. The choice is yours.
* Other fees and charges may apply. An additional service fee may apply in a number of instances such as complex/neglected funds, properties with
complex tenancy arrangements and services outside the normal administration functions. If there are any changes in fees CommSec will notify you
seven business days before the price change takes place.
** The fee for a CommSec-provided auditor is $495 per annum. If you choose to have your own auditor or accountant to audit we will charge you
$110 to prepare your audit working papers.
Join now for an exclusive offer
Join up with CommSec SMSF Manager before 30 June 2007 and enjoy the following exclusive offer:
We'll waive your establishment fee and quarterly administration fee giving you a saving of $907.50.*
We'll give you two research subscriptions Alan Kohler's Eureka Report and Aegis Equities Research free of
Alan Kohler's Eureka Report is an online publication for investors in self-managed super funds, property; retail managed
funds, direct shares and fixed interest securities. The annual subscription fee is $295 rrp. If you join up before 30 June
2007 we will provide it to you for free for the next financial year.
Aegis Equities Research is Australia's first equities research firm, established to provide incisive equities analysis to
fund managers, stockbrokers, financial planners and retail investors. The annual fee for Aegis Equities Research is
normally $499. Those who join up with CommSec SMSF Manager before 30 June 2007 will receive Aegis Research
material free through the CommSec website and CommSec Professional Trader 2, until the end of February 2008.
Conditions Apply. **
Find out more
To find out more information about CommSec SMSF Manager, visitfunds.commsec.com.au/smsf or call 13 15 20
between 8 am and 5 pm (Sydney time), Monday to Friday.
Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) is a wholly owned but non-guaranteed subsidiary of the
Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 and a Participant of the ASX Group.
The CommSec SMSF Manager service is provided by the Commonwealth Bank of Australia and administered by Commonwealth Securities Limited
ABN 60 067 254 399, AFSL 238814 ("CommSec"). You should consider the brochure in deciding whether to utilise the CommSec SMSF Manager
* Other fees and charges for additional services may also apply, together with other operational charges.
** To be eligible for this offer, you must have opened a CommSec Trading account for SMSF purposes before 30 June 2007 with a linked
Commonwealth Direct Investment Account (CDIA). This offer is only open to CommSec Trading account holders who are Australian Residents.
Successful applicants will receive a 12 month subscription to Eureka report normally valued at $295 rrp (issued by email from 1 July 2007 to 30 June
2008, upon which time the subscription will be cancelled, unless the recipient makes arrangements to purchase further issues).Successful applicants
will also receive Aegis Research material free through the CommSec website and CommSec Professional Trader 2, until the end of February 2008,
upon which time the subscription will be cancelled, unless the recipient makes arrangement to continue their subscription).
The Eureka Report and the Aegis Equities Research information are provided as a service to eligible clients. The opinions expressed in these
documents are not endorsed by either CommSec or the Commonwealth Bank of Australia.
Are you paid what you're worth? Find out: SEEK Salary Centre