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Showing posts from October, 2008

Season for margin calls

It turned out to be the not so jolly season for margin calls. And everbody who thought they were safe from margin calls investing in rock solid companies like  BHP,WOOLWORTHS, ASX ,RIO TINTO ,WESTPAC ..Etc... , now know better.Here is the lowdown from Comsec for what you need to do in regards to a margin call Margin Call Notifications
23 Oct 2008
We will endeavour to notify you when your account has triggered a margin call. We may provide you notice by means of SMS, phone, or email. If we do not contact you in the event of a margin call, it is still your obligation to clear your margin call amount in full within the required time frame. If you trigger a margin call that is below $5,000, please expect an SMS text message as notification of that margin call. Failure to act on this SMS notice will result in a sell down of a portion of your portfolio to cover the appropriate margin call obligation. It is your responsibility to provide us with your latest contact details. Failure to do so ma…

Crop rotation & sophisticated soil testing techniques boost Australian farmers Income

The wheat on Colin Weise's 513-hectare property near the town of Lockhart in Australia's south-east is ripening to a biscuit brown."It's the wonder crop. If they were weeds, they'd be dead," he said approvingly.The crop has received hardly any rain this year and in October it should be tall, heavy and dark green rather than knee-high, feathery and fawn.In the midst of the worst drought on record, grain growers like Weise are glad to get any sort of harvest at all. It's been dry since 2002 and what constitutes a good crop has changed in definition.One in six of the nation's 130,000 farmers is receiving government support. It's called Exceptional Circumstances drought relief and it's costing the taxpayer 2 million Australian dollars (1.4 million US dollars) a week.RECENT POSTSOctober (16)U.S. stocks surges more than 10 percentGlobal recession to last 2 years: Morgan StanleyAustralian and New Zealand dollars fallAmerica on SaleCredit crisis is …

U.S. stocks surges more than 10 percent

U.S. stocks surged more than 10 percent on Tuesday, capping a worldwide rally in equity markets, as investors snapped up shares that had plunged during the worst October on record, and the yen posted its biggest decline against the dollar in more than 30 years.Dubai stock exchangeThe late-day U.S. surge also pulled up equity markets in Brazil and Mexico by double-digit percentage gains, and extended a plunge in benchmark U.S. government debt prices. The Dow industrials and the S&P 500 had their second-biggest point gains after the record rally two weeks ago.A Japanese newspaper report saying the Bank of Japan is considering an interest rate cut sparked the dollar-denominated Nikkei 225 futures index NKc1 to jump 14 percent and hit an upward limit threshold, and helped ignite the U.S. rally.

Global recession to last 2 years: Morgan Stanley

Chetan Ahya, Managing Director of Morgan Stanley India, feels economies will take more time to come out of the global recession. The recession, he said, will take long to get over, and can last for as much as two years. As real economy comes under pressure, we will see rise in non-performing loans, he said, adding that credit markets will recover only once the recession is closer to an end. Ahya added the current account deficit and strong credit growth compounds problems.Ahya also said the issue of exchange rates remains a key challenge to emerging markets, adding that he sees rupee depreciating to lows of Rs 54-55 per dollar in five or six months.On the indian market the Sensex slipped below 8k, Nifty at sub-2,300 levelsThe Sensex broke another psychological mark of 8,000 today while the Nifty slipped below the 2,300 level as well on weak global cues and intense unwinding by foreign institutional investors. Asian markets are also trading deep in the red.Excerpts from interviewQ: The…

Australian and New Zealand dollars fall

The Australian and New Zealand dollars fell this week to the lowest levels against the yen in at least six years as investors sold higher-yielding assets.The currencies headed for their third weekly drop this month as Asian stocks slid on signs the world economy is on the brink of a recession. Investors bought back yen they borrowed in so-called carry trades used to purchase assets offering higher returns in Australia and New Zealand. The two nations' dollars also fell versus the U.S. currency as the price of commodities the countries export plunged on concern demand will falter. ``What you have is the global economy going down, commodity prices coming off and the old theme of global de-leveraging,'' said Thomas Harr, a senior currency strategist at Standard Chartered Plc in Singapore. ``All of these issues are negative for the Aussie and the kiwi and positive for the yen.'' Australia's dollar dropped 13.7 percent this week to 60.42 yen as of 6:03 p.m. in Sydne…

America on Sale

The big foreign-money purchases of stakes in Citigroup, Merrill Lynch, and Morgan Stanley are merely a hint of what's ahead in 2008. Foreign buyers, such as sovereign wealth funds from countries like Kuwait and Singapore, will continue to make headlines by grabbing major U.S. assets this year, and the trend is much broader than investments in Wall Street firms that need a capital infusion. bought out by a Belgian companyWhat's important to understand is why this is happening - the reasons go beyond what most people realize - and why it may be even more worrisome than it seems.AT THE DEPTHS of the 1973-74 bear market — the worst of the post-war period — when the Dow Jones industrial average was approaching its low of 577, Warren Buffett told Forbes magazine that he felt like "an oversexed guy in a whorehouse. This is the time to start investing."Buffett's words may have been indelicate — Forbes ended …

Credit crisis is a JOKE

Japanese banking crisisBad news from Asia this afternoon as Japanese banks are the latest hit … Origami Bank has folded Sumitomo Bank has gone belly-up Karaoke bank goes for a song Bonsai Bank cuts its branches Shares in Kamikaze Bank suspended after they nosedive Samurai Bank soldiers on following sharp cutbacks Ninja Bank takes a hit, but remains in the black Furthermore, 500 staff at Karate Bank get the chop Analysts report there is something fishy going on at Sushi Bank where it’s feared that staff may get a raw dealwell there's gotta be some laughs from all this dreary happenings :)

Will Australia beat RECESSION ?

The recession of the early nineteen-nineties was an economicrecession that hit much of the world in 1990-91.Dow Jones (July 1987 through January 1988)On Black Monday of October 1987 a stock collapse of unprecedented size lopped 22.6 percent off the Dow Jones Industrial Average. The collapse, larger than that of 1929, was handled well by the economy and the stock market began to quickly recover. However the lumbering savings and loans were beginning to collapse, putting the savings of millions of Americans in jeopardy.The panic that followed led to a sharp recession that hit hardest those countries most closely linked to the United States, including Canada, Australia, and the United Kingdom.October 11, 2008LOCAL stocks yesterday suffered their worst one-day fall since the 1987 crash, with nearly $95 billion wiped off the local market alone.The share market lost more than $190 billion in value over the week as governments and central banks around the world struggled to contain the worst…

First Home buyers Grant TRiples -Property

Audio: Fears housing injection could spark price surge (PM) The Government's plan to triple the first home owner grant from $7,000 to $21,000 for newly-built homes has been welcomed by the housing industry, which says it will provide a much-needed boost to the sector.As part of a $10.4 billion package announced today designed to stimulate the Australian economy in the midst of the global downturn, the Government will also double the grant for existing homes to $14,000.

Who is shani raja ?

Well if you  are a  avid reader of current australian stock market news or bloomberg   reports , you would  have come across the name "shani Raja" who is the main correspondent  who reports for the australian  stock market - pacific asia on bloomberg.Bloomberg's Sydney bureau has appointed Shani Raja as a reporter to cover telecoms and media business.
He joins the bureau from The Editor Group, a specialist corporate writing and training firm based in Sydney, where he was specialist writer and editor. Australia & New Zealand6 Oct 2008 ... By Shani Raja. Oct. 6 (Bloomberg) -- Australian stocks fell, dragging the ... To contact the reporter on this story: Shani Raja in Sydney at ... -
Prior to his stint on The Editor Group, he was editorial director of Mobile Communications Europe for several years and staff writer on CFO Europe.

What started the credit crisis ?

How did  the American sub prime mortgages crash the world economy!!Dummies guide to the credit crunch
THE global credit crunch was a year old last week, a very unhappy birthday for the world economy and one whose repercussions could be both historic and far-reaching. Many fantastic figures about the crunch have been bandied around, often expressed in trillions of dollars, so it is difficult to get a realistic grip on what caused it, what it actually means for ordinary Australians and whether it really is -- as some would have you believe -- the end of the world as we know it. So, here's a foolproof guide to the crunch: something everybody can understand -- though you may find it depressing reading. ( Q ) What caused the credit crunch?
( A ) OK, it all goes back to the US property market and some very sloppy lending practices.
Banks and unscrupulous mortgage brokers were giving mortgages to so-called sub-prime borrowers -- people who clearly could not afford to pay; but the banks…

World stock markets come crashing down !!

The Australian sharemarket has had its second biggest one-day fall on record as fears of a global recession sparked drops in Asian markets and on Wall Street, where the S&P 500 stock index fell nearly 8 per cent overnight.The All Ordinaries index has plunged 8.2 per cent to 3,940, its biggest fall since 1987 when the stockmarket plummeted 25 per cent, and the ASX 200 has dropped 360 points to 3,961.World markets toppleAsian stocks have followed the dive on Australian markets.Japan's Nikkei stock index plunged 9.62 per cent by the close of trade - its biggest loss since "Black Monday" in October 1987 - falling 881 points to end at 8,276.Meanwhile, Russia's financial regulator has ordered the country's two main stock markets to remain closed after sharp falls in the United States and Asia."Following an order from the Federal Service for the Financial Markets, regular trading will be halted," the RTS and MICEX exchanges wrote in statements posted on th…

Stock Market Horor Continues in Australia

The Australian market is having a horror day - down 288 or down 6.7% - on the back of the heavy falls on Wall Street overnight. We are fairing much worse than the 180 point fall predicted by the SFE Futures this morning. It’s a sea of red. 202 stock in the All Ords have hit a fresh yearly low today. The Dow was down 678. Up 190 at best early in the session.Energy and Resources down the most –10.8% and 8.3% respectively. Financials down 7.4%. Property down 7.3%. Industrials down 7.5%. Major banks down between 6%- 8%. St. George Bank down 10%. Macquarie Group down 11%. Both BHP and RIO down in ADR form overnight, 6.39% and 7.12% respectively.Metals all up – Zinc up 4.7%, Aluminium up 2.22% and Copper 1.49%. Nickel up 1.66%.Oil price down $2.44 close to a new 12 month low of $86.50 despite talk that OPEC would cut output to pump up prices.Gold down $20 to $886.50US Bonds down with the 10 year yield up to 3.75%.The sell-off in iron ore stocks is acute on further broker downgrades to futur…

Is china slowing down ?

``The rest of the world is cutting production and that means they don't need China's exports, so China's production in steel is going to slow,'' said Glyn Lawcock, head of resources research at UBS AG. ``From my earlier post  where i mentioned  that   we are not safe  as china as well is not safe  on regards to the credit crisis  and it is  gonna effect us in some way. The great analysts and   commentators on the Australian  stock market were  merrily saying 6 months earlier , that the credit crisis wont effect china and  therefore we will be safe , but its all coming to a head now  and as i expected  the  wear and tear of the credit crisis  has reared its ugly head and catching up with china.China is feeling the lessening demand coming from its export markets  and therefore going through a bit of a slowdown , thus effecting us Its very evident  with the  recent result  showing from the Mt gibson iron ore shipments put on hold  due to drying up of finance there.``C…

RBA Rate cut is followed by bank rate cuts

07/10/2008RBA CUTS RATE by 1% TodayWestpac, CBA cut home loan rates by 0.8%Australian shares rebounded today after the Reserve Bank of Australia surprised investors with a bigger-than-expected rate cut.
The RBA cut rates by a full percentage point to 6%, double the amount that had been expected.
Banks, miners and property trusts led the market higher after the biggest rate cut since 1992.
The benchmark S&P/ASX200 index ended the day up 78.3 points, or 1.7%, at 4618.7, its first gain in four days. The index had earlier slumped 3.3% in morning trading, following a rout on European and US markets. The broader All ordinaries picked up 53.2 points, or 1.17%, to 4597.9.``This is a shock,'' said Stephen Walters, chief economist at JPMorgan Chase & Co. in Sydney. ``They are clearly realizing monetary conditions were way too tight and they needed to do something about it pretty quickly.'' PROPERTY buyers and sellers will "rush back to the market" after today'…

when the bail out plan needs to be bailed out

Asian stock markets plunged Monday as government bank bailouts in the U.S. and Europe failed to alleviate fears of a global financial crisis that would depress world economic growth.Bangladesh Dhaka stock exchange aboveAcross Asia, all markets were in the red. Tokyo's Nikkei 225 index fell to its lowest level in 4 1/2 years, sinking 4.25 percent to 10,473.09.Hong Kong's Hang Seng index slid 4.3 percent to 16,927.87. Markets in mainland China, Australia, South Korea, India, Singapore and Thailand also fell sharply.In Russia, the RTS stock index tumbled more than 7 percent in first 20 minutes of trading."This credit crunch looks like it's not going away any time soon," said Alex Tang, head of research at brokerage Core Pacific-Yamaichi in Hong Kong. "Apart from a credit crunch in Europe, investors are quite concerned about the worsening outlook on the U.S. economy."Investors appeared spooked by a series of developments out of Europe over the weekendInvest…

Rakesh Jhunjhunwala - India's warren buffet Stock market story

Market’s ‘big bull’. The pin up boy of the markets: Rakesh Jhunjhunwala.
He made a fortune by investing in the stock market. From an initial amount of Rs 5,000, as it is rumoured, he has made Rs 5,000 crore in just over two decades!
Jhunjhunwala once said humorously, "Markets are like women; always commanding, mysterious, unpredictable and volatile." And yet he lorded them. There is a lot I learnt from his investing quotes, and there's something in it for you too.Tips from the Indian stock  Market guruRakesh Jhunjhunwala - Wikipedia, the free encyclopedia
-- Invest in a business and not a company.
Jhunjhunwala identified and invested in Pantaloons much before the market discovered it. Today, he is gaining from that investment. That's because he invested in the potential of the underlying business (of organized retail in this case) and it's first mover advantage.
-- Maximise profits and minimise losses.
Cut losses and move on with life. At the same time, hold on to …

Australia's trade surplus expanded to A$1.36 billion ($1.07 billion)

Australia's August trade surplus widened to its highest level in 11-years, exceeding analyst's estimates by a wide margin as exports of coal and iron ore rose while import costs of crude oil weakened.It was the first surplus since April 2002 and the second largest since records started back in 1971, topped only by the June 1997 surplus when the Asian crisis was on. The best trade surplus in 11 years is just the sort of news to give a bit of encouragement, even to the Reserve Bank as it approaches next Tuesday's board meeting and probable rate cut.The jump in exports partly reflected a 26% increase in coal exports, while the 25% plunge in oil prices saw imports down 2% in the month, assistance by a sharp 23% fall in electrical imports. "The seasonally adjusted surplus was primarily due to the strong rise in non rural and other goods credits and the fall in fuels and lubricants debits," said the ABS. The resources boom is still paying off for the country as a whole…