cComsec report highlights + Global Nickel $ 3 Million Offer


Top 200: Movers and Shakers

Top 10

ASX Code Company Name Market Cap JUNE


Last week’s

price ($)

This week’s

price ($)



1 MCC MacArthur Coal 556.2 5.90 6.80 15.3

2 QGC Queensland Gas 1192.2 2.43 2.75 13.2

3 ERA Energy Resources 1354.1 18.65 20.89 12.0

4 SMY Sally Malay Mining 770.9 3.95 4.36 10.4

5 ILU Iluka Resources 1429.8 5.72 6.29 10.0

6 MMG Macquarie Media 762.9 4.40 4.82 9.5

7 CGF Challenger F.S.G.Ltd 2541.8 5.66 6.16 8.8

8 PDN Paladin Resources 5600.3 8.30 9.03 8.8

9 CSM Consolidated Mineral 555.3 2.63 2.84 8.0

10 SDG Sunland Group Ltd 578.8 3.80 4.08 7.4

Bottom 10

ASX Code Company Name Market Cap


Last week’s

price ($)

This week’s

price ($)



201 IGO Independence Group 806.5 7.90 7.05 -10.8

200 TEN Ten Network Holdings 931.0 3.10 2.83 -8.7

199 BEN Bendigo Bank Limited 2277.6 16.48 15.41 -6.5

198 BDG Bendigo Mining Ltd 153.6 0.33 0.31 -6.1

197 BXB Brambles Limited 17638.4 12.55 11.85 -5.6

196 CTX Caltex Australia 3780.0 26.49 25.10 -5.2

195 SIP Sigma Pharmaceutical 1951.4 2.32 2.20 -5.2

194 CMR Compass Resources NL 480.3 4.94 4.70 -4.9

193 KCN Kingsgate Consolid. 450.7 5.72 5.48 -4.2

192 GNS 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

Percentage change


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.

Cassandra Meagher

Senior Industrials Analyst


Australian market wrap





View Comment


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

Market summary

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 & Co to 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 up only 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

six years.

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 signposts

Economic forecasts









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)

End Jun


End Sep


End Dec


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.

Craig James

Chief Equities Economist


Corporate and economic calendar – week beginning 24 June 2007

Coming week’s economic news

Australia International

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)

Ex-dividend dates

Date Description Security Div Amt –

cents Date Description Security Div Amt

– cents

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

– cents

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

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Join up with CommSec SMSF Manager before 30 June 2007 and enjoy the following exclusive offer:

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Find out more

To find out more information about CommSec SMSF Manager, visit or call 13 15 20

between 8 am and 5 pm (Sydney time), Monday to Friday.

Important information

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


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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.

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