Overview
- Overseas Markets – Wall
Street had its steepest decline in more than two months on Thursday, as more signs of
weakness in the labor market and increasingly sluggish growth overseas fueled fears about
the ability of the U.S. economy to stage a recovery.
- Australian Markets –
Australian shares fell 1.6 percent on Thursday, dragged down by miners including BHP
Billiton Ltd and energy firms on worries about demand for commodities amid a global economic
slowdown.
- Stock Focus – Crown Limited:
Clock Starts Ticking on FTTN.
ASX presentations : Instalment strategies
There are different styles of ASX traded Warrants which can suit investment or trading
purposes of investors. ASX is conducting a series of investment-style presentations about
Instalments to retail investors in 2008. Investors can attend for free and will learn
about the benefits, risks and alternative strategies to consider when investing in ASX listed
Instalments. For example Instalments are used to gain leveraged exposure to shares,
baskets of shares, or listed managed investments such as exchange traded
funds (ETFs).
Upcoming Presentations
Please find below the adviser's link www.asx.com.au/warrantadviser & the
retail link www.asx.com.au/warrantsroadshow
Dow Jones – Down 345 pts to 11,188
Wall Street had its steepest decline in more than two months on Thursday, as more signs of
weakness in the labor market and increasingly sluggish growth overseas fueled fears about the
ability of the U.S. economy to stage a recovery. The sour mood was set early in the session,
after weekly government data showed an unexpected jump in the number of filings for jobless
benefits, while a report by ADP Employer Services showed private employers cut 33,000 jobs in
August. The data fueled investor nervousness ahead of the government's key August non-farm
payrolls report, and losses cascaded in afternoon trading. The Dow fell more than 340 points
and only one of its 30 components escaped the sell-off. Construction and mining equipment
maker Terex Corp compounded the gloom when it cut its 2008 sales and profit forecast, citing
weak demand in Western Europe and North America. Top drags included economic bellwethers
Caterpillar Inc and General Electric. Financial stocks were also hammered, after Bill Gross,
the manager of the world's biggest bond fund, Pimco, said that to halt what he called
"a financial tsunami" the U.S. government should give the Treasury the right to buy
debt and other assets. Gross said he was staying on the sidelines of the markets.
The Dow Jones industrial average fell 344.65 points, or 2.99 percent, to 11,188.23, while
the Standard & Poor's 500 Index .SPX dropped 38.15 points, or 2.99 percent, to
1,236.83. The Nasdaq Composite Index .IXIC tumbled 74.69 points, or 3.20 percent, to 2,259.04.
It was the biggest one-day percentage drop for the three major indexes since June 26. It was
also the fourth day of losses for both the Nasdaq and the S&P 500, and the S&P
500's longest losing streak since January. Losses accelerated in the last hours of trading
after the S&P 500 broke below the 1,260 level, a technical support level that had survived
several tests in August. Also in late afternoon trading, Pimco's Gross told CNBC
television that his firm's clients and contacts around the world were "sitting on
their hands as well," waiting for a major buyer to come into the asset markets. Generally
lackluster August retail sales were another headwind for the market, as were concerns that
sluggish growth was emerging abroad. The president of the European Central Bank, Jean-Claude
Trichet, said euro zone data points to weakening growth at midyear.
Economists expect the government's labor report on Friday to show a decline of 75,000
jobs in August, which would be the eighth consecutive month of job losses in the United
States. Shares of Caterpillar, the maker of bulldozers and excavators and a major exporter,
fell 5.6 percent to $63.94. Terex shares fell 19.7 percent to $38.02. Boeing's stock slid
4.6 percent to $63.03 after the plane maker's largest labor union said its members had
rejected the company's contract offer and voted to strike.
Shares of investment bank Lehman Brother fell 10.5 percent to $15.17. Lehman's
LibertyView hedge funds lost money in July, when tumbling financial markets left many hedge
fund managers nursing their biggest declines of the year, according to a note to investors
obtained by Reuters. Shares of technology companies, considered vulnerable because of their
overseas exposure, tumbled. Networking equipment maker Cisco Systems was a top drag on the
S&P 500, with a drop of 4.4 percent at $22.28 on Nasdaq. BlackBerry devices maker Research
In Motion was the top Nasdaq drag, falling 6.4 percent to $107.49. Shares of iPhone maker
Apple dropped 3.4 percent to $161.22.
U.S. communications equipment maker Ciena Corp slashed its revenue outlook due to phone
companies delaying purchases amid a weak economy. Its shares fell 24.9 percent to $13.09.
Trading was moderate on the New York Stock Exchange, with about 1.3 billion shares changing
hands, below last year's estimated daily average of roughly 1.9 billion, while on Nasdaq,
about 2.3 billion shares traded, above last year's daily average of 2.17 billion.
Declining stocks outnumbered advancing ones by 5 to 1 on the NYSE and by 4 to 1 on the
Nasdaq.
We have the following US Indices trading warrants:-
Dow Jones
Industrial Average Index
S&P
500 Index
Link to Nikkei Index trading warrants Product Disclosure
Statement:
Nikkei Index
ASX 200 – Down 86 pts to 4,980
Australian shares fell 1.6 percent on Thursday, dragged down by miners including BHP
Billiton Ltd and energy firms on worries about demand for commodities amid a global economic
slowdown. Data from Australia the previous day pointing to slowdown in the economy was also a
cue for some investors to sell. The benchmark S&P/ASX 200 index fell 80.5 points to close
at 4,979.5, according to the latest available data, adding to a 1.1 percent drop on Wednesday.
The index is now down 21.4 percent since the start of the year. New Zealand's benchmark
NZX-50 index .NZ50 ended down 0.75 percent at 3,348.1. Miners led the declines in Australia,
with BHP Billiton falling 2.2 percent to A$37.11 while its rival and takeover target, Rio
Tinto Ltd, shed 0.8 percent to A$111.59. Zinc miner Perilya Ltd fell 10.3 percent to A$0.435,
while nickel miner Minara Resources Ltd fell 18 percent to A$1.27. Minara later told the stock
exchange in response to a query that it knew of no reason for the share price fall. Oil firm
Santos Ltd fell 3 percent to A$17.63 while Woodside Petroleum Ltd lost 0.1 percent to A$56.45.
Among gainers, Australia and New Zealand Banking Group Ltd rose 0.7 percent to A$16.92. It
said it had raised A$1 billion ($833 million) in a sale of convertible preference shares.
Consumer-related stocks also benefited from the switch out of resources, with grocery
wholesaler Metcash Ltd up 2.96 percent at A$4.17 after it reaffirmed its 2009 earnings per
share forecast of between 28.3 and 29.3 cents per share and said first-quarter trading met
expectations. Also gaining was toll road operator Brisconnections, which jumped 8 percent
after U.S. fund Capital Group bought a 7 percent stake, according to a filing with
exchange.
Terminations
BHPXOL
New Issues
|
Code
|
Exercise Price
|
Expiry Date
|
Type
|
Ratio/ Multiplier
|
Am/Euro.
|
|
XJOWOB
|
4700
|
18-Dec-08
|
Index Call
|
0.005
|
European
|
|
XJOWOC
|
4900
|
18-Dec-08
|
Index Call
|
0.005
|
European
|
|
XJOWOD
|
5100
|
18-Dec-08
|
Index Call
|
0.005
|
European
|
|
XJOWOE
|
5300
|
18-Dec-08
|
Index Call
|
0.005
|
European
|
|
XJOWOF
|
5500
|
18-Dec-08
|
Index Call
|
0.005
|
European
|
|
XJOWOG
|
5700
|
18-Dec-08
|
Index Call
|
0.005
|
European
|
|
XJOWOP
|
4600
|
18-Dec-08
|
Index Put
|
0.005
|
European
|
|
XJOWOQ
|
4800
|
18-Dec-08
|
Index Put
|
0.005
|
European
|
|
XJOWOR
|
5000
|
18-Dec-08
|
Index Put
|
0.005
|
European
|
|
XJOWOS
|
5200
|
18-Dec-08
|
Index Put
|
0.005
|
European
|
|
XJOWOT
|
5400
|
18-Dec-08
|
Index Put
|
0.005
|
European
|
|
XJOWOU
|
5600
|
18-Dec-08
|
Index Put
|
0.005
|
European
|
Stock Focus
Crown Limited
Taking Associates down — Forecasts for CWN's associates have been amended
following further discussions post the FY08 results. Earnings have been revised down, by 14%
in FY09e to 52.2cps and 5% in FY10e to 75cps. Principal driver for FY09e downgrade is City of
Dreams pre-opening costs (CWN's share = AS$46m), which are now included in core eps and
account for 11% of FY09e downgrade. We'd previously considered these costs non-core.
Target Price now $11.00. Buy retained — We now incorporate CWN's 37.9%
MPEL stake into valuation at a 10% discount to current MPEL ADR price of US$6.49.
Mis-pricing may persist for some time — The discount implied could persist
until City of Dreams opens and establishes operational profitability, and until the regulatory
climate in Macau stabilises. CWN is still a much better way to gain exposure to Macau and any
recovery in Las Vegas than its listed peers, with a FY10e EV/EBITDA multiple of 7.7x vs. 8.1x
to 12.2x to "vanilla" Macau peers and 13.5x to 15.7x for peers with combined
Macau/LV exposure.
|
Instalment Warrants
|
|
Code
|
Maturity
|
Strike
|
Type
|
Delta
|
|
CWNIOH
|
Nov-08
|
7.50
|
Inst
|
0.78
|
|
CWNIOD
|
Jun-09
|
7.19
|
Inst
|
0.77
|
|
CWNIOO
|
Dec-09
|
6.00
|
Inst
|
0.85
|
|
CWNIOI
|
Dec-09
|
8.50
|
Inst
|
0.66
|
|
CWNIOA
|
Jun-10
|
6.00
|
Inst
|
0.84
|
For further information please contact the Citi Warrants Desk on 1300 30 70 70 or go to
our website www.citiwarrants.com.au
Important CitiWarrants Notice: Where we have used a V as the 4th letter in
the warrant code, this is a TRADING warrant. For example, BHPVOR is a trading
warrant. This situation has arisen simply because of the number of Citi Trading Warrants
in the market.
Important CitiWarrants Notice: Where we have used a Y as the 4th letter in
the warrant code, this is a TURBO warrant, with a single-touch barrier. For example,
XJOYOV is a turbo warrant. This situation has arisen simply because of the number of
Citi Turbo Warrants in the market.
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