Welcome to the start of a new week and the first day of spring. Here are the five things I'm looking at today on the Australian sharemarket.
- The S&P/ ASX 200 Index (Index: ^AXJO) (ASX: XJO) has opened up 0.4%, following global equity markets, which rose on Friday. The US S&P 500 index set a new closing high, ending above the 2,000 mark for the third time. It was the index's fourth straight week of gains.
The Dow Jones was up 0.1%, while the tech-heavy NASDAQ posted gains of 0.5%.A number of economic data releases today could sway the market, including China Purchasing Managers Index (PMI) – given China is our largest trading partner. - Kerry Stokes' Seven Group Holdings (ASX: SVW) has purchased a $100 million stake in Woodside Petroelum Limited (ASX: WPL), according to the Australian Financial Review (AFR). Interestingly, Seven Group's CEO Don Voelte was previously head of Woodside, so it's a company he knows well.
This is not a precursor to a takeover according to Seven – which uses its investment portfolio to buy stocks that pay high fully-franked dividend yields, offsetting the company's overall tax rate.Not a bad strategy in my book.
- Pilbara iron ore miner Atlas Iron Limited (ASX: AGO) has been pointed out as a possible takeover target. The AFR suggests several suitors are circling the miner, which is likely to be close to breakeven or losing money with the iron ore price below US$90 a tonne.The interesting question is; who are the suitors? Are the big miners, Rio Tinto Limited (ASX: RIO), Fortescue Metals Group Limited (ASX: FMG) or BHP Billiton Limited (ASX: BHP) running their eye over Atlas, or could it be Mount Gibson Iron Limited (ASX: MGX) with its huge cash balance?
- Tweet of the Day
The coal industry is seriously battling. Not only are today's Cockatoo Coal accounts late, they lost $182m. Ouch: https://t.co/wBdGLjFvrl
Stephen Mayne (@MayneReport) August 31, 2014
Coal miners are in a world of pain right now, with no end in sight. - Stock of the Day – brought to you by Darryl Date-Shappard – Sirtex Medical Limited (ASX: SRX). Darryl says successful results from current clinical trials could be enormously positive for the stock.
