MENU

Banks drag as miners and Telstra push higher

Good news from Chinese manufacturers has led the local share market to a flat start as investors go in search of value in the S&P/ASX 200 (ASX: XJO) (Index: ^AXJO), held back by a selloff in the financial sector.

China’s official manufacturing PMI rose to 50.3 vs the 49.8 expected by the market. As a result, local miners BHP (ASX: BHP), Rio Tinto (ASX: RIO) and Fortescue (ASX: FMG) are higher.

Despite a looming interest rate cut, investors have dumped the banks and headed to shares in Telstra (ASX: TLS) and Woodside Petroleum (ASX: WPL), up 0.8% and 1.2% respectively.

Our biggest telco is poised to release strong results for FY13 but operates at a robust earnings ratio. However, some investors are determined to take advantage of rumours that both Woodside and Telstra may pay higher dividends in the next 12 months.

The big four banks are lower today as investors take profits from the recent surge in prices and local manufacturing drops for the 25th consecutive month. Mining services stocks are stand out performers in top 200, with Boart Longyear (ASX: BLY) and Ausdrill (ASX: ASL) up more than 4.5% at midday.

Interested in our #1 dividend-paying stock? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading


Motley Fool contributor Owen Raszkiewicz owns shares in Ausdrill.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.