The S&P/ASX 100 (Index: ^AXTO) (ASX: XTO) has dropped 0.8% in late afternoon trading, following weak leads from offshore markets on Friday.
But that hasn't stopped a number of large cap stocks posting positive gains. Here's our view of four of them.
Australia's largest gold producer, Newcrest Mining Limited (ASX: NCM), has seen its share price gain 2.3% to $12.46. Shares in Newcrest are up close to 50% in the past 12 months, thanks to the falling Australian dollar and steady gold prices. The spot gold price is currently US$1,227 an ounce, but in Australian dollar terms, A$1,496 an ounce. At these prices, many Australian gold miners are making decent margins – with all-in sustaining costs (AISC) of around $1,000 to $1,100 an ounce. Newcrest has an even lower AISC than that, although that's mainly thanks to substantial copper credits.
Incitec Pivot Limited (ASX: IPL) has added 2.4% to $3.46 and is up 28% in the past three months alone. The fertilizer, chemicals and explosives producer is capitalising on the re-industrialisation of the US, with a new ammonia plant being built in Louisiana. Incitec Pivot is investing US$850 million to build the plant, which will produce 800,000 tonnes of ammonia, with first production expected in the third quarter of 2016.
JB Hi-Fi Limited (ASX: JBH) is up 2.0% to $16.24. The consumer electronics retailer has seen its shares drop 27% in the past year as weak consumer sentiment hampered sales. But at the current P/E ratio of just 12.3x, shares may be cheap. In addition, JB Hi-Fi is paying a 5.4% fully franked dividend. That's nothing to sneeze at in these times of ultra-low interest rates.
Echo Entertainment Group Ltd (ASX: EGP) has gained 1.6% to $3.80. The casino operator is bidding to build and operate a new casino and hotel complex in Brisbane at the Queen's Wharf. But the company is facing stiff competition from rival Crown Resorts Ltd (ASX: CWN) in both Brisbane and Sydney. Crown is building a high-roller only casino at Barangaroo on Sydney's waterfront and is also bidding to build a new casino in Brisbane. Echo already owns and operates Brisbane's only casino.
