ASX Flat As Blue Chip Stocks Have a Slow Day

The Aussie share market rose slightly today. At 4:00pm AEST, the ASX 200 was up 28 points, to 5,094. It was the same story on the All Ordinaries. The index rose 15 points, to 5,122.

Most of the major stocks were either flat, or down.

BHP Billiton [ASX:BHP] shares fell 0.25% to $23.79.

Rio Tinto [ASX:RIO] trailed lower too, down 1.55% to $48.99 a share.

Fortescue [ASX:FMG] saw the largest drops. Shares were trading 3.4% lower at $1.90.

It wasn’t all bad news among commodity exporters.

Woodside Petroleum [ASX:WPL] was up 2.5% for day near close of trade. Its shares are trading at $29.49 apiece.

Woodside’s potential takeover of Oil Search [ASX:OSH] remains an ongoing saga.

UBS says Woodside will need to raise its bid to have any chance of succeeding. A higher offer, with cash as a carrot, might tempt Oil Search to sell. Yet a higher offer would also put off Woodside’s shareholders. That’s because it would dilute their earnings per share.

Outside the mining sector, banking stocks didn’t fare much better.

NAB [ASX:NAB] shares fell 0.16% to $30.42.

Commonwealth Bank [ASX:CBA] was up 0.08% in late trade. Its shares were fetching $73.33 apiece.

Meanwhile, NAB [ASX:NAB] saw its share price drop 0.16% to $30.42.

Westpac [ASX:WBC] had the best day. It saw modest gains, rising 0.68% to $31.06.

Winners and losers on the ASX

Let’s now look at some of the major movers among  ASX 100 stocks.

Outside Oil Search, oil producer Santos [ASX:STO] saw the biggest gains. Santos’ stock rose 4.18%, to $4.98. The company yesterday announced they’re seeing strong interest in the company’s assets. Santos’ VP, James Baulderstone, was on the offensive. Here’s what he said earlier:

The [oil] market is very jittery and I think people have left the industry because they’re worried about volatility. But that means that there’s an incredible number of stocks now which are massively undervalued — both in Australia and globally.

Santos has fundamentally good assets which the market is just not valuing and our job — and the reason for the strategic review — is to focus the market back on the value of our assets’.

At the other end of the scale, internet provider TPG [ASX:TPM] saw the largest drops. Shares were down 4.10% at $10.05 apiece.

TPG announced today it added 73,000 customers over the past 12 months. Total revenue rose by 31%, to $1.27 billion in the year to July 31. Annual profits were up 31% to $224 million. So why did its stock fall?

The reason why is because the profit results were already priced in.

TPG’s stock has risen by 25% over the last three weeks. Today’s selloffs were a given. Yet TPG’s stock should normalise now that the earnings results are out. Especially now that the short term investors are filing out.

Mat Spasic,

Contributor, Markets and Money

The Aussie share market had its worst month since 2008 in August. The ASX lost 9% of its value, shedding more than $70 billion.

Markets and Money’s Vern Gowdie saw this coming. He predicted the current market correction at the beginning of the year. But Vern says we haven’t seen the worst of it yet.

He’s convinced the ASX will lose as much as 90% of its market cap in the coming months.

Vern is the award-winning Founder of the Gowdie Family Wealth advisory service. He’s ranked as one of Australia’s Top 50 financial planners.

Vern wants to help you avoid this coming wealth destruction. That’s why he’s written this free report ‘Five Fatal Stocks You Must Sell Now’. As a bonus, Vern will show you which five blue chip Aussie companies could destroy your portfolio.  You almost certainly own one of them…

To find out how to download the report, click here.

Markets and Money offers an independent and critical perspective on the Australian and global investment markets. Slightly offbeat and far from institutional, Markets and Money delivers you straight-forward, humorous, and useful investment insights from a world wide network of analysts, contrarians, and successful investors.

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