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Gaming Stocks Hammered in Australia

Written by:
Greg Tingle
Published on:
May/18/2010

Readers... er, punters... think you may be down bit at the local casino, online casino, or perhaps your investment stocks and bonds?  Share a thought for Australian investors (or gamblers...almost the same thing these days), who lost a bundle on the Australian Stock Exchange (ASX)12 hours ago.  It was the worst day for Australian stocks for the whole year. Shares are only just starting to crawl back up. Media Man and Gambling911 feeling bullish go bear hunting for facts and numbers.

Australian stocks suffered the worst day in a year.  That's serious news. The gaming and casino industry got hammered. Gaming and casinos are not recession proof, and now many insiders are questioning just how recession resilient they actually are.

Media Man Gaming and Leisure Share Prices today, correct at time supplied (7.20pm, Sydney, Australia  17th May 2010)

Crown Limited sitting on approx 8.060

Tabcorp sitting on approx $6.43

Ainsworth Game Technology $0.14

Aristocrat Leisure Limited $4.18

Tatts Group $2.39

We've been delighted to offer these numbers, although we know that putting the word out on the Aussie stocks is a bit like putting a red flag to a bull. Please bear with us while we re evaluation our casino stocks and bonds portfolio! Oh, happy hunting and good punting, and be sure to look up what "insider trading" means (as we know Aussie AFL and NRL players are also).

*Media Man http://www.mediamanint.com is a shareholder in Crown Limited.

*Media Man is not listed on the ASX

*Media Man is not a financial advisor or legal advisor

Close Australian stocks have experienced their worst day in a year, as renewed worries about the debt levels of euro zone nations prompt broad selling that wiped more than $40 billion off the value of the local market.

At the close, the benchmark S&P/ASX200 index was down 143.9 points, or 3.1 per cent, at 4467.2, its lowest close in more than eight months. The broader All Ordinaries Index slumped 142.3 points, or 3.1 per cent, to 4500.7.

Among the sectors, materials stocks fell 3.8 per cent, financials dropped 3.2 per cent and the industrials sub-index was 3.3 per cent lower. 

"The market has gone into fear mode, and we're seeing red across the board," said Justin Smirk, chief economist at St George Bank.

need2know:

Asian shares slump over growth concerns

Gold climbs above $US1242

The dollar falls below 88 US cents

Oil extends slide to sink below $US70

Dow futures are 89 points down at 10,520

Patersons Securities associate direct John Curtin said uncertainty was rife over whether last Monday's €750 billion ($1.1 trillion) bail-out package would be enough to stabilise the debt position of southern European countries.

"A lot of questions are now being asked about world economic growth with the euro zone being under so much debt.

"So that has negative impacts for any company going forward on earnings that relies on credit and world economic growth.

"The currency is down - that's the short-term wholesale money voting with its feet and taking its money offshore."

Lower commodity prices weighed heavily on the resources giants, with BHP Billiton falling $1.75 or 4.5 per cent to $36.89. Rival Rio Tinto slumped $3.85 or 5.7 per cent to $64.15.

Westpac ex-dividend

Among the banks, profit-taking pushed Westpac down $1.61, or 6.5 per cent to $23.28. Westpac traded ex-dividend today and Mr Curtin said the 65 cent interim dividend was responsible for around 40 per cent of the stock's fall.

Commonwealth Bank was also down $1.67 or 3.1 per cent to $52.04, ANZ lost 66 cents, or 2.9 per cent to $22.15 and National Australia Bank off 52 cents, or 2.1 per cent to $24.85.

NAB is the only big bank still trading with dividend.

Major oil stocks also slipped, with Woodside Petroleum down $1.55, or 3.5 per cent, to $43.25, Oil Search slumping 26 cents, or 4.6 per cent, to $5.40 and Santos losing 32 cents, or 2.4 per cent, to $12.80.

Retailers were also hit by the market sell-off with department stores David Jones and Myer among the biggest losers.

Myer announced flat third-quarter sales today but said it would achieve its full-year guidance even if sales dropped in what is expected to a tough fourth quarter. Myer's shares fell 12 cents, or 3.9 per cent, to $2.99, while rival David Jones dropped 17 cents, or 3.8 per cent, to $4.26.

David Jones will report its third-quarter sales on Wednesday.

Airlines also lost altitude, with Virgin Blue plunging 4.5 cents, or 8.3 per cent, to 49.5 cents. National carrier Qantas fell 7 cents, or 2.7 per cent, to $2.57.

Gold bucks trend

The gold sector was the lone bright spot on the local market as the spot price of gold in Sydney reached $US1238.50 per fine ounce. Lihir Gold added 3 cents to $4.16 and Newcrest Mining put on 19 cents to $33.55.

Rural services and automotive interiors provider Elders was another of the few stocks to make gains, rising 5 cents, or 4.8 per cent, to $1.09. Elders narrowed its losses for the first half of its fiscal year and forecast continuing improvement in earnings in the second half.

In other news, takeover target Macarthur Coal and its largest shareholder, China's Citic, agreed to extend the date by which the coal miner must hold a shareholder meeting to approve a transaction between the parties.

Macarthur Coal's shares slipped 15 cents, or 1.1 per cent, to $13.35.

Lihir Gold was the top traded stock by turnover, with 36.2 million shares traded for a value of $150.2 million.

National turnover reached 2 billion shares, worth $6.05 billion, with 248 stocks trading up, 906 down and 295 unchanged.

For market data by sector, click here 

For share price information, click here 

For the latest currency movements, click here

AAP, with BusinessDay

 

Greg Tingle is a special contributor to the Gambling911.com website and proprietor of Media Man International

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