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Stocks to watch at the open

Keep an eye on mining firms and REITs today.
By · 30 Sep 2013
By ·
30 Sep 2013
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Miners

Iron ore lost 1.4 per cent to close at $131.90 and is now down over 4 per cent for the month of September.

Majors iron ore producers, BHP Billiton Limited, Rio Tinto and Fortescue Metals Group could all be under pressure today.

A stable iron ore price and equity market strength has supported recent gains in the miners. But a fall in the iron ore price and general concerns over a US budget meltdown could have them out of favour with investors today.

Materials were hardest hit on the S&P 500 and FTSE 100 losing 1.19 and 1.58 per cent respectively in Friday’s session.

BHP is up 18 per cent, Rio Tinto is up 25 per cent and Fortescue is up close to 70 per cent from their June lows. 

Australian Real Estate Investment Trusts

The falling long-term bond yield looks like it will give bond-like investments such as Australian Real Estate Investment Trusts (A-REITs) renewed investor interest. The yield on the US 10-year Treasury Note has slipped another 0.02 per cent to be trading at 2.62 per cent.

The REIT index has gained 1.5 per cent in September. If bond yields continue to fall, the sector is well placed to experience further gains from current levels.

Since 5 September, the yield on the US Treasury Note has declined from 2.99 per cent, a loss of over 12 per cent.

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Kirstie Spicer
Kirstie Spicer
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