In today’s daily we have covered stock research on CSR. To view 5 Mining Stocks To Buy and Top 40 ASX Dividends, please click on the link.

S&P 500 was up by 14.92 points or 0.82% to 1830.61 on Monday. S&P 500 rebounded from the worst weekly losses in two years after data showed retail sales increased the most since 2012 and Citigroup earnings unexpectedly rose. Citigroup posted better than expected quarterly income as losses on troubled assets declined, but revenue decreased in many of its major businesses and operating expenses remained high.

Russian markets had a poor session, with the Micex stock index falling 1.3% and the rouble falling 0.9% against the dollar, as EU foreign ministers discussed imposing further sanctions on Russia and Pro-Moscow separatists occupying government buildings in eastern Ukraine defied a deadline from Kiev to surrender.


S&P 500 Daily Chart   (Source – Thomson Reuters)
 
S&P ASX200 was down 69.70 points or 1.28% on Monday and closed at 5358.90 points. Australian shares slid 1.3 percent on Monday , their biggest decline in a month, as  tensions in Ukraine and last week’s tech sell off on Wall Street weighed on local stocks. Confirmation from QBE regarding the strategic review of its US business has come, including possible sell off of the unit. Westfield group has released two booklets about the proposed restructure of the group. The restructure has been backed by independent experts.

David Joneshas confirmed that UBS is no longer a substantial shareholder in the company. Westpac Bank ceases to be substantial shareholder in Qantas Airways. Horizon Oil has secured key approvals from the PNG Government for a major petroleum development (Stanley gas condensate project).


S&P ASX 200 Daily Chart (Source – Thomson Reuters)


The top gainers on ASX 200 were:-



Stock of the Day – CSR (CSR)

CSR Limited (CSR) is engaged in manufacture and supply of building products in Australia and New Zealand. The Company operates in four segments: Building Products, Glass, Aluminum and Property. The Company’s Building Products include Lightweight Systems and Insulation. The Glass business includes the operations of Viridian, Australia’s glass provider and the manufacturer of float glass and hard coated performance products in Australia. 

Boral and CSR announced a proposed joint venture of their combined brick operations on the east coast of Australia. On 4 April the companies lodged an application for clearance with the ACCC. The JV will be 60% owned by CSR and 40% owned by Boral. We view this as a positive that Boral and CSR are attempting to form the JV given the challenged brick returns that both manufacturers have been experiencing.



 Source - CSR

The announcement of the proposed joint venture structure is a clear indication of the challenge achieving reasonable returns on invested capital has been in the Australian building products sector. Bricks have seen both structural changes, in the increasing shift to other materials and dwelling types, as well as cyclical demand challenges in the recent commencements downturn.


 CSR Daily Chart  (Source - Thomson Reuters)
 
There has been an increasing trend to use other cladding formats such as masonry, fibre cement, concrete panels, metals and glass. Bricks share of wall for detached housing has declined from 88% 30 years ago to current level of 60-65%. This trend is not just confined to housing in Australia.We believe the stock is slightly overvalued at its current price and would review the stock at a later date.

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