The S&P 500 was down by 1.41points or 0.07%on Monday to 1984.13. U.S. stocks closed mixed on Monday as the tech sector dragged the Nasdaq to its worst day since July and kept the S&P 500 near the unchanged mark as investors cleared the decks for Alibaba's debut planned for later this week. Investors also exercised caution ahead of the policy statement from the Federal Reserve on Wednesday, which could provide clues on the timing of an interest rate hike.

Heavily-traded Facebook and Netflix lost nearly 4 percent each. The S&P technology sector lost 0.6 percent as the worst performing of the 10 major S&P sectors. TripAdvisor Inc. and Twitter Inc. lost at least 3.5 percent. All 41 stocks in the Dow Jones Internet Composite Index dropped, with the gauge sliding 2.3 percent, the biggest retreat since July. Federal Reserve members on Wednesday will announce rate policy in addition to a speech by Chair Janet Yellen.


Facebook Daily Chart (Source – Thomson Reuters)

S&P ASX 200was down by 57.60points or 1.04% on Monday and closed at 5473.50 points.  Chinese official data released on Saturday showed the pace of industrial production dropped to its lowest level since the global financial crisis, this had an effect on the local share market. Macquarie Group bucked the trend, jumping 1 per cent to $58.55 after issuing a statement lifting its earnings guidance for the current financial year. The bank’s US business benefits from a weaker Aussie dollar.
Evolution Miningwas the best-performing stock in the ASX 200, climbing 10.3 per cent to 75¢, after joint venture partner Emmerson Resources announced the discovery of a high grade gold deposit. Aluminium fell 2% with Nickel also down by 1.9% to a three month low on a lift in inventories. Copper prices ended flat after early weakness.  Iron ore rose by US$3.20 or 3.9% on Monday to US$85.20 a tonne. Among the top performers was Beadell Resources. To read our latest report on Beadell Resources Click Here. The following stocks will trade ex-dividend today:
Adelaide Brighton, Brierty, Chalmers, Equity Trustees, LandMark White, Prophecy Int, Royal Wolf, Skilled Group, Vita Life Sciences.


Evolution Mining Daily Chart (Source – Thomson Reuters)

The top gainers on ASX 200 were:- 




One Undervalued Dividend Stock to BUY
 


Stock of the Day – Telstra (HOLD)

Telstra will buy back up to approximately AUD 1 billion of ordinary shares representing approximately 1.6% of total issued shares. The buyback is being undertaken as Telstra has excess capital as a result of solid operating performance and recent asset divestments. Telstra is undertaking the buyback as part of a prudent and logical initiative which balances the distribution of surplus capital to shareholders while maintain the appropriate capacity for future business and growth opportunities.


Expense Productivity Benefits (Source – Company Reports)

We believe the buyback program will not hinder Telstra’s ability to pay future fully franked dividends, undertake necessary capital outlays or launch new growth initiatives. Participation in the program is not compulsory and whether shareholders participate in the buyback depends upon their individual investment objectives and tax circumstances. Typically structured off market buy backs are designed mainly to benefit superannuation funds and individuals with very low marginal tax rates.


Acquisitions and Partnerships (Source – Company Reports)

We suggest shareholders view the buyback booklet that has been sent to them and speak to their financial advisor or tax accountant whether to participate or not. Telstra’s superior mobile and network infrastructure are key differentiator form competitors. We continue to expect mobile, network application and services, and digital media to underpin medium term revenue growth.
  

Telstra Daily Chart (Source – Thomson Reuters)
 
Shareholders who do participate in the buyback must remember that buyback price will be lower than the market price by at least 6% and benefits must be judged in terms of selling on the market. The advantages of participating in Telstra’s buyback to superannuation funds and individuals on low tax rates comes in two forms: (1) franking credits attached to the dividend component and (2) potential benefits of the capital loss. We again reiterate that shareholders should consider their personal circumstances and speak to their financial advisor or tax accountant whether to participate or not. We reiterate our HOLD recommendation on the stock.

---

Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people.
Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).
The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation.
Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product.
The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide.