A shortened, holiday dominated, quiet week predictably delivered no dramas. Resources stocks continue to dominate, predominantly on the back of analysts re-assessing the outlook for supply/demand and prices.
In the good books
Asciano (AIO) was upgraded to Buy from Neutral by BA-Merrill Lynch based on valuation and the easier comparatives that are being cycled in the fourth quarter. Merrills observes the share price is factoring in some probability of an FY14 earnings downgrade but considers this unlikely. Container movements are improving, coal volumes are solid and the broker is not aware of any major contract losses with PN Rail.