Most of the activity in the first half of the week was positive with upgrades across a variety of industries but most being driven in some way or another by the currency falls.
In the good books
Citi upgraded BHP (BHP) to Buy from Neutral, preferring base metals over bulk commodities. The broker believes metals and mining equities will be flat over the next three months but investors should be buying the dips with a view that commodity markets, particularly base metals, could surprise on the upside heading into next year.
UBS has upgraded Pacific Brands (PBG) to Neutral from Sell. The share price has weakened significantly since the year's high of 77c and now, changing to forecasting a positive shareholder return, UBS upgrades to Neutral from Sell. Significant near-term currency and restructuring risks exist, but Pacific Brands will benefit from a five percentage point reduction in the textiles import tariff from January 2015. The broker considers the company is potentially a takeover target as it moves to a cleaner, simpler business model.