China Molybdenum purchased

This morning I added China Molybdenum (3993) to the private portfolio, paying an average of HK$5.63. The share has a relatively unexciting 3.2% dividend yield and is essentially an investment in the expectation that China's production of steel and petrochemical products will expand.

Caltex purchased

This morning I added Caltex (CTX) to the private portfolio at an average cost of AUD13.49 per share (including transaction costs). Over the last few months the company has achieved some positive developments including securing a material part medium term debt funding (gearing was reasonably modest to begin with) and demonstrating that earnings are not only relatively unaffected by the recession but also some margin expansion.

Brokers have been upgrading projections and valuations. While the stock has advanced a long way from its low point last December, it is still at a very attractive 5.7% yield. The dividend is fully franked (which effectively means that it is largely tax paid for Australian tax residents and exempt from withholding tax for non-residents such as myself).

USD/NZD FX contract entered into

My previous contract matured today. Being short the NZD against the USD turned out to be a a reasonable investment as the USD traded sideways against the NZD during the contract period. As a result I kept the premium without either having the contract exercised against me or having a repreat of last month's situation where I would have been better off simply buying the NZD outright.

I have entered into a new FX contract:

Currency pair: USD/NZD
Strike rate: USD1.00 = NZD 0.6200
Spot rate: USD1.00 = NZD 0.6436
Annualised premium: 7.89%
Calculation date: 30 July 2009
Maturity date: 31 July 2009

I have gone further out of the money for a lower return as I intend using this money as part of an investment in my current employer next month and would prefer not to be hit.