The market is down 13. The SFE Futures were down 45 this morning. It seems we might have absorbed most of last night’s 2% fall in the US market overnight in yesterdays 1.6% fall in the ASX 200 which came on the same driver — the weaker than expected Japanese GDP number that we reacted to before they did.
Wall St. experienced its worst fall in six weeks. Dow closed down 186. Down 8 at best and down 205 at worst. Metals fell again, oil price fell to new lows for the month and Gold also fell $12.90. The Aussie fell to 82.08c from 82.87c yesterday morning.
Amcor Ltd (AMC) announced it will buy parts of Rio Tinto’s Alcan Packaging business for $2.42bn. It will acquire Alcan Packaging’s European and Asian food, and global pharmaceuticals and tobacco businesses, and will look to fund the acquisitions through a 4-for-9 entitlement offer at 430c a share, a $1.61bn underwritten equity raising and bank debt.
Results dominating the headlines…
- James Hardie (JHX) up 22% on the back of its 1Q FY10 result. The key driver to the result was US EBIT margins of 31.3% compared to 23.9% last year. Management expect FY10 result to be at the top end of analysts’ forecasts of $US39- 67m.
- United Group (UGL) result has come in better-than-expected. It announced a FY09 NPAT of $142.5m, up 8.7%. Its underlying result was up 10% to $150.3m. Analysts’ were expecting $148m. UGL up 3% to 1309c.
- OneSteel (OST) — Slightly better than expected result — the stock is up slightly, up 1.34%. Its underlying result fell 32% to $215m, but above its guidance back in April of $200m.
- Monadelphous (MND) – Results in line with expectations — announced a FY09 NPAT of $74.2m, up 6.8%. Revenue was up 18% to $1.13bn with a 44c ff final dividend, up from 43c. MND up 5.3% with the CEO providing cautiously optimistic comments.
- The National Australia Bank (NAB) has bought Challenger Financial Services’ (CGF) mortgage management business for $385m. CGF is out of its trading halt and has fallen 9.6%. NAB down slightly — 7c to 2701c.
- Western Areas (WSA) down 1.2% after announcing a FY net loss of $35.2m with no final dividend.
- Dexus Property Trust (DXS) — down 6.4% to 72c — after announcing a FY net loss of $1.46bn on the back of property devaluations. It had operating earnings of $526.3m, up 5.7% from $498m. It has forecast FY10 EPS of 7.3c and a FY distribution of 5.1c.
- Origin Energy (ORG) announced its liquefied natural gas JV with ConocoPhillips has chosen Laird Point on Curtis Island in QLD as the site for its proposed LNG terminal.
- Santos (STO) has sold 60% of its Petrel, Tern and Frigate gas fields in the Bonaparte Basin offshore to French-based GDF SUEZ for up to $US370m.
- Both James Hardie (JHX) and iSoft Group (ISF) have hit fresh yearly highs on the back of their results.
The Dow Futures are up 30 at midday.
MARCUS PADLEY is the Author of the MARCUS TODAY Daily Stockmarket Newsletter.
For a free 5 day obligation free trial of the MARCUS TODAY newsletter (and no we won’t ask for a credit card number) click here or go to www.marcustoday.com.au
You will receive two daily emails about the stockmarket, our MORNING EMAIL with all the stuff you need to know ahead of the trading day ahead and a DAILY EMAIL with all the midday events, news, comments and ideas from Marcus and his Team. You will also be given a password to the MARCUS TODAY website including access to all the emails as well as Educational, Entertaining and Researched Articles from Marcus and his Team and an archive where you can catch up on a whole week or month in just a few minutes. Or Browse at length. We are sure you will enjoy and profit from what we offer. Find out now. GET STARTED and hopefully one day we will Welcome you onto the Membership List. We have one of the highest re-subscription rates in the financial newsletter industry. Thousands of subscribers enjoy and profit from our services every day.
Crikey is committed to hosting lively discussions. Help us keep the conversation useful, interesting and welcoming. We aim to publish comments quickly in the interest of promoting robust conversation, but we’re a small team and we deploy filters to protect against legal risk. Occasionally your comment may be held up while we review, but we’re working as fast as we can to keep the conversation rolling.
The Crikey comment section is members-only content. Please subscribe to leave a comment.
The Crikey comment section is members-only content. Please login to leave a comment.