Sydney, Aug 28, 2007 (ABN Newswire) -
Australian shares fell around half a percent by lunchtime as renewed worries about the U.S. housing market and consumer spending weighed down on U.S-exposed firms such as Westfield Group.
At Midday the S&P/ASX200 index has slipped 24 points to 6162 and on the futures market the SPI 200's down 33.
In company news this hour?financial firms slid lower this morning after Goldman Sachs slashed its earnings forecast on several investment banks, saying August was one of the worst operating environments for investment banks it had seen in years. Macquarie Bank warned early in August that investors in two of its funds face losses of up to 25 percent amid the fall-out from the subprime mess. Fears for the US housing market were renewed again this morning after data showed the number of unsold homes reached its highest level in more than 15 years in July. Macquarie Bank shares have dropped 1.85% to $74.65.
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http://abnnewswire.net/lnk/5EQ3408XBabcock & Brown Infrastructure Group has posted an increase in net profit of 91%. Earnings came in at nearly $113 million in 2006/2007 and group revenue increased 56% to $1.3 billion. Profit from continuing operations was up 34 percent at $53.8 million. The global infrastructure fund also said it will continue to focus on buying ports assets in Europe. BBI also plans to lift its distribution payouts for this year and next. Babcock & Brown Infrastructure Group shares were 0.61% higher at $1.65.
And now to Warrants with Macquarie Bank. Babcock & Brown shares have slipped today after the Goldman Sachs downgrade of the investment banking sector on a worsening credit market outlook. But traders believing the weakness is a buying opportunity bought leveraged exposure in the stock through BNBIMS Jan08 $20.00 Deferred Instalment.
Index warrants are again on the radar amongst warrant traders, with portfolio protection strategies front of mind. Investors unsure of the outlook for stocks sought protection through XJOWMZ Oct07 6000 Put.
Boart Longyear shares have firmed over three percent and have outperformed today's lacklustre market after the drilling services company reported its results last week. Traders in the warrants' market that see further upside opened positions to the long side through BLYWMC Sep07 $2.00 Call.
Turning now to market indices, the best performing index this morning was the Staples Index up 100 points to 8060. The top gainer was Fosters Group trading 6.33% higher at $6.38 after a better than expected profit result. Woolworths and AWB also enjoyed investor favour.
The Telecommunications index took a bit of a tumble, 23 points lower at 1527. Telecom of New Zealand was hardest hit, 2.2% lower at $3.56. Reverse Corporation and Telstra IRS also declined.
In Tokyo, the Nikkei is down 48 points and in New Zealand the NZSX-50 is up 1.
Gold is trading at $667.20 U.S an ounce and one Australian dollar's buying 82.52 U.S cents.
Source: Finance News Network © 2007
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