Sydney, Sept 4, 2007 (ABN Newswire) -
Australian stocks could drift lower today in the absence of offshore direction, with US markets closed for a public holiday. Lingering concerns over global economic health should also keep investors cautious, and the big miners could ease following falling metals prices in London.
The S&P/ASX200 rose 0.3 per cent to a six-week closing peak on Monday. Highlights were Babcock & Brown and Leighton Holdings which jumped to a record on an overseas acquisition. The market ended 20 points firmer at 6,267, and on the futures market the SPI200 is down 9.
Turning to currencies, at 8:35 AM the Aussie dollar is buying 82.24 US cents, on the crosses the dollar is buying 95.33 yen, 60.37 Euro cents, and 40.75 British pence.
The full report is available at the following video and audio links.
Video Link
http://abnnewswire.net/fnnlnk/7QHDAMZ4Audio Link
http://abnnewswire.net/lnk/223DPQF9Making news this morning is Photon Group. Shares in the marketing firm were down 0.32% to $6.25. The company has bought food brokerage and sales merchandising company Club Sales to help strengthen its field marketing arm. Club Sales has a range of blue-chip clients across the food and beverage sector. The purchase is expected to be earnings per share accretive in the first 12 months. Photon made 10 acquisitions in the 2007 financial year, when its earnings before interest, taxes, depreciation and amortisation rose by 60 per cent. Previously the company posted record earnings in 2006.
Lihir Gold shares were steady at $3.07. Striking workers at Lihir's giant gold mine in Papau New Guinea will get back to work later today. Bowing demand from the workers, the company's chief executive has agreed to travel to the remote mine to defuse tensions. The miners are unhappy over working conditions and a blast at the mine several months ago. The strike began last Thursday and has cost the mine about 12,000 ounces of gold so far. Lihir Gold has been profitable since 2002.
And briefly updating yesterday's story, Consolidated Minerals has recommended that shareholders accept a $3.95 per share offer from Palmary Resources and has withdrawn its recommendation to accept a lower offer from Pallinghurst Resources in favour of the bid by Ukraine-based Palmary.
The S&P/ASX top 200 companies trading ex-dividend today are APA with a 7 cent zero per cent franked dividend to be paid on the 28th of September, Emeco Holdings with a 2.5 cent fully franked dividend to be paid on the 28th of September, Perilya with a one cent fully franked dividend to be paid on the 28th of September and Worley Parsons with an 8 cent fully franked dividend to be paid on the 15th of October.
To international markets, US markets were closed for the Labor Day long weekend on Monday; trading will resume on today.
European markets were mixed; London's FTSE gained 12 points; Paris was down 11, and Frankfurt improved 10.
Asian stocks were also mixed; Hong Kong's Hang Sang lost 80 points; Tokyo's Nikkei was down 44, but China's SSE Composite gained 102.
Source: Finance News Network © 2007
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