Sydney, Sept 18, 2007 (ABN Newswire) -
The Aussie market could extend losses this morning, with financial shares like Macquarie Bank likely to remain under pressure as global credit market worries grow. Softer base metal prices could also weigh down on mining firms.
On Monday the benchmark S&P/ASX200 fell 35 points to 6,271. On the future's market the SPI200 is down 5.
Turning to currencies, the Australian dollar got of to a shaky start in offshore trade this morning, and at 8:40 AM is buying 83.37 US cents, on the crosses the dollar is buying 95.97 yen, 60.14 Euro cents, and 41.8 British pence.
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http://abnnewswire.net/lnk/6ET8B54HMaking news headlines this morning is PharmAust. Shares in the pharmaceutical developer were down 14.99% to 3.4 cents on the ASX Monday but shareholders are reportedly seeking to have the company wound-up. The disgruntled shareholders, who own about 48 per cent of its shares, want to wind things up after what they consider delays in the company calling an extraordinary meeting to vote on a motion to dismiss current directors. They say the company lacks plans to reverse current operating losses, amongst other things. PharmAust chairman Simon Owen said a meeting had been called within the timeframes set out in the Corporations Act, and that the directors were working to turn the company around. PharmAust's share price has dropped more than 300 per cent over the past 18 months, the company has reported annual losses for the past five years.
Rio Tinto shares last traded down 1.25% to $98.15. The mining giant has extended its $44 billion offer for Canadian aluminium producer Alcan by about a month. The company said it needs the extra time to gain regulatory approvals. Rio Tinto already has approvals from US and Canadian competition regulators, but still needs clearances from the EU and Australia, which are both expected within the first two weeks of October. Foreign investment clearances are also needed from Canada, Australia, the United States and France. Rio Tinto steadily increasing record earnings since 2002.
And briefly, Qantas Airways has denied media reports it was in talks to buy Australian logistics firm Linfox Group.
The S&P/ASX top 200 company trading exdividend today is Symbion Health with a 5 cent fully franked dividend to be paid on the 28th of September.
To international markets, US markets slumped on credit market worries and investor jitters ahead of the interest rate decision due today; The Dow Jones Industrials was down 39, the S&P500 dropped 8 and the Nasdaq composite lost 21 points.
European shares extended their decline on Monday, driven by another slump in UK mortgage lender Northern Rock that hit financial shares; London's FTSE slipped 107 points; Paris shed 100, and Frankfurt lost 18.
Asian stocks were mixed; Hong Kong's Hang Sang plummeted 299 points; Tokyo's Nikkei was closed, and China's SSE Composite advanced 109.
Back to the US, gold gained $6 to $723.80 US an ounce for the spot contract on Comex, Silver added 20 cents to $12.90, copper gained 3 cents to $3.42.
And finally, oil added $1.47 to $80.57 for October light crude in New York.
Source: Finance News Network © 2007
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