Sydney, Dec 16, 2008 (ABN Newswire) - US stocks fell overnight on the uncertainty of the US carmakers bailout and the lower US industrial production in November.
Yesterday, the Australian market closed higher as the miners surged on rising commodities prices offsetting the slump dragged by Telstra after the government ruled out the company from the tender list for bidding on the national broadband network. The benchmark S&P/ASX200 share index ended the day 2.3% higher, or 81 points, at 3591.4, while the broader All Ordinaries index rose 2.4%, or 83.2 points, to 3535.7. Traditionally the market would be quiet during this period with more focus on specific stocks rather than the market as a whole.
The Australian dollar has opened lower after failing to benefit from a further bout of US dollar weakness during offshore trading. At 0700 AEDT, the Australian dollar was trading at $US0.6645/50, down from Monday's close of $US0.6673/77.
The price of New York crude oil has soared above $US50 per barrel for the first time in two weeks as the market was driven by expectations that OPEC will cut crude output this week. Light sweet crude for delivery in January delivery fell almost two US dollars in overnight trade, settling down $US1.77 at $US44.51 per barrel.
Key Economic Facts and Figures
The Australian Bureau of Agricultural and Resource Economics has cut its forecast for earnings from commodities exports by 10 percent. Following substantial declines in minerals and energy prices, ABARE now expects resources and farm exports to be in the vicinity of A$192 billion in 2008-09, down from the previous forecast of A$214 billion. ABARE said resource exports, which it had expected to climb 53 per cent this financial year, should now climb by 37 per cent.
Australian Bureau of Statistics (ABS) figures issued on Monday show that the value of personal and commercial commitments fell in October. Lending for personal purposes fell 2.1 per cent in October, while commercial financing was three per cent lower for the month.
Today the Reserve Bank of Australia board minutes of its December 2 meeting are due for release, and the Australian Bureau of Statistics is to issue dwelling unit commencements data for September.
M&A News
The board of Perilya Ltd(ASX:PEM) urged shareholders to reject a hostile A$31.4 million all-scrip bid by fellow lead and zinc miner CBH Resources Ltd(ASX:CBH). Perilya said a merger with CBH was unattractive because it had too much debt.
The board of Asciano Ltd. (ASX:AIO) will meet to give first consideration to any offers received for a minority stake in its coal business. It is said that Asciano hopes a sale of the business could provide A$1.6 billion to A$2 billion to help pay down debt.
Important Corporate News
Manganese miner OM Holdings(ASX:OMH) has revealed it has suspended shipments at a loss of over A$12 million in response to weaker market conditions, which has also prompted a 30 per cent cut to annual production next year.
Rio Tinto(ASX:RIO) is rumoured to be in talks with banking advisers about the possibility of a $US9 billion rights issue in the first half of next year.
Australia's major banks were still in talks last night over Centro's(ASX:CNP) rescue plan. Centro Properties Group's deadline to pay back almost A$6 billion expired at midnight last night.
Builder and developer Lend Lease Corporation Ltd(ASX:LLC) has appointed its finance director, Steve McCann, as its new chief executive officer and group managing director. Mr McCann will take over from incumbent Greg Clarke early in 2009.
Macarthur Coal Ltd(ASX:MCC) has downgraded its first half profit guidance and says there is uncertainty about future coal demand. The company now expects profit in the range of A$75 million to A$125 million for the six months to December 2008, down from its previous guidance of a profit in the range of A$150 million to A$160 million, reaffirmed in November.
Macquarie Infrastructure Group (ASX:MIG) has cut the valuation of its toll roads by 24 per cent because of the dislocation in global economic and market conditions.
1. Related Stocks - Mid Market (AEST 1230)
Yesterday, the Australian market closed higher as the miners surged on rising commodities prices offsetting the slump dragged by Telstra after the government ruled out the company from the tender list for bidding on the national broadband network. The benchmark S&P/ASX200 share index ended the day 2.3% higher, or 81 points, at 3591.4, while the broader All Ordinaries index rose 2.4%, or 83.2 points, to 3535.7. Traditionally the market would be quiet during this period with more focus on specific stocks rather than the market as a whole.
The Australian dollar has opened lower after failing to benefit from a further bout of US dollar weakness during offshore trading. At 0700 AEDT, the Australian dollar was trading at $US0.6645/50, down from Monday's close of $US0.6673/77.
The price of New York crude oil has soared above $US50 per barrel for the first time in two weeks as the market was driven by expectations that OPEC will cut crude output this week. Light sweet crude for delivery in January delivery fell almost two US dollars in overnight trade, settling down $US1.77 at $US44.51 per barrel.
Key Economic Facts and Figures
The Australian Bureau of Agricultural and Resource Economics has cut its forecast for earnings from commodities exports by 10 percent. Following substantial declines in minerals and energy prices, ABARE now expects resources and farm exports to be in the vicinity of A$192 billion in 2008-09, down from the previous forecast of A$214 billion. ABARE said resource exports, which it had expected to climb 53 per cent this financial year, should now climb by 37 per cent.
Australian Bureau of Statistics (ABS) figures issued on Monday show that the value of personal and commercial commitments fell in October. Lending for personal purposes fell 2.1 per cent in October, while commercial financing was three per cent lower for the month.
Today the Reserve Bank of Australia board minutes of its December 2 meeting are due for release, and the Australian Bureau of Statistics is to issue dwelling unit commencements data for September.
M&A News
The board of Perilya Ltd(ASX:PEM) urged shareholders to reject a hostile A$31.4 million all-scrip bid by fellow lead and zinc miner CBH Resources Ltd(ASX:CBH). Perilya said a merger with CBH was unattractive because it had too much debt.
The board of Asciano Ltd. (ASX:AIO) will meet to give first consideration to any offers received for a minority stake in its coal business. It is said that Asciano hopes a sale of the business could provide A$1.6 billion to A$2 billion to help pay down debt.
Important Corporate News
Manganese miner OM Holdings(ASX:OMH) has revealed it has suspended shipments at a loss of over A$12 million in response to weaker market conditions, which has also prompted a 30 per cent cut to annual production next year.
Rio Tinto(ASX:RIO) is rumoured to be in talks with banking advisers about the possibility of a $US9 billion rights issue in the first half of next year.
Australia's major banks were still in talks last night over Centro's(ASX:CNP) rescue plan. Centro Properties Group's deadline to pay back almost A$6 billion expired at midnight last night.
Builder and developer Lend Lease Corporation Ltd(ASX:LLC) has appointed its finance director, Steve McCann, as its new chief executive officer and group managing director. Mr McCann will take over from incumbent Greg Clarke early in 2009.
Macarthur Coal Ltd(ASX:MCC) has downgraded its first half profit guidance and says there is uncertainty about future coal demand. The company now expects profit in the range of A$75 million to A$125 million for the six months to December 2008, down from its previous guidance of a profit in the range of A$150 million to A$160 million, reaffirmed in November.
Macquarie Infrastructure Group (ASX:MIG) has cut the valuation of its toll roads by 24 per cent because of the dislocation in global economic and market conditions.
1. Related Stocks - Mid Market (AEST 1230)
--------------------------------------------------- Code % Change Volume Turnover Low High --------------------------------------------------- ASX:RIO -3.18 1,709,358 $68,670,762 3763 4161 ASX:MIG -7.03 3,346,425 $5,263,449 154 164 ASX:MCC -21.55 1,621,255 $4,523,209 268 287 ASX:LLC -4.6 305,444 $2,135,436 685 728 ASX:AIO +2.19 1,910,036 $2,658,663 134 142.5 ASX:OMH -6.11 356,169 $299,999 81 89 ASX:PEM -5.12 337,512 $59,373 17 19 ASX:CBH -7.89 644,000 $22,579 3.5 3.62. Top 10 ASX on Turnover - Mid Market (AEST 1230)
--------------------------------------------------- Code % Change Volume Turnover Low High --------------------------------------------------- ASX:TLS -5.75 114,639,215 $392,945,055 336 350 ASX:BHP -2.33 6,472,306 $199,802,198 3002 3172 ASX:WBC -.6 7,721,661 $127,576,677 1610 1638.5 ASX:CBA -.21 3,893,163 $110,074,243 2785 2842 ASX:RIO -3.33 1,709,638 $68,681,562 3763 4161 ASX:ANZ -2.2 4,593,939 $67,771,960 1460 1497 ASX:CSL +2.73 2,095,254 $58,945,613 2685 2915 ASX:NAB +.21 1,940,589 $37,779,953 1890 1939 ASX:WPL -2.67 1,005,661 $37,407,320 3377 3500 ASX:QBE +2.12 1,366,571 $33,605,027 2412 2503
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