US stocks fell Thursday as investors were nervous about the results of government's stress test. Ten of the 19 US financial institutions in stress test will be required to raise a combined $US75 billion in capital.
Australian shares posted a strong gain yesterday. The better-than-expected employment data also boosted the stocks market. At the close, the benchmark S&P/ASX200 index rose 1.9%, or 71.6 points, at 3938.7, while the broader All Ordinaries index was up 1.9%, or 72 points, at 3912.1.
Key Economic Facts and Figures
The Australian Bureau of Statistics unveiled its employment data yesterday. The unemployment rate declined in April to 5.4%, from 5.7% in March. The April employment number rose by 27,300, with the number of full-time workers rising by 49,100. The market had expected a rise in umemployment to almost 6%.
The Reserve Bank of Australia releases its quarterly statement on monetary policy on Friday.
M&A News
Bendigo and Adelaide Bank (ASX:BEN) has increased its stake in Elders Rural Bank by 10 percent to 60 percent. The other 40 per cent will be retained by Elders Ltd (ASX:ELD) (formerly Futuris Corp). The Elders Rural Bank will soon change its name to Rural Bank Ltd.
OZ Minerals (ASX:OZL) has recommended its shareholders vote in favour of its deal with China Minmetals to save it from administration. The company said it might not be successful in refinancing its debt.
Important Corporate News
Telstra (ASX:TLS) has this morning confirmed the appointment of David Thodey as its new chief executive officer to replace Sol Trujillo. Don McGauchie resigned as the telco's Chairman and said he would leave the board immediately.
Stockland (ASX:SGP) says it will maintain its stake in GPT Group (ASX:GPT) by participating in GPT's equity offer. GPT Group said yesterday it would seek to raise as much as A$1.69 billion capital. Stockland would take part in the one-for-one rights offer.
Telecom New Zealand (ASX:TEL) recorded net earnings of $NZ322 million in the nine months ended March 31 2009, down 40 per cent on the prior corresponding period. The company remained its guidance for the full year of adjusted earnings of $NZ460 million to $NZ500 million unchanged.
BlueScope Steel Ltd (ASX:BSL) has completed the A$797 million institutional component of the non-renounceable entitlement offer made on May 5.
Medical equipment company ResMed Inc (ASX:RMD)(NYSE:RMD) posted a net profit for the three months to March 31, 2009, was $US39.2 million, up 32 per cent on $US29.7 million in the prior corresponding period. Its revenue and profit reached record levels as the company boosted sales in America and benefited from the weaker Australian dollar.
Contact
Michelle LiangAsia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
Related Companies
Telecom Corporation Of New Zealand Limited
Bendigo and Adelaide Bank Limited
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