The Australian market declined for a fifth consecutive session on Thursday, even after a stronger-than-expected labour force report. The falls were led by resources shares and consumer discretionary. At the close, the benchmark S&P/ASX200 index dropped 31.2 points, or 0.7 per cent, at 4606.7 points, while the broader All Ordinaries index lost 29.7 points, or 0.6 per cent, to 4622.9 points.
Key Economic Facts and Figures
Australian Bureau of Statistics yesterday said the nation's jobless rate fell surprisingly to 5.7 per cent last month, from 5.8 per cent in October. Economists were expecting the rate to edge higher to 5.9 per cent. The result could further raise the prospects of interest rate rises by the RBA.
The Melbourne Institue survey of consumer inflationary expectations showed a rise of 0.4 percentage points to 3.6 per cent in December. Only 17.7 per cent of respondents expect the rate of inflation to fall to between the central bank's two to three per cent target range.
No economic data is due on Friday.
M&A News
Metcash Ltd. (ASX:MTS) said it agreed to take a 50.1% stake in privately held hardware chain Mitre 10 Group for A$55 million in an effort to better compete with rivals Wesfarmers' (ASX:WES) Bunnings chain and Woolworths' (ASX:WOW) joint venture with Lowe's Cos. (NYSE:LOW).
Property developer Sunland Group (ASX:SDG) has entered Brisbane's CBD high-rise residential market with the acquisition of the Carrington site for a A$250 million residential project. The site was purchased from Devine (ASX:DVN) for A$25 million. This is part of Sunland's strategy to strengthen its development portfolio in all activities including land, housing and high rise.
Important Corporate News
KarmelSonix Limited (ASX:KSX) said it has agreed to signed with Clear Sales Australia to market and distribute the KarmelSonix Personal WheezoMeter(TM) into retail pharmacies throughout Australia. Clear Sales Australia is one of the country's leading retail pharmacy brokers with distribution in all States of Australia. The Personal WheezoMeter(TM) is the first point of care portable device for the detention of wheeze such as in asthma.
The Australian Competition and Consumer Commission (ACCC) said it allows Virgin Blue (ASX:VBA) and Delta Air Lines (NYSE:DAL) to enter into a joint venture on their flights between Australia and the United States. Under the joint venture, the airlines would take a coordinated approach to a range of issues, including pricing, revenue management, schedules, capacity and routes flown. ACCC said the joint venture could assist the two carriers to compete more effectively against Qantas Airways Ltd (ASX:QAN) and United Airlines.
Santos Ltd. (ASX:STO) said Thursday it expects its capital expenditure to nearly double in 2010, as it pushes ahead with several major gas projects to capitalize on booming Asian demand for cleaner fuels. Santos forecast total spending of A$2.8 billion in 2010, with A$1 billion for its planned liquefied natural gas export terminal fed by coal seam gas at the port of Gladstone in Queensland state. Santos has expected capital expenditure of A$1.6 billion in 2009.
Contact
Michelle LiangAsia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
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