The Australian shares fell in late trading on Monday, pulled by energy sector. The benchmark S&P/ASX200 lost 16.9 points, or 0.43 per cent, to 3886.9, and the broader All Ordinaries was down 16.8 points or 0.43 per cent to 3882.7. Analysts expect the local market remained directionless ahead of the financial year end.
Key Economic Facts and Figures
The Bank for International Settlements (BIS) has warned that governments' current stimulus will lead only to a temporary boost in growth, followed by protracted stagnation. BIS report warned that countries such as Australia faced the possibility of a run on the currency, which would force interest rates to rise. The BIS analysis shows that Australia is running the third-largest fiscal stimulus package in the advanced world, behind the US and Korea.
The Reserve Bank of Australia Tuesday is to release financial aggregates data for May. The Housing Industry Association releases new home sales data for May.
Lion Nathan (ASX:LNN) today said that the Australian Competition and Consumer Commission would not oppose the Kirin Holdings (TYO:2503) acquisition of the shares it does not already own in the local brewer. The company would lodge a scheme of arrangement booklet in the next two months and that its investors would vote on the takeover in September.
Macquarie Communications Infrastructure Group (ASX:MCG) said the Canada Pension Plan Investment Board's (CPPIB) takeover bid had received the last necessary regulatory approvals. CPPIB plans to take control of MCG for A$2.2 billion, under an offer boosted earlier this month to win the support of MCG's major shareholders.
Copper-gold miner PanAust Limited (ASX:PNA) said it had won approval from Australia's Foreign Investment Review Board for China's Guangdong Rising Assets Management to take a 19.9 per cent stake in the company.
Shareholders of toy wholesaler Funtastic Limited (ASX:FUN) have approved the company to engage in a A$22 million capital raising and to acquire Hong Kong-based children's furniture manufacturer NSR (HK) Ltd. A successful, fully underwritten, non-renounceable rights issue is the key criterion for its lender to extend Funtastic's banking facilities to June 2011, allowing completion of the company's restructure after it pays down debt.
Important Corporate News
Upmarket retailer David Jones (ASX:DJS) has increased its profit growth guidance to between 20 to 30 per cent for the second half of its financial year, which ends on July 25. David Jones previously forecast growth of between zero and 5 per cent for the period. Full year profit growth guidance was upgraded to between 8 to 12 per cent, up from the previous zero to 5 per cent range.
Elders Ltd (ASX:ELD) has completed agreements with its lenders to extend short dated debt for three months, allowing time to refinance the facilities. Elders said the debt would be extended from June 30 to September 30.
Sources said Aluminum Corp. of China (Chinalco) plans to buy 880 million pounds of Rio Tinto (ASX:RIO) stock, taking its share of a rights offer by the world's third-biggest mining company. Rio Tinto is selling $US15.2 billion of stock in the UK and Australia to help pay debt.
Rio Tinto Limited
Macquarie Communications Infrastructure Group
Lion Nathan Limited
Kirin Holdings Company, Limited.
David Jones Limited
Aluminum Corporation of China (CHINALCO)