Crikey

The market is up 29 – was up 80 at best outperforming the 58 point rise predicted by the SFE Futures this morning. Resources up 1.6% - BHP and RIO up 1.2% and 1.8% respectively following the strong lead on Wall Street and despite the lower metals prices. Financials underperforming – down 0.8% – Banks down – ANZ underperforming, down 3.2%. CBA in a trading halt pending a statement having done a $2bn institutional capital raising last night. Big industrials outperforming – up 2.3%. Wesfarmers up 3.5%. Leighton Holdings down 1.3% on a downgrade by Merrills. Qantas up 2.7% on confirming October passenger numbers. Goodman Group up 21.2% on confirming their 1H distribution of 9.65c. Property sector up 0.5% - Stockland Group getting flogged – down 7.1% on a profit downgrade.

The Dow was up 359. Up 393 at best. Up all session. Fed slashed its key rate to a record low of between 0.00%-0.25%. First time below 1% in 50 years. US dollar index fell 1.9% on the Fed rate cut with the weakening economy confirmed. The US housing market hemorrhaging – November housing starts down 18.9% - building permits down 15.6%. Financials up 11.3% despite Goldman Sachs’ quarterly losses and credit rerating by Moody’s. Automaker bailout to be announced possibly by Wednesday. Materials up +5%. Both BHP and RIO up in ADR form overnight, 6.4% and 10.9% respectively. Oil price down 77c to $43.84. Gold up $6.20 to $842.70. Bonds up with the 10 year yield down to 2.29%.

The Commonwealth Bank of Australia raised $2bn in an institutional share placement last night and suggested the credit markets could get a lot worse. The issue was fully subscribed in two hours between 4pm and 6pm at 2700c a share, a 5 year low. The closing price last night was 2915c (done at 7.3% discount). This comes after a 56% fall in the share price.

• Talk of the National Bank of Australia being in advanced talks with Wizard Home Loans.
• Valad Property Group (VPG) has raised $138.7m from asset sales.
• AGL Energy (AGK) has acquired the Gloucester Basin coal seam gas assets for a total of $370m.
• FKP Property Group (FKP) has provided a strategic review update – Stockland Group (SGP) has told them that further analysis is needed before it makes a formal proposal for its retirement assets.
• Goodman Group (GMG) says its 1H distribution will be 9.65c a security.
• Australian Wheat Board (AWB) announced growers will receive $330m from AWB National Pool.
• Macmahon Holdings (MAH) has been awarded the $40m Bunbury Port Access contract.
• Bannerman Resources (BMN) announces settlement of the Savanna litigation. Savanna will get up to $3.5m and 9.5m Bannerman shares.
• St Barbara Mines (SBM) has appointed a new CEO and MD.
• Santos (STO) has appointed former CEO of Xstrata, Peter Coates, as its deputy chairman.
• Mirabella Nickel (MBN) announces a maiden underground resource for the Santa Rita site.
• Nido Petroleum (NDO) has provided a Galoc Field update.
• Australian Agriculture (AAC) announced a strategy update and outlook.

Broker Stuff Archive…

• A few downgrades around for Macarthur Coal (MCC) after it cut profit and production guidance yesterday. Merrill Lynch maintain their Underperform and cut their target price to 380c from 470c, GSJB Were say Hold and UBS Warburg also cut their recommendation to Neutral from Buy and cut their target price from 890c to 250c.
• Merrill Lynch cut their recommendation on Leighton Holdings (LEI) to Underperform from Neutral and their target price to 2600c from 3719c after cutting their earnings expectations.

Others Stuff

• The Dow Futures suggest 14 point fall on Wall Street tonight.

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