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Friday, 15 May 2009

A nice market rebound

by Marcus Padley

Nice rebound today  — up 50. The SFE futures suggested a 11 point rise in the market this morning. All sectors making gains. Resources up 2.1% with RIO rebounding 8% after falling 18% the last 5 days - remains committed to the $19.5bn Chinalco tie-up and receives US foreign investment approval for the deal. BHP up 2.0%. Banks all up  — WBC up 1.5%. Property stocks up 1.2%

The Dow was up 46. Up 92 at best. Down 11 at worst. 9 out of 10 sectors up  — only utility stocks down. Worse-than-expected weekly unemployment figures. Financials bounced 4% after recent heavy falls. Insurers did the best. BHP and RIO both up in ADR form overnight  — 1.33% and 5.65% respectively. Oil up. Gold up. Bonds up. A$ up.

Nufarm (NUF) in a trading halt as it plans to raise $300m via an $11.25/share institutional raising. Reaffirms FY NPAT guidance of $220m  — expects strong sales demand in the final three months of the FY.

  • Paladin Energy (PDN) up 5% posting quarterly gross profit up 44% on-year to US$10.8m.
  • Leighton Holdings (LEI) secured $290m in new contracts for the WA Mandurah Entrance Road.
  • Skilled Group (SKE) entered into a JV and secured an agreement with Chevron Australia to supply marine vessels and labour to the WA Gordon Project.
  • Origin Energy (ORG) up 4c to 1554c acquiring 180MW’s in long-term power purchase agreements from Babcock & Brown Power (BBP) for the Osborne cogeneration plant in SA.
  • Cabcharge (CAB) released inline 3Q09 results for its 49% owned JVs with Australian buses and UK taxis.
  • Macmahon Holdings (MAH) successfully completed its $46m share placement and entitlement.
  • Monadelphous Group (MND) has won $100m in new contracts from BHP and RIO.
  • Woolworths (WOW) will acquire 25% of Gage Roads. WOW also told the Sydney Morning Herald that it was limiting its search for overseas acquisitions.

Other…

  • Brokers generally cut Leighton Holdings’ (LEI) price target and cut their recommendations after LEI downgraded FY09e operating NPAT guidance by 5% yesterday  — 3 SELLS and 1 HOLD this morning.
  • Goldman Sachs JB Were put a SELL and 105c price target on Fairfax Media (FXJ) saying the trading environment remains very difficult.

The Dow Futures suggest a 4 point rise on Wall Street.

MARCUS PADLEY is the Author of the MARCUS TODAY Daily Stockmarket Newsletter.

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