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Tuesday, 19 May 2009

ANZ and Amcor likely to raise over $1bn

by Marcus Padley

Good day — the market is up 80. The SFE futures suggested a 63 point rise in the market this morning. Resources up 2.7% with BHP and RIO up 3.4% and 3.5%. Energy majors doing well on the 4.8% jump in oil futures leading up to the US summer driving season. Small resource stocks pumping. Property stocks up 3.2%.

The Dow was up 235. Up all session – up 243 at best. Best advance in two weeks. US Financials spiked 7.2%. Goldman Sachs adds Bank of America to its conviction BUY list. Homebuilders flew on the positive homebuilder’s sentiment index number. Energy stocks perform well. BHP and RIO both up in ADR form overnight – 4.69% and 5.74% respectively. Metals mixed. Gold down.

ANZ and AMC Capital Raising Rumour – Street Talk tells us that ANZ Bank and Amcor are both likely to raise over $1bn in the next fortnight. Amcor needs to the cash to pay for the purchase of Rio Tinto’s packaging assets. ANZ is the only bank out of the big 4 not to have raised equity via a placement or rights issue in the past year. The paper also hints that ANZ might have been outbid for Royal Bank of Scotland’s Asian operations that were on sale, but will proceed with the raising anyway.

  • Goodman Group (GMG) signed a new $300m finance facility which will ensure it meets its refinancing obligations in 2009. Note they are in advanced discussions with strategic investors interested in potential investments in the group and its underlying funds.
  • APN News & Media (APN) in a trading halt ahead of “capital management initiatives”.
  • Hastie Group (HST) in a trading halt pending a capital raising.
  • Graincorp (GNC) out of a trading halt having placed 9.65m shares at $6.25 each completing the $60m institutional placement to strengthen its balance sheet.
  • Energy Resources (ERA) notes that the NT government has said it will require a formal environmental assessment before its planned heap leach development at the Ranger Uranium mine.
  • Elders (ELD) downgrade their 2H and FY earnings outlook on lower prices and buyer uncertainty. Note their cash position is strong and reaffirm a FY10 rebound in earnings expectations.
  • Karoon Gas (KAR) in a trading halt pending an update on Poseidon-1.
  • Deep Yellow (DYL) said Mt Isa district drilling continues to return high grade ore.
  • Atlas Iron (AGO) out of a trading halt with a 500% increase in its DSO resource.
  • Mincor Resources (MCR) have potentially struck a major new discovery at Mariners Mine.
  • GRD Limited (GRD) awarded a contract for Ban Houayxai Project.

Other…

  • RBS upgrades RIO to a Hold from a Sell with alternatives about how RIO might refinance its debt grows – said 3 options exist including corporate bonds, a rights issue or a combination of both.
  • Santos (STO) upgraded to a BUY by Merrill Lynch with its price target boosted from 1569c to 1575c.
  • JP Morgan cuts Billabong (BBG) to UNDERWEIGHT from Neutral with concerns over customers delaying orders – lifts price target to 900c from 720c. Says medium term earnings growth profile is strong but that in the short term there is risk of further pressure on the consumer. Credit Suisse cuts BBG to UNDERPERFORM and slashes price target to 856c from 1018c.
  • Wayne more bullish than the IMF - The government forecasts a return to 4.25% growth in 2011 - the IMF suggest 3%.
  • The Ban on short selling in financials is due to come off on the 31st of May.

The Dow Futures suggest a 15 point fall on Wall Street.

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

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