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Wednesday, 27 May 2009

ANZ in a trading halt

by Marcus Padley

The market is up 33. The SFE futures suggested a 65 point rise in the market this morning. Property sector up 3.6%. Industrials up 2.5% with Macquarie Airports up 7%. Resources doing well  — BHP up 1.7%. RIO down 0.1% after negotiating marginally better-than-expected benchmark iron ore prices with Nippon Steel yesterday. Nickel stocks flying on the 6.4% jump in the nickel price overnight.

The Dow was up 196. Up 218 at best  — down 51 at worst. Market bounced after four days of losses. Biggest monthly jump in US consumer confidence in six years. US Retailers up 4%. US Financials up 4.1%. BHP and RIO both up in ADR form overnight  — 4.24% and 1.7% respectively.

ANZ in a trading halt pending a $2.5bn institutional placement at $14.40/share (7.5% discount) and an additional retail share purchase plan of up to $350m. Notes the raising will increase is Tier 1 capital ratio by 90bps and that the ratio would remain about 7.5-8% after any acquisition. Says the raising is to provide flexibility to pursue opportunities such as the Royal Bank of Scotland’s Asian assets. Says its 2H credit provision charge will be up about 20% versus the 1H. Expects the outlook to remain uncertain and NZ conditions to remain difficult.

  • Bannerman Resources (BMN) in a trading halt to raise up to $30m in a private placement.
  • Suncorp-Metway (SUN) notes their 3Q impairment loss at $136m  — have raised their FY guidance for bad debts to 125-145bps from 100-130bps of total loans.
  • Caltex Australia (CTX) will acquire 302 Mobil service stations for around A$300 million  — will require ACCC and FIRB approval which will take a few months.
  • Westfield Group (WDC) priced a US$700m debt issue which it will use to pay loans under its revolving credit facilities.
  • Panoramic Resources (PAN) purchase of a 25% interest in Lanfranchi completed.
  • Iluka Resources (ILU) as a stakeholder announced to the board of Consolidated Rutile (CRT) that it accepts Unimin Australia’s takeover for all the CRT shares.
  • Beach Petroleum (BPT) make a takeover for Drillsearch Energy (DLS).
  • Programmed (PRG) posted FY09 NPAT down 1% to $28.1m a bit above some broker expectations  — cut dividend to 5c, more than expected, to strengthen balance sheet.
  • BlueScope Steel (BSL) said it will defer the restarting of a blast furnace at its Port Kembla to wait for better market conditions.
  • Ausenco (AAX) awarded the Gosowong gold extension EPCM contract in Indonesia.
  • Corporate Express (CXP) issued an in-line trading update with sales in major discretionary items slowing.
  • Minemakers (MAK) have increased their takeover offer for Bonaparte Diamond.
  • Silex Systems (SLX) acquires the Solar Manufacturing facility at Sydney Olympic Park.
  • Woolworths (WOW) clarifies it isn’t a party to Caltex Australia’s (CTX) announced purchase of 302 Mobil gas stations. Caltex is simply the petrol supplier for WOW’s 407 gas stations.

Other…

  • Ramsay Healthcare (RHC) had its price target upped by three major brokers this morning after their FY09 guidance update yesterday expecting EPS growth of 20%. 1 OVERWEIGHT, 2 HOLDS and 1 UNDERWEIGHT. Up 2.3%.
  • Citi gives a negative view of the global steel outlook  — puts Sims Group (SMS) at SELL. Puts Bluescope Steel (BLS) and Onesteel (OST) at HOLD. Says steel demand has collapsed and that 160m tons of capacity may have to be closed by 2012.

The Dow Futures suggest a 29 point fall on Wall Street tonight.

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

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