The market is up 70. A little short of the 90 point gain the SFE Futures had predicted this morning on the back of Wall Streets big gains overnight.
The Dow Jones had a great session overnight closing up 319 points.
Lots going on today…
- ANZ explained yesterday that the E*Trade on-line broking business they recently bought on the ASX had only a brand licensing agreement with E*Trade in the US and had no links to the sub-prime woes that sent the E*Trade price down 59% in the US market yesterday. Didn’t worry ANZ yesterday. ANZ up another 33c today to 2871c.
- Karoon Gas (KAR) was written up Southern Cross on 11 October for being worth $20-40 and they recommended buying up to 400c. Price at the time was about 320c and it rallied that day to 401c (its all time high). KAR just did a $41m capital raising – 12m shares at 345c (through Southern Cross). Price now 350c.
- Solid result – Incitec Pivot (IPL) announced this morning a better-than-expected FY net profit, up 145% (before one-offs) to $202.5m from $82.8m last year. Analysts had expected just under $200m. They declared a special dividend of 40c on top of their 191c final dividend. IPL up 7.2% today to 9332c.
- Lots of broker stuff on Macquarie Bank (MQG) this morning after their results yesterday. Can’t shake brokers from a long term positive view. No downgrades despite the soft outlook statement, positive overall.
- Palmary has upped its takeover offer for Consolidated Minerals (CSM) to 470c cash per share from 450c. CSM board has recommended it. Some are expecting a higher offer to come from Pallinghurst now that the Takeover Panel allowed it to withdraw its declaration that its offer was final. CSM up 20c to 485c.
- Flight Centre (FLT) has raised $100m to fund its acquisition of Liberty Travel in the US by completing their institutional placement of 4.25m shares at 2350c each. FLT up 1c to 2457c.
- Allegiance Mining (Tasmanian nickel deposit) up 6.4% on talk of a takeover after suggestions a 4.65% stake got sold at a premium to market. The company say they have had no contact about a bid. They have a presentation out today entitled “Allegiance Mining – A new nickel province for China!”. Jinchuan Nickel has a 10.4% stake. Management 6.2%. Lion Selection Group 4.2%.
- 38 AGMs including Wesfarmers, Seven Network, Lend Lease, Regional Express, Austereo, Cytopia
- Companies going ex dividend today include: Orica (53c) and Servcorp 5c.
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MARCUS TODAY – “Inform, Explain, Educate, Entertain”.
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