The market is up 114 points – drifting back from its early high of 161 – underperforming the 170 point rise the SFE Futures predicted this morning. All sectors up. Resources outperforming – BHP and RIO up 6.4% and 7.0%. Oz Minerals up 2.2%, Fortescue Metals up 5.9% after being up 8.0% early, Paladin Energy up 8.9% and Woodside up 5.2%. Newcrest and Lihir up 5.7% and 9.3% on the higher gold price overnight. Financials up 2.8% – St George shareholders voted in favour of the Westpac bid – ‘exit’ the dragon – Monday is the last day of trading in St George.

The Dow was up 552. Up 590 at best. Down 313 at worst (903 point range). Main Points: Two hours before the close the Dow Jones was down 313 to 7969 before a massive 550-point rebound (nearly 7%) before the close. 8000 on the Dow Jones was a new low providing support and seems to have prompted bargain hunters to jump in despite poor economic data. S&P 500 hit its year low mid session having lost $1 trillion in 3 days. Some positioning ahead of the G20 meeting in Washington this weekend which is hoped will set a basis for coordinated support for the global financial system including a possible coordinated interest rate cut. Initial jobless claims up much more than expected (highest since 2001) and housing market data remains very negative. Intel and Wal-Mart cut outlooks. Bonds down. A$ up 3.87% against the US dollar. Gold up $25. Metals all up moderately. Oil up $2.33. BHP and RIO up 9% and 13.6% – BHP up 197c in A$ terms. Energy stocks up 11.1%. Financials up 8.1%. Germany is officially in recession.

Making the news…

  • Transfield Infrastructure Fund’s (TSI) address to shareholders confirmed guidance and said EBITDA in the FY should be $112m-$120m – reiterated fund’s strong performance.
  • Transfield Services (TSE) suspended their shares form quotation pending the completion of capital management initiatives.
  • Mirvac Group (MGR) has told shareholders at its AGM today that it expects FY09 net profit to be around $199m. Said it’s in talks with the banks to roll over its $1.1bn debt facility which it expects to be finalized by the end of the year. Said it will close all non-core property investment offerings and is continuing an extensive review of its cost base.
  • SingTel Group (SGT) sealed S$1.075bn in credit facilities.
  • Austal (ASB) has won a U.S. Navy and Army contract to build up to 10 vessels that will transport equipment and troops in shallow waters.
  • CSR Ltd (CSR) was placed in a trading halt just before the market opened – it is reviewing a range of capital management initiatives.
  • Incitec Pivot (IPL) completed their $819m institutional part of its rights offer.
  • Straits Resources (SRL) said its profit for the 9 months increased to US$84.8m from US$19m last year. Although the current market is volatile, is has so far contracted sales for 2009 of 6.6m tons of coal at an average selling price of US$114 per ton.

Broker Stuff today…

  • The positive broker recommendations continue despite Wesfarmers falling to a new yearly low yesterday on the back of its AGM. Citi say BUY (2980c target price) having already factored in higher cost of funding, GSJB were say BUY (3184c target price) and expect the market to focus on gearing/debt refinancing. Macquarie Equities expect WES to OUTPERFORM (3216c target price) suggesting the market has factored in a worst case scenario.
  • Commonwealth Bank has had its target price cut by 3 brokers this morning on the back of their trading update yesterday. UBS Warburg (4300c to 3500c), Merrill Lynch (4730c to 3720c) and ABN AMRO (4006c to 3323c) Macquarie Equities bucked the trend and upped their recommendation to Outperform and maintain their 3800c target price.
  • Credit Suisse cut their target price on Woodside (WPL) to 4750c from 5000c and maintain their Neutral recommendation saying 2009 production guidance surprised on the downside and predict risk in LNG project delivery.

Other Stuff…

  • Macquarie Group announce their 1H09 result on Tuesday and Lion Nathan their FY result.
  • The last day of trading in St George shares will be Monday…17th November. From Tuesday 18th Westpac will be trading deferred settlement including St George – trades T+3 on 2nd December.
  • The Dow Futures suggest a 38 point fall on Wall Street tonight.  

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