A quiet day on our markets — down 5 points — a little disappointing considering the SFE Futures suggested an 18 point rise. Resources down 0.7% with BHP and RIO down 1.1% and 1.7%. Property and industrials down 0.3% and 0.1%. Financials up 0.2% – banks mostly up – NAB up the most at a 1.1% rise. Gold stocks down on the lower gold price overnight.
The Dow was down 17. Up 122 at best. Down 43 at worst. Financials down 0.8%. Energy stocks down 1.2%. BHP and RIO both up in ADR form overnight — 0.80% and 3.15% respectively. Metals up, Oil up. Bonds down. A$ down.
MACQUARIE – WEAK RESULTS AND CAPITAL RAISING — MQG missed guidance — posted FY profit of $871m, over 50% down on last year’s $1.803bn — just under MQG’s February guidance for $900m profit. Also cut the dividend. They have also requested a trading halt pending a capital raising thought to be worth up to $1bn including an institutional offer of 20m shares at $27 raising $540m versus the last price of 3348c – 19% discount. Their last capital raising was for $750m at $87.
- OZ Minerals (OZL) have had their refinancing extension agreed to by backers to give them a chance to complete the sale of some of their assets to China’s Minmetals. They expect to satisfy all new conditions and terms. Note a cash balance of US$109.5m (April 30) and a $33m undrawn short-term bridge facility.
- Aristocrat Leisure (ALL) notes the US district court rules that a trial is needed to determine any damages relating to bondholder case.
- Goodman Group (GMG) received credit approved proposals that it will use to repay a first tranche of a syndicated loan due May 23. GMG said it won’t pay a distribution in the year ending June 30.
- Atlas Iron’s (AGO) quarterly update notes three long term off-take agreements for the remaining 70% of Perdo DSO project. 225,923 tonnes of ore mined over the quarter. 200,771 dry tonnes shipped over quarter.
- Toll Holdings (TOL) makes an acquisition of BIC Logistics in India — will initially buy a 40% stake in BIC.
- Iluka (ILU) competed their $114m institutional placement at 300c per share at a 9% discount.
- Duet Group (DUE) compete a $265m equity raising with the retail component oversubscribed.
- Goodman Group (GMG) up over 10% receiving credit approved proposals to use to repay a first tranche of a syndicated loan due May 23.
- Alumina (AWC) announced it would initiate a seven for ten accelerated, non-renounceable pro-rata entitlement offer at 100c yesterday — brokers reacted with 4 SELLS.
- Westfield Group (WDC) provided its March quarterly review yesterday and brokers reacted with 2 BUYS and 2 HOLDS this morning.
- RBA decision on rates Wednesday — general consensus is rates will be left unchanged.
- End of the Month: ASX 200 was up 6.01%. Dow Jones up 7.35%. Banks underperformed. Property Trusts bounced. Gold down. Oil sideways. Metals well up — Nickel up 22%. A$ up 5%.
The Dow Futures suggest a 4 point fall on Wall Street.
MARCUS PADLEY is the Author of the MARCUS TODAY Daily Stockmarket Newsletter.
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