The market is down 25. The SFE futures suggested a 44 point rise in the market this morning. Market was up 19 on the open but has rolled over — most sectors now down. Resources down 1.1% with BHP and RIO down 1.6% and 3.4%. Energy stocks remain up 0.2%. Financials down 0.6% — banks all down. Property stocks up 2.5%.
The Dow was up 164. Up all session — up 178 at best. US Financials up 8.3% with a positive response to the government’s bank stress-test data. Banks making plans to raise the new capital. Energy stocks strong — up 4.2% on the higher oil price. BHP and RIO both up in ADR form Friday — 4.79% and 2.64% respectively. Metals mostly down. Gold down. A$ up.
We had around $5bn worth of capital raisings last week.
Santos (STO) has launched a 2-for-5 accelerated pro-rata non-renounceable entitlement offer at a 27% discount. Offering stock at $12.50/share (last 1709c) to raise up to $3bn. $1.65bn in an institutional placement. An additional $1.35bn in a retail component. STO will use $1.05bn to fund the PNG LNG project and $600m for the redemption of FUELS. Additional funds will be used for other growth projects and to reach the final investment decision on the GLNG QLD project by mid 2010.
- Pacific Brands (PBG) in a trading halt to raise up to $256m in capital from a $0.60/share retail and institutional offer. Will use to reduce debt and for working capital. Last 77c.
- Incitec Pivot (IPL) post 1H NPAT of $99.6m, down 41% before items on-year due to lower fertilizer prices. Wouldn’t reiterate previous guidance.
- Asciano (AIO) note they have incomplete proposals from four bidders over transactions ranging from change of control to recapitalization of the group. Maintains FY09 EBITDA guidance to be above FY08’s.
- Lion Nathan (LNN) out of their trading halt having signed an implementation agreement with Kirin for a compromised $11.50 cash and 72c dividend per share agreement, subject to an independent expert report and Lion’s non-Kirin shareholders.
- Elders (ELD) finished selling its stake in beef cattle producer Australian Agricultural Co (AAC) for a gross $84.5m. AAC have had $250m of asset sales fall through to Primary Holdings International Group and are down 11.2%.
- Leighton Holdings (LEI) note FY09 operating profit pre-items won’t vary more than 15% verses FY08. Down 4.2%.
- Lend Lease (LLC) issued a profit warning — expect net operating profit to be down 25% from last guidance to $300m. LLC down 3.4%.
- Boart Longyear’s (BLY) Chairman said no 2H recovery is likely and that BLY won’t meet year-end Net Debt-to-EBITDA ratio. Said 2H demand will be materially below expectations. BLY unchanged at 15c.
- GPT (GPT) resumes trading after their 26% discounted institutional raising. Stockland (SGP) is being speculated as perhaps offering a friendly merger with GPT. SGP has a 12.7% stake in GPT. GPT up 11.5%.
- Bunnings Warehouse (BWP) received strong support for its $150m (total), 1-for-3.09, $1.50 /share institutional entitlement offer — the $79m retail component will follow shortly. Price up 6.8%.
- Sundance Resources (SDL) out of a trading halt with an indicated resource announcement.
- Babcock and Brown Infrastructure (BBI) is assessing the impact of Corus’ Teeside Decision and the PD Ports sales process.
- Bluescope Steel (BSL) announced Friday a 1-for-1 non-renounceable entitlement offer for $1.55/share to ordinary shareholders to raise about $1.413m. BSL has raised $797m through the institutional component.
- According to Access Economics, the Federal Budget will stay in deficit well beyond 2016 unless the Rudd government cuts spending.
- The CBA has a trading update on Wednesday and CSR has final results on Wednesday.
- Macquarie Group cut Leighton Holdings (LEI) to UNDERPERFORM with a 2110c price target.
The Dow Futures suggest a 58 point fall on Wall Street.
MARCUS PADLEY is the Author of the MARCUS TODAY Daily Stockmarket Newsletter.
For a free 21 day obligation free trial of the MARCUS TODAY newsletter (and no we won’t ask for a credit card number) please START A FREE TRIAL — you will receive two daily emails about the stockmarket, our MORNING EMAIL with all the stuff you need to know ahead of the trading day ahead and a DAILY EMAIL with all the midday events, news, comments and Ideas from Marcus and his Team.
You will also be given a password to the MARCUS TODAY website including access to all the emails as well as Educational, Entertaining and Researched Articles from Marcus and his Team and an archive where you can catch up on a whole week or month in just a few minutes. Or Browse at length. We are sure you will enjoy and profit from what we offer.
Find out now. GET STARTED and hopefully one day we will Welcome you onto the Membership List. We have one of the highest re-subscription rates in the financial newsletter industry.
Thousands of subscribers enjoy and profit from our services every day. Join us