The market is down 40 compared to the 58 point fall the SFE Futures predicted this morning. Started badly and have been in the red ever since.
Dow closed down 187 — down all session. Dow down 1 at best down 221 at worst. Worst session in a month. On the back of the G8 reiterating their faith in the US$, it rallied and commodities fell over. Metals all down — Zinc down 7%, Nickel down 5.9%. Oil price down. Gold price down $13.
Making the news today…
- Pacifica Group (PBB) has been bid for by majority shareholder The Bosch Group — 23c a share, 44% premium to its last traded price. It has applied to the FIRB and already owns 76.6% of PBB.
- Lihir (LGL) take an impairment charge of US$250-350m and downgrades production expectations from the mine by 20%. Very disappointing buit the price is only down 4c to 288c.
- Nufarm (NUF) profit warning this morning. Will miss earnings by 15%. Price down 9.5% or 115c to 1095c this morning.
- Goodman Group (GMG) announced China Investment Corp will assist in financing the company by investing a further $200m.
- Origin Energy (ORG) has signed a gas transport agreement with Epic Energy resulting in a capacity expansion on the 935km South West QLD pipeline and QSN Link.
- Macquarie Communications Infrastructure Group(MCG) says bidder Canada Pension Plan Investment Board has upped its bid with a special distribution of 50c if holders approve its takeover offer.
- Perpetual (PPT) says funds under management increased slightly to $25.5bn from $25.3bn.
- Billabong (BBG) has completed its $291m capital raising.
- GPT Group (GPT) has completed its $1.7bn capital raising.
- Seek (SEK) will raise around $15m from its share purchase plan.
- Wattyl (WYL) has announced a new CFO.
In other news…
- The RBA has released the minutes from its previous board meeting – by the sounds of it, interest rates are going to remain on Hold for a little while.
- Advanced Magnesium (ANM) up 283.3% today — it has signed an agreement with Henan Keweier Alloy Materials, a Chinese magnesium alloy producer.
- JP Morgan cuts Stockland Group (SGP) to Underweight from Neutral despite lifting its target price to 313c from 300c.
- Mantra (MRU) running ahead of a well sought after listing in Toronto – Canadian brokers with 490c valuations. Now 379c. Down 14c to 365c this morning.
- NSW government has released its budget — forecasts $990m budget deficit in the fiscal year starting June 1.
- RIO go ex entitlement to their rights issue tomorrow. If you wanted to buy to get stock in the rights issue you will have to do so by close of market today.
The Dow Futures suggest a 2 point fall on Wall Street tonight.
MARCUS PADLEY is the Author of the MARCUS TODAY Daily Stockmarket Newsletter.
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