The market is down 115. The SFE Future were down 118 this morning.
Wall St. had a shocker on Friday closing down 250. It broke even at best and was down 278 at worst. It has its largest intraday fall since July 2. All ten major sectors closed down. Metals fell in London and both the oil and gold price finished lower, 3.59% and 0.64% respectively. The Aussie dollar also fell to 89.72c versus 91.47c. Economic data released was broadly in line with expectations but failed to excite.
Making the news today…
- Myer floats today at 12pm. They could not have had a more unfortunate run up to the listing — the market fell 4% last week and we are down another 2% today.
- Rio Tinto (RIO) is hosting an investor presentation this morning in Sydney. No real surprises. It wants to improve its relationship with China, its biggest customer. Balance sheet is starting to look a lot healthier and expects to complete its iron ore JV with BHP by mid next year. RIO down 3% to 6184c.
- Woodside Petroleum (WPL) has sold its 51.55% stake in Otway natural gas project in Australia’s Victoria state and permits to a unit of Origin Energy (ORG) for $712.5m. It wants to focus on major projects such as its multibillion dollar Pluto and Browse liquefied natural gas terminals in WA. WPL down 87c to 4683c.
- AGL Energy (AGK) says it hasn’t ruled out bidding for NSW Energy Assets despite media speculation suggesting it was no longer a consideration. AGK down 12c to 1375c.
- Energy Developments (ENE) has decided to knock back a takeover offer from private equity form, Pacific Equity Partners, after an independent expert labeled the offer inadequate. It is holding out for a higher bid. PEP has offered 265c a share for 100% of the company. They point out that the report says the offer is “neither fair nor reasonable and is not in the best interests of Energy Developments shareholders taken as a whole”. ENE down 1c to 239c.
- Programmed Maintenance (PRG) has successfully completed its Institutional entitlement offer. PRG down 1.5% to 415c.
- Australian PMI fell 0.3 points to 51.7 in October. Still a good result considering an index reading of above the 50-point mark indicates expansion in activity
- Treasurer Wayne Swan releases the government’s mid-year economic and fiscal outlook today. It is likely to include improved economic growth and labor market forecasts. The expected unemployment rate is also expected to come down to single digits.
- Stockland Group (SGP) appoints Tim Foster as its new CFO. SGP up 1c to 378c.
- Qantas Airways (QAN) said its passenger numbers increased 6.6% to 3.42m in September, up from 3.21m a year ago. QAN down 8c to 271c.
The Dow Futures were up 20 at 11.40am.
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