The market is down 9. The SFE Futures were up 20 this morning.     

Wall Street closed up 143 overnight. Dow up 169 at best and up 1 at worst. UK Markets were closed overnight as was the London Metal Exchange for the May Day Bank Holiday — they have a general election on Thursday. Oil price lost 17c to $85.98, Gold price increased by 1.5c to $1182 and the Aussie dollar increased to 92.65c compared to 92.29c yesterday. Diversified Resources down 2.3% in the US. Worst sector.

In the news today…

  • The Henry Tax Review continues to hurt resources. BHP and RIO down 3% and 4.3% respectively yesterday. Both are down another 1.8% and 2.7% today. Around $14bn was lost from resources shares market capitalisations yesterday. See more below on impact.
  • Lihir Gold (LGL) has accepted an improved takeover offer from Newcrest Mining (NCM) this morning. NCM was offering the equivalent of 402.8c a share, a 6.4% improvement on NCM’s original offer until the NCM price fell 4% today on the Henry impact. Bid now worth 386c. LGL directors unanimously recommend shareholders vote in favour of the deal, but LGL has retained the right to talk to other parties. LGL up 3.8% to 381c and NCM down 4% to 3078c.
  • Westfield Group (WDC) released their 1Q Review. The market liked the numbers — WDC up 1.4% to 1327c. Australian and NZ portfolios performed strongly and they see improvements in both the US and UK markets. Broken up on chart.
  • Centennial Coal (CEY) expects the contract price for metallurgical coal to “significantly increase” from the US$200 per metric ton in the Japanese fiscal 1st Q. CEY up 2.7% to 420c on the back of the announcement.
  • Macarthur Coal (MCC) down another 2.5% today to 1364c after falling around 10% yesterday. They announced that Peabody has completed due diligence but would like more information post the Henry Tax Review. The indicative bid was $16. Price now 1360c.
  • There is a 70% chance of an RBA rate rise later this afternoon to 4.5% from 4.25%. A decision is expected 2:30pm.
  • Hastie Group (HST) cut their FY operating earnings guidance this morning and announced the acquisition of Spectrum Fire & Security for $7m. Patersons maintain their BUY recommendation but intend to lower their 230c target price. HST down 1.5c to 169.5c.
  • Centrebet (CIL) are in discussions that could last for some time with various parties regarding consolidation opportunities. They warn that these talks may not result in any formal proposal. CIL up 4% to 172c.
  • Amcor (AMC) has hit a fresh yearly high this morning. Stocks hitting a new 52 week low include: Apex Minerals (AXM), Bannerman Resources (BMN), Energy Resources (ERA) and Infigen Energy (IFN).

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