The market is up 83. The SFE Futures were down 49 this morning.
Wall Street closed down 140 on Friday but the Dow Futures bounced 226 over the weekend on the back of news that EU finance ministers look like agreeing a package worth at least $440bn Euros to support European debtor nations. Dow was up 59 at best and down 279 at worst on Friday. Metals were mostly down on the LME, the oil price fell $1.42 to $75.38 and the Gold price put on $13.10 to $1210. The Aussie dollar increased to 89.78c compared to 88.65c on Friday.
In the news today…
- Incitec Pivot (IPL) — Interim Result lower than expected — Net profit (excluding significant items) came in at $146.2m, down from $169.8m. Analysts had expected a figure of $152.8m. IPL CEO described the result as “sound” and they are positioned towards the bottom end of the cost curve. He sees strength in fertiliser prices and believes the US economy has bottomed. IPL up 13c to 317c.
- Peabody has reduced their takeover offer for Macarthur Coal (MCC). They are now offering MCC shareholders $15 a share compared to $16 a share on the back of the government’s plans to increase taxes in the resources sector. MCC down 1.31% to 1351c.
- Street Talk says Sims Metal Management (SGM) is looking for acquisitions and the market shouldn’t be surprised if they announce one in the short term. They are tipped to be looking at family-owned businesses worth around $100m or less rather than larger players. SGM unchanged today at 2075c.
- Transurban (TCL) announces they have acquired Sydney’s Lane Cove Tunnel for $630.5m. They will fund the acquisition through the sale of new equity, plus non-recourse project debt. TCL in a trading halt at 492c.
- Liquefied Natural Gas (LNG) has signed a conditional lease agreement over a site for their planned LNG project in Gladstone. Patersons has a HOLD recommendation on LNG with a 49c target price. LNG up a healthy 17% to 40c.
- Rivercity Motorway (RCY) said traffic numbers at their Brisbane tunnel remained disappointing. RCY down 4.3% to 6.6c.
- Macquarie Group (MQG) is up 77c to 4630c today despite going ex-dividend $1 this morning.
- Dexus Property (DXS) announced the acquisition of a Silverwater Industrial Property for $24.4m. DXS up 1.5c to 79.5c.
- The Federal Budget is due tomorrow. Wayne Swan has already described it as a boring budget … Joe Hockey says of course its boring they’ve run our of other people’s money to spend.
- Stocks hitting a new 52 week low include: Australian Pharmaceuticals (API) and Avexa Ltd (AVX)
MARCUS PADLEY is the Author of the MARCUS TODAY Daily Stockmarket Newsletter.
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