The market is up 44 — it was up 100 at one stage. The SFE Futures were up 65 this morning. We are struggling to hold the rally … again.

Wall Street closed down 22 overnight having been down 292 at one stage. The rally had little obvious fundamental basis and was described instead as a technical rally from oversold levels. The Dow hit its lowest level for 2010 … below the recent “Flash Crash” low. Metals were mostly down on the LME. The Gold price up $2.70 to $1196.70. Oil fell $1.46 to $68.75. The Aussie dollar up to 82.87c from 82.43c.

In other news today…

  • Foster’s Group (FGL) has released a Trading Update this morning and more importantly plans to demerge their beer and wine businesses. The demerger is unlikely to go ahead until 1st half of 2001 and is subject to shareholder approval. The market likes the idea – FGL is up 6% to 546c.
  • Wattyl (WYL) — up a big 36.75% to 113.5c after receiving a takeover offer from US company Valspar late yesterday valuing the company at 130c a share or $110m.
  • Rio Tinto (RIO) held their AGM this morning. RIO Chairman Jan du Plessis told shareholders that the proposed RSPT has the potential to destroy Australia’s reputation in the global community. He also said the 2010 dividend payout will be at least equal to the US$1.75bn paid in 2008. They remain committed their BHP iron ore JV and said 40% of iron ore sales have moved to a quarterly pricing basis. RIO up 3.1% to 6365c.
  • Tabcorp Holdings (TAH) says they have not received any takeover proposal and is not aware of any offers after the AFR website reported yesterday that private equity and Crown (CWN) would team up and bid for TAH. TAH put on 2.6% yesterday but is down 1.96% to 650c.
  • Goodman Group (GMG) announced that Goodman Australia Industrial Fund had secured $297m in new debt facilities to refinance existing 2010 maturities. CEO Greg Goodman also reiterated FY10 guidance and says gearing stands at 25% and falling. GMG down 0.5c to 58c.
  • The Takeover Panel has rejected the appeal from Transurban’s major shareholder, CP2, to stop TCL from undertaking their $542m capital raising. TCL down 10c to 420c.
  • A consortium of 13 coal companies are believed to be making a $5bn bid for QLD Rail’s coal tracks in an attempt to stop the QLD government from listing it on the ASX.
  • Lend Lease (LLC) has been selected to undertake a $2.2 billion joint venture development as part of the Stratford City regeneration project in east London. LLC up 10c to 740c.
  • Stocks hitting fresh 52 week lows include: Alliance Resources (AGS), Challenger Infrastructure (CIF) and Primary Health Care (PRY).

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