The market is down 7. The SFE Futures were down 9 this morning.
The Dow Jones closed up 50 on Friday. The Dow was up 89 at best and ended the week up 3.1%. The 3rd estimate for 4th quarter GDP was revised upward more than expected to reflect growth of 3.1% versus 2.8% before and forecasts of 3.0%. Portugal’s parliament rejected budget cuts as they continued to rule out a rescue. The oil price fell 20c to $105.40 and the gold price fell $8.70 to $1426.20. The Aussie dollar is at 102.53c and it hit a new high over the weekend of 102.94c.
Today’s main stories…
- Big currency deal – After a large ($9bn) purchase of A$ with euros in the currency market last week there has been talk about a bid for Woodside from BHP or for the Fosters beer division from SABMiller. One broker comment is that no-one does a currency deal before a bid so the speculation is premature. AXA on the other hand has to settle their $9.8bn acquisition of AXA Asia Pacific’s Asian assets at the end of the week. Maybe that is the explanation.
- Fortescue Metals (FMG) is said to be considering a dual listing on the Hong Kong exchange after executive director Andrew Forrest met with HKEx officials last week. The move would give FMG access to new sources of capital as it undertakes a massive capacity expansion. FMG up 0.5%.
- The deadline for acceptances of Rio Tinto’s (RIO) bid for Riversdale Mining (RIV) closes tonight and it “looks like it will go down to the wire,” sources close to the deal say. It may come down to what Brazilian steel maker CSN decides to do with its 20% stake. RIO now has an interest and acceptances of 39.66% but needs 50% by today’s end. RIO down 0.2%, RIV down 0.1%.
- Transurban (TCL) has confirmed its FY distribution guidance to be at least 26c at its investor day. TCL down 0.6%.
- Sigma Pharmaceutical (SIP) reported underlying EBIT of $129.2m, in line with company guidance. SIP cut its full year net loss to $235.38m for the year to January 31, 2011 from a net loss of $398.28m a year earlier and announced a 15c special dividend. JB Were said the “outlook for the underlying business remains poor, the single digit PER and ongoing working capital realisations mean that share price risk remains on the upside”. SIP up 10.8%.
- An independent expert has declared Lynas Corp.’s (LYC) proposed $20.7m deal to sub-lease 2 assets from Forge Resources fair and reasonable to Lynas’ shareholders. LYC unchanged at 214c.
- GreenRock Energy (GRK) says results from temperature logging at its joint venture geothermal heat project with BHP Billiton (BHP) in the Collie Basin are “encouraging”. GRK up 13.6%, BHP down 0.7%.
- Stocks going ex-dividend today: CMJ, CTN, CWN, SVW, WHK.
- Stocks hitting 52-week highs: ALK, ARP, ELM, ESB, REA, RPX, SRQ, TSO.
For a free 5 day obligation FREE TRIAL of the MARCUS TODAY newsletter Click Here. You will receive our renowned and popular Daily email about the stockmarket with all the stuff you need to know ahead of the trading day including:
- Overnight developments, news, comments, rumours, broker recommendations and ideas from Marcus and his Team.
- Our Recommended Portfolio which is actively managed on behalf of subscribers.…no “set & forget”. Everything you need to effortlessly managed your own long term investment portfolio. It includes Income Portfolio recommendations.
- Daily Technical Trading ideas and data, including daily scans of the ASX 300 for stocks changing trend.
- Stock Database – all the numbers with comments on the top 300 stocks and more.
- Educational section – Marcus’s Educational and Entertaining articles.
We also offer a FREE END OF DAY EMAIL — Click here — A free summary of the day in the market.
Subscribe to MARCUS TODAY — Click Here. We are sure you will enjoy and profit from what we offer…we have one of the highest re-subscription rates in the financial newsletter industry.