The market is up 11. The SFE Futures were unchanged this morning.
Wall St. fell 17 overnight. The Dow was up 3 at best and down 91 at worst. Metals were weaker and the oil price fell 70c to $75.86. Gold closed higher for the 8th consecutive session and the Aussie dollar lost some value — now at 91.89c compared to 92.43c yesterday morning. It was another low volume day ahead of the Thanksgiving holiday. The Financial Times reported that the Federal Reserve has asked nine of the US’s largest banks to outline how they intend to repay their temporary asset rescue plans (TARP).
Making the news today…
- According to Street Talk, speculation out of London suggested Chinalco would sell some or all of its holding in Rio Tinto to institutions. It has done very well out of the stake, it spent $US14bn buying a 12% in February 2008 and the stock is up around 160% since when taking into account the rights issue. Some colleagues suggest that the potential stake sale is a reason to be selling RIO which is top of its trading range….if Chinaclo’s stock is thought likely to come on the market it will overhang the market until sold. RIO down 51c to 7138c.
- One broker says there is no chance of RIO receiving a fresh bid from BHP when the UK Takeover Panel standstill rule expires on Friday. BHP up 47c to 4070c.
- Woodside (WPL) up 1.1% this morning after CEO Don Voelte told reporters yesterday he couldn’t comment on talk of any potential takeover offer involving BHP.
- Mineral Resources (MIN) — Trading Halt — Polaris Metals recommends shareholders accept MIN’s improved takeover offer (one of its shares and 10c cash for every POL share) which values POL at 81.5c.
- Programmed Maintenance Services (PRG) announced a 5% fall in 1H profit but says it is in a strong position to improve its earnings. It declared an interim dividend of 3c, down from 9.5c last year. PRG down 6c to 392c. Patersons maintain their Buy recommendation.
- GrainCorp (GNC) has announced a FY net profit of $63.2m and a final dividend of 7.27c a share. One broker expected $61m and says at around 10x FY10e “the shares currently represent compelling value”. GNC down 10c to 626c.
- Dominion (DOM) — After their AGM Patersons have downgraded to HOLD. Target price from 482c to 416c. A few concerns. Well funded. Good stocks but if you want to play gold you might look elsewhere in the sector. DOM down 5c to 397c.
- Aristocrat Leisure (ALL) says bondholders taking the company to court are requesting $US233m in damages. ALL down 2.1%.
- Aquarius Platinum (AQP) completes an $US250m convertible bond raising.
The Dow Futures were up 2 nearing midday.
MARCUS PADLEY is the author of the MARCUS TODAY Daily Stockmarket Newsletter.
For a free 21-day obligation free trial of the MARCUS TODAY newsletter (and no we won’t ask for a credit card number) please START A FREE TRIAL — you will receive two daily emails about the stockmarket, our MORNING EMAIL with all the stuff you need to know ahead of the trading day ahead and a DAILY EMAIL with all the midday events, news, comments and Ideas from Marcus and his Team.
You will also be given a password to the MARCUS TODAY website including access to all the emails as well as Educational, Entertaining and Researched Articles from Marcus and his Team and an archive where you can catch up on a whole week or month in just a few minutes. Or Browse at length. We are sure you will enjoy and profit from what we offer.
Crikey is committed to hosting lively discussions. Help us keep the conversation useful, interesting and welcoming. We aim to publish comments quickly in the interest of promoting robust conversation, but we’re a small team and we deploy filters to protect against legal risk. Occasionally your comment may be held up while we review, but we’re working as fast as we can to keep the conversation rolling.
The Crikey comment section is members-only content. Please subscribe to leave a comment.
The Crikey comment section is members-only content. Please login to leave a comment.