The market is up 72. The SFE Futures were up 65 this morning.
Wall Street closed up 284 overnight. A much needed bounce. The Dow is now above the 10,000 mark again — 10,259 — it was up 290 at best (closed on its highs) and down 3 at worst. China denied reports yesterday that is was selling European bonds and say they are long term investors in Europe. The Oil price put on $2.59 to $74.10 and Gold fell $1.50 to $1211.90. The Aussie dollar up 3c in 24 hours to 85.11c.
In other news today…
- Virgin Blue (VBA) — Significant Profit Downgrade — They expect their 2009/10 profit before tax and significant items to be between $20m-$40m, down from the previous guidance of $80m given on May 5. It is the second time they have lowered earnings expectations for 2009/10. VBA down 27% to 32c and is down 45.5% in the past month.
- Woolworths (WOW) CEO Michael Luscombe says he is interested in buying a regional supermarket chain in the US or Canada. WOW did announce two years ago that international acquisitions would be one of their growth avenues. The market doesn’t like the idea – WOW underperforming a rising market down 26c to 2627c.
- Coca-Cola Amatil’s (CCL) new chief of Alcoholic beverages, John Murphy, says growing its own portfolio of premium beers is a better option than bidding for Foster’s $9.7bn demerged beer division. CCL up 10c to 1082c. FGL down 5c to 549c.
- Gunns (GNS) up 7% to 29.5c after announcing yesterday that CEO John Gay is retiring from all positions. He has been in charge for 30 years.
- Santos (STO) and their JV partner have been granted conditional approval for their $7.7bn Gladstone LNG project in QLD. STO up 1.4% today to 1246c but is down nearly 10% in the past month.
- Consolidated Media Holdings (CMJ) shareholders have approved the plan to buyback up to $225m worth of shares. CMJ up 1c to 306c.
- Major shareholders of Sigma Pharmaceuticals (SIP) have called for the board to reject Aspen Pharmacare’s 60c a share takeover bid. SIP down 0.5c to 49c.
- A Centrebet (CIL) client has just placed a wager of $60,000 at $1.47 on the Federal Labor government to retain office at the next election (Tony Abbott perhaps).
- The soon to be listed West African Resources (June 8th) will be the fourth IPO in a month involving African gold projects.
- WA Premier Colin Barnett says the 40% rate of the Federal Government’s planned new mining tax is too high and will result in investment in mining projects stall.
- Stocks hitting fresh 52 week lows include: Primary Health Care (PRY) and Capral (CAA)
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