The market is up 20. The SFE Futures were up 21 this morning.
The Dow Jones closed up 78 overnight breaking a 6 session losing streak. Dow up 134 at best. The trade deficit dropped to $43.7bn in April from $46.8bn in March, consensus was for $48.7bn, and the Consumer Comfort index showed consumer confidence up for the third consecutive week.
The European Central Bank decided to keep its target interest rate at 1.25% and the Bank of England also kept its benchmark rate at a record low of 0.5%. The oil price put on $1.19 to $101.93, gold was up $4 to $1542.70 and the Aussie dollar was unchanged at 106.34c. The volatility index fell 5.4% to 17.77.
In the news today…quiet session to finish off the week.
- Origin Energy (ORG) said they completed a EUR500m hybrid issue as they strengthen their balance sheet ahead of construction of a gas export JV with ConocoPhillips. ORG up 9c to 1574c.
- With the share price collapsing Paladin Energy (PDN) has issued a statement clarifying the company’s position. They expect a “positive outcome” from the stage 4 feasibility study at their Lander Henrich project in Namibia. PDN up 4% to 283c.
- Gloucester Coal (GCL) said they will offer over a million new shares to investors in a bookbuild after a shortfall in their retail capital raising. GCL up 2.3% to 818c.
- Biota Holdings’ (BTA) wholly owned subsidiary, Biota Scientific Management, has been awarded a US$2.9m NIH grant for novel antibacterial. BTA up 0.5c to 111.5c.
- Fairfax Media (FXJ) released a statement after the close of trading yesterday (following press comments and CEO comments) saying they are undertaking a strategic review of their portfolio of assets (looking to sell their radio and Trade Me businesses) to maximise shareholder value. They intend to return the focus to the core business. FXJ up 0.5c to 100c.
- Newcrest Mining (NCM) cut their production numbers yesterday. A play on the gold price. Most brokers this morning maintain their Buy recommendations on the stock.
- Leighton Holdings (LEI) is pursuing compensation where possible to recover additional costs on the Brisbane Airport Link project. LEI up 2c to 2174c.
- Indophil Resources (IRN) has successfully completed their institutional equity raising. IRN down 10% to 39.5c.
- Medusa Mining (MML) has announced a few board changes. MML unchanged at 804c.
- Brambles (BXB) up 3c to 718c after announcing the completion of the acquisition of IFCO Systems. Hopes that they may sell the Recall business to focus on CHEP have supported the share price recently. Some brokers thinking it would lead to a 10% re-rating.
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