The market is down 63. The SFE Futures were down 64 this morning.
The Dow Jones closed down 198 overnight and was down 212 at worst. It was the worst day in eight weeks as politics continues to allow a deal on the US debt ceiling and as disappointing economic data and weak quarterly earnings reports fed through. Quarterly earnings failed to inspire and metals were mostly down on the LME. The oil price fell $2.19 to $97.40 and Gold fell $1.70 to $1615.10.
In the news today…
- Macquarie Group (MQG) – down 4.3% to 2805c after their AGM and trading update. The headline says they expect an improved result for 2012 on 2011 but it is largely dependent on a $114m one-off gain from the reclassification of its 22% holding in MAp as an asset available for sale instead of accounting for it as an Associate. The first impression from brokers is pretty poor and the downgrade cycle is likely to continue until financial markets improve.
- Wesfarmers (WES) Quarterly sales numbers – WES down over 2% to 2951c this morning after their 4th Q sales numbers came in lower than expected. Coles sales were up 6.7% to $31.78bn in the financial year.
- Origin Energy (ORG) has approved the first phase of their $20bn two-train LNG project in QLD. The first phase will require $US14bn to complete the first LNG train and service a sales agreement for 4.3m tonnes a year for China’s Sinopec Corp. ORG up 1c to 1510c.
- Sandfire Resources (SFR) has secured a $75m debt facility from ANZ Bank for its $400m DeGrussa copper and gold project in WA. SFR down 13c to 783c.
- St. Barbara (SBM) gold production climbed 19% in the quarter ending June 30th, hitting 72,860 oz. Full-year production was up 12% on the previous year but was toward the lower end of the guidance range. SBM down 7c to 195c.
- Operations have restarted at Platinum Australia’s (PLA) Smokey Hills mine after South Africa’s government lifted a notice served on the mine which had forced it to close. PLA up 6% to 31.5c.
- Patersons has initiated coverage on Mastermyne Group (MYE) with a Buy recommendation and 195c target price. MYE is a leading provider of specialist underground coal mining services in QLD’s Bowen Basin and has a growing presence in NSW. MYE up 3c to 143c.
- Sundance Resources (SDL) said high grade iron ore resources at their Mbalan projec
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t on the border of the Republics of Congo and Cameroon will likely improve as a result of drilling at the site. SDL up 0.5c to 52.5c.
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