The market is down 73. The SFE Futures were down 32 this morning.
The Dow Jones closed down 63. The Dow has been down in 9 of the last 10 sessions. An early rally (up 63 at best) on the back of good US economic numbers was rapidly snuffed out by the news that after nine days of negotiation Greece would head back to the polls next month (likely 10th or 17th June). €700m has been withdrawn from Greek banks in nine days as Greeks position for a drachma. Dow down 87 at worst. Gold down $17. Oil down. Copper down … most other metals up small. Greek market down 3.6%. Worst US sectors were Basic Materials (-2.1%) and Energy (-1.4%). US bonds flat. Euro down. US$ up. A$ at 99.37. BHP down 2.5% and RIO down 4.2% in the US although some of that was catch up with the falls we saw in the sector yesterday. In our 31 point fall yesterday resources fell 2% and iron ore, nickel and uranium stocks were slammed.
Main points:
- Toll Holdings (TOL) expects earnings to fall to $400m-$420m from $436m thanks to a soft retail sector and weakness in the global apparel market. They are also writing down the value of their Footwork Express business by $146m-$166m due to challenging conditions in Japan.
- CSR reported a FY profit of $76.3m up from a loss of $78m last year and in line with guidance. Profit before one off items was $90.7m and was above a consensus expectation of $79m. Overall a solid result despite challenges of weak residential and commercial construction markets.
- Westfield Group (WDC) says the performance of their operations in the 1st Q was inline with expectations. The company forecasts funds from operations per security to be 65c for 2012. WDC distribution forecast for 2012 year is unchanged at 49.5c per security.
- Industrea (IDL) has announced an offer from General Electric Company to acquire all shares at 127c per share. The propose acquisition represents 48% premium to the yesterday’s closing price. The transaction is valued at approximately $700m.
- Paladin Energy (PDN) reported a loss of $137.6m for the 9 months ending March 31 due to the $133m write down of the Kayelekera mine assets. The company expects to resume production tonight as local workers on strike return to work. The workers will drop demands for a 66% pay rise.
- Suncorp (SUN) – Update – is suffering from the effects of last years natural disasters which cost the company close to $714m above an expected $461m. Insurance costs for the year are $253m above their expectations. On a positive note the general insurance business is starting to show improvements.
- Monadelphous (MND) has won two new construction contracts valued at $150m. The first contract is with BHP’s petroleum business for structural, mechanical and piping installation works for the Macedon Gas project. The second contract is with RIO for the design and construction of a gas transmission pipeline.
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