The Market is down 7 and above the 5000 mark on the ASX 200 and on the All Ords. Dow Jones was down 10. SFE Futures were down 7 this morning.
The Dow was up 7 at best and down 61 at worst. There were disappointing fourth qaurter GDP numbers from France, Germany, Greece, Italy, and Portugal. All five countries saw their economies contract during the final three months of 2012. Fourth quarter eurozone GDP shrank 0.6% QonQ as a result. There was also some major M&A activity on Wall St. Best sectors — Energy (+0.5%) financials (+0.3%), health care (+0.2%), and consumer staples (+0.1%). Worst sectors — Telecoms (-2.0%) utilities (-0.9%) and materials (-0.4%). European market down — UK FTSE down 0.50%, German DAX down 1.05%, France down 0.78%, Spain down 0.71%, Italy down 1.00%. Metals mixed — Copper up 0.07%, Nickel down 0.60%, Zinc down 1.00%, Aluminium up 1.79%. Spot iron ore unchanged at $155.10. Gold down $10.30 to $1634.80. Oil up 32c to $97.33.
- ANZ Q1 numbers fail to excite but rallied ahead of the result — Headline profit fell 20% to $1.36 billion but cash earnings are up 6.2% to $1.53 billion. Revenue volume growth in Asia was offset by margin pressures in New Zealand and the international and institutional banking division. See below for more. ANZ is down 0.68% to 2787c.
- Rio Tinto (RIO) — Underlying $9.3 billion profit versus consensus of $9.1 billion. Company will look to cut costs and sell underperforming assets after posting their first ever net loss of $3 billion after $14.4 billion of impairment charges. Dividend up 15% and better than expected. Sam Walsh talks about a new mantra to deliver greater value to shareholders. See below for more. The stock ran hard into the results. RIO is down 2.34% to 7038c.
- Paladin Energy (PPDN) — Revenue up 13% to $195.5 million. They recorded a loss of $172 million for the first half. PDN declined to pay a dividend in the half. The results included a one-off reversal in tax losses of $98 million and a $55m writedown producing an adjusted $19 million loss. See below for more. PDN is down 3.69% to 117.5c.
- Sims Metal Management (SGM) — To record a charge of $354 million against goodwill and a writedown of $78 million on UK inventory. SGM is down 1.82% to 1076c.
- Orocobre — Impressive $99 million profit on sale of part share on a project but only $7 million in sales — $3 million loss after you take out the one-off. But makes balance sheet look better. Patersons and has a BUY with a 240c target price. ORE is unchanged on 145.5c.
- Patersons have a trading sell recommendation on Leighton Holdings (LEI) after the jump on good results and a rally from our trading buy recommendation at 1648c. Now 2337c.
- After the good Downer EDI (DOW) results yesterday Patersons also say ‘Trading sell’.
- Myer (MYR) — Harris Associates has ceased to be a substantial shareholder.
- JB Hi-Fi ex dividend 50c today.
- Ex dividend on Monday — TLS (14c), CBA (164c), BKN (20c)
- Results today — SGM, DUE, PDN, TEL, TGR, PXS, CQR, MTX.
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