The market is down 63. The SFE Futures were down 52 this morning.
Wall Street closed down 115 overnight. Dow was up 93 at best and down 144 at worst. The big news overnight was Germany temporarily banning naked short selling of several financial stocks, credit default swaps and government bonds, bringing back memories of the global financial crisis. Oil price fell $1.17 to $72.36 and the Gold price dropped $13.10 to $1215. Metals struggled again on the LME and the Aussie again lost ground to 86.19c from 87.73c.
In other news today…
- Peabody has walked away from Macarthur Coal (MCC) after their $3.8bn takeover offer was rejected yesterday. The offer was opposed by CITIC, MCC’s biggest shareholder, and was unlikely to succeed. MCC down another 5% today to 1064c, having already fallen 32% in the past month. Patersons have upped their recommendation on MCC to BUY from HOLD.
- David Jones (DJS) — 3Q Sales Numbers — Like-for-like sales increased 1.4% with sales coming at $417.4m, up 1.4% from the same period last year. Patersons maintain their HOLD recommendation on DJS and prefer MYR. DJS outperforming today — up 3c to 430c. MYR down 7c to 303c.
- Fortescue Metals (FMG) announced they will put two of their three expansion projects — $US9bn Solomon hub and $US6bn Western hub projects – on hold as they review the impact of the RSPT. FMG down 20c or 4.93% to 386c.
- Front page of the AFR has BHP CEO Marius Kloopers warning his 540,000 shareholders that the RSPT could threaten BHP’s dividend payments. He also warned the $20bn expansion of the Olympic Dam project was at risk. BHP down 36c today to 3688c.
- AWB Ltd (AWB) down 2.5% to 97.5c after announcing 1st H net loss of $64.8m and no interim dividend. Their CFO expects ongoing significant items from legal actions but reiterates FY profit forecasts.
- Adelphi Energy (ADI) is advising their shareholders to “TAKE NO ACTION” regarding the unsolicited takeover offer from Australian Worldwide Exploration (AWE). ADI down 0.5c to 41c today, AWE up 2c to 216c.
- Hastie Group (HST) has announced $66m worth of new projects in Qatar. Patersons has a BUY recommendation with a 215c target price. HST down 2.9% today to 147.5c.
- Stockland Group (SGP) says they are on target to deliver record residential sales in FY10 and reiterated FY EPS guidance of 29c a share. SGP down 6c to 374c.
- Stock hitting fresh 52 week lows include: Alesco Corp (ALS), Carnarvon Petroleum (CVN), Gunns (GNS), Kagara (KZL), Nufarm (NUF), Photon Group (PGA) and Santos (STO).
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