The market is up 43. The SFE Futures were up 13 this morning.
The Dow Jones closed down 137 overnight having been down 297 on fears of a Japanese nuclear disaster. Comments that the nuclear scares will be temporary with no sustained equity market disruptions eased worries and helped the Dow gain 150 points from the low. The FOMC kept its benchmark interest rate in the range 0.00% to 0.25%. Metals were mostly down, oil price fell $4.01 to $97.18 and Gold fell $32.10 to $1392.80. The Aussie fell below parity to 99.01c.
Today’s main stories…
- The market is recovering its poise after the 10.5% fall on the Japanese market yesterday post comments from their Prime Minister (see below). Uranium stocks having a significant bounce as well as most resources.
- Origin Energy (ORG) is in the middle of a 1-for-5 entitlement issue at $13 a share raising $2.3bn. Analysts remain positive on the stock with most maintaining their Buy recommendations. ORG last traded at 1566c.
- Gildalbie Metals (GBG) reviewed the cost of their $2bn Karara project in WA and said costs associated with it will rise by 30% due to higher material and labour costs. GBG up 5% to 100c.
- Billabong International (BBG) says it expects full year profit to be 2%-6% lower on the year with the earthquake in Japan expected to negatively impacts profits. BBG down 2.7% to 757c.
- Gunns (GNS) says it is not a big supplier to the Japanese paper mills that are most affected by the earthquake and tsunami in Japan but agrees a takeover offer from a foreign player is possible on the back of the disaster. GNS up 3c to 49.5c.
- National Australia Bank says organic growth is still the number one priority in the UK and that it’s unlikely to bid for Lloyds’ 600 branches that are up for sale. NAB up 10c to 2438c.
- Lynas Corp (LYC) recorded a net loss of $20.46m compared to a loss of $9.15m last year. Both their Concentration Plant in WA and Lynas Advanced Materials Plant in Malaysia are both proceeding on schedule and within budget. LYC up 7% to 188c.
- Rio Tinto (RIO) now has more than 30% of the voting rights in Riversdale Mining (RIV). RIO up 2.8% to 7930c.
- Regent Pacific Capital has dropped its takeover attempt of BC Iron (BCI) as it believed that BC’s largest shareholder, Consolidated Minerals, would vote against the takeover. BCI down 16% to 236c.
- Sims Metal Management (SGM) has acquired two European computer and information technology assets recovery companies. SGM up 2.4% to 1670c.
- Stocks going ex dividend today: Adcorp Australia (1c), Melbourne IT (8c), M2 Telecommunications (7c) and Village Roadshow (8c).
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