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Goodman Group (GMG) said its unlisted industrial fund Goodman Australia Industrial Fund (GAIF) announced it would undertake a $320 million capital raising with the purpose of strengthening its balance sheet. GAIF plans to raise $200 million through a pro rata non-renounceable 1 for 10 rights issue at 75c per share and $120 million through a 12 month mandatory distribution reinvestment plan.

Goodman said it would take up $79 million of the rights issue, while two existing GAIF investors would take up a further $85 million.

Goodman Group CEO and chairman of GAIF, Greg Goodman, said the capital initiatives were the final steps in GAIF’s capital management plan following the significant refinance of its bank debt platform announced as part of the Group’s capital management initiatives in August 2009.

The group said upon completion of the equity raising GAIF’s gearing would be reduced to 33%, which it said was within the fund’s target range of 30% to 40%.

As at 1030 AEDT, Goodman Group shares were up 1c to 62.5.

Tianshan Goldfields Limited (TGF) and Corvette Resources Limited (COV) have agreed to merge under a scheme of arrangement. The two junior gold miners said that following the merge they would have a market capitalisation of around $60 million, with cash reserves of $30 million.

The boards of the two companies said they believed that the merged companies have a better prospect for growth than either of the standalone companies.

”The Tianshan and Corvette boards believe the combined corporate, management and technical strengths of both companies will result in increased financial and support capabilities, providing a sound platform for on-going exploration and future development activities,” Tianshan Goldfields said in a statement released to the ASX Tuesday morning.

As well as stronger cash position the combined company would have access to the highly prospective Plumridge Gold Project in Western Australia.

”The Plumridge Project is located within the Tropicana Gold Belt, a new gold province that is shaping up to host world class gold deposits,” Tianshan said.

Under the Scheme, Tianshan would acquire all of the issued shares in Corvette in exchange for the issue of shares in Tianshan.

The consideration for the scheme would be two Tianshan shares for every one Corvette share held on the implementation date of the scheme.

At 1018 AEDT, Tianshan shares were halted at 10c and Corvette at 25c.

Perpetual Limited (PPT) said its fund under management as at 31 October 2009 were $28.8 billion, down from $29.3 billion as at 30 September 2009. The company said the decrease included net outflows of $170 million from an institutional client in cash and quarterly mortgage fund redemptions of $65 million.

GrainCorp Limited (GNC) said the NSW Supreme Court had dismissed an appeal by the NSW Roads and Traffic Authority against a judgement handed down in the NSW Local Court on 26 May 2008. The company said the NSW RTA had sought to prosecute GrainCorp over alleged breaches of the Road Transport (General) Act 2005 relating to ‘chain of responsibility’, and the unloading of overloaded grain trucks. The original case against GrainCorp was dismissed.

eServGlobal Limited (ESV) expects to achieve a full year EBITDA in the range of $8 million to $12 million compared to last year’s result of $2.4 million, with the forecast based on trading so far this year and the board’s view on the current level of orders/demand. The specialised supplier of large-scale telecoms network software and services to telecoms carriers also expects total operational costs for FY10 to decrease 28% to $103.6 million due to a combination of staff cuts and a continued focus on variable cost reduction. The company said the operating result is based on achieving turnover of between $110 million and $120 million, compared to $147.2 million in FY09.

Perilya Limited (PEM) said it has launched a non-renounceable, fully underwritten 1-for-3 rights issue to raise $55 million. The miner said that it would potentially apply the funds raised to a stable of exploration and mining prospects.

Under the scheme Perilya said it would issue around 131 million shares, or around one-third of its current shares on issue, at 42c per share. This represents an 18.4% discount to Perilya’s last closing price on ASX, the company noted.

Perilya said that its majority shareholder, Zhongjin Lingnan Mining HK, had agreed to subscribe to its entitlement of shares, being around 65.9 million or half of the shares on issue.

The miner said satellite ore bodies across South Australia as well as the Mount Oxide project in Queensland, where Perilya has delineated a resource of over 220,000 tonnes of contained copper, would all undergo feasibility studies pending capital expenditure.

At the close Monday, Perilya shares were up 1c to 51.5c.

ThinkSmart Limited (TSM) reaffirmed its profit guidance for 2009 and said it expected strong EBITDA growth in 2010. The computer and office equipment financing company said the key drivers behind the group delivering on its guidance of positive EBITDA earnings growth in 2009 were the ongoing strength of the group’s Australian operations and the improved performance of UK electrical retailing partner DSG international.

Executive chairman and CEO, Ned Montarello, said the company had no debt and had witnessed new funding opportunities emerge as credit markets recover.

“Importantly, we are also seeing signs of recovery in most of our European markets so this further positions us for growth in 2010,” Mr Montarello said.

ThinkSmart said it plans to offer a new services based consumer rental product in Europe in 2010.

“Our consumer rental volumes have increased five-fold in the Australian market over the past four years,” Mr Montarello said.

“It will be a simple process for us to provide a rental product to the European consumer, using the same in-store processes currently used for our small business customers.”

He added that the company’s key focus in 2010 would be to continue to align with leading retailers, including developing products that fit with the in-store services provided by those retailers.

At the close of trade Monday, ThinkSmart shares were trading at 68c.

Directors' Interest Notices
16 November 09

Symbol	Shareholder	+/-	Prior	Now
APN	Brendan M.A. Hopkins		1,062,535	1,291,806
ALS	Peter C. Farrell		704,942	628,374

 

RBS – Round Up – 171109

Wall Street climbed over 1.3% as the major indices reached new 13-month highs. Energy and commodity stocks led the rally as a weakening greenback sent prices higher, including gold which reached a record high. 

Federal Reserve Chairman, Ben Bernanke, said the local economy would recover at a moderate pace with the inhibited bank lending and the fragile job market likely to prevent it from being as fast-paced as people would like. He also said interest rates would likely remain at their current record low levels for some time.

In economic news, retail sales increased by a better than expected 1.4% in October compared to the previous month. Forecasts were for a rise of 0.9%. Excluding automobiles, sales rose a weaker than anticipated 0.2% according to the Census Bureau report.

Elsewhere, manufacturing activity in New York State dropped from a five-year high 34.57 points in October to 23.51 in early November according to a New York Federal Reserve Bank report.

The Dow Jones put on 136.49 points, or 1.33%, to 10,406.96, the S&P 500 added 15.82 points, or 1.45%, to 1,109.30 and the NASDAQ rose 29.97 points, or 1.38%, to 2,197.85. 

Energy heavyweight Exxon Mobil gained 2.7%, while Chevron and ConocoPhillips rose 1.8% and 1.9%.

NYMEX light crude oil for December delivery climbed US$2.55 to settle at US$78.90 a barrel.

Gold miner Newmont and Barrick Gold added 2.8% and 2.6%.

COMEX gold for December delivery rallied US$22.50 to US$1,139.20 per ounce.

Other metals also rallied, lifting commodity plays. Aluminium producer Alcoa put on 3.3%.

Banks Morgan Stanley and Citigroup climbed 3.5% and 3.2% in a positive session for the sector.

Bank of America bucked the trend, shedding 0.7%.

Conglomerate General Electric put on 2.2%.

Lowe’s dipped 0.5% after the home improvement retailer reported a 30% fall in quarterly proft. However, a negative market reaction was mitigated by the company's optimistic outlook for the fourth quarter. Rival The Home Depot advanced 1.1%. 

Retailers Sears and Target put on 4.1% and 2.7%, while Wal-Mart edged 0.1% lower.

Aircraft manufacturer Boeing and machinery maker Caterpillar added 3.6% and 2.8%.

Cisco closed 0.7% dearer after increasing its bid for Norwegian video conferencing equipment maker Tandberg by 10%.

Intel rose 2.1% as it upgraded its quarterly dividend. Oracle also added 2.1%.

European Markets

European shares reached a 13-month high on the back of rising commodity stocks. Automakers were boosted following positive company news and economic data.

The UK benchmark FTSE 100 rose 86.29, or 1.63% to 5,382.67. The French CAC40 gained 57.15 points, or 1.50% to 3,863.16, while the German DAX put on 117.99, or 2.07% to 5,804.82. 

Resource stocks tracked the price of metals higher. Aussie peers Rio Tinto and BHP Billiton advanced 5.5% and 2.6%.

Xstrata, Antofagasta and Anglo American climbed 7.8%, 7.6% and 4.1% respectively.

Lonmin surged 9.3% after the company said it planned to increase production by 20% by 2013. Steelmaker ThyssenKrupp put on 4.5% after selling a scaffolding unit.

Energy heavyweights BG Group, Royal Dutch Shell and BP advanced 2.4%, 1.4% and 1.2%. Total added 1.6%.

Financials strengthened. In Germany Deutsche Bank and Commerzbank put on 3.1% and 1.6%.

HSBC and Barclays gained 2.6% and 1.3%. Societe Generale added 1.6%.

Insurers Prudential and Allianz rallied 2.1% each.

Daimler climbed 4.4% after UAE's Aabar Investments said it was considering raising its interest in the automaker.

A recovery in demand in the UK and Spain saw European car sales rise 11% in October.

Peugeot and Renault jumped 4.5% and 3.2%.

Japanese Markets

The Nikkei rose despite concerns that capital raisings would continue to dilute share holdings. The banks again weighed on the market, while a strong showing from the retailers capped losses.

The Nikkei 225 added 20.87, or 0.21% to 9,791.18.

Mitsubishi UFJ Financial Group, Japan’s number one listed bank, slumped 5.5% on rumours it would seek to sell US$11.1 billion in shares.

Smaller rival, Sumitomo Mitsui Financial Group lost 5.9% after missing earnings forecasts. Mizhuo Financial Group retreated 3.9%.

Hitachi joined the banks in raising capital, reportedly around US$4.6 billion, sending its shares down 8.5%.

Chipmakers fell on lower prices for their goods. NEC and Toshiba lost 4.6% and 5.2% respectively.

The market saw 75% of stocks retreat, however strong gains by the retailers shored up the market.

Fast Retailing gained 5.2%, while Marui Group, which operations shops and credit cards, spiked 6.9% on a broker upgrade.

Heavyweight shipping line, Nippon Yusen K.K. put on 0.6%, while stocks exposed to currency fluctuations also proved resilient. Toyota put on 1.1%.

Hong Kong Markets

The Hang Seng approached the 23,000 point barrier Monday, 102% higher than March lows for the index. Banks and the miners were stronger, while investors were generally upbeat after a visit from the US President.

The Hang Seng spiked 390.35, or 1.73% to 22,943.98.

Bank of China spiked 2.3%, while ICBC added 2.4%. In a consistent day for the sector, Bank of Communications rose 2.2%.

HSBC spiked 2.6%.

Zijin Mining was up 6% and copper producer Jiangxi Copper surged 11.8%.

Another successful IPO saw food packaging company CPMC rise 31% at one stage before settling 13% higher.

Oil giants CNOOC gained 1.6% and PetroChina tacked on 1.3%.

Gome Electrical Appliances Holdings, China’s second largest electronics retailer, jumped 4.8%.

Strong gains from the miners outweighed negative returns from the banks as the local market started the week in positive territory. The major indices finished near three-week highs.

At the close, the All Ords had gained 51.2 to 4,773.8, while the ASX/200 added 48.8 to 4,755.2. About 2.7 billion shares worth around $4.6 billion had changed hands.

A mixed day for the metals in London on Friday didn’t translate to any problems for the Materials and Resources sector locally as it surged 3.1%.

BHP Billiton put on $1.09c, or 2.8% to $40.10 as reports surfaced that Canada-based First Quantum Minerals has expressed interest in acquiring in the world’s largest miner’s Ravensthorpe nickel mine.

Rio Tinto outperformed its larger rival, gaining $3.36, or 4.8% to $72.88, the first time the stock has been above $70 per share since 3 October last year.

Lihir Gold jumped 14c, or 4.2% to $3.50 as the price of the precious metal rose rallied almost 1%. Newcrest advanced 83c to $35.40.

Incitec Pivot climbed 17% to $2.79 after the chemical producer posted a full-year loss of $180 million, which was attributed to a $490 million non-cash write-down of Dyno Nobel goodwill. 

Nufarm edged 6c higher to $11.88 as the market awaits the Foreign Investment Review Board’s decision on Sinochem’s proposed $2.8 billion takeover of the agrichemical company.

Onesteel traded below the gain for much of the day after the company declined to forecast earnings for the current fiscal year at its AGM this morning. However, the stock closed 5c higher at $3.14.

Bluescope put on 7c to $2.94 as investor snapped up what they saw as a bargain following heavy selling last week.

Energy stocks made ground despite a fall in the price of crude Friday to almost a one-month low. The sector was 2.1% higher.

Woodside added $1.14c, or 2.3% to $50.10, while Origin was 2.7% higher at $16.65.

Linc Energy jumped 3% after extending an agreement with BP Australia allowing BP to buy at least 14,000 barrels per day of Ultra-Clean Diesel.

Stuart Petroleum added 3c, or 6%, to 53c after the company said that it would expand the amount of oil produced by 20% by 2011.

CBA was the best performing of the big four banks, however still finished in the red. The bank reported a $55 million profit from its Malta banking operations. The lender shed 37c to $53.96.
Meanwhile Westpac shed 53c, or 2.1% to $25.29 and NAB lost 39c to $28.50. The Banks and Financials sector weakened 0.5%.

Macquarie edged 27c, or 0.6% higher at $49.12.

Adding to last week’s AXA Asia Pacific acquisition talks AMP put on 11c to $6.41 after announcing it had formed a partnership with China Life Insurance as it looks to expand into Asia.

AXA Asia Pacific rose 4%, or 23c to $5.99 on speculation AMP’s offer for the company would be sweetened.

A 7c fall to $12.31 from Westfield didn’t pull the Property Trust sector down, with the sector putting on 0.5% due to modest gains from other players in the sector.

Dexus put on 1.8% to 83c and Stockland added 4c to $4.09.

Consumer Discretionary stocks were in the black after positive earnings results from peers in the US. In Australia the sector was 2% higher.

Retailers Harvey Norman and JB Hi-Fi rose 2.8% and 2.9% to $4.46 and $22.65 respectively.
 
Gamer Aristocrat gained 13c to $4.66, while pay-tv operator Austar jumped 5.2% to $1.425.

Fairfax added 5.5c, or 3.3% to $1.73.

Breville shed 1c to $2.27 after rejecting GUD’s takeover offer this morning, citing the offer was underpriced. GUD shares put on 23c to $8.95.

After threatening for some time the price of Wesfarmers shares passed Woolworths shares.  Woolworths shares rose 31c to $28.35, while Wesfarmers shares spiked 65c to $28.55.

The Consumer Staples sector gained 1.4%.

Elders rose 5.9% to 18c despite reporting a net loss, including one-off items, of $466.4 million for the 15 months to 30 September 2009.

Industrials advanced 1.2% as gainers outweighed the few stocks below the line. Brambles added 8c to $7.04 and Leighton rose 62c, or 1.7% to $38.15.

Transurban was relatively flat at $5.59 after asking two Canadian pension funds to increase their takeover offers.

Boart Longyear surged 9.7% to 34c and Seek climbed 6.9% to $6.47. On the other side of the line Macquarie Airports lost 1.1% to $2.80.

Telecommunications advanced 1.3% as sector heavyweight Telstra traded 1.5% higher at $3.35.

Modest gains from heavyweights saw the Healthcare sector rise 0.4%. CSL added 17c, or 0.5% to $31.94, while Sonic added 14c to $14.34.

Around the region, the Nikkei 225 shed 5.4 to 9,764.9, while the Straits Times Index put on 46.0 to 2,773.2. Across the Tasman, the NZSE50 added 15.8 to 3,174.0. The Hang Seng rose 330.1 to 22,883.7.

Spot gold was trading at US$1129.62 per ounce, and the Aussie was buying US$0.9351. 

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Breville rejects GUD takeover offer
Breville Group has decided to reject G.U.D. Holdings' takeover offer. Breville said its board and an independent expert believe that GUD is not offering enough for Breville shares.

At the end of the day, Breville shares were down 1c to $2.27, while GUD shares were up 23c to $8.95.  

Stuart Petroleum to lift production
Stuart Petroleum said that oil production output at its flagship Cooper Basin would increase by 20% in 2011, over the current financial year, to around 300,000 barrels. The increase in production is attributable to new exploration activities and a new development well at the Worrior oil field.

At the bell, Stuart Petroleum shares were trading up 3c to 53c.

IPL posts $180m loss on writedowns
Incitec Pivot reported a loss for the full year to 30 September 2009 of $179.9 million, down 130% from the previous year. The company attributed the drop to a $490 million non-cash write-down of Dyno Nobel goodwill.

At the finish, IPL shares were up 17c to $2.79.  

Tox Free forecasts profit growth
Tox Free Solutions has requested a trading halt pending a capital raising announcement. The waste management company, at the same time, said that it was expecting EBITDA for the current year of between $26 million and $28 million, up from the $23 million EBITDA reported to 30 June 2009.

Tox Free Solutions shares were halted at $2.48.

Elders reports $466m 15 month loss
Elders reported a net loss, including one-off items, of $466.4 million for the 15 months to the end of September 2009. The result comes as the company moves to a 30 September annual reporting period, in line with other company’s in the agribusiness sector.

At the close, Elders shares were up 1c to 18c.

Tutt Bryant profit down 57%
Tutt Bryant Group reported an NPAT of $6 million for the six months ended 30 September 2009, down 57% on the $13.8 million profit reported on the previous corresponding period (“pcp”). The company said its business outcomes were significantly impacted by subdued customer demand across all divisions, although business activity in the Crane Hire and Heavy Haulage Division was more resilient.

At the bell, Tutt Bryant shares were trading down 1c to 85c.