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Nufarm Limited (NUF) and Sinochem Corporation have extended the deadline for execution of a Transaction Implementation Agreement (“TIA”) in regards to Sinochem’s proposal to acquire all of Nufarm’s shares for $13.00 each. Nufarm said the deadline had been extended by almost three weeks to 23 December 2009.

The Australian agrichemical company said Sinochem had advised that it is still assessing the results of its due diligence and indicated it remained interested in the acquisition.

Meanwhile, the Nufarm board said it had reviewed the company’s position with respect to a small number of issues raised by Sinochem and reaffirmed that the issues did not impact its view of the appropriate value required to secure board support for any offer to acquire the company.

Nufarm said it has informed Sinochem that it is prepared to continue working with the Chinese state-owned company on the basis that a TIA is negotiated and executed by the newly agreed deadline.

“Discussions between Nufarm and Sinochem will be conducted on a non-exclusive basis beyond the expiry of the exclusivity period on December 3, 2009,” Nufarm said.

“As the execution of a TIA is subject to Sinochem being satisfied with the results of its due diligence enquiries and approval by Sinochem, relevant Chinese authorities and the Board of Nufarm, there is no certainty that a TIA will be executed.”

As at 1056 AEDT, Nufarm shares were down 53c to $10.71.

Pharmaceutical company Pharmaxis Limited (PXS) today announced the results of the phase III trial of Bronchitol for the treatment of cystic fibrosis. Lung function increased for patients from 6.5% at the six month mark to 8% over the course of twelve months, while patients who were treated initially with a placebo saw lung capacity increase by over 20% when treatment was switched to Bronchitol. Bronchitol is designed to hydrate the airway surface of the lungs, and promote normal lung mucus clearance, the company said.

Dexus Property Group (DXS) announced late yesterday that it had received planning approval for a $420 million industrial estate at Greystanes, Western Sydney. The group said this next stage of the development pipeline would be the most significant industrial offer available in the next few years in the expanding Greystanes area and the Greater Western Sydney region.

DEXUS said the site covers an area of 47 hectares and the new development would encompass about 240,000 square metres of warehouse and office space.

The group said the development includes major infrastructure works with the extension of one of Greystanes’ major arterial roads.

Head of Industrial at Dexus, Andrew Whiteside, said tenant demand has been strong and the group was in advanced negotiations with several key tenants for long-term lease precommitments.

“With the approvals for the site now complete and the necessary infrastructure in place, we expect construction to commence in early 2010,” Mr Whiteside said.

Dexus expects construction of the first buildings to be completed in 2010 and the entire development scheduled to finish in 2015.

As at the close of trade Wednesday, Dexus shares were trading at 82.5c.

BlueScope Steel Limited (BSL) said it would complete construction of a second metallic coating line plant at its Cilegon, Indonesia plant. Following the commissioning of the new plant, expected to be in 2011, the total capacity would rise to 265,000 tonnes per annum of metallic coated and 160,000 tonnes per annum of painted steel. The total cost of the expansion is expected to be around US$126 million, the company said.

Sino Gold Mining Limited (SGX) said shareholders have voted in favour of Canada’s Eldorado Gold Corporation’s proposed acquisition of the China focussed Australian gold miner. Sino Gold said the requisite majorities of its shareholders voted to approve the schemes of arrangement at Scheme Meetings held in Sydney earlier today. Under the agreement Eldorado would acquire all Sino Gold shares that it does not currently own, and an Option Scheme under which all Sino Gold options would be cancelled, in return for the payment of scheme consideration to Sino Gold shareholders. Sino Gold said 99.81% voted in favour of the merger proposal. The company said it would apply to the Federal Court of Australia for orders approving the schemes at a hearing scheduled for Friday, 4 December 2009.

Wall Street climbed to new 14-month highs Tuesday as Dubai debt concerns waned. Miners rallied as a weaker greenback saw a rise in commodities prices.

In economic news, the Institute for Supply Management’s November manufacturing index decreased from 55.7 to a lower than expected 53.6 in November. Forecasts were for a drop to 55.

Meanwhile, signed contracts to buy homes increased for the ninth consecutive month. The National Association of Realtors report revealed a rise of 3.7% in October.

The Dow Jones gained 126.74 points, or 1.23%, to 10,471.58, the S&P 500 advanced 13.23 points, or 1.21%, to 1,108.86 and the NASDAQ put on 31.21 points, or 1.46%, to 2,175.81. 

Banks were mixed as fears the Dubai debt crisis would have a significant impact in US institutions subsided. Goldman Sachs and JPMorgan shed 1.2% and 0.6%, while Bank of America added 0.3%.

American International Group rallied 8.6% after the company revealed it was eliminating US$25 billion in government debt by offloading interests in two life insurance subsidiaries to Federal Reserve Bank vehicles.

General Electric moved closer to partnering with Comcast after reportedly reaching a deal to buy Vivendi’s 20% stake in NBC universal. GE’s shares advanced 0.9%.

Automakers reported sales in November that were either in line or better than expected. Ford dipped 0.1% after reporting a 10% drop in sales versus October.

Tech majors Microsoft and IBM gained 2% and 1.3%, while Apple weakened 1.5%.

Search engine Google advanced 1.2%.

Home Depot and Lowe’s climbed 3.2% and 3.5% following a report the government is considering tax credits or cash rebates to boost home improvement projects with a focus on energy efficiency.

COMEX gold for December delivery rose US$18 to settle at a record close US$1,199.10 an ounce, after rising as high as US$1,202.70. The price of the precious metal has increased 19 of the last 21 sessions.

Barrick Gold and Newmont Mining jumped 7.9% and 3.8%.

Energy majors Exxon Mobil and Chevron put on 1.3% each, while smaller rival ConocoPhillips added 1%.

NYMEX light crude oil for January delivery rose US$1.47 to US$78.75 a barrel.

European Markets

Diminishing concerns in regards to Dubai debt issues and macroeconomic data buoyed European investors, sending major indices well over 2% higher. Banks led the rally, while miners bounced as the price of copper rose for the third consecutive day.

Switzerland emerged from recession having grown 0.3% in the third quarter. Several European economies have recorded periods of growth recently.

The UK benchmark FTSE 100 rallied 121.49 points, or 2.34% to 5,312.17. The French CAC40 rose 95.59 points, or 2.60% to 3,775.74, while the German DAX put on 150.66 points, or 2.68% to 5,776.61.

Financials went some of the way to recovering recent losses. Deutsche Bank gained 3.3%, while Societe Generale and BNP Paribas advanced 1.9% and 1.4%.

In the UK Standard Chartered, Royal Bank of Scotland and HSBC were the big improvers, adding 5.2%, 3.3% and 2.7% respectively.

Lloyds bucked the trend, losing 1.8%.

Among the insurers AXA, Allianz and Aviva gained 3.5%, 3.4% and 2.2%.

Xstrata surged 6.3%, while Anglo American and Antofagasta put on 4.2% and 3.3%.

Aussie miners Rio Tinto and BHP Billiton gained 4% and 3.5%.

Energy majors BG Group, BP and Total were between 2.1% and 2.5% higher.

Alstom and Schneider Electric jumped 6.7% and 3.8% after they started discussions to buy Areva’s power-grid unit.  

Reports General Electric valued Vivendi’s 20% stake in NBC Universal at $5.8 billion sent the French telecommunications and media company’s shares 4% higher.

Japanese Markets

The Nikkei outperformed its Asian peers Tuesday following speculation the central bank in Japan would place the limits on the strength of the yen and stimulate lending by putting aside 10 trillion yen ($124 billion) for short-term loans. The exporters rallied on the news, while banks also gained ground.

The Nikkei 225 surged 226.65, or 2.43% to 9,572.20.

Japan’s number one bank Mitsubishi UFJ Financial Group, climbed 3.1% on the belief the new banking policy would stimulate lending.

Sumitomo Mitsui Financial Group Inc rose 1.6%, while Mizhuo Financial Group was 1.9% above the line.

Broking firm Nomura Holdings rallied 4%.

The export focused auto industry was strong, with Honda advancing 3.9%. Mazda surged 5.4%.

Toyota, the world’s largest automaker, rallied 2.3%.

Consumer electronics giant Sony spiked 3.9%, while Panasonic was 2.2%.

Hong Kong Markets

The Hang Seng rallied Tuesday on widespread optimism over the strength of the Chinese economy and positive consumer sentiment. Manufacturing on the mainland hit 18-month highs in November with financial stocks, the airlines and Chinese car markers all posting strong gains.

The Hang Seng jumped 291.65, or 1.34% to 22,113.15.

Bank of China rallied 1.6%, while Bank of Communications tacked on 1.3%.

Heavyweight lender ICBC surged 2.3%.

HSBC, which makes one-sixth of the index, spiked 1.1%.

Li & Fung, which makes clothes for Wal-Mart and Australia’s own Pacific Brands, surged 3.9%.

China’s number one gold producer Zijin Mining spiked 6.5% after its proposed takeover of Australian junior miner Indophil Resources.

Jiangxi Copper, China’s biggest producer of the metal, and coal stock China Shenhua Energy both put on 1.6%.

Air China spiked nearly 10% after increasing its stake in Cathay Pacific from 17% to 30%.

China Eastern Airlines and China Southern Airlines spiked 5.9% and 7.3% respectively.

Carmaker BYD, supported by Warren Buffet, spiked 9.4%.

Directors' Interest Notices
01 December 09

Symbol

Shareholder

+/-

Prior

Now

No Directors' Interest Notices changes for today 

Substantial Shareholder Changes 
01 December 09

Symbol	Shareholder	+/-	Prior	Now
BTT	Westpac Banking Corporation		60.05	61.12
ELD	ING Group		5.34	-
FPA	Orbis Investment Mgt (Aust.)		7.85	9.13
GMG	The Vanguard Group, Inc.		-	5.01
IFN	Morgan Stanley & Co. Intl plc		5.04	-
KCN	Jabre Capital Partners SA		5.49	-
KCN	UBS Nominees Pty Ltd		7.14	5.96
ORI	Perpetual Limited		9.77	8.76
QAN	UBS Nominees Pty Ltd		5.07	-
SGP	Commonwealth Bank of Aust.		7.60	6.59
TEN	ING Group		5.66	-

All movements are percentage changes

The Australian share market closed higher at the end of a day's trade that saw the major indices trading either side of the gain line. It was a big news day locally, with the RBA lifting interest rates and Tony Abbott securing the Liberal Party leadership, while the dust has started to settle in regards to the Dubai World debt concerns.

The Reserve Bank of Australia raised the cash rate for the third successive month with a 25 basis point increase to 3.75%. Concerns have already been raised that the rate hike will have an impact on industries including the home building market.

In manufacturing news, the Australian Performance of Manufacturing Index weakened 0.5 points to 51.2 in November. It was the fourth consecutive month the manufacturing sector expanded (a level above 50).

Meanwhile, home-building approvals dropped for the first time in five months in October. The number of permits granted to build or renovate decreased 0.6% after a 5.1% rise the previous month. Forecasts were for a 2% increase.

At the end of the day, the All Ords added 17.6 points to 4,733.1, while the ASX/200 gained 17.7 to 4,719.0. About 1.9 billion shares worth around $4 billion had changed hands. 

It was a mixed day for the big four banks as they review their own interest rates following the RBA’s decision this afternoon. Just before the close, Westpac lifted its rate by 45 basis points, nearly double what the RBA's rise. Its shares rose were just 4c higher to 0.2%.

ANZ lost 18c to $21.97, while CBA put on $1.05 to $53.85.

The Banks and Financials sector advanced 0.4%.

The insurers were also mixed with QBE up 1.5% to $22.57 and AMP down 0.8% to $6.13.

Macquarie gained 46c to $48.46.

The Materials and Resources sector gained 0.2% as BHP Billiton added 4c to $41.34 and Rio Tinto lost 26c to $71.40.

Steelmaker Bluescope jumped 11c, or 4.1% to $2.82, while rival Onesteel added 6c to $3.06.

Newcrest put on 61c, or 1.7% to $37.40, while Fortescue advanced 6c to $4.27.

Indophil Resources rallied 10.6% to $1.20 after receiving a takeover offer from China’s largest gold producer Zijin at $1.28 per share.

Aussie Energy stocks benefited from a climb in the price of crude overnight, which was a result of increased tensions in the Middle East.

The sector rose 0.6%, led by Woodside adding 55c to $49.30. The sector heavyweight said workers at its Pluto plant are on strike due to accommodation issues.

Oil Search and Santos rose 17c and 22c to  $5.87 and $14.94 respectively.

Aquila lost some of the ground made recently to be down 5.9% to $10.29 at the bell.

Among the Industrials most of the key players posted gains with Leighton adding 74c to $36.44, helping the broader sector up 1%.

Asciano advanced 6.5c to $1.72 after signing a 12-year contract valued at $500 million to haul coal for a Japanese coal miner in northern NSW.

Qantas rallied 10c to $2.70.

Downer EDI tacked on 16c to $8.69 after announcing a string of new and renewed contract wins by its mining division.

It was a mixed day among the Consumer Staples stocks. Woolworths eked out an 17c gain to $28.22, while Wesfarmers shares fell 42c to $29.36.

Metcash shed 9c, or 1.9% to $4.59 despite announcing 36% spike in profit to $109 million.

Coca-Cola Amatil climbed 3.3% to $10.95 as the sector lost 0.2%

The Consumer Discretionary sector put on 0.3% as gains from the gamers was countered by losses elsewhere.

Tatts and Aristocrat both added 1.7%, while Crown rose 17c, of 2.2% to $8.00.

Fairfax shed 1.5c to $1.62.

A 3c rise in the price of Telstra shares to $3.44 helped the Telecommunications sector to a market leading 0.7% gain.

Around the region, the Nikkei 225 gained 150.5 to 9,496.1, while the Straits Times Index added 21.4 to 2,753.5. Meanwhile, the NZSE50 put on 21.1 to 3,146.6. The Hang Seng rose 119.3 to 21,940.8.

Spot gold was trading at US$1,176.70 per ounce, and the Aussie was buying US$0.9116. 

 

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Interest rates up again
The Reserve Bank of Australia raised the cash rate by 25 basis points to 3.75% today, the third consecutive monthly rise. In explaining the decision Reserve Bank Governor Glenn Stevens said that the global economy was growing again and although modest in the US and Europe, in Asia the recovery had been strong, with capital flows into Asia and other emerging regions gaining strength.

Metcash expects 7% – 10% earnings growth
Metcash reported a post-tax profit of $109.2m for the six months to 31 October 2009, up 36.5% from $80m in the previous corresponding period. Looking ahead, Metcash CEO Andrew Reitzer reiterated guidance saying pre-abnormal earnings per share was expected to grow by between 7% and 10% in the current year.

At the final whistle, Metcash shares were down 9c to $4.59.

Downer secures $170m in new contracts
Downer EDI said that its mining division had secured another $170m in contracts in the current financial year, taking the new and renewed mining contracts to over $670 million for the current financial year. The company’s mining division currently stood around $2.7 billion.

At the end of the day, Downer shares were up 16c to $8.69.

Asciano secures $500m contract
Asciano has signed a 12-year contract with Idemitsu for the haulage of coal from its Boggabri mine. The transports and logistics company said the contract is expected to generate revenue of about $500 million and includes a 400% increase on their existing contracted volumes over time.

By the finish, Asciano shares were up 6.5c to $1.72.

Qantas passengers jump 6.7% in October
Qantas Airways reported a 6.7% jump in passengers for the month of October 2009 to 3.679 million passengers, against the corresponding month last year. The airline reported revenue per kilometre was up by 3.2%, while Available Seat Kilometres fell 1.1%, resulting in revenue seat factor – a key measure of profitability for the airline – increased 3.4% to 83.3%.

At the end of the day, Qantas shares were up 10c to $2.70.

Indophil board recommends Zijin takeover
Indophil Resources said it had received and agreed terms with Chinese mining giant Zijin Mining Group Company Limited for a takeover of Indophil shares at $1.28 cash per share. The offer price represents an 18% increase to the closing price of Indophil’s shares at 30 November.

At the close, Indophil shares were up 11.5c to $1.20.

The Reserve Bank of Australia raised the cash rate by 25 basis points to 3.75% today, the third consecutive monthly rise. In explaining the decision Reserve Bank Governor Glenn Stevens said that the global economy was growing again and although modest in the US and Europe, in Asia the recovery had been strong, with capital flows into Asia and other emerging regions gaining strength.

The central bank also pointed to the fact that Australia dodged the recession, with only a relatively mild downturn in the economy, with unemployment set to peak at considerably lower levels than forecast in the first half of the calendar year.

Mr Stevens also referred to the inflation level which remains subdued, with the bank referring to ‘temporary factors’.

”Both CPI and underlying inflation are expected to be consistent with the target in 2010,” Mr Stevens said.

Credit for housing had grown strongly, though the bank noted the decline in business credit as companies deleverage their balance sheets.

”With the risk of serious economic contraction in Australia having passed, the Board has moved at recent meetings to lessen gradually the degree of monetary stimulus that was put in place when the outlook appeared to be much weaker,” Mr Stevens concluded.

It was a more subdued day on the local share market as investors took a breather following several highly volatile days across global markets. The market barely moved in light trade to lunch with the banks as well as the heavyweight miners virtually unchanged, while strength from stocks across the board helped the market to modest gains.

The dust has finally started to settle on the Dubai World debt concerns as the group restructures up to US$28 billion in debt, while in Australia Tony Abbot has secured the Liberal Party leadership on an anti carbon-trading platform.

All eyes will now turn to the Reserve Bank of Australia board as it passes down its decision on interest rates at 2:30pm today. The strong money is on a third consecutive interest rate hike before the board adjourns until February.

At midday, the All Ords added 7.2 points to 4,722.7, while the ASX/200 gained 6.0 to 4,707.3. About 800 million shares worth around $1.5 billion had changed hands. 

Among the banks, the general trend was lower as investors booked profits following gains of up to 6% yesterday from the big four.

ANZ lost 12c to $22.03, while Westpac and NAB both lost 0.3% to be at $24.06 and $28.54 respectively. CBA put on 56c to $53.36.

The Banks and Financials sector lost 0.1%.

The insurers were also flat with QBE the only one to make a significant move, up 22c, or 1% to $22.46.

Macquarie edged 19c higher to $48.19.

The Materials and Resources sector was flat, as BHP Billiton and Rio Tinto paced modest declines from their London-listed stocks overnight with BHP down just 5c to $41.25, while Rio Tinto dipped 26c, or 0.4% to $71.40.

Steelmaker Bluescope added 6c, or 2.2% to $2.77, while rival Onesteel tacked on 2c to $3.02.

Newcrest put on 73c, or 2% to $37.52 as gold continued its record-breaking rally. Newcrest shares have risen 27% since early September.

Indophil Resources rallied 10.1% to $1.195 after receiving a takeover offer from China’s largest gold producer Zijin at $1.28 per share.

Increased tensions in the Middle East saw oil prices climb overnight, with Aussie Energy stocks being among the beneficiaries.

The sector rose 0.8%, led by Woodside adding 54c to $49.29.

Oil Search and Santos rose 17c and 20c to be at $5.87 and $14.92 respectively.

Among the Industrials most of the key players posted gains with Leighton up 50c to $36.20, helping the broader sector up 0.8%.

Asciano advanced 6c to $1.715 after signing a 12-year contract valued at $500 million to haul coal for a Japanese coal miner in northern NSW.

Qantas added 8c to $2.68.

Downer EDI tacked on 5c to $8.53 after announcing a string of new and renewed contract wins by its mining division.

It was a mixed day among the Consumer Staples stocks. Woolworths eked out an 11c gain to $28.16, while Wesfarmers shares fell 34c to $29.44. Wesfarmers shares rallied 9.4% in November.

Metcash shares shed 9c, or 1.9% to $4.59 despite announcing 36% spike in profit to $109 million.

The sector lost 0.3%

The Consumer Discretionary sector put on 0.3% as gains from the gamers and retail stocks countered a decline from media stocks.

Tabcorp rose 12c to $7.30, while Harvey Norman put on 8c to $4.38.

Fairfax shed 2c, or 1.2% to $1.615.

A 6c rise in the price of Telstra shares to $3.47 helped the Telecommunications sector to a market leading 1.5% gain.

Around the region, the Nikkei 225 dipped 59.4 to 9,286.2, while the Straits Times Index gained 17.4 to 2,749.6. Meanwhile, the NZSE50 put on 19.7 to 3,145.2.

Spot gold was trading at US$1,179.65 per ounce, and the Aussie was buying US$0.9166. 

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Metcash expects 7% – 10% earnings growth
Metcash reported a post-tax profit of $109.2m for the six months to 31 October 2009, up 36.5% from $80m in the previous corresponding period. Looking ahead, Metcash CEO Andrew Reitzer reiterated guidance saying pre-abnormal earnings per share was expected to grow by between 7% and 10% in the current year.

At noon, Metcash shares were down 10c to $4.58.

Downer secures $170m in new contracts
Downer EDI said that its mining division had secured another $170m in contracts in the current financial year, taking the new and renewed mining contracts to over $670 million for the current financial year. The company’s mining division currently stood around $2.7 billion.

At lunchtime, Downer shares were up 6c to $8.59.

Asciano secures $500m contract
Asciano has signed a 12-year contract with Idemitsu for the haulage of coal from its Boggabri mine. The transports and logistics company said the contract is expected to generate revenue of about $500 million and includes a 400% increase on their existing contracted volumes over time.

At midday, Asciano shares were up 6c to $1.715.

Qantas passengers jump 6.7% in October
Qantas Airways reported a 6.7% jump in passengers for the month of October 2009 to 3.679 million passengers, against the corresponding month last year. The airline reported revenue per kilometre was up by 3.2%, while Available Seat Kilometres fell 1.1%, resulting in revenue seat factor – a key measure of profitability for the airline – increased 3.4% to 83.3%.

At lunch, Qantas shares were up 7c to $2.67.

Indophil board recommends Zijin takeover
Indophil Resources said it had received and agreed terms with Chinese mining giant Zijin Mining Group Company Limited for a takeover of Indophil shares at $1.28 cash per share. The offer price represents an 18% increase to the closing price of Indophil’s shares at 30 November.

At noon, Indophil shares were up 11c to $1.195.