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Nufarm Limited (NUF) said at today’s AGM that it was expecting improved conditions this year to deliver an increased net profit above last year’s post-tax profit of around $80 million. The company said this was despite a soft start to the year to date, which has seen sales down from the previous corresponding period.

”It should be remembered that last year’s first half result benefited from an unusual sales mix of higher margin products in an environment that was quite different from current conditions,” Nufarm managing director Doug Rathbone said.

”We are now on a curve that reflects improving business conditions and we remain very confident that net operating profit for the full year will show a considerable improvement on 2009.”

The company broke with tradition by not putting a figure on forecast profit for 2010, defending the move by saying business credit and the timing of a recovery in its key glyphosate, a weed killer, remained too uncertain.

Mr Rathbone also expressed disappointment the proposed takeover by Chinese giant Sinochem hadn’t proceeded on its original schedule, however the company would continue to work with Sinochem to complete the transaction by the revised date of December 23.

”If the transaction proceeds, the company enters a new phase under the ownership of another corporation,” Mr Rathbone said.

The share price of Nufarm has dipped 9.4% in two days, though has rallied 24c to $10.75 in morning trade Thursday.

Coffey International Limited (COF) updated its forecast for the next three years, saying it was targeting a minimum annualised EPS growth of the three years of between 10% and 15% per year. The mining focused engineering firm said the forecast was based on the assumption that economic conditions would continue to improve and company continue to realise improved organic growth.

RBS – Round Up – 031209

Gindalbie Metals Limited (GBG) said it had awarded a $70 million contract for construction of the main camp and accommodation village for the Karara Iron Ore Project to West Australian company Doric Constructions (Australia) Pty Ltd. The company said the contract encompasses design and installation of the construction camp and associated facilities that would house the main construction work force for Karara. Gindalbie said it expects this to be completed progressively in 2010.

Woodside Petroleum Limited (WPL), along with the other Browse Joint Venture participants, have received renewal offers that require them to have selected the Kimberley LNG precinct as a development concept within 120 days. The company said the terms of the renewals stipulate that certain work commitments are to be made to advance the development of the Browse LNG Project. Woodside said the JV is required to undertake a material work program over the next 30 months, committing $1.25 billion to ensure the earliest commercialisation of the Browse resources.

Mantra Resources Limited (MRU) increased its mineral resource estimate (“MRE”) for the company’s Nyota Prospect in Tanzania from 35.9 Mlbs uranium oxide to 44.6 Mlbs. The company said the average grade of the MRE has increased by 11% to 455 ppm uranium oxide. Mantra said 38% of the MRE is now classified as an Indicated Resource. The company added that the current phase of exploration drilling would be concluded in early December and followed by a further MRE update in the March quarter of 2010.

Arrow Energy Limited (AOE) said current activities targeting expansion of the company’s 3P reserves are likely to lead to another substantial upgrade in early 2010 based on the work completed for the six months to 31 December 2009. The company said it had made some excellent progress from the early stages of its planned $300m exploration and appraisal program.  

Wall Street finished mixed Wednesday with energy stocks leading the slide on the Dow. Financials also struggled as investors looked at individual stocks rather than sectors elsewhere. 

Federal Reserve Chairman Ben Bernanke will face the Senate banking committee on Thursday seeking confirmation for a second term. It is expected he will face tough questioning in regards to reducing the Fed’s powers.

In economic news, 169,000 jobs were cut in the private sector in November after 196,000 were lost the previous month according to payroll services form ADP. Forecasts were for 150,000 jobs to be lost.

The Dow Jones shed 18.90 points, or 0.18%, to 10,452.68, the S&P 500 added 0.38 points, or 0.03%, to 1,109.24 and the NASDAQ put on 9.22 points, or 0.42%, to 2,185.03.

JPMorgan weakened 0.7% on concerns a change in derivatives rules will have a negative impact on earnings.

Wells Fargo and Bank of America lost 1.9% and 1.5%.

The tech sector was led higher by 1.2% and 1% gains from Yahoo! and Oracle respectively. However, this was somewhat countered by losses elsewhere including Microsoft, Apple and IBM, which were down between 0.3% and 0.8%.

Hewlett-Packard fell 1.2%.

The utility sector has rallied 2.6% in the eight trading days since Pimco chief Bill Gross said he was buying the sector. The sector has outperformed the broader market during this period after being the stock market's worst performer for most of the latest rally.

American Electric Power and Exelon put on 2.7% and 1.9%.

Aluminium producer Alcoa jumped 6.6%. 

General Motors CEO Fritz Henderson resigned after only nine months in the job leaving the automaker to search for a permanent replacement.

Energy stocks tracked the price of crude lower. Exxon Mobil, Chevron and ConocoPhillips shed between 0.3% and 0.8%.

NYMEX light crude oil for January delivery fell US$1.77 to US$76.60 a barrel. The drop was attributed to an increase in inventories.

COMEX gold for February delivery rallied US$12.80 to a new closing high of US$1,213 an ounce.

Barrick Gold climbed 4%.

European Markets

European shares closed higher for the second successive day as positive data out of the US boosted sentiment. A rise in metals prices saw miners perform strongly.

The UK benchmark FTSE 100 added 15.22 points, or 0.29% to 5,327.39. The French CAC40 rose 20.18 points, or 0.53% to 3,795.92, while the German DAX gained 5.07 points, or 0.09% to 5,781.68.

Rio Tinto and Vedanta led the major miners higher, both rallying 2.6%. BHP Billiton put on 1%, while Xstrata advanced 1.1%.

Energy stocks moved in the other direction, with BG Group, Royal Dutch Shell and BP sliding between 0.2% and 0.8%.

Total added 0.4%.

Banks were also lower. BNP Paribas, Commerzbank and Deutsche Bank lost 1.3%, 2.9% and 1.4% respectively.

Royal Bank of Scotland and Lloyds fell 2.1% and 1.9%, while Barclays bucked the trend adding 0.5%.  

An upgrade to European pharmaceutical stocks by UBS resulted in advances within the sector. Bayer and Merck rose 1.8% and 1%.

French luxury goods retailer LVMH put on 2.9% on the back of a broker upgrade.

Japanese Markets

Japan’s Nikkei closed at a two-week high with automakers leading gains. Resource stocks were boosted by higher commodity prices.

The Nikkei rose 36.74, or 0.38% to 9,608.94.

Nissan Motor gained 2.5% as U.S sales climbed 21% in previous month. Toyota advanced 2.6%.

Mitsubishi Corp put on 2.2% as the price of crude settled at its highest level in two-weeks and gold closed at a record level once again.  Sumitomo Metal Mining Co added 1%.

JFE Holdings and Nippon Steel rose 2.4% and 2.7% on reports of a recovery in demand.

Capital raising concerns saw financials lower. Mitsubishi UFJ Financial and Sumitomo Mitsui Financial Group shed 2.2% and 2.3%.

Nippon Yusen K.K. fell 2.7% to its lowest close in over 24 years as it looks to raise capital through the sale of shares.

Sumco Corp sank 9% after the silicon wafer maker reported an operating loss.

Hong Kong Markets

Hong Kong shares gained ground for the third straight session. The market was led by gains in the construction sector, gaming and gold stocks as improving housing data out of the US pointed to improved retail and consumer sentiment.

The Hang Seng put on 176.42, or 0.80% to 22,289.57.

The Bank of China was flat, while ICBC tacked on 0.6%. HSBC put on another 1%.

Bank of Communications bucked the trend, easing 0.8%.

Construction stocks also made gains. China Construction Bank Corp added 1.4% and the state owned China Overseas Land & Investment rallied 3.4%.

China Petroleum & Chemical Corp and PetroChina both gained 1.4%.

Geely Auto surged 5.9% on news that its parent company was close to purchasing Volvo from Ford Motor Company.

Surging gambling revenue buoyed gaming stocks. Wynn Macau jumped 6.2%, while market debutant Sands spiked 6.7%.

China’s number one gold producer Zijin Mining climbed 3.4% as gold producers surge unabated. Gold mining peers Realgold mining rose 1.6%, while Sino Gold Mining spiked 8.1%.

Directors' Interest Notices
02 December 09

Symbol	Shareholder	+/-	Prior	Now
MGR	John Francis Mulcahy		0	25,000

 

Substantial Shareholder Changes 
02 December 09

Symbol	Shareholder	+/-	Prior	Now
AXM	Commonwealth Bank of Aust.		8.80	9.85
AIO	Westpac Banking Corporation		8.05	9.09
CPA	Morgan Stanley Invest. Mgt Co		-	5.13
CMJ	Seven Network Group		20.96	22.12
JHX	Commonwealth Bank of Aust.		5.04	6.04
MTS	Perpetual Limited		5.05	-
OSH	Westpac Banking Corporation		-	5.00
PBG	Paradice Investment Mgmt		5.73	-
PMV	Commonwealth Bank of Aust.		7.47	6.31
TSE	AMP Limited		5.51	-

All movements are percentage changes.

Gold stocks surged Wednesday to lead the Aussie market 0.9% higher. A rise in commodity prices and the blocking of the emissions trading scheme in the Senate boosted other resource stocks, while financials also strengthened.

At the end of the day, the All Ords added 43.6 to 4,776.7, while the ASX/200 gained 43.4 to 4,762.4. About 2.6 billion shares worth around $4.9 billion had changed hands. 

Gains from the big four banks saw the Banks and Financials sector 0.4% higher.

Westpac put on 9c, or 0.4% to $24.27 after yesterday announcing an interest rate hike of 45 basis points, almost double that what the Reserve Bank of Australia announced not long before. The market is waiting to see if there will be any major regulatory / government backlash in response to the decision.

CBA rose 85c to $54.70, while ANZ added 14c to $22.11.

Perpetual slid 28c to $32.50 as the company reaffirmed guidance for the six months to the end of this month. The diversified financial services company forecast post-tax profit to be between $40 million and $50 million during the period.

AMP was the best of the insurers, up 2.1% to $6.26, while IAG and QBE drifted just below the gain line.

Strong gains from the banks were offset by a sharp afternoon sell-off from the Property Trusts sector. The 1.4% drop easily made it the worst performing sector.

Westfield lost 22c, or 1.8% to $12.05. Mirvac shed 4.5c to $1.485 and Goodman Group sank 2c to 57.5c

Dexus was unchanged despite receiving planning approval or a $420 million industrial estate in Western Sydney.

Lend Lease lost 29c to $9.61. Yesterday the developer agreed to terms to commence a redevelopment of the Elephant and Castle development in London.

Materials and Resources advanced 2.1% on the back of metals prices improving, including fresh 2009 highs for both gold and copper.

Rio Tinto put on $2.14, or 3% to $73.54, while BHP Billiton added 58c, or 1.4% to $41.92.

Gold stocks paced the strength of the precious metal, with Newcrest and Lihir jumping 5% and 4.2% to $39.26 and $3.73 respectively.

Sino Gold shares spiked 5.9% after shareholders voted overwhelmingly in favour of its merger with Canadian miner Eldorado.

Bluescope Steel rallied 2.8% to $2.90 after announcing an increase to capacity at its plant in Indonesia.

Nufarm lagged to be down 73c to $10.51 after agreeing to extend its transaction implementation agreement deadline with Sinochem by another three weeks. Sinochem has proposed to takeover Nufarm with an offer of $13 per share. 

The Energy sector added 1.2% as stocks tracked the price of crude higher. Crude rose over $1 to US$78.37 a barrel in New York after strong manufacturing data from China was released and the greenback weakened.

Woodside put on 50c to $49.80, while Origin rose 22c, or 1.4% to $15.77.

Caltex ended down 13c at $9.47 following the ACCC's decision to block its proposed takeover of up to 300 Mobil petrol stations.

WorleyParsons advanced 62c, or 2.3% to $27.30.

Heavyweight Leighton gained 41c to $36.85, helping the Industrials sector to a 0.6% advance.

Toll Holdings and Qantas rose 0.9% and 1.9% to $8.18 and 2.75 respectively.  

Consumer Discretionary gained 0.5%.

Fairfax added the most points to the index within the sector, putting on 5c to $1.67.

Seven lost 6c to $6.40 as the Federal Court dismissed the company’s appeal against its loss in the $200 million C7 trade practices suit.

Retailer Harvey Norman added 6c to $4.42 and gamer Crown advanced 8c to $8.08.

Telstra added 5c to $3.49 as it revealed plans to sell down its 51% stake in SouFun Holdings when the company is floated in Hong Kong. The Telecommunications sector was 1.3% above the line.          

Coca-Cola Amatil couldn’t stop Consumer Staples from falling below the line despite a 22c, or 2% gain to $11.17. The sector was off 0.1%
 
Metcash lost 3c to $4.56 after featuring heavily in broker reports this morning, including two ratings downgrades.

Sonic Healthcare showed strength, advancing 44c, or 3.1% to $14.46 though the Healthcare sector was more subdued, rising only 0.5%.

Around the region, the Nikkei 225 added 13.6 to 9,585.8, while the Straits Times Index gained 21.3 to 2,792.2. Meanwhile, the NZSE50 put on 2.8 to 3,149.4. The Hang Seng climbed 283.1 to 22,396.3.

Spot gold was trading at US$1212.90 per ounce, and the Aussie was buying US$0.9269. 

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Caltex offer to buy Mobil rejected by ACCC
Caltex Australia has been informed that the Australian Competition and Consumer Commission intends to oppose the energy company’s proposed $300 million acquisition of Mobil Oil Australia's retail assets. The ACCC said the decision was based on the likely effect the proposed acquisition would have on market competition as well as broader concerns about the effect of the acquisition on the stability and effectiveness of coordination between the major fuel retailers in determining petrol prices.

At the close, Caltex Australia shares were down 13c to $9.47.

Perpetual reaffirms guidance
Perpetual today reaffirmed guidance for the six months to 31 December 2009, saying it expected its post-tax profit would come in between $40 million and $50 million, up from $14.2 million in the previous corresponding period. The wealth management firm also forecast a dividend in excess of 60c per share, higher than the previous two dividend payouts.

At the finish, Perpetual shares were down 28c to $32.50.

Macarthur says coal sales have recovered
Macarthur Coal said coal sales have recovered from the GFC downturn as traditional customers have resumed buying contracted volumes and are seeking additional coal. The company also said it had identified projects which are under evaluation to fill its increasing infrastructure capacity to double production in the next five years.

At the end of the day, Macarthur Coal shares were up 19c to $9.34.

Nufarm extends talks with Sinochem
Nufarm 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.

At the bell, Nufarm shares were down 73c to $10.51.

Dexus receives development approval
Dexus Property Group 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.

At the close, Dexus shares were unchanged at 82.5c.

Caltex Australia Limited (CTX) has been informed that the Australian Competition and Consumer Commission (ACCC) intends to oppose the energy company’s proposed $300 million acquisition of Mobil Oil Australia's retail assets. The ACCC said the decision was based on the likely effect the proposed acquisition would have on market competition as well as broader concerns about the effect of the acquisition on the stability and effectiveness of coordination between the major fuel retailers in determining petrol prices.

ACCC chairman, Graeme Samuel, said the acquisition of 302 service stations would be likely to substantially lessen competition across a range of retail fuel markets and therefore result in higher fuel prices for consumers.

"The proposed acquisition would give Caltex a significant share of retail sites in Brisbane, Sydney, Melbourne and Adelaide," Mr Samuel said.

"As one of the leaders of the weekly price cycle in these cities, this increase in Caltex's presence would increase the likelihood of stable price increases particularly compared to a situation where some or all of the sites are acquired by more maverick or aggressive retailers."

Caltex managing director and CEO, Julian Segal, said the company would consider its position on the basis of today's announcement, the public competition assessment and further discussion it proposes having with the ACCC.

"Regardless of the eventual outcome, Caltex will maintain its business strategy,” Mr Segal said.

”As previously stated, we will focus on growing our existing business and pursuing adjacent step out and merger and acquisition opportunities.”

The ACCC said it is satisfied that, based on information provided by Mobil, if the sale to Caltex does not proceed, Mobil would exit its retail business in Australia within the next two to three years.

”Under any likely alternative sale, the ACCC considers that a significant proportion of the sites would be purchased by retailers with a greater propensity to discount compared to the oil majors, including Caltex,” the consumer watchdog said.

As at 1400 AEDT, Caltex Australia shares were down 23c to $9.37.

Australian stocks followed their global peers higher Wednesday morning with a 1.2%. A rise in commodity prices boosted related stocks, while financials had also strengthened.

At midday, the All Ords added 57.8 to 4,790.9, while the ASX/200 gained 58.8 to 4,777.8. About 1.3 billion shares worth around $2 billion had changed hands. 

Consistent gains across the board saw the Banks and Financials sector 1.1% higher.

Westpac put on 38c, or 1.6% to $24.56 after yesterday announcing an interest rate hike of 45 basis points, almost double that what the Reserve Bank of Australia announced not long before. The market is waiting to see if there will be a major regulatory / government backlash in response to the decision.

The remaining three majors were between 0.9% and 1% higher.

Perpetual slid 14c to $32.64 as the company reaffirmed guidance for the six months to the end of this month. The diversified financial services company forecast post-tax profit to be between $40 million and $50 million during the period.

AMP was the best of the insurers, up 2.1% to $6.26.

Materials and Resources advanced 2.1% on the back of metals prices moving higher in London overnight, including a 2.1% rise in the price of copper. 

A weaker greenback sent commodity prices higher.

Rio Tinto put on $1.82, or 2.5% to $73.22, while BHP Billiton added 54c, or 1.3% to $41.88.

Gold stocks rallied as the price of the precious metal reached new all-time highs. Newcrest and Lihir jumped 4.2% and 3.9% to $38.96 and $3.72 respectively.

Bluescope Steel rallied 3.9% to $2.93 after announcing it an increase to capacity at its plant in Indonesia.

Nufarm lagged to be down 58c to $10.66 after agreeing to extend its transaction implementation agreement deadline with Sinochem by another three weeks. Sinochem has propsed to takeover Nufarm with an offer of $13 per share.

Incitec Pivot jumped 4.3% to $2.94.

The Energy sector added 1.7% as stocks tracked the price of crude higher. Crude rose over $1 to US$78.37 a barrel in New York after strong manufacturing data from China was released and the greenback weakened.

Woodside put on 71c to $50.01, while Origin, Oil Search and Santos were between 1.8% and 1.9% higher.

WorleyParsons advanced 62c, or 2.3% to $27.28.

Sector heavyweight Leighton gained 68c to $37.12, helping the Industrials sector to a 0.9% advance.

Toll Holdings and Qantas rose 1.6% and 1.5% to $8.24 and 2.74 respectively.  

Consumer Discretionary gained 0.9%.

Fairfax added the most points to the index within the sector, putting on 3.5c to $1.655.

Seven added 2c to $6.48 as the Federal Court dismissed the company’s appeal against its loss in the $200 million C7 trade practices suit.

Retailer Harvey Norman added 7c to $4.43 and gamer Tabcorp advanced 7c to $7.29.

Telstra added 2c to $3.46 as it revealed plans to sell down its 51% stake in SouFun Holdings when the company is floated in Hong Kong. The Telecommunications sector was 0.5% above the line.          

Coca-Cola Amatil managed to stop Consumer Staples from falling below the line with a 26c, or 2.4% gain to $11.21. The sector was flat.

Wesfarmers dipped 14c to $29.22 and Woolworths edged 5c higher to $28.27.     

Metcash was flat after featuring heavily in broker reports this morning, including two ratings downgrades.

Dexus gained 1c to 83.5c after receiving planning approval or a $420m industrial estate in Western Sydney. The Property Trust sector was 0.5% in the black.

Lend Lease lost 33c to $9.57 after the company agreed to terms to commence a redevelopment of the Elephant and Castle development in London.

Around the region, the Nikkei 225 added 39.3 to 9,611.5, while the Straits Times Index gained 14.2 to 2,785.2. Meanwhile, the NZSE50 put on 10.6 to 3,157.2.

Spot gold was trading at US$1,202.15 per ounce, and the Aussie was buying US$0.9273. 

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Perpetual reaffirms guidance
Perpetual today reaffirmed guidance for the six months to 31 December 2009, saying it expected its post-tax profit would come in between $40 million and $50 million, up from $14.2 million in the previous corresponding period. The wealth management firm also forecast a dividend in excess of 60c per share, higher than the previous two dividend payouts.

At lunch, Perpetual shares were down 1c to $32.77.

Macarthur says coal sales have recovered
Macarthur Coal said coal sales have recovered from the GFC downturn as traditional customers have resumed buying contracted volumes and are seeking additional coal. The company also said it had identified projects which are under evaluation to fill its increasing infrastructure capacity to double production in the next five years.

Half way through the day, Macarthur Coal shares were up 25c to $9.40.

Nufarm extends talks with Sinochem
Nufarm 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.

At lunch, Nufarm shares were down 48c to $10.76.

Dexus receives development approval
Dexus Property Group 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.

At the noon, Dexus shares were trading up 1.5c to 84c.