Substantial Shareholder Changes – 21 December 09
December 21, 2009
Wall Street recovered much of last week’s losses Monday on the back of bullish broker notes and M&A talks. Gains were broad based with tech stocks particularly strong for the second successive session.
The market awaits several reports due for release this week, including the government’s final report on third-quarter GDP. Forecasts for the economy to expanded by an annualized rate of almost 3%.
The Dow Jones gained 85.25 points, or 0.83%, to 10,414.14, the S&P’s 500 put on 11.58 points, or 1.05%, to 1,114.05 and the NASDAQ rallied 25.97 points, or 1.17%, to 2,237.66.
Financials made ground. JPMorgan and Wells Fargo advanced 2.3% and 2.1%, while Bank of America added 1.7%.
Goldman Sachs gained 1.4%.
Alcoa surged 7.9% after Morgan Stanley upgraded its rating in the aluminium producer following the announcement of a US$10.8 billion joint venture with Saudi Arabian company Ma’aden to develop a mining operation. Alcoa will receive 40% of profits to split with partners.
AK Steel and United States Steel rallied 6.8% and 6.3%.
Intel climbed 2.3% after Barclays Capital upgraded its rating on the semiconductor maker’s stock to “overweight”.
Research in Motion weakened 0.6% as a second Chinese mobile operator signed a deal with the BlackBerry maker. The company’s shares jumped 10.4% the previous session after delivering a better than expected earning result and upgrading its outlook.
Apple gained 1.4%, while all of the other major players in the sector were within 1% above the gain line.
Healthcare stocks were boosted by the news the Senate voted to end debate on revisions to a major health-care-reform bill. Pfizer and Merck & Co added 1.7% and 0.8%.
Chattem spiked 33.1% after French pharmaceutical Sanofi-Aventis offered to acquire the company. Sanofi-Aventis is looking to expand its presence in the US.
Aetna and Cigna rose 4.7% and 3.9%.
Bucyrus jumped 9.8% after the mining equipment manufacturer offered to buy rival Terex. The latter’s shares closed 9% in the black.
Energy majors Exxon Mobil, Chevron and ConocoPhillips gained 0.4%, 0.8% and 1.6% respectively despite the price of crude weakening.
NYMEX light crude oil for January delivery fell US89c to settle at US$72.47 a barrel.
COMEX gold for February delivery fell US$15.50 to settle at US$1,096.00 an ounce.
European Markets
European stocks closed higher on optimism regarding a strengthening economic recovery. Commodity stocks led the rally, while financials regained some of their recent losses.
The UK benchmark FTSE 100 gained 97.18 points, or 1.87% to 5,293.99. The French CAC40 rallied 77.62 points, or 2.05% to 3,872.06, while the German DAX advanced 99.32 points, or 1.69% to 5,930.53.
Energy stocks Royal Dutch Shell, BP and BG Group added 2.6%, 2.5% and 1.7% respectively.
Total jumped 3.1%, while explorer Cairn Energy climbed 4.7% after the commencement of its drilling program offshore Greenland was brought forward.
A rise in base metals prices saw miners close higher. Xstrata and Anglo American put on 3.4% and 2.1%, while Aussie peers Rio Tinto and BHP Billiton gained 2.3% and 1.4%.
Financials bounced after falling in recent sessions. Barclays and HSBC rose 3.3% each, while Deutsche Bank added 1.8% as the German bank said stricter regulations would see the banking sector underperform next year.
Societe Generale and BNP Paribas advanced 2.8% and 2.7%.
Insurer also had a good day with Prudential, Aviva and Allianz gaining 4.5%, 4.1% and 2.7% respectively.
Safran jumped 4.5% after its joint venture with General Electric signed a US$5 billion contract to supply engines to the Commercial Aircraft Corp. of China.
Japanese Markets
Japan’s Nikkei closed at an eight-week high on the back of gains in tech and discretionary stocks. However, banks weakened as capital raising concerns remain.
The Nikkei 225 added 41.42, or 0.41% to be at 10,183.47.
Mizuho Financial Group and Shinsei Bank dropped 2.2% and 2.7%, while Mitsubishi UFJ Financial Group rose 2.4% after raising US$11.4 billion.
Tech shares Advantest Corp and Tokyo Electron gained 2.1% and 2.6%, while Sony closed 1.2% dearer.
Children's apparel retailer Nishimatsuya Chain Co surged 8.5% after saying it would buy back shares. Fast Retailing advanced 2.6%.
Takashimaya Co gained 2.1% after the department store operator received a broker upgrade.
Automakers Honda and Toyota lost 1.3% and 0.5%.
Hong Kong Markets
The Hang Seng closed down for the fifth straight session Monday. The lows hit by the Hang Seng, not seen since October, come on the back of proposed tighter regulations on banks and property stocks.
The Hang Seng shed 227.78, or 1.08% to 20,948.10.
Bank of China made 0.5%, though was easily swamped by a 1.1% loss from heavyweight HSBC.
Ping An Insurance lost 1.1% after reports it would take a US$11.7 billion charge against its guaranteed return policies.
ICBC lost 0.9%.
Among the property stocks, KWG plunged 6.9%. Poly (Hong Kong) Investment, a mainland developer, lost 6.1%.
State controlled developer China Resources Land, sank 4.9%.
Geely Automobile lost nearly 10%, though investors won’t be too worried, with the stock having risen over 450% this year.
Wall Street recovered much of last week’s losses Monday on the back of bullish broker notes and M&A talks. Gains were broad based with tech stocks particularly strong for the second successive session.
The market awaits several reports due for release this week, including the government’s final report on third-quarter GDP. Forecasts for the economy to expanded by an annualized rate of almost 3%.
The Dow Jones gained 85.25 points, or 0.83%, to 10,414.14, the S&P’s 500 put on 11.58 points, or 1.05%, to 1,114.05 and the NASDAQ rallied 25.97 points, or 1.17%, to 2,237.66.
Financials made ground. JPMorgan and Wells Fargo advanced 2.3% and 2.1%, while Bank of America added 1.7%.
Goldman Sachs gained 1.4%.
Alcoa surged 7.9% after Morgan Stanley upgraded its rating in the aluminium producer following the announcement of a US$10.8 billion joint venture with Saudi Arabian company Ma’aden to develop a mining operation. Alcoa will receive 40% of profits to split with partners.
AK Steel and United States Steel rallied 6.8% and 6.3%.
Intel climbed 2.3% after Barclays Capital upgraded its rating on the semiconductor maker’s stock to “overweight”.
Research in Motion weakened 0.6% as a second Chinese mobile operator signed a deal with the BlackBerry maker. The company’s shares jumped 10.4% the previous session after delivering a better than expected earning result and upgrading its outlook.
Apple gained 1.4%, while all of the other major players in the sector were within 1% above the gain line.
Healthcare stocks were boosted by the news the Senate voted to end debate on revisions to a major health-care-reform bill. Pfizer and Merck & Co added 1.7% and 0.8%.
Chattem spiked 33.1% after French pharmaceutical Sanofi-Aventis offered to acquire the company. Sanofi-Aventis is looking to expand its presence in the US.
Aetna and Cigna rose 4.7% and 3.9%.
Bucyrus jumped 9.8% after the mining equipment manufacturer offered to buy rival Terex. The latter’s shares closed 9% in the black.
Energy majors Exxon Mobil, Chevron and ConocoPhillips gained 0.4%, 0.8% and 1.6% respectively despite the price of crude weakening.
NYMEX light crude oil for January delivery fell US89c to settle at US$72.47 a barrel.
COMEX gold for February delivery fell US$15.50 to settle at US$1,096.00 an ounce.
European Markets
European stocks closed higher on optimism regarding a strengthening economic recovery. Commodity stocks led the rally, while financials regained some of their recent losses.
The UK benchmark FTSE 100 gained 97.18 points, or 1.87% to 5,293.99. The French CAC40 rallied 77.62 points, or 2.05% to 3,872.06, while the German DAX advanced 99.32 points, or 1.69% to 5,930.53.
Energy stocks Royal Dutch Shell, BP and BG Group added 2.6%, 2.5% and 1.7% respectively.
Total jumped 3.1%, while explorer Cairn Energy climbed 4.7% after the commencement of its drilling program offshore Greenland was brought forward.
A rise in base metals prices saw miners close higher. Xstrata and Anglo American put on 3.4% and 2.1%, while Aussie peers Rio Tinto and BHP Billiton gained 2.3% and 1.4%.
Financials bounced after falling in recent sessions. Barclays and HSBC rose 3.3% each, while Deutsche Bank added 1.8% as the German bank said stricter regulations would see the banking sector underperform next year.
Societe Generale and BNP Paribas advanced 2.8% and 2.7%.
Insurer also had a good day with Prudential, Aviva and Allianz gaining 4.5%, 4.1% and 2.7% respectively.
Safran jumped 4.5% after its joint venture with General Electric signed a US$5 billion contract to supply engines to the Commercial Aircraft Corp. of China.
Japanese Markets
Japan’s Nikkei closed at an eight-week high on the back of gains in tech and discretionary stocks. However, banks weakened as capital raising concerns remain.
The Nikkei 225 added 41.42, or 0.41% to be at 10,183.47.
Mizuho Financial Group and Shinsei Bank dropped 2.2% and 2.7%, while Mitsubishi UFJ Financial Group rose 2.4% after raising US$11.4 billion.
Tech shares Advantest Corp and Tokyo Electron gained 2.1% and 2.6%, while Sony closed 1.2% dearer.
Children's apparel retailer Nishimatsuya Chain Co surged 8.5% after saying it would buy back shares. Fast Retailing advanced 2.6%.
Takashimaya Co gained 2.1% after the department store operator received a broker upgrade.
Automakers Honda and Toyota lost 1.3% and 0.5%.
Hong Kong Markets
The Hang Seng closed down for the fifth straight session Monday. The lows hit by the Hang Seng, not seen since October, come on the back of proposed tighter regulations on banks and property stocks.
The Hang Seng shed 227.78, or 1.08% to 20,948.10.
Bank of China made 0.5%, though was easily swamped by a 1.1% loss from heavyweight HSBC.
Ping An Insurance lost 1.1% after reports it would take a US$11.7 billion charge against its guaranteed return policies.
ICBC lost 0.9%.
Among the property stocks, KWG plunged 6.9%. Poly (Hong Kong) Investment, a mainland developer, lost 6.1%.
State controlled developer China Resources Land, sank 4.9%.
Geely Automobile lost nearly 10%, though investors won’t be too worried, with the stock having risen over 450% this year.
A late sell off saw the Aussie market drop below the line after being in positive territory for most of the day. While BHP led the materials and resources sector higher, falls elsewhere including financial and energy stocks outpaced those gains.
In economic news, according to the Australian Bureau of Statistics motor vehicle sales increased 5.5% in November compared to October. The rise has been attributed to the government’s 50% investment tax allowance. In the year to date, car sales had jumped 15.8%.
At the bell, the All Ords lost 6.9 to 4,665.0, while the ASX/200 weakened 7.2 to 4,643.3. About 1.8 billion shares worth around $3.5 billion had changed hands.
BHP Billiton gained 35c or 0.9% to $40.95 as the broader Materials and Resources sector added 0.7%.
Rio Tinto dipped 52c, or 0.7% to $70.57 after being in the black in morning trade.
The gold miners were improved as the price of the metal edged higher in New York on Friday.
Newcrest and Lihir gained 1.8% and 1.9% to $34.78 and $3.18 respectively.
Metal recycler Sims Group put on 58c, or 2.8% to $21.47 after one of its subsidiary businesses was acquired by Macquarie Harbour Mining. The latter’s shares rose 1c, or 4.2% to 25c.
Australia’s third-largest iron-ore producer Fortescue advanced 1.6% to $4.33.
The Energy sector lost 0.5% on the back of solid gains among mid capped sector players. Aquila Resources and WorleyParsons climbed 4.6% and 1.7% to $9.30 and $27.93.
Woodside slid 47c, $47.15 and Oil Search gained 8c to $5.87.
The big four banks were mainly lower, with Westpac edging 14c lower to $23.35 and ANZ down 39c lower to $20.95.
CBA reversed early gains to finish 71c, or 1.3% below the line at $52.15. Reports surfaced this morning the bank was considering its position relating to its Maltese tax haven.
NAB added 1c to $26.00 and
The Banks and Financials sector shed 0.4%, with insurers hovering close to either side of the gain line.
Soul Pattinson rallied 55c, or 4.2% to $13.56.
In the Property Trusts sector, Lend Lease put on 1.3% to $9.42 after announcing it had secured the rights to develop the $6 billion Barangaroo development in Sydney’s CBD.
Stockland gained 4c to $3.84 and Goodman Group lost 2.5c to 57.5c.
The sector weakened 0.4%.
The Consumer Staples was down 1.5% at the end of the day.
Woolworths and Wesfarmers retreated 1.6% and 1.5% respectively, while Foster’s dropped 2.7% to $5.36.
Consumer Discretionary advanced 0.2%.
Newscorp added 0.7% to $17.47, while Pacific Brands rallied 2.7% to $1.135. Sky City and Aristocrat fell 3% and 2.2% to $2.60 and $3.98 respectively.
The Industrials sector added 0.6% with Qantas adding over one point to the market after its shares surged 5.1% to $2.88. The airline said its outlook was improving and pre-tax profit should come in between $50 million and $150 million.
Brambles advanced 3% to $6.42, while gains were capped by declines from Asciano and Transurban, down 2.8% and 1.4%.
Telstra sank 14c, or 4.1% to $3.29 as investors booked profits from several days of gains. The Telecommunications sector dropped 3.8%.
At the close, Qantas shares were up 14c to $2.88.
Lend Lease awarded $6bn Barangaroo project
Lend Lease said it has agreed to make a series of payments totaling several hundred million dollars to the State government over eight years in order to secure the development rights of the $6bn Barangaroo project in Sydney. The company said payments would include about $100 million in the first 18 months.
At the finish, Lend Lease shares were up 12c to $9.42.
Arrow purchases 35% in Chinese CSG block
Arrow Energy subsidiary Arrow Energy International has signed an agreement with Fortune Oil subsidiary, Fortune Green Energy, to acquire a 35% stake in Fortune Liulin Gas. The company said the cost of the acquisition was US$13.3 million, while there are also conditional options to increase its stake to 75%.
At the end of the day, Arrow shares were unchanged at $3.95.
CER, CNP re-work debt
Centro Retail Trust and Centro Properties Group announced today that they had both extended loans set to expire this month. CNP said that as part of the extension, about $45 million of the loan would be repaid through proceeds from asset sales with the outstanding $325 million extended to December 2010 ($52 million) and December 2011 ($273 million).
By the finish, CER shares were unchanged at 15c, while CNP were unchanged at 24c.
Po Valley announces first Italian gas flows
Po Valley Energy said its first flows of gas into Italy’s energy grid commenced over the weekend. The company said that flows from its Castello gas field east of Milan had built up to around 1.5 million cubic feet of gas per day after initial start-up late last week.
At the end of the day, Po Valley shares were up 21c to $1.60.
Alumina Limited (AWC) said its equity contribution to an aluminium project in Saudi Arabia would be US$120 million. The company’s joint venture partner Alcoa Inc had earlier in the day announced its partnership with Saudi Arabian mining company, Ma’aden, to develop the project. Alumina said Alcoa World Alumina & Chemicals would be the initial supplier of alumina to the project’s smelter which would be developed in the first phase of the project and come on line in 2013. The company added that the bauxite mine and alumina refinery would be developed in the second phase, with first production expected in late 2014. Alumina said it would contribute progressively between 2010 and 2014.
Signature Metals Limited (SBL) announced that it has exercised its option to acquire 70% of the Konongo Gold Project in the Ashanti Gold Belt of Ghana from Mwana Africa PLC. The company said the decision to acquire the project follows receipt of final approvals from the Minister of Lands, Forestry and Mines in Ghana as well as from the Ghanaian Minerals Commission. Signature Metals said it would issue 50 million shares to Mwana Africa subsidiary Alpina Group Limited to settle the transaction. The company said it would make a further payment of 50 million shares or $1 million cash would be made once the project achieves 1 million ounces in Measured and Indicated JORC resources. A final payment of $3 million in cash or shares is to be made following the production of 100,000 ounces of gold from the project
By lunch at the start of the penultimate week of trade for Aussie shares in 2009, the market had added 0.6% in light trade. The mid-cap mining stocks broadly supported heavyweight BHP Billiton as they lent weight to the market advance, while the banks were flat.
At midday, the All Ords rose 27.7 to 4,699.6, while the ASX/200 climbed 30.5 to 4,681.0. About 800 million shares worth around $1.3 billion had changed hands.
BHP Billiton jumped 87c or 2.1% to $41.47 to comfortably add the most points to the ASX/200. The broader Materials and Resources sector added 1.6%.
Rio Tinto put on just 16c, or 0.2% to $71.25.
The gold miners were improved as the price of the metal edged higher in New York on Friday.
Newcrest and Lihir gained 1.7% and 2.6% to $34.77 and $3.20 respectively.
Metal recycler Sims Group put on 92c, or 4.4% to $21.81 after one of its subsidiary businesses was acquired by Macquarie Harbour Mining. The latter’s shares rose 0.5c, or 2.1% to 24.5c.
Australia’s third-largest iron-ore producer Fortescue advanced 2.1%.
The Energy sector rose 0.3% despite very strong contributions from Aquila Resources and Coal & Allied, while Woodside rose 3c, 0.1% to $47.65.
The big four banks were mixed, with ANZ easing 1c lower to $21.33, with Westpac down the same amount to $23.48.
CBA put on 28c, or 0.5% to $53.14. Reports surfaced this morning the bank was considering its position relating to its Maltese tax haven.
The Banks and Financials added 0.6% with momentum coming from outside the big four banks.
The insurers were stronger led by QBE, which rose 30c, or 1.2% to $24.88.
Investment bank Macquarie Group added 75c, or 1.6% to $46.70.
In the Property Trusts sector, Lend Lease rallied 1.8% to $9.47 after announcing it had secured the rights to develop the $6 billion Barangaroo development in Sydney’s CBD.
Westfield climbed 15c, or 1.3% to $11.96. The sector put on 0.8%
The Consumer Staples was one of just two sectors to lose ground Monday, down around 0.6% at lunch.
Woolworths and Wesfarmers retreated 0.3% and 1% respectively, while Foster’s lost 2.2% to $5.39.
Consumer Discretionary was just 0.4% higher, with little input from retailers.
Newscorp added 1.4% to $17.58 to outperform its media peers.
The Industrials sector rose 0.9%.
Qantas added one point to the market after its shares surged 4.4% to $2.86. The airline said its outlook was improving and pre-tax profit should come in between $50 million and $150 million.
Leighton, Toll and Brambles advanced 0.7%, 1.3% and 2.6% respectively, while gains were capped by declines from Asciano and Macquarie Airports, down 1.4% and 1%.
Telstra sank 10c, or 2.9% to $3.33 as investors booked profits from several days of gains. The broader Telecommunications sector lost 3%.
Around the region, the Nikkei 225 added 53.3 to 10,195.3, while the Straits Times Index gained 3.9 to 2,806.5. Meanwhile, the NZSE50 lost 5.2 to 3,149.0.
Spot gold was trading at US$1,114.52 per ounce, and the Aussie was buying US$0.8887.
At midday, Qantas shares were up 17c to $2.91.
Lend Lease awarded $6bn Barangaroo project
Lend Lease said it has agreed to make a series of payments totaling several hundred million dollars to the State government over eight years in order to secure the development rights of the $6bn Barangaroo project in Sydney. The company said payments would include about $100 million in the first 18 months.
At lunchtime, Lend Lease shares were up 20c to $9.50.
Arrow purchases 35% in Chinese CSG block
Arrow Energy subsidiary Arrow Energy International has signed an agreement with Fortune Oil subsidiary, Fortune Green Energy, to acquire a 35% stake in Fortune Liulin Gas. The company said the cost of the acquisition was US$13.3 million, while there are also conditional options to increase its stake to 75%.
At noon, Arrow shares were up 7c to $4.02.
CER, CNP re-work debt
Centro Retail Trust and Centro Properties Group announced today that they had both extended loans set to expire this month. CNP said that as part of the extension, about $45 million of the loan would be repaid through proceeds from asset sales with the outstanding $325 million extended to December 2010 ($52 million) and December 2011 ($273 million).
At lunch, CER shares were unchanged at 15c, while CNP put on 0.5c to 24.5c.
Po Valley announces first Italian gas flows
Po Valley Energy said its first flows of gas into Italy’s energy grid commenced over the weekend. The company said that flows from its Castello gas field east of Milan had built up to around 1.5 million cubic feet of gas per day after initial start-up late last week.
At midday, Po Valley shares were up 11c to $1.50.
Qantas Airways Limited (QAN) said that improving conditions had seen the airline raise its expectations of pre-tax profit to between $50 million and $150 million for the six months to 31 December. The news has seen Qantas shares surge in morning trade, up 12c, or 4.4% to $2.86 by 1118 AEDT.
“Operating conditions have improved when compared to the second half of the 2008/09 financial year with passenger volumes and yield improving,” the airline said in a statement.
Last year for the six months to 31 December 2008, the profit was $288 million
Qantas said that the forecast remained hinged to volatile factors as fuel prices and exchange rates.
The airline reported a 6.9% jump in passenger numbers over the previous year, including a 9.7% jump in November alone.
Revenue seat factor, a key measure of profitability for an airline was at 82.3%, up 4% from the previous year.
However domestic and international yields were 8.9% and 23.2% lower than the previous corresponding year respectively.
Po Valley Energy Limited (PVE) said its first flows of gas into Italy’s energy grid commenced over the weekend. The company said that flows from its Castello gas field east of Milan had built up to around 1.5 million cubic feet of gas per day after initial start-up late last week.
CEO, Michael Masterman, said the company was pleased commissioning of the new plant had been efficient and Po Valley has already banked its first revenue.
“Flows will be steadily increased to the planned operational level of 2.5 million cubic feet per day over the coming weeks”, Mr Masterman said.
“We are proud to be a pioneer in delivering new sources of secure domestic supplies to the Italian gas market, which is largely dependent on imported gas.”
Mr Masterman said the company was on course of being a substantially different company in 2010 as it makes the transition from gas explorer and developer to gas producer.
“We expect our production to double shortly as the Company remains on track to commence commissioning our second wholly-owned gas field, Sillaro, east of Bologna, early in 2010,” he said.
As at 1115 AEDT, Po Valley shares were up 11c to $1.50.
Arrow Energy Limited (AOE) subsidiary Arrow Energy International has signed an agreement with Fortune Oil subsidiary, Fortune Green Energy, to acquire a 35% stake in Fortune Liulin Gas. The company said the cost of the acquisition was US$13.3 million, while there are also conditional options to increase its stake to 75%.
Arrow said the considerations of the funds were being committed to the 2010 work program which includes the drilling of horizontal pilot wells.
The company said Fortune Liulin Gas’ sole asset is a 50% participating interest in the Luilin Coal Bed Methane (“CBM”) in China.
Arrow said the block has certified 3P reserves of 89 petajoules and is located 500 km south-west of Beijing.
CEO, Nick Davies, said the block provides an opportunity for the company to achieve near-term production and gas sales, while providing the company with some existing reserves.
As at 1052 AEDT, Arrow shares were up 8c to $4.03.
