Aussie shares mixed at lunch
The Australian market had edged lower by lunch Thursday as investors concentrated on individual stocks rather than sectors as a whole. Not even another rise in commodity prices and strength in Japanese and European equity markets overnight could bouy the market, with most sectors were a mix of gainers and losers.
In economic news, the Australian Bureau of Statistics said the balance on goods and services was a deficit of $1.176 billion in January 2010 in seasonally adjusted terms. This was a decrease of $998 million on the revised deficit in December 2009.
At noon, the All Ords was down 9.3 to 4,734.5, while the ASX/200 edged 9.7 lower to 4,726.0. Over 960 million shares worth around $1.8 billion had changed hands.
Base metals rose again, this time due to the greenback weakening against the euro following an announcement of debt relief for Greece.
BHP Billiton added 4 points to the broader indices with a 33c, or 0.8% gain to $42.00. Rio Tinto added 16c to $74.03.
The Materials and Resources sector strengthened 0.3%.
Mirabela Nickel added to yesterday’s 4.6% gain by rallying a further 3.9% to be trading at $2.38. The price of nickel has surged in the last few days, including a 2.7% rise in London last night.
South African focused miner Aquarius Platinum rallied 4% to $6.56.
Gold miners tracked the price of the metal higher, which moved to its highest level in almost seven weeks. Newcrest and Lihir put on 1.5% and 0.7% to $33.43 and $2.93 respectively.
Nufarm shed 9c, or 1% to $9.19 after the Australian Securities Exchange questioned the agrichemical company over its timing of the announcement that it expects to report a $40 million loss for the first half. It was soon followed by an announcement regarding a shareholder vote on the sale of a 20% stake in the company to Japan's Sumitomo Chemical.
Other stocks to lose ground in the sector included Orica and Fortescue, which weakened 1.5% and 1.6% respectively.
The Banks and Financials sector weakened 0.4% a day after the last of the major lenders passed on the 25 basis point interest rate hike, in line with the Reserve Bank.
ANZ, Westpac and CBA were between 0.7% and 0.9% lower, while NAB rose 23c, or 0.9% to $26.43.
Henderson Group put on 1.4% to $2.11 on the back of a broker upgrade from Goldman Sachs.
Perpetual slumped 3.8% to $36.54, while insurer QBE fell 21c, or 1% to $20.17.
Westfield led the Property Trust sector 0.6% higher with a 15c, or 1.2% gain to $12.20.
On the other side of the line Lend Lease dropped 33c, or 3.7% to $8.60.
Mirvac was flat amid speculation as it has emerged as the likely buyer of Westpac Office Trust.
The Energy sector lost 1% despite crude futures climbing 1.5% in New York after a reported increase in oil inventories and an improvement in demand.
Woodside slid 26c to $43.93 after the disclosure that CEO Don Voelte sold almost one-third of his holding in the company.
Origin and Santos fell 2% each to $16.36 and $13.14.
Meanwhile, Paladin and Aquila slumped 3.5% and 3% to $3.61 and $10.03 respectively.
Consumer Staples advanced 0.4% following a solid lead from the majors. Woolworths rose 19c, or 0.7% to $27.76, while Wesfarmers gained 19c, or 0.6% to $32.76 after announcing it would raise EUR500 million following the successful pricing of an inaugural issue of bonds under its Euro Medium Term Note programme.
Gamers and media stocks weakened as the Consumer Discretionary sector slid 0.6% below the line.
Crown shed 18c, or 2.2% to $8.12, while Tatts added to recent losses, falling 3% to $4.17.
Newscorp lost 29c, or 1.6% to $17.66.
Harvey Norman was the best among the retailers, gaining 10c, or 2.6% to $3.98.
2.2% falls from both Brambles and Qantas saw the Industrials sector 0.8% in the red by midday. The two companies were trading at $7.21 and $2.63 respectively.
Cochlear slid 27c to $64.83 after a media report said the company is working with private equity groups to make a possible offer for the hearing-aid unit of Siemens.
The Healthcare sector dipped 0.7%.
Around the region, the Nikkei 225 retreated 4.4 to 10,248.8, while the NZSE50 rose 3.3 to 3,201.8. The Straits Times Index advanced 5.5 to 2,788.3.
Spot gold was trading at US$1,137.10 per ounce, while the Aussie was buying US$0.904.
Wesfarmers to raise EUR500m on bond issue
Wesfarmers said it is to raise about EUR500 million following the successful pricing of an inaugural issue of bonds under its Euro Medium Term Note programme. The company said the issue consists of notes with a tenor of five years and four months at a margin of 135 bps over the EURO five year mid swap rate, maturing in July 2015.
At lunchtime, Wesfarmers shares were up 15c to $32.72.
Gloucester encourages accepting of Macarthur offer
Gloucester Coal said the Independent Directors of Gloucester confirmed their recommendation that Gloucester shareholders accept Macarthur Coal Limited’s (MCC) takeover offer in the absence of a superior proposal. On 22 December 2009 Macarthur offered to buy all the shares in Gloucester with a choice of either 0.84 Macarthur shares for every one Gloucester share or $8.00 cash for every one Gloucester share.
According the Australian Bureau of Statistics, in seasonally adjusted terms, the balance on goods and services was a deficit of $1.176 billion in January 2010, a decrease of $998 million on the revised deficit in December 2009.