Aussie shares off to slow start to the week
May 31, 2010
Australian shares edged lower Monday following a negative lead from an increasingly volatile Wall Street. International markets were lower as Europe’s debt crisis came to the fore again, following Spain’s debt downgrade.
On the domestic economic front, The TD Securities-Melbourne Institute gauge of consumer price inflation rose 0.5% in May, following a 0.4% increase in April.
The increase, to 19-month highs, has been attributed in part to the Federal Government’s hike in tobacco tax, however it seems the flow effect might be for the Reserve Bank to increase mortgages across the country to counter this move.
At midday, the All Ords retreated 21.7 to 4,457.3, while the ASX/200 shed 20.3 to 4,437.2. Around 700 million shares worth around $1.7 billion had changed hands.
The big four banks were mixed, although trended lower, with the Banks and Financials sector down 0.7%.
Westpac and CBA dipped 20c and 76c to $23.20 and $51.36 respectively.
Meanwhile, NAB and ANZ were virtually unchanged.
Among the insurers AXA Asia Pacific, AMP and IAG slid 0.5%, 0.7% and 0.8% respectively. QBE outperformed with an 18c gain to $19.80.
The Property Trusts sector eased 0.6% lower, with Westfield down 6c to $12.74.
GPT lost 2.2%, however Goodman Group capped losses with a 1c gain to 63c.
BHP Billiton and Rio Tinto were the major losers among the Materials and Resources stocks. Their shares were down 1.3% and 1.8% respectively.
Fortescue retreated 5c to $4.14, while the broader sector was down 0.9%.
Orica was up 10c to $25.44 after announcing it would spin-off its Dulux paints business as a separate entity.
Incitec Pivot gained 6c, or 2% to $3.07.
The Energy sector slumped 0.6% with Woodside easing 53c, or 1.2% to $42.93.
It was a mixed day for uranium and coal stocks.
Whitehaven and ERA lost 10c and 34c to $4.75 and $14.01 respectively.
Meanwhile Centennial Coal and Paladin were 1.3% and 2.1% stronger.
Among the Industrial stocks, Virgin Blue put on 4.8% recovering some of Friday’s 30% slump. The airline received cautious support among broker reports this week, albeit at greatly reduced price targets.
Qantas put on 5c to $2.50 as the sector climbed 0.1%.
Meanwhile, Brambles and Leighton, the two biggest stocks in the sector, rose 0.6% and 0.1% respectively.
The Consumer Staples sector was one of the best performers across the ASX/200, adding 0.7%. Woolworths and Wesfarmers rallied 1% and 0.7% respectively.
Beverage makers Foster's and Coca-Cola gained 7c and 10c to $5.57 and $10.94 respectively.
The Consumer Discretionary was a mixed bag, easing just 0.1% lower overall.
Retailers were down, including Myer which weakened 5c to $3.16. Gamer Crown gained 14c, to $7.84 and Flight Centre put on 40c, or 2.4% to $16.80.
Fairfax eased 2c lower to $1.48.
Much of the market news this morning revolved around the Healthcare stocks, with the sector up 1.2%.
Sigma announced it would open its books to potential suitor, South African based Aspen Pharmaceuticals, sending its shares 3% higher.
Meanwhile hospitals operator Healthscope rose 5% after revealing it had received two bids for the company at $5.80 per share, saying they were both superior to a previous private consortium bid of $5.75 for each share.
Healthscope receives two more offers
Healthscope said it has received two takeover offers since Friday that topped that which was made by Blackstone Group and partners on May 20 valuing the hospital operator’s shares for $5.75 each. The company said the most recent offers both priced Healthscope’s shares at $5.80 each.
At midday, Healthscope shares were up 26c to $5.49.
Sigma opens books to Aspen
Sigma Pharmaceuticals said it has opened its books to South African pharmaceutical manufacturer, Aspen Pharmacare, to conduct due diligence on the company as a part of its previously announced takeover offer. On 21 May Aspen offered to buy Sigma at an indicative price of 60c cents a share, valuing the company at around $700 million.
At lunch, Sigma shares were trading up 1c at 51c each.
Orica set to spin off Dulux
Orica has raised the prospect of spinning off its paint and garden business, Dulux. Orica said a shareholder vote in favour of the demerger was in their best interests, citing Grant Samuel, an independent expert, which said the benefits were ‘collectively compelling and that shareholders are likely to be better off if the demerger proceeds, notwithstanding the disadvantages and risks.
At noon, Orica shares were trading up 10c to $25.44.
Takeovers Panel declines to conduct proceedings on Transurban
The Takeovers Panel has declined to conduct proceedings on an application made by CP2 Limited last week requesting Transurban to not be allowed to conduct a $542.3m capital raising. The Panel said it did not consider the rights issue would have a material effect on the control of Transurban and accordingly there was no reasonable prospect that it would declare the circumstances unacceptable.
At lunchtime, Transurban shares were down 6c to $4.31.
Tox awarded contract but downgrades guidance
Tox Free Solutions said it has been awarded a five-year contract worth an estimated $30m to provide Industrial Services to Murrin Murrin Operations Pty Ltd at the Murrin Murrin Nickel / Cobalt operation in Western Australia. The company also said even with a strong finish to FY10 it is now unlikely the company would achieve its initial guidance of $26 million to $28 million EBITDA, which was provided in August 2009.
At midday, Tox shares were up 3c to $2.40.
On the domestic economic front, The TD Securities-Melbourne Institute gauge of consumer price inflation rose 0.5% in May, following a 0.4% increase in April.
The increase, to 19-month highs, has been attributed in part to the Federal Government’s hike in tobacco tax, however it seems the flow effect might be for the Reserve Bank to increase mortgages across the country to counter this move.
At midday, the All Ords retreated 21.7 to 4,457.3, while the ASX/200 shed 20.3 to 4,437.2. Around 700 million shares worth around $1.7 billion had changed hands.
The big four banks were mixed, although trended lower, with the Banks and Financials sector down 0.7%.
Westpac and CBA dipped 20c and 76c to $23.20 and $51.36 respectively.
Meanwhile, NAB and ANZ were virtually unchanged.
Among the insurers AXA Asia Pacific, AMP and IAG slid 0.5%, 0.7% and 0.8% respectively. QBE outperformed with an 18c gain to $19.80.
The Property Trusts sector eased 0.6% lower, with Westfield down 6c to $12.74.
GPT lost 2.2%, however Goodman Group capped losses with a 1c gain to 63c.
BHP Billiton and Rio Tinto were the major losers among the Materials and Resources stocks. Their shares were down 1.3% and 1.8% respectively.
Fortescue retreated 5c to $4.14, while the broader sector was down 0.9%.
Orica was up 10c to $25.44 after announcing it would spin-off its Dulux paints business as a separate entity.
Incitec Pivot gained 6c, or 2% to $3.07.
The Energy sector slumped 0.6% with Woodside easing 53c, or 1.2% to $42.93.
It was a mixed day for uranium and coal stocks.
Whitehaven and ERA lost 10c and 34c to $4.75 and $14.01 respectively.
Meanwhile Centennial Coal and Paladin were 1.3% and 2.1% stronger.
Among the Industrial stocks, Virgin Blue put on 4.8% recovering some of Friday’s 30% slump. The airline received cautious support among broker reports this week, albeit at greatly reduced price targets.
Qantas put on 5c to $2.50 as the sector climbed 0.1%.
Meanwhile, Brambles and Leighton, the two biggest stocks in the sector, rose 0.6% and 0.1% respectively.
The Consumer Staples sector was one of the best performers across the ASX/200, adding 0.7%. Woolworths and Wesfarmers rallied 1% and 0.7% respectively.
Beverage makers Foster's and Coca-Cola gained 7c and 10c to $5.57 and $10.94 respectively.
The Consumer Discretionary was a mixed bag, easing just 0.1% lower overall.
Retailers were down, including Myer which weakened 5c to $3.16. Gamer Crown gained 14c, to $7.84 and Flight Centre put on 40c, or 2.4% to $16.80.
Fairfax eased 2c lower to $1.48.
Much of the market news this morning revolved around the Healthcare stocks, with the sector up 1.2%.
Sigma announced it would open its books to potential suitor, South African based Aspen Pharmaceuticals, sending its shares 3% higher.
Meanwhile hospitals operator Healthscope rose 5% after revealing it had received two bids for the company at $5.80 per share, saying they were both superior to a previous private consortium bid of $5.75 for each share.
Around the region, the Nikkei 225 gave up 13.2 to 9,749.7, while the NZSE50 added 12.9 to 3,060.7. The Straits Times Index put on 12.3 to 2,752.0.
Spot gold was trading at US$1,210.95 per ounce, while the Aussie was buying US$0.8476.
Healthscope receives two more offers
Healthscope said it has received two takeover offers since Friday that topped that which was made by Blackstone Group and partners on May 20 valuing the hospital operator’s shares for $5.75 each. The company said the most recent offers both priced Healthscope’s shares at $5.80 each.
At midday, Healthscope shares were up 26c to $5.49.
Sigma opens books to Aspen
Sigma Pharmaceuticals said it has opened its books to South African pharmaceutical manufacturer, Aspen Pharmacare, to conduct due diligence on the company as a part of its previously announced takeover offer. On 21 May Aspen offered to buy Sigma at an indicative price of 60c cents a share, valuing the company at around $700 million.
At lunch, Sigma shares were trading up 1c at 51c each.
Orica set to spin off Dulux
Orica has raised the prospect of spinning off its paint and garden business, Dulux. Orica said a shareholder vote in favour of the demerger was in their best interests, citing Grant Samuel, an independent expert, which said the benefits were ‘collectively compelling and that shareholders are likely to be better off if the demerger proceeds, notwithstanding the disadvantages and risks.
At noon, Orica shares were trading up 10c to $25.44.
Takeovers Panel declines to conduct proceedings on Transurban
The Takeovers Panel has declined to conduct proceedings on an application made by CP2 Limited last week requesting Transurban to not be allowed to conduct a $542.3m capital raising. The Panel said it did not consider the rights issue would have a material effect on the control of Transurban and accordingly there was no reasonable prospect that it would declare the circumstances unacceptable.
At lunchtime, Transurban shares were down 6c to $4.31.
Tox awarded contract but downgrades guidance
Tox Free Solutions said it has been awarded a five-year contract worth an estimated $30m to provide Industrial Services to Murrin Murrin Operations Pty Ltd at the Murrin Murrin Nickel / Cobalt operation in Western Australia. The company also said even with a strong finish to FY10 it is now unlikely the company would achieve its initial guidance of $26 million to $28 million EBITDA, which was provided in August 2009.
At midday, Tox shares were up 3c to $2.40.
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