Shares drift into negative territory
November 5, 2009
Local stocks lost ground Thursday after a strong start to the session. For the second consecutive day property trusts and consumer staple stocks led the slide, while resource stocks were also heavily sold.
In economic news, Australia’s trade deficit totalled a smaller than expected $1.85 billion in September, up from $1.65 billion for August. According to the ABS, both increased 5% in September.
Myer and David Jones both hit the market with quarterly earnings reports, with Myer taking the honours with sales rising by 2.9% over the quarter to $717.1 million, while David Jones posted a slightly lower 2.2% rise in like-for-like sales to around $450 million.
Total sales for Myer and David Jones rose 5.2% and 4.5% respectively.
At the end of the day, Myer shares were down 8c at $3.76, while David Jones had dropped 23c to $5.19.
At the close of trade, the All Ords had lost 28.4 to 4,519.2, while the ASX/200 shed 32.1 to 4,508.0. About 2.6 billion shares worth around $5 billion had changed hands.
The major miners were down with BHP Billiton 50c lower at $36.44 as safety concerns forced the suspension of construction at a new rail line in the Pilbara.
Rival Rio Tinto lost 84c to $62.59.
However, the home materials and chemical manufacturers were heavily sold dragging the Materials and Resources sector down 1.4%.
James Hardie and Boral lost 2.1% and 3.8% to $7.00 and $5.35 respectively.
Incitec Pivot fell 8c to $2.51.
Steelmaker Onesteel shed 9c to $2.97, while Alumina fell 6.5c to $1.53.
Energy stocks were stronger as the sector paced a rise in the price of crude back above US$80 per barrel. The sector added 0.1%.
In sector news, Sinopec Corp reached an agreement with Exxon Mobil to buy 2 million tonnes of liquefied natural gas annually from the PNG LNG Project.
Woodside Petroleum added 18c to $47.40 and Origin gained 16c to $15.95.
Among the banks, ANZ lost 66c to $22.07 as it traded ex-dividend today. The other big banks were in positive territory with CBA up 48c, or 0.9% to $51.85.
The Banks and Financials sector shed 0.5%.
The insurers remained mixed throughout the day. QBE rose 24c to $21.50.
Macquarie Group reversed early gains to finish 44c lower at $47.65.
The Property Trusts sector was down 2%. Westfield, which represents around 1/3 of the sector, lost 14c to $11.86, while GPT fell 2.5c to 57.5c.
Among other Consumer Discretionary stocks Newscorp put on 2.5% as it posted double digit profit growth for the last quarter to just over $1 billion.
The company's shares climbed 38c to $15.53.
Seven jumped 4.6% to $6.40.
Gamers were mixed with Crown down 3c to $8.15. The island of Macau reported a 42% jump in gambling revenue in October from the same month a year ago.
West Australian News was hit by profit-taking following a couple of strong sessions for the stock. Its shares shed 19c to $7.81.
The sector dipped 0.1%.
The Consumer Staples sector slumped 1.3%. Wesfarmers shed 57c, or 2.1% to $26.20 and Woolworths lost 24c to $27.66.
Industrials were mixed, with the sector up 0.5% overall.
Brambles dropped 24c to $6.93 as the company announced the appointment of Greg Hayes as its new CFO.
Meanwhile, Leightons slid 17c to $33.81.
Transurban shares jumped 19.4% to $5.24 after rejecting a $6 billion takeover bid from two Canadian Pension Funds.
Telstra retreated 6c to $3.17. The broader Telecommunications sector lost 2%.
Around the region, the Nikkei 225 shed 125.3 to 9,719.1, while the Straits Times Index lost 13.2 to 2,635.5. Across the Tasman, the NZSE50 dipped 22.2 to 3,144.5. The Hang Seng weakened 196.5 to 21,418.3.
Spot gold was trading at US$1087.00 per ounce, and the Aussie was buying US$0.9057.
Transurban rejects takeover bid
Transurban said it has received and rejected an incomplete, highly conditional and non-binding joint proposal from Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan. The company said, if implemented, the proposal would involve a change of control of the Transurban Group through a scheme of arrangement.
At the end of the day, Transurban shares were up 85c to $5.24.
David Jones sales up 2.2% in 1Q
David Jones reported sales revenue of $452.1m for the period 26 July to 24 October, up 2.2% from total sales of $442.3 million in the equivalent 2008 quarter. The retailer said that there were positive factors from the first quarter trading which augurs well for the Christmas trading season.
By the close, David Jones shares were trading down 23c to $5.19.
News Corp first quarter profit up 11%
News Corporation reported an 11% increase in first quarter net profit to US$571m versus the previous corresponding period. The media company said first quarter consolidated operating income increased 9% in the same period to US$1.04 billion.
At the finish, New Corp shares were up 38c to $15.53.
Leighton positive about future
Leighton Holdings said that the 2010 financial year has started well for the company with total revenue for the first quarter to 30 September 2009 up 10% to $4.5bn. The company said it had generated profit after tax (unaudited) of $131m, an increase of 25% on the prior first quarter.
By the close, Leighton shares were down 17c to $33.81.
Myer 1Q sales climb 5.2%
Myer reported sales revenue for the quarter to the 24 October of $717.1m, up 5.2% from the 2008 quarter. Like-for-like sales grew at 4.5%, including the company’s refurbished stores.
At the final whistle, Myer shares were down 8c to $3.76.
FIRB approves Chinese stake in Centrex
Centrex Metals said that the Foreign Investment Review Board had given the green light for Wuhan Iron & Steel to take a 60% stake in iron ore rights in five of Centrex’s iron mineral tenements in South Australia. Under the deal, WISCO would pay $186 million for the rights to the tenements, as well as 15% of the issued equity in the Aussie miner.
At the end of trading, Centrex shares were up 7c to 71c.
RCI receives competing offer
Rocklands Richfield announced that its board has determined that Chinese commercial coke producer Meijin Energy Group’s recent takeover proposal is superior to the Jindal Proposal offered in September. Earlier this week Meijin proposed to acquire 100% of the shares in RCI at an offer price of 52c cash per share.
By the finish, Rocklands Richfield shares were up 5c to 39c.
In economic news, Australia’s trade deficit totalled a smaller than expected $1.85 billion in September, up from $1.65 billion for August. According to the ABS, both increased 5% in September.
Myer and David Jones both hit the market with quarterly earnings reports, with Myer taking the honours with sales rising by 2.9% over the quarter to $717.1 million, while David Jones posted a slightly lower 2.2% rise in like-for-like sales to around $450 million.
Total sales for Myer and David Jones rose 5.2% and 4.5% respectively.
At the end of the day, Myer shares were down 8c at $3.76, while David Jones had dropped 23c to $5.19.
At the close of trade, the All Ords had lost 28.4 to 4,519.2, while the ASX/200 shed 32.1 to 4,508.0. About 2.6 billion shares worth around $5 billion had changed hands.
The major miners were down with BHP Billiton 50c lower at $36.44 as safety concerns forced the suspension of construction at a new rail line in the Pilbara.
Rival Rio Tinto lost 84c to $62.59.
However, the home materials and chemical manufacturers were heavily sold dragging the Materials and Resources sector down 1.4%.
James Hardie and Boral lost 2.1% and 3.8% to $7.00 and $5.35 respectively.
Incitec Pivot fell 8c to $2.51.
Steelmaker Onesteel shed 9c to $2.97, while Alumina fell 6.5c to $1.53.
Energy stocks were stronger as the sector paced a rise in the price of crude back above US$80 per barrel. The sector added 0.1%.
In sector news, Sinopec Corp reached an agreement with Exxon Mobil to buy 2 million tonnes of liquefied natural gas annually from the PNG LNG Project.
Woodside Petroleum added 18c to $47.40 and Origin gained 16c to $15.95.
Among the banks, ANZ lost 66c to $22.07 as it traded ex-dividend today. The other big banks were in positive territory with CBA up 48c, or 0.9% to $51.85.
The Banks and Financials sector shed 0.5%.
The insurers remained mixed throughout the day. QBE rose 24c to $21.50.
Macquarie Group reversed early gains to finish 44c lower at $47.65.
The Property Trusts sector was down 2%. Westfield, which represents around 1/3 of the sector, lost 14c to $11.86, while GPT fell 2.5c to 57.5c.
Among other Consumer Discretionary stocks Newscorp put on 2.5% as it posted double digit profit growth for the last quarter to just over $1 billion.
The company's shares climbed 38c to $15.53.
Seven jumped 4.6% to $6.40.
Gamers were mixed with Crown down 3c to $8.15. The island of Macau reported a 42% jump in gambling revenue in October from the same month a year ago.
West Australian News was hit by profit-taking following a couple of strong sessions for the stock. Its shares shed 19c to $7.81.
The sector dipped 0.1%.
The Consumer Staples sector slumped 1.3%. Wesfarmers shed 57c, or 2.1% to $26.20 and Woolworths lost 24c to $27.66.
Industrials were mixed, with the sector up 0.5% overall.
Brambles dropped 24c to $6.93 as the company announced the appointment of Greg Hayes as its new CFO.
Meanwhile, Leightons slid 17c to $33.81.
Transurban shares jumped 19.4% to $5.24 after rejecting a $6 billion takeover bid from two Canadian Pension Funds.
Telstra retreated 6c to $3.17. The broader Telecommunications sector lost 2%.
Around the region, the Nikkei 225 shed 125.3 to 9,719.1, while the Straits Times Index lost 13.2 to 2,635.5. Across the Tasman, the NZSE50 dipped 22.2 to 3,144.5. The Hang Seng weakened 196.5 to 21,418.3.
Spot gold was trading at US$1087.00 per ounce, and the Aussie was buying US$0.9057.
Transurban rejects takeover bid
Transurban said it has received and rejected an incomplete, highly conditional and non-binding joint proposal from Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan. The company said, if implemented, the proposal would involve a change of control of the Transurban Group through a scheme of arrangement.
At the end of the day, Transurban shares were up 85c to $5.24.
David Jones sales up 2.2% in 1Q
David Jones reported sales revenue of $452.1m for the period 26 July to 24 October, up 2.2% from total sales of $442.3 million in the equivalent 2008 quarter. The retailer said that there were positive factors from the first quarter trading which augurs well for the Christmas trading season.
By the close, David Jones shares were trading down 23c to $5.19.
News Corp first quarter profit up 11%
News Corporation reported an 11% increase in first quarter net profit to US$571m versus the previous corresponding period. The media company said first quarter consolidated operating income increased 9% in the same period to US$1.04 billion.
At the finish, New Corp shares were up 38c to $15.53.
Leighton positive about future
Leighton Holdings said that the 2010 financial year has started well for the company with total revenue for the first quarter to 30 September 2009 up 10% to $4.5bn. The company said it had generated profit after tax (unaudited) of $131m, an increase of 25% on the prior first quarter.
By the close, Leighton shares were down 17c to $33.81.
Myer 1Q sales climb 5.2%
Myer reported sales revenue for the quarter to the 24 October of $717.1m, up 5.2% from the 2008 quarter. Like-for-like sales grew at 4.5%, including the company’s refurbished stores.
At the final whistle, Myer shares were down 8c to $3.76.
FIRB approves Chinese stake in Centrex
Centrex Metals said that the Foreign Investment Review Board had given the green light for Wuhan Iron & Steel to take a 60% stake in iron ore rights in five of Centrex’s iron mineral tenements in South Australia. Under the deal, WISCO would pay $186 million for the rights to the tenements, as well as 15% of the issued equity in the Aussie miner.
At the end of trading, Centrex shares were up 7c to 71c.
RCI receives competing offer
Rocklands Richfield announced that its board has determined that Chinese commercial coke producer Meijin Energy Group’s recent takeover proposal is superior to the Jindal Proposal offered in September. Earlier this week Meijin proposed to acquire 100% of the shares in RCI at an offer price of 52c cash per share.
By the finish, Rocklands Richfield shares were up 5c to 39c.
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