Sydney, Oct 28, 2008 AEST (ABN Newswire) - Overnight the US stocks continued to fall to lows with sell-off on the close, and Dow has been showing a 25 per cent loss for October so far.
The Australian sharemarket has closed at a fresh four-year low after falling more than 1% on renewed global recession fears. Investors actually had expected a much more volatile as the significant declines on Wall Street last Friday gave a negative lead to the local market. Analysts said it was not as bad as expected and the miners performed well yesterday.
The December Share Price Index futures contract on the Sydney Futures Exchange up just 2 points at 3793 in recent trading.
The benchmark S&P/ASX200 share index yesterday sank to a fresh four-year low, losing 1.6%, or 60.2 points to 3809 points.
The broader All Ordinaries index shed 63.3 points, or 1.7%, to 3768.3, the lowest close in four years.
The Australian dollar has opened weaker for the fifth day in a row, hitting another five-year low overnight. Intervention from the Reserve Bank of Australia (RBA) also has failed to give the Australian dollar a sustained boost, with traders reluctant to buy the currency during a time of falling commodity prices. At 7am, the Australian dollar was trading at $US0.6037/43, down from yesterday's close of $US0.6119/26.
Oil prices sank to 17-month lows during trade overnight amid rising worries that a global recession will sap energy demand, particularly in Asia where markets have plunged to 20-year lows. New York's main contract, light sweet crude for December delivery, fell 93 cents to close at $US63.22 dollars a barrel, after falling as low as $US61.30 during trade.
Key Economic Facts and Figures
A report from the Australian Council of Superannuation Investors (ACSI) shows that the average fixed pay for 69 CEOs from the biggest 100 listed companies rose 106 per cent from 2001 to 2007. The average fixed salary of the 69 CEOs surveyed rose to A$1.83 million from 1.80 million in 2006 and compares with A$888,407 in 2001.
The Reserve Bank was forced to shore up the beleaguered Australian dollar yesterday for the second time in four days. After intervening on Friday night as the dollar plunged almost US7c, the Reserve stepped in again yesterday to shield the currency against speculators. The central bank's buying helped the dollar to rise above US62c. But last night it plunged again on overseas markets to US60.6c.
The Australian Office of Financial Management is due to announce its latest Treasury bond tender result today, while National Australia Bank will release its business survey for the September quarter.
M&A News
Great Australian Resources Ltd (ASX:GAU) has entered into a strategic acquisition deal with Sylvania Resources Ltd (ASX:SLV) which allows Great Australian Resources to acquire three platinum projects in the northwestern limb of the Bushveld Igneous Complex in South Africa.
Floreat Forum is about to change hands as a major private investor group is conducting due diligence on it, which the troubled property company GPT Group(ASX:GPT) is understood to be ready to sell for about A$115 million.
Important Corporate News
Wealth manager BT Investment Management(ASX:BTT) has reported a $14.3 million profit from its first year of operation, saying a strong balance sheet positions it to take advantage of growth opportunities in current dislocated markets.
Lihir Gold(ASX:LGL) achieved record production in its third quarter, reporting 250,000 ounces, up 41 per cent on the previous quarter. In 2008, the company expects production of about 850,000 ounces, in line with its previous guidance.
Austar United Communications(ASX:AUN) today said it was confident of 20 per cent earnings growth, as it reported deeper market penetration amid tough economic times. A statement by Austar said earnings before interest, tax, depreciation and amortisation rose to A$53 million in the September quarter, from A$46.4 million in the previous three months.
1. Related Stocks - Mid Market (12:30 AEST)
------------------------------------------------------Code % Change Volume Turnover Low High------------------------------------------------------ASX:GAU +12.5 30,000 $1,350 4.5 4.5ASX:SLV -11.33 28,253 $19,991 66.5 74ASX:GPT -7.14 25,481,761 $19,669,262 75.5 79ASX:BTT -3.1 25,146 $62,980 249 258ASX:LGL +3.82 8,271,400 $13,571,826 161.5 167ASX:AUN +4.44 670,219 $621,725 90 95------------------------------------------------------
2. Top 10 ASX on Turnover - Mid Market (12:30 AEST)
------------------------------------------------------Code % Change Volume Turnover Low High------------------------------------------------------ASX:QGC +79.68 54,174,287 $311,506,312 575 576ASX:BHP +1.26 6,764,821 $173,962,233 2460 2528ASX:WBC -1.55 3,879,378 $77,480,201 1962 2005ASX:CBA -1.67 1,776,481 $70,346,891 3914 3984ASX:NAB -4.64 2,922,135 $68,604,668 2271 2366ASX:TLS -1.49 16,075,747 $64,378,447 395 403ASX:ANZ -4.47 3,790,384 $63,620,147 1615 1690ASX:WOW -2.03 2,121,459 $54,371,019 2550 2595ASX:RIO +2.44 785,788 $52,507,085 6563 6700ASX:MAP -2.53 17,191,582 $39,756,010 230 235------------------------------------------------------
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.Liang@abnnewswire.net
| ||
|
