Sydney, Nov 4, 2008 AEST (ABN Newswire) - US stocks closed virtually flat in quiet trading overnight, with investors cautious a day ahead of voting for president and Congress as fresh data underscored economic worries.
Yesterday the Australian share market closed about 5% higher on its first trading day of November with good lead from Wall Street on last Friday and the expectation of another RBA interest rate cut. It was the share markets' fourth consecutive stronger day adding A$51 billion to the value of stocks.
The benchmark S&P/ASX200 index jumped 5%, or 203.5 points, to close at 4221.5, while the broader All Ordinaries gained 4.8%, or 190.3 points, to close at 4173.
The Australian dollar has opened marginally lower as European officials said the 15-member zone was in a shallow recession, which boosted demand for the US currency. At 0700 AEDT, the Australian dollar was trading at $US0.6806/10, from yesterday's close of $US0.6823/28.
Oil prices have nose-dived as fresh signs show that slowing economies in the European Union and the United States will hurt the energy demand. New York's main contract, light sweet crude for December delivery, dropped $US3.90 a barrel from Friday to close at $US63.91.
Key Economic Facts and Figures
The official interest rate is expected to fall today for the third consecutive month. Economists are tipping a cut of half a percentage point cut today. That would take the official rate to 5.5 per cent, its lowest level since May 2006.
Estimates from the Australian Bureau of Statistics (ABS) show prices for established homes have fallen an average of 1.8 per cent in the September quarter. Figures released by the Department of Treasury and Finance, show the Government has suffered a substantial drop in revenue from stamp duty on property sales for the month of August.
M&A News
Babcock & Brown Infrastructure Group (ASX:BBI) has sold 50 per cent of its stake in the New Zealand operations of its Powerco subsidiary to Australian investment manager Queensland Investment Corporation. BBI said it would raise around $NZ400 million from the sale, which it would use to retire debt and fund organic growth opportunities across BBI's international portfolio.
Mount Gibson(ASX:MGX) said Shougang Concord International Enterprises(HKG:0697) had agreed to subscribe to the company's new shares and to underwrite a further rights issue together with sister company Apac Resources(HKG:1104). That would raise a total of A$162.5 million, the Perth-based company said yesterday in a statement to the Australian Stock Exchange. After the deal, Shougang International's stake in Mount Gibson would range from 10.23 per cent to 14.43 per cent. Together with Apac Resources, it would own 28.6 to 40.5 per cent, depending on how many rights shares were taken up.
Seven Network(ASX:SEV) is believed to be considering using its A$1.2 billion in spare cash to expand into radio and outdoor advertising by buying 39.1% stake in APN News & Media(ASX:APN), as APN's owner Independent News & Media is to exit the business.
Gindalbie Metals(ASX:GBG) said last night its Chinese joint venture partner, Anshan Iron & Steel Group (Ansteel), wanted to "accelerate" development of their A$1.8 billion Karara magnetite project. Gindalbie and Ansteel executives are expected to spend the next few days negotiating a revised financing program that will result in Ansteel emerging as the controlling shareholder in the Mid-West iron ore hopeful.
Hong Kong's Crosby Capital has terminated its A$168 million takeover bid for Medusa Mining(ASX:MML) blaming a slump in the gold price and on the sharemarket as well as an unhelpful Medusa Mining board for its decision to walk away from a A$168 million bid for the gold junior.
Important Corporate News
Victorian-based plastics and automotive products group Nylex(ASX:NLX) yesterday advised it was reappraising its earnings guidance of A$5 million EBIT for fiscal 2009 in the wake of production cutbacks and a depreciating local currency.
Travel agent Flight Centre(ASX:FLT) expects lower first half earnings and says it will be hard to achieve its targeted full year pre-tax profit growth, with losses incurred by its United States travel business, Liberty Travel.
1. Related Stocks - Mid Market (AEST 1330)
------------------------------------------------------Code % Change Volume Turnover Low High------------------------------------------------------ASX:BBI +18.6 13,075,132 $3,354,090 24 27ASX:MGX -3.79 12,702,249 $4,952,292 37 41ASX:SEV -5.21 268,986 $1,524,860 552 599ASX:APN +3.69 609,823 $1,893,742 300 321ASX:MML +10.76 28,300 $19,126 65 72ASX:NLX 275,206 $27,521 10 10ASX:FLT -7.69 316,475 $3,805,472 1180 1280
2. Top 10 ASX on Turnover - Mid Market ((AEST 1330)
------------------------------------------------------Code % Change Volume Turnover Low High------------------------------------------------------ASX:BHP -3.71 4,346,031 $128,887,684 2856 2922ASX:WBC +3.16 4,652,985 $102,228,109 2162 2218ASX:ANZ +1.35 4,112,529 $76,309,834 1820 1880ASX:RIO -3.21 717,303 $66,716,272 7876 8028ASX:NAB +.99 2,410,453 $60,563,237 2487 2540ASX:CBA -.52 1,274,338 $53,028,422 4135 4178ASX:WOW -2.26 1,204,868 $34,817,370 2865 2900ASX:TLS -1.42 8,202,942 $33,947,477 410 419ASX:QGC 5,885,534 $33,845,331 575 576
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.Liang@abnnewswire.net
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