Sydney, Nov 14, 2008 AEST (ABN Newswire) - Overnight US stocks bounced aggressively off steep lows, with Dow up 552.59 points led by industrial sector. Wall St experienced a day of fluctuation and the sustainability of the gains would be a question.
Yesterday, Australian shares slumped to their lowest close since October 8, 2004. The benchmark S&P/ASX200 share index plummeted 5.9% to 3697.3. The broader All Ordinaries index fell 211.2 points, or 5.44 per cent, to 3,672.4, its weakest close since October 1, 2004. Analysts said although local stocks may rebound after rise in US stocks and oil price, markets worldwide still have a significant unsettling economic outlook.
In recent trading the December Share Price Index futures contract on the Sydney Futures Exchange was up 152 points or about 4.05%, to 3905 points.
The Australian dollar has opened higher after a late rally on Wall Street prompted investors to return to high yielding currencies. At 0700 AEDT, the Australian dollar was trading at $US0.6514/20, up from yesterday's close of $US0.6417/22.
Oil prices have closed mixed from nearly two-year lows in New York after the OPEC suggested it may hold an emergency meeting to consider another cut in production amid a global economic slowdown. On the New York Mercantile Exchange, light sweet crude for December closed at $US58.24 a barrel, a gain of $US2.08 from Wednesday's close.
Key Economic Facts and Figures
Australian inflationary expectations plummeted in November to their lowest reading since September 2007, reflecting increased gloom about the outlook for the economy and the potential for rising unemployment, according to the Melbourne Institute of Applied Economic and Social Research. The expected median inflation rate fell to 3.3% in November, down significantly from 4.4% in October.
Yesterday, Australian Bureau of Statistics data showed a 0.9 per cent, seasonally adjusted, rise in wages during the September quarter. The September quarter labour price index increase was marginally lower than market forecasts of a 1 per cent rise, and below the June quarter climb of 1.1 per cent.
Today the Housing Industry Association and Austral Bricks issue their trades report for the September quarter.
M&A News
St George Bank(ASX:SGB) shareholders have voted overwhelmingly in favour of Westpac's(ASX:WBC) A$16 billion merger proposal. The merger will create Australia's largest bank, but 2000 jobs will be slashed despite promises to keep the St George brand and branch network for at least three years.
Important Corporate News
Wesfarmers Ltd(ASX:WES) has reassured shareholders it is seeing improvements in Coles and that concerns about the group's balance sheet are unfounded. Chief executive Richard Goyder told shareholders that debt refinancing and the Coles turnaround are within the company's control.
Australia's second largest oil and gas producer Woodside(ASX:WPL) says it will achieve record production, revenue and profit in calendar 2008. The company has warned it might build a major new floating liquefied natural gas project outside Australian waters, if the cost of the Federal Government's planned carbon emissions trading scheme is too high.
Bluescope Steel Ltd(ASX:BSL) says rising raw material costs and softer steel demand will make the market more challenging in fiscal 2009, after a strong first half. The first half strength for fiscal 2009 would be based on a first quarter unaudited net profit after tax of A$430 million.
Radio broadcaster Austereo Group Ltd(ASX:AEO) says the market is more demanding and its first half results will be slightly lower than the previous comparable period. In August, Austereo forecast earnings to continue growing this financial year after buoyant ratings and advertising revenue helped drive a 5.1 per cent lift in profit for 2007/08.
Incitec Pivot(ASX:IPL), Australia's largest fertiliser producer, has raised A$819 million through a share sale to its institutional investors. The company today said it was seeking to raise a further A$351 million from retail investors, for a total A$1.17 billion.
1. Related Stocks - Mid Market (AEST 1230)
----------------------------------------------------Code % Change Volume Turnover Low High----------------------------------------------------ASX:SGB -1.66 863,049 $20,891,923 2317 2517ASX:WBC +.11 7,549,843 $132,359,561 1660 1805ASX:WES +.16 2,130,133 $40,335,198 1806 1947ASX:WPL +3.95 773,297 $31,244,344 3819 3892ASX:BSL +1.66 865,524 $3,788,386 426 450ASX:AEO +3.84 43,885 $59,245 135 135ASX:IPL -24.87 24,802,832 $75,858,422 282 321
2. Top 10 ASX on Turnover - Mid Market (AEST 1230)
----------------------------------------------------Code % Change Volume Turnover Low High----------------------------------------------------ASX:BHP +5.6 6,001,920 $161,630,571 2609 2705ASX:QGC 23,479,749 $135,010,830 575 576ASX:WBC +.17 7,556,232 $132,468,173 1660 1805ASX:NAB +2.93 5,700,231 $116,005,661 1983 2033ASX:RIO +5.49 1,079,883 $81,685,502 7233 7521ASX:ANZ +.85 5,507,059 $80,382,704 1410 1489ASX:CBA +1.48 2,240,752 $78,548,230 3328 3505ASX:IPL -24.87 24,804,424 $75,863,373 282 321ASX:TLS +1.46 10,964,104 $45,969,684 415 425ASX:WES +.16 2,138,909 $40,494,169 1806 1947
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.Liang@abnnewswire.net
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