Sydney, Nov 19, 2008 AEST (ABN Newswire) - US stocks surged in late trading with a rare positive result from computer maker Hewlett-Packard amid economic concerns.
Yesterday the Australian share market closed 3.5 per cent down at fresh four-year lows, largely dragged down by banks and miners, wiping A$34 billion from the value of the market. The benchmark S&P/ASX200 index was 129.8 points, or 3.55 per cent lower at 3523.2, while the broader All Ordinaries lost 126.4 points, or 3.47 per cent, to 3513.1 led down by resource and banking stocks. Analysts said the market fell more than expected as it was closing to the end of short-selling ban.
At 0810 AEDT, the December Share Price Index futures contract on the Sydney Futures Exchange was up 14 points at 3,565.
The Australian dollar opened weaker today as a late slump on Wall Street hurt demand for risk-driven currencies. At 0700 AEDT, the Australian dollar was trading at $US0.6440/45, down 0.3 per cent from Tuesday's close of $US0.6458/62, marking the weakest opening level since November 13.
Oil prices fell in a market worried over the slowing global economy and its negative impact on energy demand. On the New York Mercantile Exchange, light sweet crude for December dropped 56 cents to close at $US54.39.
Key Economic Facts and Figures
The Reserve Bank of Australia (RBA) revealed its monthly board minutes that the central bank contemplated a smaller interest rate cut of 50 basis points in November, the poor economy outlook prompted the board to opt for a bigger 75 basis point move.
Growth in Australian total pay slowed to 4.0% in the 12 months to November from 4.9% in the 12 months to August, a report from the Melbourne Institute showed Tuesday. It shows the pace of wages growth has slowed as the labour market weakens and the economy deteriorates.
Today the Westpac/Melbourne Institute leading index of economic activity for September is released. The Australian Bureau of Statistics issue new motor vehicle sales data for October and the Australian Office of Financial Management announces the results of a Treasury bond tender.
M&A News
Private equity firm CVC Asia-Pacific has pumped an extra A$25million into debt-ridden PBL Media, in a move that will dilute the stake of James Packer's Consolidated Media Holdings(ASX:CMJ) in the vehicle. With its decision not to join CVC in its equity injection, it had been expected CMH's stake would fall to about 10 per cent.
Korean steelmaker POSCO(SEO:005490), the world's fourth-largest steelmaker by output, has increased its stake in iron ore miner Murchison Metals Ltd(ASX:MMX), operators of the modest Jack Hills iron ore mine, Western Australia. Murchison said Tuesday the South Korean steel giant has increased its stake in the iron ore junior to 12.26% from 9.7%.
Important Corporate News
Macquarie Group(ASX:MQG) is to wind back A$15 billion worth of struggling businesses and use the capital to pay down high wholesale finance costs. The group plans to increase acquisitions and shift away from a pure investment banking model.
Wheat exporter AWB Ltd(ASX:AWB) has reported a 137 per cent increase in profit for fiscal 2008, saying the result leaves it well positioned for future growth. AWB reported net profit for the year of A$64.3 million, up A$37.2 million on fiscal 2007.
Australian miner Mount Gibson Iron Ltd.(ASX:MGX) said Tuesday it faces the prospect of a fourth customer defaulting on a long-term contract in yet another sign of the sharp drop-off in Asian demand for the raw material. The company said it considered mothballing its mines in Western Australia after defaulting customers put pressure on its finances.
CFK Childcare Centres(ASX:CFK), which runs 43 creches in New South Wales caring for 4000 children, fell into voluntary administration yesterday, blaming its collapse on the failure of an A$8.5 million deal to sell its centres to ABC Learning(ASX:ABS).
1. Related Stocks - Mid Market (AEST 1230)
----------------------------------------------------Code % Change Volume Turnover Low High----------------------------------------------------ASX:MQG +4.58 1,061,973 $27,199,845 2475 2650ASX:MGX -8.47 3,847,248 $1,057,886 26.5 29ASX:CMJ -5.16 591,330 $1,212,149 200 212ASX:AWB +6.89 259,617 $712,748 268 280ASX:MMX -2.41 539,190 $327,514 58 64.5
2. Top 10 ASX on Turnover - Mid Market (AEST 1230)
----------------------------------------------------Code % Change Volume Turnover Low High----------------------------------------------------ASX:BHP -2.93 9,546,778 $241,877,482 2332 2485ASX:CBA -.23 3,904,367 $130,111,508 2940 3130ASX:WBC -.25 7,090,694 $117,634,594 1516 1607ASX:ANZ +1.76 7,513,586 $101,623,378 1286 1352ASX:NAB +1.4 3,925,514 $76,415,663 1912 1985ASX:RIO -2 887,101 $61,493,789 6634 7100ASX:TLS +.24 14,304,124 $58,881,959 405 414ASX:WOW -4.49 1,685,545 $43,460,575 2471 2649ASX:WPL -5.23 1,083,352 $39,048,400 3251 3510ASX:CSR -22.22 25,776,969 $37,124,628 138 152
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.Liang@abnnewswire.net
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