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Sydney, Sep 11, 2008 (ABN Newswire) - The ASX 200 is down 53 underperforming the 13 point rise suggested by the SFE Futures this morning. BHP and RIO slightly down after solid rises in materials and energy stocks in the US last night. Financials are down 2.1% with continued credit crisis concerns among major US institutions. Banks all down about 2-3%.
Dow up 38. Up 150 at best. Down 15 at worst. Materials and energy stocks were up 3.6% and 1.9% overnight despite oil falling 0.2% (to $102.66), commodities falling 0.7% and gold plunging 3.8% (to $762.50). Energy stocks were 26% off their May high yesterday – sitting at their lowest valuations since March 2007 – enticing bargain investors to buy into majors like Exxon and ConocoPhillips even though the US dollar is still rising. Financials were down another 0.7% after being down 6.6% yesterday. Washington Mutual down 28% on potential buyers withdrawing interest, and Lehmans was down another 7% on posting greater-than-expected 3Q losses, cutting its dividend and announcing it would sell significant parts of its business.
Both BHP and RIOup in ADR form overnight, 5.14% and 3.31% respectively.
Metals mostly up – Zinc up 1.95%, Aluminium up 0.94% and Copper up 0.22%. Nickel slightly lower. Oz minerals down 2c to 133c.
Oil price down 57c to $102.66. Woodside down 30c to 5363c.
Gold down $29.50 or 3.7% to $762.50 despite OPEC announcing they would cut production by 500,000 barrels a day. Newcrest down 78c to 1924c.
US Bonds down with the 10 year yield up to 3.63% from 3.59%.
Making the news today…
Portman (PMM) flying – up 19.6% to 2118c – after Cleveland Cliffs offered 2150c for a 14.81% stake it doesn't already own. Offer represents a 21% premium of 21%.
Perilya Ltd (PEM) is in a trading halt – something regarding their Mount Oxide Copper Project. Last traded at 32c.
United Group said it was part of an alliance that will carry out around $800m of business for a Canadian Utility company. It has also reiterated that it expects to meet analysts earnings forecast. UGL down 62c to 1405c.
Rio Tinto said the President of Papa New Guinea has given them the green light for their huge Simandou project in the region…a bit of a relief considering he had previously said that he would cancel the license. RIO down 34c to 10174c.
Australian Wheat Board(AWB) has had two of its units accredited as bulk wheat exporters by the Australian wheat regulator – removes any doubts about AWB falling short as a "fit and proper" company. AWB down 2c to 297c.
Incitec Pivot up 3.3% to 13325c on the back of an article in the Financial Review saying there is talk that an international competitor running the numbers over the company.
Paperlinx (PPX) slightly lower despite speculation that there are four parties running their ruler over it Australian paper business.
Sundance Resources (SDL) increased its Itabirite Resource at Mbalam. SDL up 0.5c to 27c.
Becton Property Group (BEC) has approval from a major unit holder to sell their Newcastle Habourfornt Hotel. BEC down 2c to 79c.
Ausdrill (ASL) has won a new $US70m underground contract. ASL down 13c to 235c.
Merrill Lynch has cut Henderson Group (HGI) to NEUTRAL from BUY due to recent share price appreciation. They have a 300c target price. HGI down 4c to 276c.
Citi have initiated coverage on Queensland Gas (QGC) with a BUY recommendation and 637c target price saying "If the dream can be achieved (re LNG), the longer-term results could be spectacular". QGC down 5c to 472c.
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