The board of Brazilian steelmaker CSN (NYSE: SID) has approved the purchase of a 16.3% stake in Australian coal producer Riversdale Mining (ASX: RIV). CSN could pay A$6.10 per share for up to 31.2 million shares in the coal producer, for a total of A$191 million.
Sydney, Nov 25, 2009 AEST (ABN Newswire) - US stocks closed weaker overnight after the US Commerce Department lowered its estimates of third quarter GDP and consumer spending. US economic growth in the third quarter was revised down to 2.8 per cent, down from an early estimate of 3.5 per cent expansion. Investors also worried Chinese banking regulator's capital-adequacy requirements would force the nation's lenders to tighten bank lending in China.
Australian share retreated soon after a small rise this morning. Yesterday the local market reversed early gains to end lower, as investors locked in profits from resources and banking stocks. The benchmark S&P/ASX200 index lost 32 points, or 0.7 per cent, to 4685, while the broader All Ordinaries fell 31 points, or 0.7 per cent, at 4708.2.
The Australian dollar opened slightly higher today after the US equities market closed flat overnight. At 7am, the Australian dollar was trading at 92.02 US cents.
Key Economic Facts and Figures
Reserve Bank of Australia (RBA) deputy governor Ric Battellino says with the economy having only recently entered a new upswing, the economy growth in Australia could extend for a few more years. A further expansion of the resources sector, including the development of some very large gas projects, is also expected.
The Australian Bureau of Statistics today releases construction work data for September quarter. The Department of Employment and Workplace Relations releases its skilled job vacancies survey.
M&A News
The board of Brazilian steelmaker CSN (NYSE: SID) has approved the purchase of a 16.3% stake in Australian coal producer Riversdale Mining (ASX: RIV). CSN could pay A$6.10 per share for up to 31.2 million shares in the coal producer, for a total of A$191 million.
Binding offers for BHP Billiton's (ASX:BHP) Ravensthorpe nickel project in Western Australia are due today, and it is believed that China Metallurgical Group Corp (MCC) is considering teaming with Minara Resources (ASX:MRE) to submit a joint bid for Ravensthorpe.
Important Corporate News
Australia's largest brick and tile producer Brickworks (ASX:BKW) said it saw initial signs of increased construction activity in November, due to increased sales from the Federal Government's spending on school infrastructure and social housing. The company forecasted a solid result for the 12 months to July 31 2010, on the back of a record A$113.7 million net profit in the previous fiscal year.
Programmed Maintenance Services (ASX:PRG) posted a five per cent fall in net profit for the six months to September 30 of A$12 million, 5 per cent down from A$12.6 million in the previous corresponding period. The company said with weak economic conditions, small declines of group revenue and profit are a good result. The company expects a broader market increase to occur next year and says it is well positioned to benefit from the recovery in casual labour demand across the country.
Building services provider Norfolk Group (ASX:NFK) has posted a 30 per cent rise in half year profit to A$5.681 million, up from A$4.386 million in the prior corresponding half. Norfolk said conditions remain uncertain in some markets, but a record order book positions the company well for the future.
GrainCorp (ASX:GNC) said its net profit for the year ended September 30 was A$63.16 million, compared to a loss of A$19.94 million in the previous year. The result was just above its guidance for a profit between A$61 million and A$63 million. But managing director Mark Irwin said grain receivals will be lower in fiscal 2010, due to different seasonal conditions.
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
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