We said Monday that this week would be important for retailers: yesterday we got the first installment with the news that Harvey Norman, the country's biggest electrical and consumer products retailer has suffered a sharper than expected fall in profits as sales continue to slump as the crunch bites deeper into Australian consumers.
Less than a week ago OZ Minerals was talking about doing a major impairment test of all its assets and deciding early in the New Year about deferring, cutting back or just abandoning projects and prospects.
Qantas is battening down the hatches and preparing for the worst as profits and travel slump because of the international credit crunch and slowdown.
Brisbane-based laboratory services and cleaning products company, Campbell Brothers made the upgraded guidance in October for a profit rise of around 75% for the six months to September 30.
Yesterday Australian shares closed slightly higher after staging a late-afternoon rally as Washington promised to shore up Citigroup. Miners surged while banks pared their losses. The benchmark S&P/ASX200 index rose 0.25%, or 8.6 points, to close at 3425.1, while the All Ordinaries index was up 0.1%, or 1.9 points, at 3388.8. Analysts anticipate the markets a stronger performance with the good news.
The December Share Price Index futures contract on the Sydney Futures Exchange was up 144 points, or more than 4%, at 3600 in recent trading.
The market is up 159 ahead of the futures which predicted a 132 point rise in the market this morning thanks to a solid night on Wall Street. Resources leading the way – up 9.0% with BHP up 11.4% and RIO up 7.5%. Energy stocks soaring on the 9% higher oil price – Woodside up 13%. Financials up 4.6%.
Major stimulatory packages were outlined on both sides of the Atlantic overnight.
