A bit of an uneventful day – we are down 12. Down 52 at worst. Resources struggling – BHP and RIO both down over 3%. Both suffered a setback in their battle to keep other miners off its iron-ore rail lines in the Pilbara region after the High Court said they had to share it with its competitors. Financials doing OK, so are Property Trusts.
Australian financial stocks took heart from the move by US investment legend, Warren Buffet to $US5 billion ($A6 billion) in newly created commercial bank, Goldman Sachs Group and to take options to put in a further $US5 billion over the next year.
The Reserve Bank has moved to try and solve a shortage of US dollars in the Asian area by joining a swap arrangement involving the US Federal Reserve.
Major listed department store chain, David Jones has reported its best ever full year profit result and dividend since listing in 1995.
Global paper company PaperlinX Ltd says it is considering an equity issue if assets sales can't deliver enough cash to help meet the terms of a just renegotiated debt facility.
The strength of Australia's banks, especially the big four, is better than first seems, judging by comments in the International Monetary Fund's latest report on the Australian economy.
The Australian stock market closed almost 2% lower yesterday amid concerns on the short selling ban, as well as over the effectiveness of the US government's proposed bailout of the financial sector. Analysts said investors are waiting for some real clarity from the government.
