Australian Market Report -Australian Shares End Flat; Labor Party Retains Power
Tuesday, September 7 - The share market closed flat, with gains in financials countered by drops in the big miners, which fell after two key independent MPs backed Labor.
The All Ordinaries fell 2.7 points (0.06%) to 4,613.0 while the S&P/ASX 200 weakened 2.3 points (0.05%) to 4,573.2.
Woolworths (WOW)
Woolworths intends to sell more than $900m of its shopping centres and development projects. The 30-plus properties will be disposed of via sale and lease-back arrangements, Woolworths said. Some of the properties within the portfolio include Ashgrove Marketplace in Queensland, Carnes Hill Marketplace in New South Wales and Pakington Strand in Geelong West, Victoria. WOW added 21 cents (0.73%) to $29.00.
Leighton Holdings (LEI)
Leighton could say in coming days that its long-serving chief executive Wal King will stand down from the role this year, a newspaper has reported. The report said the company will also announce King's replacement in the role by either David Savage or David Saxelby. It said the original plan was for King to announce his plans to stand down at Leighton's annual shareholder meeting in November, with a retirement date some time in 2011, but Chairman David Mortimer pressed for an earlier exit than King had wanted. LEI rose 25 cents (0.78%) to $32.42.
Western Areas (WSA)
WSA says it is seeking opportunities in China to expand its operations. The company is focused on the Forrestanian region of Western Australia but managing director Julian Hanna said that WSA was eyeing China for expansion. "Western Areas is exploring new opportunities in China and introducing the company to new investors in the region," Mr Hanna said. "With the commencement of exports through Esperance (in WA), it is logical we should look to expand our activities in China." Western Areas also said it had mined a total of 6278 tonnes of nickel in ore in the first two months of the current financial year. "This exceeds budget for this period by 60 per cent and provides further confidence that the FY 2010-11 target of 25,000 tonnes of nickel mined per annum from Flying Fox and Spotted Quoll (mines) will be reached," it said. WSA rose 16 cents (3%) to $5.50.
Economic News
Rates Unchanged
The RBA left interest rates unchanged for a fourth month in a row in September as its policy makers put caution about the global economic outlook ahead of signs the domestic economy is recovering quickly. The board of the RBA elected to keep the cash rate at 4.50%. RBA Governor Glenn Stevens again said he is comfortable with interest rates around their 10-year average levels. The RBA raised interest rates six times between October 2009 and May this year, but has been on the sidelines ever since as global market volatility returned. Still, the RBA clearly has its eye on the local economy, which is receiving a strong income surge through soaring commodity prices.
Sales and Profit Expectations Up
Sales and profit expectations among businesses gained steadily in the past month, signalling an expectation for robust business conditions in the fourth quarter, according to an industry survey. In the second round of its fourth-quarter survey of 1,200 business owners, the Dun & Bradstreet National Business Expectations Survey had a sales expectations index of 33, up from a reading of 25 last month and a final sales expectations reading of 18 for the third quarter. Profit expectations for the fourth quarter gained to a reading of 22, up from 17 last month and at its highest level in six years. The gains are a stark contrast to two months ago when both profit and sales expectations for the third quarter slid rapidly.
The NZSX50 rose 31.00 points (0.99%) to 3,174.14 while the Nikkei dropped 75.32 points (0.81%) to 9,226.00 and the Hang Seng firmed 4.28 points (0.02%) to be last quoted at 21,360.05.
The Australian dollar was last quoted at US$0.9134.
Companies commencing Ex-Dividend Trading Today (ASX 300):
Hills Industries Limited
Overseas Market Report -
