The SPI is pointing to a softer start to the week, following mixed overseas leads. Though Wall St closed in positive territory, European markets retreated after China lifted the reserve requirement ratio for the nation’s banks. Aussie shares finished last week lower, ahead of the reporting season moving into the home stretch.
On Friday, the Dow Jones Industrial Average, closed 73 points higher to 12,391, S&P500 added 3 points to close 1,343 and the NASDAQ firmed 2 points to close 2,834.
European stocks were mixed: London’s FTSE down 4 points, Paris up 5 and Frankfurt up 21.
To Asian markets and stocks were also mixed: Hong Kong’s Hang Seng was up 293, Tokyo Nikkei was up 6 and China’s Shanghai Composite was down 27 points.
The Australian share market finished in the red on Friday. The S&P/ASX 200 Index eased 2 points to close at 4,937 and on the futures market the SPI is down 12 points.
Turning to currencies and the Australian Dollar at 8:40AM was buying $US1.015 cents, 62.44 Pence Sterling, 84.32 Yen and 74.07 Euro cents.
Company news: On Friday shares in Seven Group Holdings Ltd (ASX:SVW) added 1 per cent to close at $9.09. Kerry Stokes’ Seven Group Holdings is on the cusp of revealing a $3.5 billion sale of its privately owned 45 per cent stake in Seven Media Group to West Australian Newspaper Holdings Ltd (ASX:WAN), according to the Australian Financial Review. As part of the deal US private equity group Kohlberg Kravis Roberts will also sell its 45 per cent stake in Seven Media Group, with West Australian Newspaper Holdings gearing up raise up to $1 billion through a rights issue and institutional placement. Seven Group Holdings holds currently holds 24 per cent stake in West Australian Newspaper Holdings which the AFR says is expected to climb to 30 per cent once the transaction is complete. In the 2010 financial year, Seven Group Holdings reported a $718 million net profit.
At the end of last week shares in BHP Billiton Ltd (ASX:BHP) eased 0.17 per cent to close at $46.56. BHP’s chief executive Marius Kloppers has forecast strong iron ore prices for as much as two years, underpinned by substantial demand and supply constraints. Speaking to ABC TV, the mining giant’s CEO said there is now a large amount of new iron ore capacity, and the issue lies on the supply side, rather than the demand side. Mr Kloppers also confirmed BHP has no immediate plans for takeovers. The comments come just after the company last week reported a record first-half profit of $10.5 billion.
To ex-dividends: Eight companies are going ex-dividend today. Among them we have Austereo with a $0.05 cent fully franked dividend, Cochlear with a 60% franked dividend of $1.05, Korvest with an $0.11 cent fully franked dividend and Telstra with a $0.14 cent fully franked dividend. Among those companies coming up tomorrow are Foster’s Group and Wesfarmers.
To commodities: Gold is up $3.50 to $US1,388 an ounce for the April contract on Comex, silver is up $0.73 to $32.30 for March and copper is flat at $4.48 a pound. Oil is up $0.87 at $89.71 a barrel for April light crude in New York.
