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Australian Market Wrap

admin — Thu, 25 Mar 2010 10:35:18 +0000

Looking across global markets there is an interesting conundrum.
In Australia the key sharemarket gauges have barely moved in the
March quarter, up around 0.5%.

But in the US and the UK therehave been gains of 4-5%, while
even the Japanese Nikkei hasrisen by 2%.

We forecast significant medium and long-term order book growth and margin expansion acrossthe sector. As the Australian economy shifts gear post the pause in construction and mining during the GFC, CBA expects:revenue growth via a five year commodity boom, and margin growth, driven by demand outstripping supply, and labour and equipment shortages, shifting the balance of power back to contractors.

The general view is that the US dollar will lift later in 2010
when rates start rising. And in Australia investors are spoilt for choice with term deposits, property and shares all providing good returns.

Todays australian market wrap up

TALK OF A TAKEOVER BID FOR SANTOS - Sydney Morning Herald says there are strong rumours circulating that Woodside (WPL) is set to launch a $15bn bid forSantos(STO). STO up 3.41% to 1486c. WPL down 46c to 4696c.

AXA’s parent company AXA SA says they are confident that a deal can be reached with theNational Australia Bank (NAB) by the March 29 deadline. The NAB is offering AXA $13.3bn and is hoping to sell AXA’s Asian operations to AXA SA with price being the issue. Even if they come to an agreement, uncertainty will remain until the ACCC release their ruling on April 22. If unfavourable, AMP will enter the picture again. AXA up 1c to 634c, NAB up 15c to 2751c, AMP down 7c to 628c.

Crown (CWN) will spent $212m to significantly expand and upgrade their VIP facilities at Crown, Melbourne. The initiative is expected to create 200 new jobs. The market doesn’t seem to like the idea – CWN down 2.62% to 817c

Brickworks (BKW) announced a 65% fall in 1H net profit to $88.2m but expect a “solid” FY result due to lower interest expenses. They say their Building Products division has improved “due to the initial signs of recovery that are already evident in the housing market”. BKW up 4c to 1264c.

AquilaResources (AQA) announced a pre-feasibility study indicated that the proposed Belvedere hard coking coal project in QLD will cost around $2.81bn to build. AQA down 2% 1076c.

Western Areas(WSA) – Trading Halt before their convertible bond issue. WSA last traded at 528c.

One broker has upped their iron ore forecasts by as much as 90% for 2010, up 60% compared to last year.

Brambles (BXB) has priced a US$750m bond issue in the US private placement. BXB down 5c to 738c.

RBA assistant governor, Philip Lowe, says interest rates in Australia will likely need to continue to move towards normal levels.

Companies hitting fresh 52 week highs today include:Automotive Holdings (AHE), Ausdrill (ASL), Cochlear (COH), Iluka Resources (ILU), News Corp (NWS), REA Group (REA) and Ramsay Healthcare (RHC).

Dubai world and Nakheel projects sparks fears of global crisis

admin — Sun, 29 Nov 2009 07:31:03 +0000

Links to the 2 main entities involves in the current dubai crisis

Dubai World

The Sun Never Sets on Dubai World; Arabic. TechnoPark’s efforts at IDA World Congress 2009 Prompt donation to UN’s Darfur 1001 Wells Project …

Career Development – Contact Us – Our Portfolio – About Dubai

www.dubaiworld.ae

Nakheel – Where Vision Inspires Humanity

Dubai real estate development company. Includes list of developments, corporate information, executive profiles, history, partners, and investor relations.
www.nakheel.com

Dubai’s crisis exploded on Wednesday when the emirate said it would delay payment on debt issued by one of its flagship firms, angering investors and sending global markets sharply lower.

Dubai World (Arabic: دبي العالمية‎) is an investment company that manages and supervises a portfolio of businesses and projects for the Dubai government across a wide range of industry segments and projects that promote Dubai as a hub for commerce and trading. It is chaired by Sultan Ahmed bin Sulayem.

A policy of selectively assisting cash-strapped companies affiliated with the government of Dubai, instead of providing blanket assistance, challenges assumptions made by many investors who assumed that wealthy Abu Dhabi provided a complete safety net for its racier neighbour.

Abu Dhabi, which pumps 90% of the oil that make the United Arab Emirates the world’s third-largest oil exporter, has already provided $15 billion in indirect support for Dubai through the UAE central bank and two private Abu Dhabi banks. How much more support the emirate provides for its cash-strapped neighbour, however, will depend on how Dubai clarifies its stand on unresolved issues.

Some projects By Nakheel

Some recent background on the Dubai world Recent troubled History – Wikipedia

2009 financial woes Dubai

With the onset of a global recession, Dubai’s real estate market declined after a six-year boom. On November 25, 2009, the Dubai government announced that the company “intends to ask all providers of financing to Dubai World and [its subsidiary]Nakheel to ’standstill’ and extend maturities until at least 30 May 2010″.^[3] The company will also undergo a restructuring process with the help of Deloitteconsultants. Several months earlier, Dubai World accounted for a $59-billion debt, nearly three-quarters of the emirate’s US$80-billion debt.^[4] This includes a US$3.5-billion loan which the company is unable to repay by its December deadline.^[5]

In response to the government announced moratorium of Dubai World’s debts, bothMoody’s and Standard & Poor’s Investors Services heavily downgraded the debt of various Dubai government-related entities with interests in property, utilities, commercial operations and commodities trading. In Moody’s case, the downgrade meant that the affected agencies lost their investment grade status.^[6]

Australian share market on the move upwards

admin — Tue, 04 Aug 2009 11:39:24 +0000

And as we all know, once a stockmarket starts moving in a particular direction it can rise or fall a lot further than anyone thought possible. Accordingly, global markets look set for further rises. The good times have also spread to the residential property market, where lower interest rates and the first-home buyer’s grant are starting to kick prices higher across the board, including the more expensive homes.

We all celebrated when copper rose above $US2 a pound but now it is 20% higher. Oil has almost doubled from its lows, and so on. Remember, it was only last March when the ASX 200 almost touched 3100 – a fall of more than 50% on the peak of November 2007. Now it is trading more than 30% above that low.

Todays update for the share market

The Australian share market rose more than 1 per cent today, driven by a strong performance of the resources and financial sectors.

At the close, the S&P/ASX 200 was 45.9 points higher, or 1.1 per cent, at 4309.3, while the broader All Ordinaries rose 43.4 points, or 1 per cent, to 4313.9.

Among the sectors, materials jumped 2 per cent, financial stocks rose 1.7 per cent and energy gained 0.7 per cent.

Stockbrokers are now contacting their clients suggesting stocks to buy, and real estate agents are over the moon. Australian companies have raised about $90 billion over the past year or about 15% of the world total. Our leading companies are in good shape.

What the market is telling us is that we are headed for a “V” shaped recovery, which will be rapid and that the doomsayers are simply wrong.

- Asian stocks climb to 11-month high
- The dollar rose above 84 US cents on robust data
- Oil hovers above $US71 on demand optimism
- Gold holds above $US955 but appetite wanes
- Dow futures are 32 points lower at 9216.

Resources Sector Pushes Sharemarket Up

Trader — Fri, 02 Jan 2009 01:51:00 +0000

The year 2009 seems to be a lucky year for the local share market of Australia. Its first day of trading business recorded a higher returns on its share market led by the resources sector.

"The resources sector is leading the way and stocks like Woodside and Rio are doing very well," Mr Heffernan said. It was a good start to the new year.

Woodside Petroleum was up 96 cents, or 2.62%, at $37.66, Santos advanced eleven cents, or 0.74%, to $14.98 but Oil Search fell four cents to $4.61.

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