The local share market is expected to edge higher at the open this morning, with a mostly positive lead from commodities but a mixed lead from Wall Street and European Markets. Investors are also likely to be reluctant to commit new cash ahead of the upcoming August earnings season.
On Friday, the Australian share market closed higher. The S&P/ASX 200 Index rose 26 points to 4,090 and on the futures market the SPI200’s is up 26 points.
Checking currencies at 8:25 am the Aussie Dollar has gained ground and is buying 81.75 US cents, 77.51 Yen, 57.51 Euro cents and 49.76 Pence Stirling.
In company news for the week ahead: investors will be keeping a close eye on top investment bank Macquarie Group Ltd’s (ASX:MQG) annual shareholders meeting on Wednesday and Australand Property Group (ASX:ALZ) is due to report half-year results today. Analysts are expected a downturn in interim profit.
Virgin Blue Holdings Ltd (ASX:VBA) shares lost ground on Friday and slipped 1.69% to 29 cents. Virgin Blue is believed to be lining up a $250 million capital raising to shore up its balance sheet as the global downturn hits the airline industry. The Australian Financial Review is reporting that the airline’s board met last night to discuss the capital raising with Credit Suisse Group AG and JPMorgan Chase hired as advisers. Richard Brandson who owns 25% of the airline, is expected to support the plan. Looking at Virgin Blue’s net profit activity over the past five years and the best result has been just over 215 million in 2007.
Nufarm Ltd (ASX:NUF) shares finished higher on Friday, gaining 13.01% to $11.12. The agricultural chemicals supplier has confirmed that it is in early takeover discussions with China’s largest chemicals trader, Sinochem. On Friday, Nufarm admitted it had been approached and over the weekend the Sinochem released a statement saying while there was absolutely no certainty that matters would progress – it is exploring potential growth opportunities with Nurfarm. Buying Nufarm would expand Sinochem’s share of the market for herbicides and pesticides, extending the reach of the Chinese company as demand rebounds. 2007 was Nurfarm’s best year for net profits with over $148 million.
Checking the ex-dividend scoreboard and Hire Intelligence International is going today with a 1 cent fully franked dividend and Transmetro Corporation is also going today with a 3 cent fully franked dividend.
To international markets: US markets finished mixed on Friday. The Dow Jones industrial average rose 24 points. The S&P500 Index rose 3 but the NASDAQ fell 8 points.
European markets were also mixed: London’s FTSE rose 17 points but Paris lost 7 points and Frankfurt lost 18 points.
Asian markets were stronger: Hong Kong’s Hang Seng rose 165 points. Tokyo’s Nikkei added 152 points and the Shanghai Composite up 44 points.
Looking at Metals: Gold ended a two week rally and lost US$1.70 to US$953.10 an ounce for the August contract on Comex. For the September contract Silver rose 11 cents to US $13.88 and copper remained steady at US$2.52.
And finally, oil rose to a three week high, adding US$0.89 cents to US$68.05 a barrel for September light crude in New York.
