The local share market looks like it may be in for a weaker start this morning after U.S. stocks took a big tumble overnight on concerns for economic growth. Investors are likely to be cautious ahead of company earnings results due out this week.
On Monday the local share market closed lower with the S&P/ASX 200 Index down 73 points to 4,388 and on the futures market the SPI200’s down 45 points.
Checking currencies at 8:45AM the Aussie Dollar is buying 82.12 US cents, 77.55 Yen, 58.34 Euro cents and 50.28 Pence Stirling.
In economic news: The RBA minutes from its August meeting are to be released, as well as the Australian Chamber of Commerce and Industry small business survey, the Raboplus DIY superannuation investor survey and the Melbourne Institute wages for the August quarter.
In company earnings results out today: iSoft, GWA International, OneSteel and United Group are to release annual results. James Hardie first quarter results are due out today, and STW Communications first half results are also out today.
In company news: Marketing devices and communications company Photon Group Ltd (ASX:PGA) shares are in a trading halt and last traded at $2.36. The company has announced a $115 million capital raising after reporting a fall in net profit for the year to June 30. Net profit for the 12 months fell 1 per cent to $21.4 million compared to $21.7 million the year before. The capital raising will comprise of a $27 million institutional placement and a one for two non-renounceable rights issue to raise $88 million at an offer price of a $1.50 a share. Photon says the proceeds of the raising will be used to reduce debt and strengthen its balance sheet. Photon Group’s profits have been rising each year for the past four years.
Airline Virgin Blue Holdings Ltd (ASX:VBA) shares fell 2.63 per cent to $0.37 yesterday. The airline says offshoot V Australia is to increase flights to Thailand and South Africa and is also looking to expand its services to Fiji instead of expanding its services to the U.S. According to The Australian the airline will start flying twice a week from Brisbane to Phuket form November 22nd and once a week from Melbourne to Phuket from December 3. The airline will also add a service from Melbourne to Johannesburg from March 13 and says it has lodged an application with the International Air Services Commission for permission and slots to fly to Fiji. However it has delayed its twice weekly flight from Melbourne to LA. According to The Australian Financial Review, Virgin Blue CEO Brett Godfrey says the company is planning on a difficult 12 months ahead, but is confident enough in these new markets that they will be contributors to the bottom line as opposed to what the company was going to do. Virgin Blue’s 2008 net profit more than halved from its high in 2007 of $215.8 million.
Checking ex-dividends and going ex dividend today we have Coca-Cola Amatil with an 18.5 cent fully franked dividend, and Computershare with an 11 cent 50 per cent franked dividend.
To the international scoreboard - US markets fell on Monday. The Dow Jones industrial average lost 186 points. The S&P500 Index fell 24 points and the NASDAQ dropped 55 points.
European markets were also weaker: London’s FTSE lost 69 points, Paris is down 76 points and Frankfurt lost 108 points.
Asian markets were lower: Hong Kong’s Hang Seng fell 756 points. Tokyo’s Nikkei dropped 329 points and China's SSE Composite is down 176 points.
Looking at Metals: Gold fell US$12.90 to US$935.80 an ounce for the December contract on Comex. For the September contract Silver is down 75 cents to US$13.98 and copper is down 7 cents at US$2.77.
And finally, oil lost $0.76 to US$66.75 a barrel for September light crude in New York.
