Australian shares are set to open stronger this morning following five consecutive gains on Wall Street, but metals prices closed mostly lower which means miners may be subdued. Energy firms could get a boost following a four-day rally in the crude price that pushed it close to US$72 a barrel. The local market finished stronger yesterday with S&P/ASX 200 Index finished 49 points higher to 4,571 and on the futures market the SPI200’s up 42 points.
Checking currencies at 8:40 AM the Aussie Dollar is buying 86.32 US cents, 79.19 Yen, 59.21 Euro cents and 51.83 Pence Stirling.
In economic news out today, the HIA state and national outlook will be released for the June quarter.
In company about this morning: Consolidated Media Holdings (ASX:CMJ) shares closed stronger yesterday, adding 0.61% to $3.32. An offer by billionaire James Packer to his rival Kerry Stokes has been accepted which will put an end to the battle for control Consolidated Media – at least for the time being. Last night, Stokes’ Seven Network signed an agreement not to buy any more shares in the media company for 12 months and also nominated two directors to the board, including Kerry’s son Ryan Stokes and Peter Gammell. Seven owns 19.9% of Consolidated while Mr Packer owns 41% Consolidated Media’s net profits have been increased over the past three years with a big spike in 2008.
Telstra (ASX:TLS) shares closed higher yesterday, edging up 1.87% to $3.27. Seven of Telstra's biggest rivals have warned the Australian Competition and Consumer Commission of higher costs for consumers. The regulator has granted Telstra exemptions for the amount it can charge other telcos for access to six key services in its network. It means that Telstra can increase its charge for its unconditioned local loop service, which affects its competitors. Executives from Optus, iinet, Macquarie Telecom and Primus Telecom have called on the ACCC to scrap the pricing model on the basis that they believe it is flawed. Telstra net profits have been consistent over the past five years with the highlight in 2005.
Checking ex-dividends and just the one going today and that’s Independence Group with a 3 cent fully franked dividend. On Monday there are many companies going and among them are Brambles and CSL. To the international scoreboard: US markets rose to their highest levels of this year overnight, the Dow Jones industrial average rose 80 points. The S&P500 Index added 11 points and the NASDAQ lifted 24 points.
European markets were mixed: London’s FTSE fell 17 points, Paris lost 2 points and Frankfurt added 21 points.
Asian markets were also mixed: Hong Kong’s Hang Seng rose 219 points. Tokyo’s Nikkei added 202 points and China’s SSE Composite fell 21 points.
Looking at Metals: Gold fell 30 cents to US$996.80 an ounce for the December contract on Comex. Silver added 20 cents to US$16.67 and copper fell 5 cents to US$2.88.
And finally, oil rose 63 cents to US$71.94 a barrel for October light crude in New York.
