The Australian share market is likely to open marginally higher today on a mixed lead from offshore markets ahead of a quiet week for local economic data.
On Friday, the local share market closed weaker. The S&P/ASX 200 Index finished 22 points lower to 4,693 and on the futures market the SPI200’s up 7 points.
Checking currencies at 8:35 AM the Aussie Dollar is buying 86.56 US cents, 79.12 Yen, 58.92 Euro cents and 53.38 Pence Stirling. In economic news, the Australian Bureau of Statistics will today release data on new motor vehicles sales for August.
Looking further ahead, the Reserve Bank of Australia will release its half-yearly Financial Stability Review on Thursday - which may signal the RBA's appetite for a rise to the official cash rate.
In company about this morning:
Macquarie Airports (ASX:MAP) shares closed lower on Friday, down 1.5% to $2.63. A group of senior aviation executives under the name Global Airports have announced a proposal to take over the management of Macquarie Airports. It comes just over a week before a vote on a plan for Macquarie Airports to become a stand-alone entity, and pay investment bank Macquarie Group $345 million for its management rights. But Global Airports says under its proposal, Macquarie Group would not be paid anything. A Macquarie Group spokesperson has reportedly told Reuter’s news agency that the rival proposal is too risky. Macquarie Airport’s 2008 net profit was about double its 2007 result.
Fairfax Media (ASX:FXJ) shares closed lower on Friday, slipping 0.29% to $1.72. The Australian Financial Review reports that Fairfax Media's Ron Walker is preparing to fight to retain his post as chairman of the group. Mr Walker is expected to stand for re-election in November and retire next year - sparking criticism from fellow Fairfax director John Brehmer and his son Nicholas who have vowed to vote against him on the basis that it’s too risky. At the end of last week, five independent directors said they would support Mr Walker. Looking at the past five years of net profit result, Fairfax had been performing well up until 2009 when the media company fell into the red.
Checking ex-dividends and going today Billabong with an 18 cent 50% franked dividend. Lion Nathan 50 cent fully franked dividend and Newcrest Mining, a 15 cent unfranked dividend. And later in the week, we have the Reject Shop and Cab Charge.
To the international scoreboard: Wall Street closed stronger on Friday with the Dow Jones industrial average hitting a fresh 11 month high - it was up 36 points. The S&P500 Index added 3 points and the NASDAQ rose 6 points.
European markets were mixed: London’s FTSE rose 9 points, Paris fell 7 points and Frankfurt also down 27 points.
Asian markets were weaker: Hong Kong’s Hang Seng lost 145 points. Tokyo’s Nikkei fell 73 points and China’s SSE Composite is down 98 points.
Looking at Metals: Gold fell $3.20 to US$1010.30 an ounce for the December contract on Comex. Silver lost 20 cents to US$17.07 and copper fell 11 cents to US$2.79.
And finally, oil fell 43 cents to US$72.04 a barrel for October light crude in New York.
