The Australian share market looks like it may be in for a steady start this morning, following Wall St’s lackluster finish closing flat overnight. Gold miners like Lihir Gold and Newcrest Mining are likely to get a boost today from a rise in the price of gold.
The Aussie market closed higher on Tuesday. The S&P/ASX 200 Index rose 46 points at 4,786 and the SPI200 is down 13 points.
Checking currencies at 8:40 AM the Aussie Dollar is buying 90.91 US cents, 81.58 Yen, 61.22 Euro cents and 57.12 Pence Sterling.
In economic news out today: The ABS releases data on building activity and construction activity for the June quarter, Westpac/Melbourne Institute survey of consumer sentiment for October is also to be released today.
To what’s making company news this morning: Shares in global miner Rio Tinto Ltd (ASX:RIO) gained 1.45 per cent to $62.19 yesterday. There are reports that the company is to almost double its stake in fellow miner Ivanhoe Mines to close to 20 per cent. According to the Dow Jones Newswires Rio will invest US$388 million to increase its holding in Ivanhoe from 9.9 per cent to 19.7 per cent. Canada’s Ivanhoe Mines and Rio are currently working with the Mongolian Government to develop the Oyu Tolgoi project. The miner says this investment will allow the company to work with the government of Mongolia to progress the development of Oyu Tolgoi as quickly as possible. Rio Tinto’s 2008 net profit more than halved from its result the year before.
Shares in whitegoods and electronics retailer Clive Peeters Ltd (ASX:CPR) closed steady at $0.415 yesterday. The company says it expects challenging retail conditions to continue in fiscal 2010 but anticipates 2011 to be a year of growth. In addition to difficult trading conditions the company says its operating performance for the first quarter of fiscal 2010 has been impacted by accounting irregularities, with revelations that an employee managed to siphon $20 million from the company. Managing director Greg Smith says the company’s focus in fiscal 2010 will be to consolidate its balance sheet, and bring cash reserves back to a strong level from the sell-down of properties. Mr Smith says forecasts are for a strong housing industry over fiscal 2011 to fiscal 2013 which is good for the company with its focus on whitegoods and cooking, and complete kitchen solutions. Clive Peeters posted a loss in 2009 after profits the four years previous.
To the ex-dividend scoreboard: And while there are no companies going ex-dividend today, tomorrow we have SP Telemedia and on Friday Sigma Pharmaceuticals is going ex-dividend.
To the international scoreboard: Wall Street closed flat on Tuesday. The Dow Jones industrial average fell 15 points. The S&P500 Index dropped 3 points and the NASDAQ finished almost a point higher.
European markets were lower. London’s FTSE is down 56 points, Paris dropped 44 points and Frankfurt fell 69 points.
Asian markets were higher: Hong Kong’s Hang Seng gained 168. Tokyo’s Nikkei added 60 points and China’s SSE Composite rose 42.
Looking at metals: the price of Gold is up $7.50 to US$1065 an ounce for the December contract on Comex. Silver rose 2 cents to US$17.84 and copper fell 6 cents to US$2.79.
And the price of oil is 88 cents higher at US$74.15 a barrel for November light crude in New York.
