Australian markets are expected to open lower after strong negative leads from overseas markets which were sparked by fears of a debt default by Dubai.
Australian stocks ended lower yesterday. The S&P/ASX 200 Index closed 14 points weaker at 4,709. Looking at the futures market the SPI200’s down 41 points.
The Aussie Dollar retreated overnight and at 8.30AM is buying 91.28 US cents, 78.96 Yen, 60.82 Euro cents and 55.29 Pence Sterling.
Investors from all over the country and across the Tasman will be attending annual general meeting today. The companies with AGMs today are Macquarie Telecom Group in Sydney, MacMahon Holdings in Perth, and Retail Food Group and Sunland Group on the Gold Coast in Queensland. The Warehouse Group holds its annual general meeting in Auckland.
In company news about this morning: Toll Holdings (ASX:TOL) shares closed lower yesterday, slipping 0.96% to $8.22. The Australian newspaper reports that Toll Holdings, the transport and logistics company has ruled out buying back into the stevedoring sector despite the Dubai government flagging a restructure of its entire asset portfolio. Dubai has said it would restructure its investment company Dubai World, owner of ports operator DP World, the stevedore responsible for loading and unloading of about one-third of Australia's sea cargo. Paul Little, managing director of Toll Holdings, said DP World's Australian port operations were "trophy assets" and would attract keen interest if they came up for sale. But he said that Toll has no interest in buying back into the industry. Toll Holdings achieved a 2009 net profit of $270 million after posting a loss the year before.
Foster’s Group (ASX:FGL) shares closed lower yesterday, losing 1.25% to $5.51. Australia’s biggest beer and winemaker has won an $850 million legal battle against the Australian Tax Office over tax deductions which Foster’s claimed for losses from the Elders Finance Group. The Tax Office argued that Foster’s should not have written off debts owed to it by Elders because they were made to a related entity. But yesterday the Federal Court ruled in favor of Foster’s Group in its appeal related to deductions claimed between 1998 and 2004. Foster’s Group’s 2009 net profit was $438 million, that’s about $300 million more than the year before.
Checking ex-dividends and Campbell Brothers is going today with a 45 cent 50% franked dividend. And on Monday, BT Investment Group and Graincorp are among those going ex-dividend.
We’ll take a look now at overseas markets. US markets were closed for the Thanksgiving holiday.
European markets were lower. London’s FTSE is down 171 points, Paris fell 130 points and Frankfurt lost 189.
Asian markets were also lower: Hong Kong’s Hang Seng is down 401 points. Tokyo’s Nikkei fell 58 and the Shanghai Composite is down 119 points.
