The Australian share market could be in for a modest rebound from falls last Friday as investors wait for further news on debt woes in Dubai. European markets closed higher at the end of last week whilst Wall St returning from Thanksgiving fell on Friday. Investor focus will also be on tomorrow’s interest rate decision by the Reserve Bank.
Australian stocks ended lower on Friday. The S&P/ASX 200 Index closed 137 points weaker at 4,572. Looking at the futures market the SPI200’s up 37 points.
The Aussie Dollar at 8.45AM is buying 91.4 US cents, 79.26 Yen, 60.92 Euro cents and 55.34 Pence Sterling.
In economic news out today: The RBA October financial aggregates data is to be released, as well as the ABS September quarter business indicators, the TD/Melbourne Institutes November inflation gauge and the Housing Industry Association new home sales data for October.
In company news about this morning: Shares in Top Telco Telstra Corporation (ASX:TLS) fell 0.59 per cent to $3.39 on Friday. According to a report in The Australian CEO David Thodey plans to shake-up the management structure of Telstra. The report says Mr Thodey is looking to rationalise the Telco’s executive structure by consolidating some areas of responsibility and is also said to be looking at restoring Telstra’s representation on the board of pay-TV company Foxtel. No major changes are likely whilst the company is still in negotiations with the government over the National Broadband Network, however a restructure is being seen as an important part of Mr Thodey’s aims to improve customer service and start to utilise advancements in technology more wisely. Telstra’s 2009 net profit was $4.073 billion.
Shares in airport owner MAp Group (ASX:MAP) dropped 3.69 per cent to $2.61 on Friday. The company says it may consider supporting a purchase of Qantas’ Terminal at Sydney Airport if it was put up for sale. After a failed attempt to acquire Qantas’ terminal 3 in 2006, The Australian Financial Review says the company is willing to support another attempt by its 74% owned Sydney Airport. CEO Kerrie Mather told the paper that Sydney Airport, with the right parameters, would look at Terminal 3 if the opportunity arose. MAp Group’s 2008 net profit of $2.07 billion was its best in five years.
Checking ex-dividends, going today we have BT Investment Management with a 4.9 cent fully franked dividend, GrainCorp 7.27 cent fully franked dividend, Joyce Corporation with a 2 cent unfranked dividend, Ruralco Holdings with a 6 cent fully franked dividend and Technology One with a 2.87 cent fully franked dividend.
Looking at overseas markets. US markets closed lower on Friday - The Dow Jones Industrial Average fell 154 points. The S&P500 Index is 19 points lower and the NASDAQ dropped 38 points.
European markets were stronger. London’s FTSE is gained 52 points, Paris added 42 points and Frankfurt rose 71.
Asian markets were lower: Hong Kong’s Hang Seng is down 1076 points. Tokyo’s Nikkei fell 302 and the Shanghai Composite is down 75 points.
Looking at metals: Gold fell $12.60 to US$1,176 an ounce for the February contract on Comex. For the March contract Silver down 47 cents to US$18.34 and copper is 7 cents lower at US$3.13.
And the price of oil is $3.06 lower at US$74.90 a barrel for January light crude in New York.
