With Wall St closed for the Independence Day market holiday, it looks like the local share market may open flat this morning following flat to negative leads from European and Asian markets on Monday. Investor focus will be on the RBA and its decision on rates this afternoon.
European stocks closed lower; London’s FTSE is down 15 points, Paris lost 16 and Frankfurt fell 18.
Asian markets closed mixed on Monday: Hong Kong’s Hang Seng is down 63, Tokyo’s Nikkei added 63 and China’s Shanghai Composite is down 19.
The Australian share market finished weaker on Monday. The S&P/ASX 200 Index closed 17 points lower at 4,222 and on the futures market the SPI200’s down 13 points. Turning to currencies and the Aussie Dollar at 7:30AM was buying 84.01 US cents, 55.51 Pence Sterling, 73.73 Yen and 67 Euro cents.
In economic news: The RBA is to hold its monthly board meeting today with a decision on interest rates due this afternoon. Also out today is the Australian Chamber of Commerce and Industry survey of investor confidence for the June quarter, and ABS international trade in goods and services for May.
In business news: Shares in insurer QBE Insurance Group Ltd (ASX:QBE) fell 0.06% to $17.59 on Monday. The company has acquired European reinsurance business Secura NV for euro 267 million or AUD$398.8 million. QBE says the purchase price reflects minimum net tangible assets of euro 205 million, and will be increased or decreased by the amount of movement in the net tangible assets from January 1, 2010 to completion. Investments included in the balance sheet amount to around euro 900 million. CEO Frank O’Halloran says the company will fund the purchase from internal resources and says the acquisition meets QBE’s objective of earnings per share accretion in the first year. The acquisition is subject to regulatory approvals and is expected to be finalised by August 13. QBE Insurance reported net profit after tax of $1.97 billion for calendar 2009.
Shares in Carnarvon Petroleum Ltd (ASX:CVN) closed flat at $0.33 yesterday. The company says it has entered into a farm-in agreement with AWE Ltd (ASX:AWE) for AWE’s Tuatara-1 exploration well on the South Island of New Zealand. Carnarvon says it will invest between US$2.4 and US$2.8 million towards the cost of the exploration well to earn a 10% interest in the PEP 38524 exploration permit. CEO Ted Jacobson says the company believes Tuatara is a quality prospect that is well defined on seismic and ready to drill now. If successful, he says, it would significantly add to the company’s current oil reserves.Carnarvon Petroleum booked a $36.42 million profit for the year to June 30, 2009.
Taking a look at ex-dividends now, and while there are no companies going ex-dividend today, coming up tomorrow is Abacus Property Group, on Thursday is TTA Holdings and on Friday is Jindalee Resources.
