The Australian share market looks set for a positive start, following Wall St rallying to a four-month high amid encouraging data on home-building.
In US economic news: In the first of a series of housing market readings expected this week, the National Association of Home Builders revealed builder confidence for new single-family homes was steady in September, bucking a trend of falls in the three months before.
On Monday, the Dow Jones Industrial Average closed 146 points higher at 10,754. The S&P 500 Index is up 17 points to 1,143 and the NASDAQ is up 40 at 2,356.
European stocks were higher: London’s FTSE up 94 points, Paris is up 66 and Frankfurt up 85.
Asian markets were mixed: Hong Kong’s Hang Seng was 6 points up on Monday, Tokyo’s Nikkei was closed for a national holiday and China’s Shanghai Composite was down 10 points.
The Australian share market finished lower on Monday. The S&P/ASX 200 Index closed 8 points down to 4,631 and on the futures market the SPI200 is up 42 points. Turning to currencies and the Aussie Dollar at 7:45AM was buying 94.7 US cents, 60.9 Pence Sterling, 81.16 Yen and 72.51 Euro cents.
In local economic news: Expected out today, the RBA’s Monetary policy meeting minutes, Pricewaterhouse-Coopers franchise sector indicator report and KPMG general insurance survey.
In business news: Shares in Insurance Australia Group Ltd (ASX:IAG) closed 0.8% down at $3.72 on Monday. IAG CEO Mike Wilkins received a boost to his pay packet in fiscal 2010, even though the insurer posted a drop in full-year earnings. In its annual report to shareholders, IAG shows Mr Wilkins will receive $4.27 million, an increase of 11 per cent over the year before. The salary rise comes following news last week that Commonwealth Bank of Australia’s (ASX:CBA) CEO Ralph Norris’s pay surged by 80 per cent to $16.2 million in the last financial year. IAG reported a net profit of $190 million in fiscal 2010.
Shares in Aevum Ltd (ASX:AVE) closed steady at $1.80 on Monday. Retirement and aged care accommodation provider Aevum has recommended short to medium term investors accept Stockland’s (ASX:SGP) $320 million takeover offer in the absence of a superior proposal. Aevum had earlier described the property developer’s initial offer of $1.50 per Aevum share as inadequate and opportunistic. In response Stockland increased its offer by 18 per cent to $1.80 per Aevum share. An independent evaluation commissioned by Aevum concluded the revised offer is not fair but reasonable for short to medium term investors. Aevum’s directors have advised long term investors should consider rejecting Stockland’s offer. In the 12 months to 30 June 2010, Aevum posted a profit of $28.6 million.
To ex-dividends, and three companies are going ex-dividend today: Hunter Hall Global Value with a 6 cent fully franked dividend, Straits Resources with a 5 cent unfranked dividend and The Reject Shop with a 28 cent fully franked dividend. To commodities: and the price of gold is up US$3.40 to US $1279 for the September contract on Comex, silver is down US$0.01 to $20.78 and copper is down $0.02 at $3.50 a pound. The price of oil is up $1.20 to US$74.86 a barrel for October light crude in New York.
