The Australian market looks set for a steady start to the day, having received negative offshore leads. US markets were closed for President’s Day public holiday, while in Europe equities and the euro dipped as tensions in the Middle East and North Africa reignited. Political unrest in Libya, Africa’s most oil-rich state, sparked the price of brent crude to rise to a two and a half year high of over $US105 a barrel.
On Monday, European stocks started the week lower: London’s FTSE down 68 points, Paris down 60 and Frankfurt down 105.
To Asian markets and stocks were mixed: Hong Kong’s Hang Seng was down 110, Tokyo Nikkei was up 15 and China’s Shanghai Composite was up 32 points.
The Australian share market finished weaker on Monday. The S&P/ASX 200 Index losing 37 points to close at 4,900 and on the futures market the SPI is up 3 points.
Turning to currencies and the Australian Dollar at 8:25AM was buying $US1.0099 cents, 62.26 Pence Sterling, 83.92 Yen and 73.82 Euro cents.
Economic news: Due out today is the Australian Bureau of Statistics construction work data for the December quarter and National Australia Bank’s business confidence survey for the December quarter.
Company news: On Monday shares in Extract Resources Ltd (ASX:EXT) rose 1.99 per cent to close at $9.75. Uranium explorer Extract Resources has revealed that it is currently in talks with Rio Tinto Ltd (ASX:RIO) about jointly developing its wholly owned Husab Project in Namibia. Extract says it is continuing discussions with Rio to capture benefits that could potentially be realised through a partnership. The company also advises that it is in talks with Kalahari Minerals Plc to simplify the Extract/Kalahari shareholding structure. In the year to 30 June 2010, Extract Resources reported a net profit of $35.6 million.
Yesterday shares in Elders Ltd (ASX:ELD) slipped 3.33 per cent to close at $0.58. Elders has warned that cyclone damage to its forestry plantations in Queensland is likely to impact its reported profit, but confirmed its 2011 financial year underlying profit guidance remains unchanged. The rural services, forestry and automotive parts supplier says non-recurring items resulting from the cyclone are anticipated to hit between $8 million to $14 million. However, Elders says it does still expect to post an annual underlying net profit of between $15 million to $30 million in the current financial year. In the year to the 30 September 2010, Elders posted a loss of $212.5 million.
To ex-dividends: Eight companies are going ex-dividend today. Among them we have Foster’s Group with a 24 cent fully franked dividend, Wesfarmers with a 65 cent fully franked dividend and Western Areas with a 10 cent unfranked dividend. Among those coming up tomorrow are Adelaide Brighton and Santos.
