The Australian market is expected to start weaker, today as investors brace against the impact from conflict in Libya and Japan’s nuclear power plant crisis. On Friday Wall St closed higher, but was unable to claw out of the red for the week. Markets are gearing up for further volatility amid reports that coalition forces have launched airstrikes on Libya.
At the end of last week, Dow Jones Industrial Average, closed 84 points higher to 11,859, S&P500 added 5 points to close at 1,279 and the NASDAQ gained 8 points to close at 2,644.
European stocks ended higher on Friday: London’s FTSE up 22 points, Paris up 24 and Frankfurt up 8.
To Asian markets, stocks were higher: Hong Kong’s Hang Seng was up 16, Tokyo Nikkei was up 244 and China’s Shanghai Composite was up 10 points.
The Australian share market finished stronger on Friday: The S&P/ASX 200 Index improved 71 points to close at 4,626. On the futures market the SPI is currently 18 points lower.
Currencies: The Australian Dollar at 7:50AM was buying $99.61 US cents, 61.34 Pence Sterling, 80.61 Yen and 70.19 Euro cents.
Economic news: Due out today the Australian Bureau of Statistics international merchandise imports data for February.
Company news: At the end of last week shares in Paladin Energy Ltd (ASX:PDN) jumped 7.46 per cent to close at $3.60. Paladin Energy has forecast that uranium prices will rise over the next three months, on the back of supply shortage and demand. In the wake of Japan’s devastating earthquake and nuclear power plant crisis, Paladin’s CEO John Borshoff told ABC TV that the uranium producer’s order book is growing, advising that developed nations are dependent on nuclear power for up to 20 per cent of their electricity demands. Mr Borshoff says that many countries can’t do away with a fuel mix that includes nuclear and anticipates reactors will keep burning uranium for the next 60 years. In the first half of its 2011 financial year, Paladin Energy posted a net loss of $33.3 million.
On Friday shares in ASX Ltd (ASX:ASX) firmed 0.2 per cent to close at $34.82. Singapore Exchange’s planned bid for the operator of the Australian Securities Exchange looks to be in jeopardy, amid reports that key regulatory approvals now look unlikely to be granted. Government sources have predicted that the Australian government, Foreign Investment Review Board and the National party are gearing up to oppose the deal. When the Singapore exchange launched the cash and scrip offer for ASX last year the deal was valued at $8.4 billion. The latest stock price and foreign exchange rates value the deal at $7.4 billion. In the first half of its 2011 financial year, ASX booked a net profit of $172 million.
Ex-dividends: And 11 companies are going ex-dividend today. Among them we have APN Property Group with a $0.01 fully franked dividend, Embelton with a $0.12 fully franked dividend, Newcrest Mining with a $0.10 unfranked dividend, Primary Health Care with a $0.03 fully franked dividend, REA Group with a $0.10 fully franked dividend and Woolworths with a $0.57 fully franked dividend. Among those coming up tomorrow are Kathmandu Holdings.
Commodities: Gold is up $12.00 to $US1,416 an ounce for the April contract on Comex, silver is up $0.80 to $35.06 for May and copper is down $0.01 at $4.34 a pound. Oil is down $0.35 at $101.07 a barrel for April light crude in New York.
