The SPI is pointing to a slightly higher start to the day for the Australian share market despite the absence of leads from the US and UK markets, both closed for public holidays. Meanwhile, after Germany said it would shut down its nuclear reactors by 2022, elsewhere in Europe stocks closed mainly lower on Monday:
London’s FTSE was closed, Paris eased 8 points and Frankfurt was down 3 points.
To Asian markets, stocks were mixed: Hong Kong’s Hang Seng was up 66, Tokyo Nikkei was down 17 and China’s Shanghai Composite was down 4.
The Australian share market started the week lower: The S&P/ASX 200 Index lost 17 points to close at 4,668. On the futures market the SPI is 14 points higher.
Turning to currencies and the Australian Dollar at 7:20AM was buying $1.0691 US cents, 64.9 Pence Sterling, 86.55 Yen and 74.86 Euro cents.
Economic news: Due out today is the Australian Bureau of Statistics balance of payments and international investment position for March quarter and also from the ABS, building approvals for April.
Company news: Shares in Telstra Corporation Ltd (ASX:TLS) started the week 0.33 per cent lower at $3.02. A new report has found that Telstra may not be able to maintain its dividend if the national broadband network is scrapped. According to Fairfax, a review between NBN Co and Telstra has shown that the network will put Australia’s largest telco in a financially stronger position, despite losing market share. Telstra shareholders and the Australian Competition and Consumer Commission will decide whether or not to approve the proposed deal by the end of this year. In the first half of the 2011 financial year Telstra’s net profit fell to $1.2 billion.
Yesterday shares in Tabcorp Holdings Ltd (ASX:TAH) closed 0.26 per cent higher at $7.84. Gaming company Tabcorp has inked a deal to raise $US460 million in debt from the US private placement market for its proposed casino business company, Echo Entertainment Group. Shareholders will tomorrow vote on the $5.2 billion demerger of Tabcorp’s casinos business from its wagering, gaming and keno businesses. The debt raising by Echo is conditional upon the demerger and will involve the issue of $US100 million of notes maturing in seven years and $US360 million of notes maturing in 10 years. In the first six months of the 2011 financial year Tabcorp Holdings posted a net profit of $265.5 million.
Ex-dividends: The only company going ex-dividend today is Newhaven Hotels with a $0.02 fully franked dividend. Coming up later this week are National Australia Bank and Campbell Brothers.
