The SPI is pointing to a positive start to the week for the Australian share market, after global markets rose on hopes that Europe’s leaders were acting to tackle the region’s debt crisis. On Friday US stocks clinched five straight days of gains, ahead of the Federal Reserve’s interest rate policy setting meeting this week.
Figures
Wall Street finished last week higher: The Dow Jones Industrial Average rallied 76 points to close at 11,509. The S&P500 added 7 points to 1,216. The Nasdaq lifted 15 points to close at 2,622.
European stocks finished mixed on Friday: London’s FTSE up 31 points, Paris down 15 and Frankfurt up 65 points.
Asian markets, stocks were higher: Hong Kong’s Hang Seng was up 274, Tokyo Nikkei was up 195 and China’s Shanghai Composite was up 3 points.
The Australian share market recovered almost 2 per cent at the end of last week: The S&P/ASX 200 Index advanced 78 points to close at 4,149. On the futures market the SPI is 8 points higher.
Turning to currencies and the Australian Dollar at 7:35AM was buying $1.0315 US cents, 65.58 Pence Sterling, 79.35 Yen and 75.4 Euro cents.
Economic news
Due out today is merchandise imports data for August from the Australia Bureau of Statistics.
Company news
At the end of last week shares in Premier Investments Limited (ASX:PMV) fell 2.73 per cent, closing at $5.35, ahead of the retailer’s full year results due out today. Analysts are tipping a 20 per cent fall in full year net profit to around $50 million and have also speculated a special dividend or buyback could be on the cards. Results from fellow retailers David Jones Limited (ASX:DJS) and Kathmandu Holdings Limited (ASX:KMD) are due this Wednesday. In the first half of its 2011 financial year Premier Investments reported a net profit of $39.4 million.
Shares in Gunns Limited (ASX:GNS) have been in a trading halt since August 3 and last traded at $0.205, but the forestry company expects to start trading again today. In a statement to the Australian Securities Exchange at the end of last week Gunns said it is finalising a market update it expects to release today with a re-quotation of the company’s securities. On Friday protestors once again stopped work at Gunn’s northern Tasmanian pulp mill when they attached themselves to machinery. Gunns is still awaiting a ruling from the Tasmania Environmental Protection Authority on whether its permits for the project are valid. In the 2011 financial year Gunns booked a net loss of $355.5 million.
Ex-dividends
15 companies are going ex-dividend today, among them are: Billabong International, CSL, Legend Corporation, Little World Beverages, Primary Health Care, Structural Systems, WAM Active, Webjet. Among those coming up tomorrow: Atlas Iron, The Reject Shop.
Commodities
Gold is up $29.60 to $US1,814 an ounce for the December contract on Comex.
Silver is up $1.33 cents to $40.83.
Copper is flat at $3.93 a pound.
Oil is down $1.44 at $87.96 a barrel for October light crude in New York.
