Following a strong start to the week, the Australian share market looks to pull back today after initial enthusiasm over a Greek debt deal waivered. European markets fell while the US and Asia closed mixed as skepticism surfaced over the package designed to avert a Greek-default.
Figures
After closing on Monday for the President’s Day public holiday Wall Street pared earlier gains on Tuesday to start its trading week mixed: The Dow Jones Industrial Average added 16 points to close at 12,966 – at one stage in the session breaking through 13,000-mark for the first time since 2008. The S&P500 added 1 point to close at 1,362 and the Nasdaq lost 3 points to close at 2,949.
European markets finished lower on Tuesday: London’s FTSE lost 17 points, Paris lost 7 points and Frankfurt lost 40 points.
Asian markets finished mixed on Tuesday: Hong Kong’s Hang Seng added 54 points, Tokyo Nikkei lost 22 and China’s Shanghai Composite added 18 points.
The Australian share market rose 0.8 per cent yesterday after Greece’s second bailout package was approved: The S&P/ASX 200 Index gained 35 points to finish at 4,291. On the futures market the SPI is now 19 points lower.
Currencies
The Australian Dollar at 8:30AM was buying $US1.067 cents, 67.63 Pence Sterling, 85.09 Yen and 80.64 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Labour price index for December quarter 2011
Westpac and the Melbourne Institute: Leading indexes of economic activity
Company news
Shares in Rio Tinto Limited (ASX:RIO) rose 1.65 per cent yesterday, closing at $69.16. Global miner Rio Tinto has discovered Australia’s largest pink rough diamond at its Argyle mine in Kimberley region of Western Australia. While Rio hasn’t put a value on the 12.76 carat diamond called the Argyle Pink Jubilee some reports have speculated it could fetch about $10 million. The diamond is now poised to undergo a 10-day polishing process ahead of being auctioned later this year. Rio Tinto reported a net profit of $6.7 billion in the 2011 calendar year.
Shares in Macmahon Holdings Limited (ASX:MAH) gained 7.33 per cent yesterday, closing at $0.805, that was after the mining contractor and construction company forecast a record full year result and reinstated dividends. Macmahon expects to achieve a full year profit of up to $60 million after yesterday posting a first half year net profit of $23.2 million, 27 per cent higher than the year before. Macmahon has declared a fully franked interim dividend of 1.5 cents per share.
Ex-dividends
Six companies are going ex-dividend today:
Australian Masters Corporate Bond Fund No.4 Limited (ASX:AKX)
Australian United Investment Company Limited (ASX:AUI)
Cochlear Limited (ASX:COH)
Diversified United Investment Limited (ASX:DUI)
Energy Action Limited (ASX:EAX)
Macquarie Radio Network Limited (ASX:MRN)
Commodities
Gold is up $32.60 to $US1,759 an ounce for the April contract on Comex.
Silver is up $1.213 to $34.43 for March.
Copper is up $0.13 at $3.84 a pound.
Oil is up $2.60 at $105.84 a barrel for March light crude in New York.
