Following negative offshore leads motivated by global growth concerns and iron ore prices that continue to plunge, the Australian share market looks set to retreat for the third day running.
Figures
All the markets finished down yesterday. In Wall Street, The Dow Jones Industrial Average lost 107 points to close at 13,001, the S&P500 dropped 11 points to close at 1,399 and the Nasdaq shed 32 points to close at 3,049.
European markets also closed down: London’s FTSE lost 24 points, Paris lost 35 and Frankfurt dropped 115 points.
In Asia: Hong Kong’s Hang Seng lost 236 points, Tokyo’s Nikkei dropped 86 and China’s Shanghai Composite lost 1point.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 41 points down to finish at 4,316. On the futures market the SPI is 18 points lower.
Currencies
The Australian Dollar at 7:20AM was buying $US1.029 cents, 65.24 Pence Sterling, 80.97 Yen and 82.35 Euro cents.
Economic news
Due out later today from the Reserve Bank of Australia are the financial aggregates for July.
Company news
Monadelphous Group Limited (ASX:MND) has secured a construction contract valued at $75 million for work at BHP Billiton’s Jimblebar mine in Western Australia. The engineering company says they are excited to be selected for the contract which begins in September and involves mechanical and structural works at the mine. Shares in Monadelphous Group closed 3.56 per cent lower yesterday at $21.12.
Fortescue Metals Group Limited (ASX:FMG) is standing by plans to multiply its output despite the alarming descent of iron ore prices. CEO Nev Powers says he expects prices to recover to the benchmark $US120 a tonne over the next few months and maintaints a commitment to increasing iron ore production in Western Australia. In the meantime, Mr Powers is confident that an extra $1.5 billion in debt funding will cover any shortfall in cash flows resulting from stagnating Chinese demand. Shares in Fortescue closed 1.64 per cent down yesterday at $3.59
Commodities
Gold is down $5.90 to $US1,657 an ounce for the December contract on Comex. Silver is down $0.47 to $30.37 for September. Copper is down $0.002 at $3.45 a pound. Oil is down $0.87 at US$94.62 a barrel for October light crude in New York.
Ex-dividends
Amalgamated Holdings Limited (ASX:AHD) with a 25 cent dividend 100% franked
Aristocrat Leisure Limited (ASX:ALL) with a 4 cent dividend unfranked
Colorpak Limited (ASX:CKL) with a $1.75 dividend 100% franked
Decmil Group Limited (ASX:DCG) with a 7.5 cent dividend 100% franked
Fortescue Metals Group Limited (ASX:FMG) with a 4 cent dividend 100% franked
Maca Limited (ASX:MLD) with a 4.5 cent dividend 100% franked
My Net Fone Limited (ASX:MNF) with a 1.5 cent dividend 100% franked
MyState Limited (ASX:MYS) with a 14 cent dividend 100% franked
Sedgman Limited (ASX:SDM) with a 6.5 cent dividend 100% franked
Supply Network Limited (ASX:SNL) with a 4 cent dividend 100% franked
