The Australian share market is poised for a steady start after Wall Street posted a soft start to the week. Investors held back ahead of outcomes from US fiscal cliff budget negotiations and a European finance minister meeting to determine Greece’s financial aid program. As no major local economic news is due today the spotlight will again remain on annual general meetings.
Figures
Wall Street closed mixed on Monday The Dow Jones Industrial Average lost 42 points to close at 12,967, the S&P500 lost 3 points to close at 1,406 and the Nasdaq added 10 points to close at 2,977.
European markets started the week in the red: London’s FTSE lost 32 points, Paris lost 28 points added Frankfurt lost 17 points.
Asian markets started the week mixed: Hong Kong’s Hang Seng lost 52 points, Tokyo’s Nikkei added 22 and China’s Shanghai Composite lost 10 points.
The Australian share mark traded on positive territory yesterday starting the week 0.25 per cent higher: The S&P/ASX 200 Index added 11 points on Monday to finish at 4,424. On the futures market the SPI is 5 points higher.
Currencies
The Australian Dollar at 8:20AM was buying $US1.046 cents, 65.32 Pence Sterling, 85.87 Yen and 80.74 Euro cents.
Company news Treasury Wine Estates Limited
(ASX:TWE) should seriously consider spinning off its Penfolds brand, according to analysts at Macquarie. Macquarie has told The Wall Street Journal the $3.1 billion Penfolds brand is at risk of stagnating if it remains within Treasury Wine Estates but could unlock earnings potential if it is demerged. The report says Penfolds’s earnings before interest and taxes could gain more than $430 million within five years if it was to become a separate entity. Shares in Treasury Wine Estates firmed 0.78 per cent on Monday to finish at $5.19.
Wesfarmers Limited
(ASX:WES) is reportedly contemplating $1 bet limits on its poker machines in an effort to distance itself from the pubs and gambling business. Fairfax Media says it understands Wesfarmers is in talks with corporate consultants to explore the economic impact of introducing reforms such as bet limits and exploring alternatives to owning and operating pubs and pokies. The report comes less than one week after rival supermarket giant Woolworths Limited
(ASX:WOW) investors rejected a move to restrict Woolies from operating poker machines. Shares in Wesfarmers added 0.26 per cent on Monday to end at $35.02.
Ex-dividends today
Fisher and Paykel Healthcare Corporation Limited
(ASX:FPH) with a 4.24 cent unfranked dividend
Graincorp Limited
(ASX:GNC) with a 35 cent fully franked dividend
Ex-dividends this week
ALS Limited
(ASX:ALQ) with a 21 cent dividend, 50 per cent franked
Commodities
Gold is down $1.80 to $US1,750 an ounce for the December contract on Comex.
Silver is up $0.02 to $34.14 for December.
Copper is up $0.01 at $3.54 a pound.
Oil is down $0.54 at $US87.74 a barrel for January light crude in New York.
