After soaring to a four and a half year high yesterday the Australian share market looks set to open slightly lower following a mainly flat finish on Wall Street. US stocks traded mixed throughout the session, absorbing a solid jobless claims report and mega deals – including a proposed American Airlines and US Airways merger and Warren Buffett's bid for food giant Heinz. European stocks slipped as figures showed the Eurozone’s growth shrank further at the end of last year. With no local economic news scheduled for release eyes will again remain on earnings results.
US economic news
The Labor Department showed the number of Americans filing for first time unemployment claims dropped more than expected, down by 27,000 to 341,000 last week.
Figures
Wall Street ended mainly steady on Thursday: The Dow Jones Industrial Average slipped 10 points to close at 13,973, the S&P 500 added 1 point to close at 1,521 and the NASDAQ added 2 points to close at 3,199.
European markets dipped on Thursday: London’s FTSE lost 32 points, Paris fell 29 points and Frankfurt dropped 81 points.
Across Asian markets: China’s Shanghai Composite remained closed for the Lunar New Year. Hong Kong’s Hang Seng added 198 points and Japan's Nikkei added 56 points
The Australian share market finished 0.7 per cent higher at the session’s high yesterday: The S&P/ASX 200 Index advanced 33 points on Thursday to end at 5,037. On the futures market the SPI is 7 points lower.
Currencies
The Australian Dollar at 8:15AM was buying $US1.035 cents, 66.89 Pence Sterling, 96.19 Yen and 77.57 Euro cents.
Company news
Australand Property Group’s
(ASX:ALZ) suitor, GPT Group
(ASX:GPT) has affirmed its interest in its takeover target while Mirvac Group
(ASX:MGR) hasn’t ruled out making a rival offer. Releasing results yesterday, GPT more than doubled its full year net profit while Mirvac’s first half net profit fell 69 per cent. GPT launched a $3 billion bid for two thirds of Australand's businesses last year while speculation has been rising Mirvac is considering a merger proposal with Australand. Shares in Australand Property Group firmed 0.6 per cent yesterday, closing at $3.35.
Macmahon Holdings Limited
(ASX:MAH) has received a new offer for its construction business from Indian-backed suitor Sembawang. Earlier this year Sembawang accused Macmahon of not informing the market of its first bid in November last year after which Macmahon inked a deal to sell its construction business to Leighton Holdings Limited
(ASX:LEI). After rejecting Sembawang’s subsequent offers Macmahon says it will consider the latest proposal. Shares in Macmahon Holdings rose 2.99 per cent yesterday, closing at $0.345.
Ex-dividends JB Hi-Fi Limited
(ASX:JBH) with a 50 cent fully franked dividend
Commodities
Gold is down $9.60 to $US1,636 an ounce for the April contract on Comex.
Silver is down $0.52 to $30.35 for March.
Copper is down $0.01 at $3.74 a pound.
Oil is up $0.30 at US$97.31 a barrel for March light crude in New York.
