Federal Court approves MYOB scheme: Aus shares to open slightly lower

Market Reports

by Katrina Bullock

The Australian market is set to open slightly lower following mixed leads from Wall Street. US Tech stocks rallied overnight following strong results from Facebook who saw revenue jump 26 per cent, and Microsoft who saw a 14 per cent increase in revenue year on year. US Industrials however dragged on the market. Some of the US earnings season's worst performers yesterday were cigarette maker, Altria who saw net revenues decline almost 8 per cent compared to the prior corresponding quarter. Manufacturing major, 3M also missed the mark, dropping over 12 per cent following a 5 per cent decline in sales year on year and the announcement that there will be some major restructuring within their global workforce. Oil and gold have both fallen as Russian crude exports to Europe have halted and the US signals a tightening of sanctions on Iran. We are expecting a quiet session with low trade volumes today amidst the interrupted trade from the public holidays and as the market awaits impending US growth figures.

Local economic news

We are expecting the ABS to release Producer Price Indexes and International Trade Price Indexes for the month of March.


Wall Street closed mixed yesterday: The Dow Jones Industrial Average closed 0.5 per cent lower at 26,462, the S&P 500 fell 0.04 per cent to close at 2,926 and the NASDAQ gained 0.2 per cent to 8,119.

European markets closed lower: London’s FTSE fell 0.5 per cent, Paris shed 0.3 per cent and Frankfurt was also down 0.3 per cent.

The Asian markets also closed mixed: Tokyo’s Nikkei added 0.5 per cent, Hong Kong’s Hang Seng fell 0.9 per cent and China’s Shanghai Composite dropped 2.4 per cent.

Taking all of this into equation, the SPI futures are down 3 points. On Wednesday, the Australian share market closed 63 points (or 0.99 per cent) higher at 6,382.

Company news

MYOB Group's (ASX:MYO) securities were suspended from trading late Wednesday night. This follows news that the Federal Court of Australia has approved the scheme of arrangement between MYOB and its shareholders. Once implemented, MYOB will become a wholly owned subsidiary of Kohlberg Kravis Roberts & Co. L.P. The court's orders have been lodged with ASIC and the implementation date is 8 May 2019. Shares is MYOB Group (ASX:MYO) closed 0.3 per cent higher at $3.40.

Amcor (ASX:AMC) is paying 16.8 cents unfranked and
MFF Capital Investments (ASX:MFF) is paying 1.5 cents fully franked


One Australian Dollar at 7:20AM was buying 70.18 US cents, 54.44 Pence Sterling, 78.35 Yen and 63.04 Euro cents.

Gold has dropped $0.40 to US$1,279 an ounce.
Silver has fallen $0.02 to US$14.97 an ounce.
Oil was down 78 cents to US$65.11 a barrel.

Katrina Bullock

Finance News Network
Katrina joined FNN in 2018. She holds a Bachelor of Laws (Honours first class), a Bachelor of Business (Distinction) and is currently undertaking a PhD in Law focused on stock exchange disclosures and corporate governance. She previously worked as a corporate lawyer in an Australian top tier commercial law firm and is currently the General Counsel for Greenpeace Australia Pacific.