WAM Capital (ASX:WAM) strikes back at CLF board: Aus shares set for a 0.2% gain


The ASX futures are pointing to a 0.2 per cent gain at the open after a rocky session on Wall Street, as investors take a punt on the likelihood of a potential US stimulus deal before the impending election. US President Donald Trump says stimulus talks are back on. However, House Speaker Nancy Pelosi has signalled that Democrats are not interested in any measures beyond a complete package, and claims that Trump is “in an altered state” following his decision to take an experimental drug to assist his Covid 19 recovery.

Local economic news

Today we are expecting the Reserve Bank of Australia to release the Financial Stability Review and the Australian Bureau of Statistics to release data on lending indicators for the month of August.

Markets

Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 0.4 per cent to 28,426, the S&P 500 gained 0.8 per cent to 3447 and the NASDAQ closed 0.5 per cent higher at 11,421.

European markets closed higher, London’s FTSE added 0.5 per cent, Paris gained 0.6 per cent and Frankfurt closed 0.9 per cent higher.

In Asian markets, Tokyo’s Nikkei closed almost 1 per cent higher and Hong Kong’s Hang Seng lost 0.2 per cent. The fall followed news that the US may impose restrictions on Tencent Holdings (HKG:0700) over concerns that the payment platform threatens its national security. China’s Shanghai Composite was closed.

Taking all of this into equation, the SPI futures are pointing to 0.2 per cent gain.

Yesterday, the Australian share market closed 1.1 per cent higher at 6102.

Company news

WAM Capital (ASX:WAM) says the target statement released by Concentrated Leaders Fund (ASX:CLF) in relation to its takeover offer is “grossly inadequate and fails to identify the material benefits of the WAM offer”. On Wednesday, the board chairman of Concentrated Leaders Fund, Brian Sherman, urged shareholders to reject WAM’s offer saying it is “unsolicited and opportunistic”. Concentrated Leaders Fund claims that the offer price substantially undervalues the company, as it represents a material discount to the company’s pre-tax net tangible assets, and that shareholders who accept the offer would be giving away 14.74 per cent of value. WAM however says that its offer values the shares at a 24.5 per cent premium to the company’s share price before the announcement of the offer. It also claims that the target statement did not take into account the superior fully franked dividends paid by WAM if the shareholder accepts. When WAM lobbed the offer back in September it attacked the target company’s board claiming it exhibited poor corporate governance and capital management. Shares in WAM Capital (ASX:WAM) closed 1.32 per cent higher at $2.31 yesterday. Shares in Concentrated Leaders Fund (ASX:CLF) however closed 0.44 per cent lower at $1.12.

Ex-dividends

Desane Group Holdings (ASX:DGH) is paying 2.25 cents unfranked
Harvey Norman Holdings (ASX:HVN) is paying 18 cents fully franked
MFF Capital Investments (ASX:MFF) is paying 3 cents fully franked.
Turners Automotive (ASX:TRA) is paying 3.642 cents 85 per cent franked.

Currencies

One Australian Dollar at 7:15 AM was buying 71.64 US cents, 55.38 Pence Sterling, 75.95 Yen and 60.91 Euro cents.

Commodities

Gold has added $7.30 to US$1898 an ounce.
Silver was up $0.07 to US$23.97 an ounce.
Oil was up $1.34 to US$41.29 a barrel.