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InvestorTV's Market Bite, July 4, 2008
 
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After closing at a near two-year low yesterday, the Australian share market opened marginally higher this morning following a modest rise on Wall Street.

At midday both the S&P/ASX200 index and the All Ordinaries were up by 30 points.

In the US, the Dow Jones clawed back some ground yesterday after Wednesday’s plunge, with June payroll data coming in stronger than expected. However technology stocks fell as computer graphics hardware maker Nvidia slashed its outlook.

At close of trade the Dow Jones Industrial Average was up 73 points, while the tech-heavy Nasdaq slipped six.

In Asian trading today Japan’s Nikkei was down 40 points at midday, while Hong Kong’s Hang Seng fell 138.

In ASX news, electricity and gas retailer Origin Energy this morning advised its shareholders to reject BG Group’s latest $13 billion takeover approach, saying the offer didn’t adequately reflect the value of Origin’s business and prospects.

BG’s $15.50-a-share hostile bid, came on the back of an earlier offer at the same price which Origin rebuffed as undervaluing its coal seam gas assets. This followed a re-valuation of the entire CSG sector in Australia. Shares in Origin were down nine cents at midday today.

In related news, energy company Babcock & Brown Power said today that it is to sell its gas-fired Uranquinty Power Station in New South Wales to Origin Energy for $700 million.

BBP, which is working to reduce its debts, said the sale’s net proceeds of $159 million dollars would be used to repay part of an outstanding bridging facility. Shares in Babcock & Brown Power surged more than 20 per cent on the news.

Finally, medical diagnostics company Sonic Healthcare said today that it has been forced to pull out of its tender for a 10-year National Health Service contract in the UK, because of a technical issue related to staff employment.

Sonic, which is Australia’s largest pathology company, entered talks in April to provide services to five state-owned hospitals and three clinics in England, and had been expected to sign the contract in September. Shares in the company fell more than five per cent this morning.

In individual share price movements on the ASX earlier today mining stocks rebounded from yesterday’s losses. At midday BHP Billiton was up 78 cents, Fortescue Metals added 44 cents, Rio Tinto gained $3.66 while Woodside Petroleum lost 63 cents.

Financial stocks were mostly positive at noon. ANZ was down by a cent but Commonwealth Bank added 11, National Australia Bank gained 37 cents, while Westpac rose two.

Other blue chips were fairly flat at midday. AMP and News Corp both added eight cents, Telstra put on one, while Woolworths rose two cents.
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Source: Investor TV
Release Date: Friday, 4 July 2008 12:53 PM
Author: Fiona Collins, InvestorTV
Runtime: 3 minutes 7 seconds

Comments: 0 | Post Comments
Rating: Not Rated
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