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InvestorTV's Market Bite, May 26, 2008
 
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The Australian share market opened the week lower after a poor lead from the US on Friday.
Stronger metal prices failed to boost resource stocks and by midday the S&P/ASX200 index was down 58 points, while the All Ordinaries fell 55.

Wall Street lost ground again on Friday, rounding out its worst week in three months, as the relentless rise in oil prices continued to fan inflationary fears.

By close of trade, the Dow Jones Industrial Average had lost 145 points while the Nasdaq Composite slid 19.

In Asian trading today, Japan’s Nikkei was down 312 points at noon, while Hong Kong’s Hang Seng fell 479.

In ASX news, shares in iron ore miner Fortescue Metals surged more than four per cent this morning following confirmation that China’s Sinosteel is poised to buy a stake in the Western Australian company.

In an interview with The Australian Financial Review, Sinosteel’s Australian deputy manager William Ren said that Sinosteel was in talks with US-based fund Harbinger Capital Partners over acquiring half of its 16 per cent stake in Fortescue. Fortescue Metals has not yet commented on the report.

Another iron ore miner making headlines this morning is Murchison Metals, which today entered a trading halt along with smaller rival Midwest Corp, pending an announcement.

On Friday, Murchison upped its stake in Midwest to 9.98 per cent, triggering speculation that it now plans to announce a fresh takeover offer for Midwest.

Murchison abandoned its initial takeover attempt in February, before China’s Sinosteel pitched in with a hostile bid which was subsequently recommended by the Midwest board. Neither company has yet reacted to the latest speculation.

Finally Insurance Australia Group’s chief executive Michael Hawker today announced his resignation, amid mounting shareholder anger over IAG’s rejection of QBE’s $8.7 billion takeover bid.

Mr Hawker, who is to be replaced immediately by Chief Operating Officer Michael Wilkins, said he had lost the confidence of a number of his shareholders. Shares in IAG tumbled following the failure of the QBE takeover.

In ASX share price movements this morning, resource stocks largely lost ground despite higher metal prices. At noon, BHP Billiton was down 90 cents, Fortescue Metals added 37, Rio Tinto lost $2.67, while Woodside Petroleum fell $1.97.

Banking stocks also posted losses. ANZ was down four cents at midday, Commonwealth Bank fell 42, National Australia Bank shed 40 cents, Westpac dropped a cent.

Other blue chips followed the market down. AMP shed two cents, News Corp fell 52, Telstra dropped two cents, while Woolworths lost 29.
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Source: Investor TV
Release Date: Monday, 26 May 2008 1:22 PM
Author: Fiona Collins, InvestorTV
Runtime: 3 minutes 6 seconds

Comments: 0 | Post Comments
Rating: Not Rated
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