You are currently browsing the Online Stockmarket Trading Update blog archives for March, 2010.
The US markets closed flat or slightly higher. The Dow closed up 11 points or 0.1% at 10,907, the S&P500 was unchanged at 1173 and the Nasdaq was up 6 points or 0.2% at 2410.
Gold and oil were mixed with gold lower and oil higher. Gold settled down $5.80 at $1104.50/oz and crude oil was up $0.20 at $82.37/bbl.
Trading in Macarthur Coal has been suspended at the request of the company, which has been approached by a third party regarding a possible takeover.
The halt will last until April 6, or until an announcement is made to the market.
Yesterday Macarthur, (the world’s largest producer of low volatile pulverized injection coal for steel making) confirmed its full year sales forecast, which was unaffected despite fears of the potential impact Cyclone Ului threatened on its Dalrymple Bay shipments.
Macarthur Coal
ASX Code: MCC
Chart source: Rapid Trader. Get free live ASX price data in Rapid Trader until December 2010!
Presented by Michael Hevern
MDSFinancial
Click here to watch the presentation.
or
Click here to download the mp3 audio recording (1318Kb).
General Advice Only
***********************************************
In this morning’s wrap…
SP500 flat
Financials Weigh on Debt Concerns;
Home Price Index Climbs 0.3%
NASDAQ up 0.3%
Non-Farms Payrolls Out Friday;
Verizon up 2.6% on iPhone Link
Dollar Index: Holds above 80 Level
US$ Higher;
A$ up 91.81
CRB: Commodities Index
Holding Firm
FTSE: down 0.7% – But Still Above Resistance
Greece Bond Sales Falters; UK: 4Q GDP up 0.4%
DAX down 0.2% & CAC down 0.4%
CHINA: up 0.2%
China: New Iron Ore Pricing; Copper 4Q Prices up 76%
Hang Seng up 0.7%;Japan Above Oct’08 Levels
Oil: up 0.5% ($82)
Just Below Resistance
Gold: down 0.7% ($1102)
Commodities Higher;
Dollar Higher
SPI Futures flat (At Resistance)
AtCor Medical (ACG), the developer and marketer of the SphygmoCor® system which measures central blood pressures and arterial stiffness noninvasively, today announced that it has signed a new agreement with a major international pharmaceutical company to supply SphygmoCor systems and clinical trials support services. The US$955,000 contract is a new agreement with an existing AtCor customer. A large portion of the contract value will be recognised in the current financial year. AtCor has an ongoing pipeline of new business opportunities and anticipates additional pharmaceutical contracts in the current financial year.
“This is a significant contract, which confirms AtCor’s strong market position as the leading provider of noninvasive central blood pressure measurement in clinical trials. The new agreement demonstrates that AtCor’s growing reputation for high levels of customer satisfaction is being recognised through expanded business with long-term clients,” said Duncan Ross, CEO of AtCor Medical. “Scientific publications continue to reinforce the importance of using central blood pressure as a measurement,” Ross continued. “Using our SphygmoCor technology, the US National Institutes of Health (NIH) Strong Heart Study showed that increased central pressure is associated with cardiovascular risk. It found that when central pulse pressure rises above 50 mm Hg, patient risk of heart attack, stroke, and kidney disease nearly doubles while no such association was shown for brachial pulse pressure measurements taken at the arm. Understanding a drug’s effect on central pressure is vitally important in assessing efficacy and in assuring drug safety. It is equally important in patient care.”
AtCor Medical develops and markets products for the early detection of cardiovascular risk and management of cardiovascular disease. Its technology allows researchers and clinicians to measure central blood pressure non-invasively. The company’s SphygmoCor system visibly identifies the effects of reflected blood pressure in the central aortic pressure wave, effects which cannot be detected with standard blood pressure monitoring. More than 2,100 SphygmoCor systems are currently in use worldwide at major medical institutions, research institutions and in various clinical trials with leading pharmaceutical companies. The company’s technology has been featured in hundreds of peer-reviewed studies published in leading medical journals. AtCor has operations in Australia, the United States, and Europe.
Leading retailer Target Australia Pty Ltd has awarded its catalogue distribution contract to PMP Limited (PMP), Australia’s largest printing and distribution company. The agreement is the first time Target has changed its catalogue distribution partner in 20 years and will see PMP Distribution responsible for all the retailer’s catalogue distribution requirements.
“Securing this significant contract rewards the investment that PMP has made in the last 12 months bringing together the industry’s most skilled executives into one management team,” Richard Allely, PMP CEO said today. “This transfer of knowledge and experience to PMP has paid off and sets the platform for PMP to cement its leadership position in the catalogue distribution sector into the future,” he said. David Chesser, General Manager PMP Distribution, hailed the appointment by Target as a watershed moment in PMP Distribution’s history. “The Target catalogue distribution contract is one of the biggest to come up for tender in Australia this year and is an incredibly important win for PMP Distribution. “Target is one of Australia’s largest users of consumer catalogues and choosing us to partner with them is a testament to the hard work and extraordinary talents of the PMP Distribution team. “Our appointment demonstrates our resurgence and shows we can deliver competitive and customer focused solutions, distribution services and facilities that customers such as Target demand,” Mr Chesser said.
PMP Distribution and Target will be working together over the coming weeks to ensure a seamless transition from the current provider. The contract will be managed through PMP Distribution’s Victorian distribution centre in Clayton.
National Australia Bank Limited (NAB) has agreed binding terms with the French parent company AXA (AXA), and AXA Asia Pacific Holdings Limited to purchase the Australian and New Zealand businesses of AXA APH for $4.6 billion1 as part of a proposal to acquire all of the shares in AXA APH. As part of the proposal AXA has agreed to purchase the Asian businesses of AXA APH for $9.4 billion, out of which the $0.7 billion AXA APH A&NZ debt to AXA will be repaid. NAB will therefore acquire AXA APH A&NZ without debt.
NAB will acquire AXA APH’s A&NZ wealth management and insurance businesses (including the Australian mature business). This includes the advice businesses of ipac, Genesys, AXA Financial Planning and Charter Financial Planning. NAB will be able to use the AXA trademark in Australia and New Zealand for a period of 2 years to assist with transition. Subject to agreeing new joint venture arrangements, NAB will retain AXA APH’s 50% interest in the AllianceBernstein Australia joint venture.
AXA will also offer to subscribe for $600 million of unsubordinated notes issued by National Wealth Management Holdings Limited (NWMH). The proposal is subject to AXA APH minority shareholder approval. The Independent Directors Committee of AXA APH unanimously recommended that AXA APH minority shareholders vote in favour of the NAB proposal, in the absence of a superior proposal and subject to a favourable independent expert’s opinion. The proposal is also subject to various other conditions and regulatory approvals, including the approval of the Federal Treasurer and that there is no objection to the merger from the ACCC or APRA. A break fee of $35 million is payable to NAB by AXA APH in certain circumstances.
Cameron Clyne, NAB Group CEO said: “I am pleased with the progress we have made in our proposal to acquire the Australian and New Zealand businesses of AXA Asia Pacific and agreement of binding terms with AXA is an important milestone. “MLC and AXA Australia and New Zealand are among the most trusted financial services brands in Australasia and collectively hold more than $149 billion in funds under administration and management2. “The proposal agreed today provides the opportunity to enhance the access to competitive wealth management products and services within Australia and New Zealand. It is also an attractive, strategically aligned opportunity that enhances NAB’s activities in the growing wealth management industry,” he said.
Under the terms of the proposal, AXA APH minority shareholders will have the option to receive either cash of A$6.43 per AXA APH share or A$1.59 in cash and 0.1745 NAB shares per AXA APH share (subject to potential adjustment if NAB conducts an equity raising). AXA APH shareholders who elect to receive the cash and NAB share consideration under the proposal will also be entitled to receive the value of NAB’s 2010 interim dividend.
Presented by Michael Hevern
MDSFinancial
Click here to watch the presentation.
or
Click here to download the mp3 audio recording (1219Kb).
General Advice Only
***********************************************
In this morning’s wrap…
SP500 up 0.6%
US Consumer Spending up a 5th Month;
Energy & Commodities Stocks Lead;
NASDAQ up 0.4%
Non-Farms Payrolls Out Friday;
Dollar Index: Breakout of 80 Level
US$ Lower;
A$ up 91.73
FTSE: up 0.1% – Above Resistance
EU-IMF accord to help Greece; S&P warns on UK Credit Rating
DAX up 0.6% & CAC up 0.3%
CHINA: up 2.1%
China: Hu 10 Years Penalty;
Hang Seng up 0.9%
Oil: up 2.7% ($82)
Just Below Resistance
Gold: up 0.6% ($1109)
Commodities Higher;
Dollar Lower
SPI Futures up 16 (At Resistance)
RBA: Interest Rates “too low” Will Be Normalised;
ASX News
CSL – US Mayo Clinic accuses price fixing in blood-plasma cartel
CSR – in Federal Court appeal over proposed Split
MCC – confirms FY sales forecast – despite Qld cyclones
NUF – 1H results f’cast $80-$100m profit
Banks – 3 of 4 to sign off 1H results
TLS – senior management restructure to regain from NBN
Reports:
Tues – Shale/Coal Seam Gas Briefing (3 days); MPO; BPT; Brisbane
Wed: ABS Retail Trade, Aurora EGM (AGO t/o)
Thu: Do not be fooled!!
ABS Int’l Trade in Goods/Services
ACCC – AMP/AXA ruling
RBA – Mar. Commodities Index
RBA – says interest are too low and will be normalised (4.75% to 5%)
Energy and Materials to see buying
ASX – to open higher
US & UK – positive leads
The US markets started the week strongly closing higher. The Dow closed up 45 points or 0.4% at 10,895, the S&P500 was up 6 points or 0.6% at 1173 and the Nasdaq was up 9 points or 0.4% at 2404.
Gold and oil were higher. Gold settled up $6.10 at $1110.30/oz and crude oil was up $2.17 at $82.17/bbl.
Rheochem Plc (RHE), the oil and gas business with oil services, production, development and exploration assets, is pleased to announce its 70% owned subsidiary Rheochem India Pvt Ltd has been awarded a contract for drilling fluid, engineering and dewatering services from Hindustan Oil Exploration Company Limited discovery onshore on Block AAP-ON-94/1 in the state of Assam India. The contract is for one firm well with a provision for a further two optional wells. HOEC is a new customer for Rheochem and this contract includes the supply of dewatering equipment. The supply and operation of this equipment represents an extension of Rheochem’ traditional fluid and engineering services.
Commenting on the announcement today Haydn Gardner, CEO of Rheochem, said: “We are very pleased to have been awarded this contract by HOEC in India. It follows closely from our recent ONGC contract win and shows that Rheochem continues to gain traction and commercial acceptance in India. We believe that India is a very prospective region for the Company with approximately 150 oil and gas rigs currently operating there.”
iiNet Limited (IIN) is pleased to announce that it has entered into a binding agreement to acquire Netspace.
iiNet Chief Executive Officer, Michael Malone, said the acquisition would consolidate the company’s position as the leading challenger brand in the Australian telecommunications market. “This acquisition will bring iiNet closer to our target of fifteen percent market share in the fixed line broadband market prior to the commencement of the National Broadband Network,” Mr Malone said. “Netspace is a natural fit for iiNet given the strong alignment of the companies’ products, networks and cultures. It is a great business, having grown strongly in the residential market, and has a loyal customer base given its customer service focus.
Acquisition of Netspace is consistent with iiNet’s strategy to grow through consolidation . It lifts iiNet’s market share to 12.4%, and towards its 15% target, with an increase of over 70,000 broadband customers to more than 520,000 broadband customers, and an increase of over 120,000 active services to around 920,000 total active services . Netspace has a strong business with high historic subscriber growth rates and low churn. It also strengthens iiNet’s market position in the key markets of Victoria, New South Wales, and Tasmania. This acquisition has significant potential to generate substantial synergies given the complementary nature of both businesses. iiNet expects to realise significant potential synergies through the migration of Netspace customers to iiNet’s network and through lower bandwidth costs. Potential synergies are expected to be $2 million in the first year, and $5 million in the second year of iiNet’s ownership.
Under the sale and purchase agreement, iiNet will pay $40 million for Netspace. The acquisition consideration will be 100% debt funded. Completion is subject to a number of procedural conditions and is expected to be achieved by 30 April 2010.
