Asian shares take a battering after weak lead from the US; SABMillers new bid for Foster’s beer
City Index September 22, 2011 10:28 PM
<p>In currency markets, the Australian dollar has flirted with parity against the US dollar throughout the afternoon trading session, last just sitting above the important […]</p>
In currency markets, the Australian dollar has flirted with parity against the US dollar throughout the afternoon trading session, last just sitting above the important psychological level.
Today’s HSBC and Markit Economics survey – which measures Chinese manufacturing – suggests a shrinkage in activity for a third straight month in September, the longest contraction since 2009.
Almost nine shares declined for every one that climbed on MSCI’s Asia Pacific Index, which was poised for its lowest close since July 7, 2010. Japan’s Nikkei 225 Stock Average slid 2.1%, Hong Kong’s Hang Seng Index lost 3.8% and Indonesia’s Jakarta Composite index dropped 6.1%. The Shanghai Composite Index retreated 2% after a measure of Chinese manufacturing weakened this month, according to preliminary readings.
Despite the market fall today, Australian listed Oroton shares traded higher on a good profit number. Earnings and dividends are slightly ahead of expectations. First seven weeks of this year exceeding expectations.
Nickel miner Mincor also traded higher after pointing to strong cash generation despite metal price declines. The announcement shows that there is value out there among the miners, particularly in sold off names.
Elsewhere, Fosters will most likely fall to SABMiller after a revised takeover offer of $5.10 cash per share plus 30 cent capital return and dividend. For those who traded the shares today, the offer price implies $5.40, dividend already ex. The multiple looks generous in the absence of another bid.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.