Asian shares take a battering after weak lead from the US; SABMillers new bid for Foster’s beer

<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.

 

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