Activity on the Australian share market was subdued in Monday morning trading ahead of a US public holiday, with selected industrial and gold stocks supporting the local market's marginal gains.
All Ordinaries advanced 14.5 points, or 0.33 per cent, to 4457.3.
Job ads surged in August and signs that job creation has turned a corner will bring hope to graduates in the class of 2009, a survey says. The Olivier Job Index, which measures positions vacant ads on commercial job sites, grew 2.43 per cent in August, the first real growth since May 2008.
Rural services company Elders Ltd (ELD) says it plans to reinvigorate and reinvest in its rural services business and dispose of more assets to repay debt. The company says it intends to return to the Elders name that has been around for 170 years, with Elders saying it expects to see a turnaround in earnings in 2010 thanks to its renewed focus and restructure of the business.
The company reported an underlying loss of $26.9 million after tax for the 12 months to June 30, within guidance. However the company recorded $388.5 million in non-recurring items after tax widening Elders reported loss to a massive $415.4 million.
Facility services company Spotless Group Ltd (SPT) has given formal notice to New Zealand’s Taylors Group of its intention to make a cash offer for all the shares in Taylors that it does not already own. Spotless says it is the largest shareholder in Taylors and owns 66.01 per cent of the shares on issue.
The company is intending to offer Taylors shareholders NZ$2.08 cash per Taylors share, plus they will remain entitled to receive the NZ$0.07 per share fully imputed final dividend declared on August 19.
Macquarie Airports (MAP) says an independent expert has found the company’s proposal to internalise management, fair and reasonable. On July 24 the company announced that is had reached an agreement with Macquarie Capital to internalise the management of Macquarie Airports.
The proposal is to be funded via a one for 11 non renounceable rights issue to eligible security holders at $2.30 per stapled security to raise a maximum of $356 million. The payment to Macquarie in return for ending the management rights is $345 million.
Drug maker Sigma Pharmaceuticals Ltd (SIP) is to acquire an established pharmaceutical brand portfolio and manufacturing facility from Bristol-Myers Squibb for $60 million in cash. Sigma says it plans to raise $297 million in a one for three rights offer at an offer price of $1.02 a share to fund the acquisition. Sigma will acquire the right to manufacture, market and distribute 15 ethical pharmaceutical and health care brands in Australia and New Zealand, the right to export a majority of the acquired brands to New Zealand, and a modern pharmaceutical manufacturing facility in Noble Park, Victoria. Sigma pharmaceutical shares are in a trading halt and last traded at $1.22.
Global miners BHP Billiton Ltd (BHP) and Rio Tinto Ltd (RIO) are reportedly considering a $1 billion merger of their Canadian diamond operations in addition to their massive iron ore joint venture in Western Australia. According to The Australian BHP has sent employees to Canada to investigate the potential of merging the two companies diamond mines. The mines sit alongside each other northeast of Yellowknife, the capital of Canada’s Northwest Territories. BHP shares fell 0.14 per cent to $36.57 and shares in Rio Tinto gained 1.03 per cent to $55.82.
he best performing sector at midday is the Health Care index up 167 points to 8,780. Shares in Vision Group Holdings up 10.7 per cent at $1.19. Shares in CSL and Probiotec are also stronger at noon.
The worst performing sector at midday is the Consumer Staples index, down 55 points at 7,146. Shares in Coca-Cola Amatil down 2.67 per cent to $9.84. Shares in Foster’s Group and Woolworths are also lower.
Gold is currently trading at $992.70 US an ounce and the Aussie dollar is trading at 85.26 US cents.
Dividends - Many large cap companies pay out their earnings as dividends. This fact makes them valuable holdings for investors seeking income (i.e. retirees).
