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InvestorTV's Market Bite, June 13, 2008
 
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The Australian share market opened marginally higher this morning, following modest gains on Wall Street overnight. However both major indices soon dipped into the red as banking stocks dragged the market lower.
At midday today the S&P/ASX200 index was down 25 points, while the All Ordinaries fell 23.

US stocks ended higher on Thursday boosted by stronger-than-expected retail figures for May, and a $US46 billion takeover approach for brewery giant Anheuser-Busch.

At Thursday’s close, the Dow Jones Industrial Average was up 57 points, while the Nasdaq Composite added ten.

In Asian trading today, Japan’s Nikkei had lost 23 points by noon, while Hong Kong’s Hang Seng fell 454.

Meanwhile, in ASX news, shares in investment bank Babcock & Brown continued to tumble this morning. This follows yesterday’s 28 per cent slide which saw the company’s market cap sink below $2.5 billion, triggering a possible debt review.

Concerns over the bank’s debt-fuelled business model, and speculation that hedge funds are short-selling the stock led to the initial falls.

The company’s continued downward spiral today came despite news that Babcock & Brown is part of a consortium which is to buy British train-leasing company Angel Trains for $7.5 billion. At midday today shares in the company were down $1.53, or 22 per cent.

In other news, Australia’s third largest broadcaster Ten Network today cut its full year earnings forecast, saying that deteriorating economic conditions had damaged the advertising market.

Ten this morning reported a 29 per cent year-on-year rise in third quarter earnings, but said that it expects full year earnings to be about ten per cent lower than 2007’s $237 million. Shares in the network fell almost 20 per cent on the news.

Finally, in individual share price movements on the ASX this morning resource stocks made broad gains. BHP Billiton was up 91 cents at noon, Fortescue Metals added 11 cents, Rio Tinto put on $1.64, while Woodside Petroleum gained $2.08.

The major banking stocks went the other way, losing more than two per cent by midday. ANZ fell 51 cents, Commonwealth Bank dropped $1.11, National Australia Bank lost 42 cents, and Westpac shed 17.

Other blue chips were mixed. AMP was down 11 cents at noon, News Corp added 23, Telstra fell eight cents, while Woolworths gained 39.
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Source: Investor TV
Release Date: Friday, 13 June 2008 1:55 PM
Author: Fiona Collins, InvestorTV
Runtime: 2 minutes 50 seconds

Comments: 0 | Post Comments
Rating: Not Rated
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