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InvestorTV's Market Bite, July 14, 2008
 
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The Australian stock exchange opened lower this morning after a drop of more than one per cent on Wall Street on Friday.
By midday the S&P/ASX200 index was down by seven points, while the All Ordinaries lost 14.

Meanwhile, US stocks fell on Friday amid mounting fear over the financial stability of the country’s two largest mortgage firms, Freddie Mac and Fannie Mae. Shares in the two companies plunged up to 50 per cent on worries over their $5.3 trillion of mortgage debt.

The Dow Jones Industrial Average finished the week down 128 points, while the Nasdaq composite fell 18.

In Asian trading today, Japan’s Nikkei was up 146 points at midday, while Hong Kong’s Hang Seng added 20.

In ASX news this morning logistics provider Toll Holdings said today that it’s to offload its stake in Virgin Blue, following an unsuccessful attempt to find a buyer for its 63 per cent stake in the airline.

Toll said it will pay shareholders a special dividend of one Virgin Blue share for each Toll share held, and will take a $1.3 billion charge to reflect the lower value of the stake. Virgin Blue’s share price has dropped more than 70 per cent this year as it’s battled rising fuel costs – but shares in the airline were up almost two per cent at midday today, while Toll shares rose three per cent.

In other news, IT and electrical finance company FlexiGroup said today that it’s to buy interest-free finance provider Certegy Australia for $31 million in cash and shares.

The move will double FlexiGroup’s outlets to over 11,000. FlexiGroup also confirmed its annual earnings guidance of an eight to 12 per cent increase on fiscal 2007.

Finally on the economic front, personal finance commitments fell 7.8 per cent in May, according to the latest figures released today by the Australian Bureau of Statistics.

The drop follows another fall in housing finance for owner occupation, down 5.7 per cent in May, as higher interest rates curb borrowing.

In individual share price movements on the ASX earlier today, resource stocks were largely negative at noon. BHP Billiton was down seven cents, Fortescue Metals fell 33, Rio Tinto lost $1.15 while Woodside Petroleum added 77.

The major banks mostly made gains this morning. At noon ANZ was up 17 cents, Commonwealth Bank added 16, National Australia Bank was the exception slipping 31 cents, while Westpac gained 32.

Other blue chips were mixed at midday. AMP was down six cents, News Corp lost eight, Telstra fell five cents, while Woolworths added 32.
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Source: Investor TV
Release Date: Monday, 14 July 2008 1:45 PM
Author: Fiona Collins, InvestorTV
Runtime: 2 minutes 59 seconds

Comments: 0 | Post Comments
Rating: Not Rated
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