Australian Stock Market Report – Midday June 30, 2014
By Tom Piotrowski, CommSec Market Analyst | June 30, 2014 3:55 PM EST
Mid Session Report
Sellers have been largely unopposed in the first part of the session on Monday. Almost every sector measured by the ASX has been in retreat in the absence of any strong lead from Wall St. Mining stocks were generally lower although the influences from underlying prices weren't significant. Base metal prices ended mostly lower, but nickel and zinc - both metals subject to supply-side issues currently - bucked the trend and finished higher. Precious metals were mixed, while global crude oil benchmarks finished broadly unchanged despite a volatile session as markets continued to focus on instability in Iraq. Iron ore slipped 0.4% to USD94.90/t.
Australia's ASX outshines regional indices in the week ending 28 September (Reuters).
Goodman Fielder shares have been placed in a trading halt. The market is waiting to see whether the $1.4 billion takeover offer goes ahead. Goodman, which makes and sells bread, biscuits, sauces, spreads and oils, provided no further information ahead of an announcement to the Australian Securities Exchange on Monday. Shares in the takeover target last traded at 68 cents. In May, the board of Goodman Fielder agreed to a $1.37 billion takeover bid by Singapore-based Agribusiness Wilmar International and Hong Kong-listed investment firm First Pacific. Wilmar, the world´s biggest palm oil processor, and First Pacific will pay 70 Australian cents a share to take over the Australasian food ingredients maker, sweetening an earlier bid of 65 cents a share. Wilmar and First Pacific are understood to have been carrying out due diligence on Goodman. Goodman has been cost cutting, restructuring and divesting over the past three years, to focus on its core brands, which include Vogel´s bread and Meadowlea butter and margarine, and reduce debt.
Stockland (SGP) announced that it had purchased the Brownes Dairy head office processing and distribution centre in Perth for $53.5m in an effort to grow its logistics and business parks portfolio. SGP
purchased the 12 hectares located in Balcatta, 12km north of Perth's central business district. The land is expected to generate an initial funds from operations (FFO) yield of 7.5% and underlying profit of 9.7% per year, adding to industrial acquisitions Stockland has made during the current financial year in St Marys and Ingleburn in Sydney. SGP shares were at $3.91 , down 2.5 cents or 0.63 per cent
South African retail giant Woolworths has said that it will not increase the current offers it has on the table for David Jones (DJS) and Country Road (CTY), describing them as "best and final".
David Jones snubbed a merger with fellow retailer Myer (MYR) back in April in favour of a $4 cash per share offer from Woolworths, which has since received approval from the Foreign Investment Review Board (FIRB). Woolworths also ruled out any increase of its current $17 per share takeover proposal for clothing brand Country Road, which is dependant on the successful takeover of David Jones and FIRB approval.
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
Most Popular Slideshows
- Kristen Stewart Moving On With Nicholas Hoult, Jennifer Lawrence Dating Chris Martin – Reports [PHOTOS]
- Kate Middleton Suffocated in Kensington Palace, Queen Elizabeth Reported War With The Duchess [PHOTOS]
- 2014 MTV Video Music Awards: Everything To Know [PHOTOS]
- Chris Martin Dating Reports: Jennifer Lawrence Vs Gwyneth Paltrow [PHOTOS]
Join the Conversation
- A Month After Ukraine Plane Crash, Malaysia Airlines Doubles Commission of Australian Travel Agents to 11% to Boost Seat Sales
- Australia Could Become an Oil Giant After Apache Discovery of Field With Potential of 300 Million Barrels of Black Gold
- European Telcos in Buy-out Mode for American Firms
- Australian Stock Market Report – Afternoon August 19, 2014
- Melbourne Is World’s Most Liveable City for 4th Consecutive Year
- Robin Williams Goodbye Video Hoax: Facebook Users Warned of Celebrity Suicide Exploitation
- 4 Killer Android Features Apple Fans Would Love to Get Come the iPhone 6 Release Date
- ISIS Posts Graphic Beheading Video of US Journalist James Foley
- Nexus 6 Release Date Dilemma with Motorola Shamu Details Pointing to Better Smartphone and Killer Features
- After James Foley, ISIL Threatens to Behead Another American Journalist Steven Sotloff
- Moto X Android 4.4.4 KitKat Update Guide: AT&T/Sprint Release and When to Hit Your Region
- Motorola Moto X+1 On Release Date To Come With Snapdragon 800 Processor, 2 GB RAM, 4K Recording And 5.2-Inch Display