Tuesday, December 22
Tuesday, December 22 – The Australian share market surged to a two-week high thanks to stronger offshore markets and a reduction in profit taking on US dollar carry trades that has restrained equities and commodities for the past few weeks.
The All Ordinaries rose 64.9 points (1.4%) to 4,724.4 while the S&P/ASX 200 firmed 69.1 points (1.5%) to 4,712.8.
BHP (BHP)
BHP said it has no plans to exit its nickel business, countering a media report that it could be considering selling mines in Australia and Colombia. “We have absolutely no plans to exit nickel,” a spokeswoman for BHP said. BHP strengthened 70 cents (1.71%) to $41.65.
Newcrest (NCM)
Cyclone Laurence has made landfall in Australia’s eastern Pilbara region morning, forcing the closure of Newcrest Telfer gold mine, while major iron ore export terminal Port Hedland has reopened. “At this stage, production is expected to resume during the day shift on Wednesday,” Newcrest said. NCM lost 72 cents (2.07%) to $34.15.
News Corp (NWS)
News Corporation announced it has agreed to subscribe to up to 49m new registered shares in Sky Deutschland AG via a capital increase that is expected to raise EUR110 – 120m. As a result, the company’s stake in Sky Deutschland will increase from its current position of 39.96% up to a maximum of 45.4%. The issue price of the new shares will be the greater of EUR2.25 or the volume-weighted average price on XETRA over the 5 trading days prior to the resolution of the capital increase less a discount of 3%. The capital increase is expected to occur in the course of January 2010. NWS rose 42 cents (2.4%) to $17.89.
Fortescue (FMG)
Fortescue said it has reached a settlement over a shipping dispute, agreeing to pay SK Shipping Europe US$20.34m in return for ending its legal proceedings against the miner. The company said it had agreed to pay SK Shipping US$10.17m for each of the two suspended ship charter contracts that are in dispute. As part of the settlement, Fortescue has restructured its future cargo obligations to SK Shipping and agreed freight rates at a base daily rate plus a hire incentive payment and profit share arrangement. Fortescue said it has now struck settlements with four counterparties with which it has had disputes and expects the total damages from all the disputes to be in line with previous guidance of about US$171m. FMG strengthened 4 cents (0.92%) to $4.37.
Foster’s Group (FGL)
Foster’s Group said Managing Director Alex Stevens, who oversees the Australian-Pacific beer business, has resigned due to ill health. Chief Executive Ian Johnston will act as managing director for the unit until further notice. FGL gained 10 cents (1.87%) to $5.46.
GPT Group (GPT)
GPT said its board has appointed former Australand Property Group Chief Executive Brendan Crotty as a director immediately, subject to investor ratification at their annual meeting next year. The company said Chairman Ken Moss won’t stand for re-election at the meeting and the board has named Deputy Chairman Robert Ferguson as his successor, subject to investors’ ratification as a director. GPT rose 1 cent (1.75%) to $0.58.
Asciano (AIO)
Asciano refuted suggestions by an Australian state finance minister that it entered into discussions earlier this year with QR, its main competitor in Queensland, to sell its coal haulage business. Asciano said that while it did have discussions with QR as part of its review of recapitalisation options before its $2.45bn capital raising in mid-2009, these were to discuss a potential joint venture in interstate intermodal rail. The firm said it was disappointed that the confidential discussions had been made public by the Queensland Treasurer Andrew Fraser, “in a way that has the potential to mislead or confuse.” AIO lost half a cent (0.29%) to $1.715.
Boral (BLD) and Crown (CWN)
Boral said that Chief Financial Officer Ken Barton has resigned from the company to take up a similar role at Crown. A formal process to identify and appoint a new chief financial officer is underway and Barton will remain in his role until early March to help with a smooth transition to a newly appointed officer, it said. BLD strengthened 14 cents (2.55%) to $5.64 while CWN lost 1 cent (0.13%) to $7.71.
Nufarm (NUF)
Sinochem has revised down its proposed takeover offer for Nufarm to $12 a share from $13, valuing it at $2.62bn, Nufarm said. Nufarm Chairman Kerry Hoggard said the company is disappointed that Sinochem hasn’t proceeded with the proposed purchase on the basis that was previously agreed. “The Nufarm Board has strong confidence in the future growth and success of the company and isn’t prepared to support a proposal that undervalues the business,” he said. NUF was placed in a trading halt with a last price of $10.56.
GrainCorp (GNC)
GrainCorp said it expects earnings before interest, tax, depreciation and amortisation this fiscal year ending 30 September 2010 in a range of $180m to $210m. The contribution from the newly-purchased malt unit to this earnings measure will be in a range $100m to $120m, the company reported. Managing Director Mark Irwin said drought in Queensland and New South Wales had cut receivals from a harvest of winter grains, but receivals from the harvest in Victoria are meeting budget expectations. GNC weakened 43 cents (7.4%) to $5.38.
The NZSX50 rose 29.38 points (0.93%) to 3,179.18 while the Nikkei added 144.17 points (1.42%) to be last quoted at 10,328.20 and the Hang Seng strengthened 243.38 points (1.16%) to 21,191.48.
The Australian dollar was last quoted at US$0.8789.

, and column i3 the same as i2 (but different values).