Australian share market open may 25 2012

Australian share market open may 25 2012, Ex-dividends next week may 28 2012 : The Australian share market looks poised to rise this morning, lifting the possibility of a weekly gain after overseas markets closed mainly higher. Despite lingering uncertainty over Europe’s debt situation and a soft read on Chinese manufacturing investors were encouraged by comments from Italy's Prime Minister suggesting Greece will remain in the eurozone.

Economic news

Manufacturing in China has slowed at a faster pace this month. According to a private survey from HSBC Holdings Plc and Markit Economics the preliminary reading for China’s purchasing managers' index came in at 48.7 in May, down from 49.3 the month before. A read below 50 indicates contraction.

The US Labor Department has reported the number of people filing for first-time unemployment benefits dropped by 2,000 to 370,000 last week, in line with expectations.

Figures

Ahead of a long weekend Wall Street closed mixed on Thursday: The Dow Jones Industrial Average added 34 points to close at 12,530, the S&P500 added 2 points to close at 1,321 and the Nasdaq eased 11 points to close at 2,839.

European markets recovered on Thursday:
London’s FTSE added 84 points, Paris added 35 points and Frankfurt added 30 points.

Asian markets closed mixed yesterday:
Hong Kong’s Hang Seng lost 120 points, Tokyo’s added 7 and China’s Shanghai Composite lost 12 points.

The Australian share fell into negative territory on Thursday, shedding 0.3 per cent. Yesterday the S&P/ASX 200 index lost 11 and to close at 4,056. On the futures market the SPI is now 16 points higher.

Turning to currencies and the Australian Dollar at 7:15AM was buying 97.70 US cents, 62.35 Pence Sterling, 77.76 Yen and 77.93 Euro cents.

Stocks to watch

Fairfax Media Limited (ASX:FXJ) is reportedly eyeing a stake in Nine Entertainment in an effort to increase its profits. According to The Australian Fairfax company directors have this week discussed potential acquisitions and have met with Nine executives this year. However doubt has been cast over the bid for Nine with the report speculating it is unlikely to be sold if the price does not deleverage the business. Shares in Fairfax Media fell 1.54 per cent yesterday, finishing at a record low of $0.64.

Wesfarmers Limited (ASX:WES) owned-Coles is understood to be negotiating a pay cut with the supermarket’s CEO Ian McLeod who last year made more than $15 million. Wesfarmers chairman Bob Every has told Fairfax the company remains in talks with Mr McLeod in respect to moving to a rolling contract like the other Wesfarmers’ senior executives. The report says Mr McLeod was Australia's second highest-paid executive last year and that his five-year contract expires next year. Shares in Wesfarmers dipped 0.2 per cent yesterday, finishing at $29.66.

Ex-dividends today
PPK Group Limited (ASX:PPK): Interim unfranked 1 cent dividend

Ex-dividends next week
Infratil Limited (ASX:IFZ)
Orica Limited (ASX:ORI)
Ruralco Holdings Limited (ASX:RHL)

Commodities
Gold is up $9.10 to $US1,557 an ounce for the June contract on Comex.
Silver is up $0.64 to $28.16 for July.
Copper is up $0.03 at $3.43 a pound.
Oil is up $0.76 at $90.66 a barrel for June light crude in New York.

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