News: Outlook: Aus shares set to sink into Q4

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After dropping almost 6 per cent in September the Australian share market looks set to sink into the new month and quarter. Across global markets Hong Kong’s pro-independence protests continued, weighing on investor sentiment and Hong Kong’s benchmark index. European markets were mixed as the eurozone’s annual inflation rate was shown to have hit a five-year low, stoking hopes for more stimulus.  

 

Wall Street was weak as news of eBay Inc (NASDAQ:EBAY) spinning-off its payments division PayPal was offset by weak economic figures. Annual US house price growth declined more than expected in July while consumer confidence unexpectedly worsened in September.  

 

On the local front a number of economic reports are due and eyes will be on China’s official manufacturing data before noon as the price of iron ore again touches five-year lows. 

 

Global markets

 

Wall Street slipped on the last day of September: The Dow Jones Industrial Average lost 0.2 per cent to close at 17,043, the S&P 500 dipped 0.3 per cent to close at 1,972 and the Nasdaq eased 0.3 per cent to close at 4,493.

 

European markets ended mixed on Tuesday: London's FTSE 100 declined 0.4 per cent, France's CAC 40 gained 1.6 per cent and Germany's DAX rose 0.7 per cent.

 

Asian markets put in a mixed performance on Tuesday: Japan’s Nikkei dropped 0.8 per cent, Hong Kong’s Hang Seng extended the week’s falls by 1.3 per cent, but China’s Shanghai Composite firmed 0.3 per cent.

 

The Australian share market posted its largest monthly loss in September in more than two years but ended the month on positive territory: The S&P/ASX 200 index rose 29 points on Tuesday to finish September at 5,293. On the futures market the SPI is 33 points lower. 

 

Currencies 

 

The Australian dollar fell about 6 per cent against the greenback over last month and at 7:20am was buying $US0.8749, 53.97 Pence Sterling, 95.91 Yen and 69.29 Euro cents.

 

Economic news due out today 

 

Australian Bureau of Statistics: Retail trade data for August

 

Reserve Bank of Australia: Index of commodity prices for September 

 

The Australian Industry Group: Performance of Manufacturing Index (PMI) for September

 

Company news

 

TPG Telecom Limited (ASX:TPM) has inked a deal to buy a property close to Sydney’s CBD for just over $30 million. The telecommunications group currently leases the site for annual rent of $3.1 million. The site houses a key group network hub and data centre and also provides office accommodation. Just last week TPG reported 15 per cent annual net profit growth and forecast earnings growth ahead. Shares in TPG Telecom fell 2.29 per cent following the announcement to end the month at $6.84. 

 

Growthpoint Properties Australia Limited (ASX:GOZ) has entered into an agreement to sell an industrial property in Victoria for $19 million. The property investor says the sale price is $225,000 above the current book value and the sale was negotiated with the purchaser directly to avoid selling agent’s fees. Growthpoint has also advised it is considering a number of acquisition opportunities and will look to redeploy proceeds into assets which better meet its investment criteria. Shares in Growthpoint Properties Australia rose 0.75 per cent ahead of the announcement to end the month at $2.69. 

 

Commodities 

Gold has dropped $7.20 to $US1,212 an ounce for the December contract on Comex. 

Silver has slipped $0.51 to $17.06 for December. 

Copper has declined $0.05 to $3.01 a pound. 

Oil has lost $3.41 to $US91.16 a barrel for November light crude in New York.

Ex-dividends 

Auckland International Airport Limited (ASX:AIA) paying a 6.2416 cent unfranked dividend

Ausdrill Limited (ASX:ASL) paying a 2 cent fully franked dividend

Clime Capital Limited (ASX:CAM) paying a 1.15 cent fully franked dividend

CML Group Limited (ASX:CGR) paying a 0.6 cent fully franked dividend

Cedar Woods Properties Limited (ASX:CWP) paying a 15.5 cent fully franked dividend

Ebos Group Limited (ASX:EBO) paying a 16.4969 cent unfranked dividend

Freedom Food Limited (ASX:FNP) paying a 1.5 cent fully franked dividend

Genesis Energy Limited (ASX:GNE) paying a 5.885 cent unfranked dividend

Metlifecare Limited (ASX:MEQ) paying a 1.8948 cent unfranked dividend

Sealink Travel Group Limited (ASX:SLK) paying a 3.7 cent fully franked dividend

SMS Management Limited (ASX:SMX) paying a 7.5 cent fully franked dividend