MARKET TALK-AU-EQ: Coca-Cola Co. Fincl Chief In Sydney
Thursday, January 11 9:04 AM SGT
[Contact Us: Sydney 61-2-8235-2950; djnews.sydney@dowjones.com]
1201 [Dow Jones] Coca-Cola Co. CFO Gary Fayard is in Sydney, which suggests a resumption of talks for joint purchase with San Miguel of Coca-Cola Amatil's (CCL) Philippines operations. Amatil only reiterating comment from December that talks set to continue in January. Australian Financial Review's Chanticleer column today suggesting price negotiations over Philippines should bolster Amatil's EPS and share price. Stock now up 10 cents at A$4.95. (HGU)
1200 [Dow Jones] RBA should cut rates 25 bps after Feb. 6 meeting and by total of 75 bps in 1H 01 as December jobs numbers show wage pressure unlikely to be threat to inflation, says CSFB fixed-income analyst Warren Hogan; adds that now expects soft 4Q GDP number "close to flat". (CMR)
1159 [Dow Jones] Open Telecommunications (OTT) rises 3.6% or 4 cents to A$1.16 after announcing contract with Pacific Century CyberWorks; will supply and integrate wireless telecoms intelligent network solution and is first major contract in Hong Kong since opening office in November. Says contract has multi-million dollar value but nothing more specific in statement. OTT had hugely successful late 1999 float, reaching upwards of A$4 a share, but hit hard by Nasdaq/telcoms slump last year. (IGP)
1153 [Dow Jones] Australian jobs market shrank by 8,000 jobs a month in the 4Q - a sharp weakening from 23,000-a-month 3Q increase, says Commonwealth Bank chief research economist Michael Blythe. "If you've decided you need to cut rates these rates won't stop you," he says. (ILM)
1152 [Dow Jones] Not surprising AUD/USD failed to rise on stronger December jobs data given negative figures in two previous surveys, says ANZ Investment Bank chief dealer Paul McNee; says series of strong data needed to turn around negative sentiment. (BWS)
1145 [Dow Jones] STOCK CALL: BNP Paribas Equities says in daily market note it expects banking, technology and oil shares to rise during the day; has outperform/buy recommendations on ANZ (ANZ), Westpac (WBC), Open Tel (OTT), Davnet (DVT), Powertel (PWT) and Santos (STO); says gold stocks could come under pressure. (IGP)
1141 [Dow Jones] Only partial wind-back in December of big employment fall in November "confirms the Australian economy is starting 2001 in a much weaker state than the Reserve Bank previously anticipated," says SG Australia chief economist Glenn Maguire. "We think the Reserve Bank will reduce rates in February." (ILM)
1136 [Dow Jones] AUD/USD falls to 0.5532 following release of stronger-than-expected employment data. Figures temper expected size of cut in official interest rates predicted in February. Pair had fallen from 0.5543 just prior to release of data at 0030 GMT. (BWS)
1134 [Dow Jones] December employment jump of 39,600 stronger than expected but follows sharp 59,100 drop in November. Analysts' forecasts had centered on 25,000 rise. But employment trend still weak and jobless rate steady at 6.6% due to participation rate increase. (ILM)
1122 [Dow Jones] Woolworths (WOW) rises 13 cents or 1.6% to A$8.13, recouping recent losses that saw it fall to A$7.75 from record peak of A$8.62 in space of a week on sector rotation as defensive stocks were exited after Fed rate cut. With economic outlook and degree of economic slowdown uncertain, shares rise as investor preferences still swing to companies with earnings certainty. (GXT)
1120 [Dow Jones] Nikkei 225 in Tokyo opens 0.44 point higher at 13433.09, with range-bound trading expected, as bargain-hunters in tug-of-war with those seeking to unwind positions, players say. Index now marginally lower at 13414.69. (LCT)
1117 [Dow Jones] Peptech (PTD) shares up 23% or 58 cents at A$3.10 in heavy trade as investors get off starting blocks after trading halt ended, with initial rise as far as A$3.45. Shares suspended for Tuesday's announcement of license deal with Johnson&Johnson unit on Peptech's TNF anti-cancer gene therapy patent. Shares rose more than 30% Monday on similar deal with Knoll; now up around 650% over past 12 months. Managing Director Stephen Kwik says Peptech now no longer a speculative stock (PSG)
1113 [Dow Jones] Peptech (PTD) shares to resume trade at 11:15 am local time. Shares suspended for Tuesday's announcement of license deal with Johnson&Johnson unit on Peptech's TNF anti-cancer gene therapy patent, and trading halt maintained awaiting more financial details. Shares rose more than 30% Monday on announcement of similar deal with Knoll, and are now up more than 500% over past 12 months. Managing Director Stephen Kwik says details subject to confidentiality provisions, but says Peptech now no longer a speculative stock. Says potential peak royalties around A$40-50 mln. (PSG)
1102 [Dow Jones] Bulk of trades in Petroz (PTZ) at 71 cents, indicating that retail investors betting on bidding war between Phillips Petroleum which has 70 cent/shr offer on table, and Italy's ENI, which has 56 cent offer still open and hasn't ruled out higher offer for minority partner in Timor Sea's Bayu-Undan gas project, which is led by Phillips. ENI has more than 16% of Petroz while Phillips' stake heading toward 30%. (IGP)
1101 [Dow Jones] UBS Warburg, which topped local M&A list prepared by Thomson Financial, says takeover activity to remain buoyant. UBS corporate finance head Chris Mackay says no signs of M&A slowdown early 2001. "Cross-border investment into Australia and globalization of M&A activities will continue to be strong themes throughout the year. Buyout activity for sectors not favored by the market is also likely," Mackay says. (IGP)
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