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Technology Stocks : PCW - Pacific Century CyberWorks Limited -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (276)	2/7/2001 7:46:08 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

Thursday February 8, 7:57 AM MARKET TALK/AU-EQ: Telstra-PCCW Need Strategy - Analyst [Contact Us: Sydney 61-2-8235-2950; djnews.sydney@dowjones.com] 1053 [Dow Jones] Telstra (TLS), HK's Pacific Century (Singapore: PCEN.SI - news) CyberWorks need to make long-term funding strategy for Asian ventures clear to the market, says analyst. "They can't let these joint ventures wither on the vine through lack of cash. The market is consolidating, and they have to make the joint ventures attractive to the super-telcos that will emerge in the next few years. If they don't make it clear to the market when the IPOs of these two joint ventures will happen - you can guess what the market will do." Telstra latest down 5 cents at A$6.83. (GFM) 1052 [Dow Jones] Shares in Macquarie Office Trust (MOF) suspended from trade pending a "significant announcement" Friday. Shares stand at A$1.18; traded in narrow 12-month range of A$1.02-A$1.24. (PSG) 1042 [Dow Jones] All Ords up 3.5 points at 3266.3 backed by strong rises for News Corp (NCP) and BHP (BHP) after results. Coles Myer (CML) follows ADR 0.5% higher as lower rates seen positive for consumer confidence. Profit-taking hits C&W Optus (CWO), down 1.5%. Banks all lower as falling rates and narrowing lending margins seen as negative. All Ords technically neutral within 3260-3285 range, but remains vulnerable. (DJF) 1039 [Dow Jones] Macquarie Equities broker Lucinda Chan says News Corp. (NCP) higher in early trade as market pleased with 2Q results. Investors "were a bit nervous" ahead of result, so were "quite happy" with the outcome, she says. Shares up 2.4% or 42.1 cents at A$17.68. (HGU) 1027 [Dow Jones] News Corp (NCP) up 2.7% in early trade to A$17.70 following 1H and 2Q profit result issued overnight in New York; 2Q result at top end of market expectations and investor sentiment also bolstered by signs that Sky Global deal with DirecTV isn't too far away. Stock accounts for about 10% of All Ords, which is up 0.2% or 5.1 points to 3267.9; media index up 2.2%. (IGP) 1025 [Dow Jones] RBA rate easing Wednesday and likely further easings to boost housing sector as affordability improves but construction activity unlikely to boom as in previous recoveries as no large build-up in demand, say Macquarie Bank analysts; say housing sector to subtract more than 1% from GDP growth over year to June, compared with 1% positive contribution in year to June 2000, before picking up toward year-end. (BWS) 1023 [Dow Jones] Telstra (TLS) down 7 cents at A$6.81 on concerns over funding of Asia ventures with HK's Pacific Century CyberWorks. Mobile, Internet IPOs unlikely this year, leaving investors wondering where cash for expansion will come from. Telstra says Internet operation has strong revenue but analysts forecast earnings slowdown at HKT, an integral part of mobile joint venture. (GFM) 1021 [Dow Jones] STOCK CALL: Macquarie Equities says BHP (BHP) 1H profit in line with expectations and unlikely at this stage to change FY forecast of A$2.55 billion. Notes BHP warning that it's reviewing troubled Venezuela HBI plant a concern. Says share buyback a "prudent" move that doesn't prevent BHP from making an acquisition. (AND) 1020 [Dow Jones] AUD/USD steady around 0.5460, with dealers noting support at 0.5440 but sell orders at 0.5480; say pair still seems heavy, with U.S. selling of AUD/NZD not helping sentiment and downside test seems likely in coming sessions. (CMR) 1016 [Dow Jones] BHP (BHP) latest up 13.5 cents at A$19.19 and should stay in A$18.10-20.00 range, where it's been since October. Factored-in flat-but-supported base metals prices and coal price increase should keep in range until metals move. Today's announced share buyback to underpin prices, with short-term support at A$19.00. Stock technically overbought, and coupled with buyback timing uncertainty should limit initial rise to A$19.70. (DJF) 1007 [Dow Jones] STOCK CALL: Salomon Smith Barney "comfortable" with BHP (BHP) buyback plan, says analyst Ian Maxwell, noting that BHP has flexibility to also make acquisitions; says 1H result in line with SSB expectations and now unlikely to change FY forecast around A$2.5 billion; while result at lower end of market expectations, says it's unlikely to overly worry market. Keeps Neutral recommendation, reflecting uncertainty over US economy, but says "very comfortable" with way BHP managed and financial performance. (AND) 1009 [Dow Jones] BHP (BHP) shares open 2.5 cents higher at A$19.08 and then gains 17.5 cents or 0.9% to A$19.22 following record 1H net profit of A$1.43 billion and share buyback of up to 5%. Brokers say buyback will put floor on stock and should offset any investor disappointment that 1H result was at low end of market expectations. (IGP) 1000 [Dow Jones] U.S. SUMMARY: Tech stocks tumbled, with Cisco hitting 52-week low after poor 2Q results and Lehman Brothers downgrade; but overall index losses not too dramatic given thumping some bellwethers took. Nasdaq shed 2.3% and DJIA 0.1%. USD rose over 1JPY to high around 116.40 amid renewed calls on BOJ to inject liquidity and ahead of 3Q GDP data that's likely to be revised down, and as U.S. Treasury Secretary O'Neill reiterated support for strong USD policy. EUR/USD little changed; 4Q non-farm productivity rose 2.4% on-quarter vs consensus 1.7% but brushed off as considered backward-looking. Treasurys slipped as long end of yield curve moved down to accommodate new supply ahead of US$10 billion long-bond auction Thursday; well-bid 10-year auction day's marquee event, aftermath of which put pressure on market to end lower; 10-year down 5/32 late yielding 5.20%. March Nymex crude oil rallied 85 cents to US$31.35, triggered by gasoline gains on inventory drawdown and high natural gas prices. (JRH,WJK) 0959 [Dow Jones] BHP (BHP) shares will be underpinned by 5% buyback announcement, says head of institutional dealing at major broker. "I would have thought the market will be disappointed by the earnings but accept the fact that the buyback will help the share price," broker says, adding that program will boost EPS. Brokers says BHP record 1H net profit of A$1.43 billion won't boost shares as came in at bottom end of expectations. (IGP) sg.biz.yahoo.com