The Australian sharemarket has opened flat this morning, despite a strong lead from Wall Street late last week.
The benchmark S&P/ASX200 index was down two points or 0.05% to 4740.3 at 12.10 AEST, while the dollar was at $1.02.
The dollar reached a 29-year high over the weekend as investors sought riskier assets, as fears over the Japanese disaster and European debt crises begin to subside. Stronger commodity prices have also helped the local currency.
Expectations over the dollar are mixed – while CommSec expects to see the dollar drop to about US92c, AMP chief economist Shane Oliver predicts the dollar will reach as high as $US1.10.
ANZ’s head of currency Tony Allen has told Fairfax he expects the dollar to reach between $US1.06-8 this year.
AMP shares gained 0.5% to $5.41, while NAB shares also rose 0.44% to $25.13. ANZ gained 0.51% to $23.40 as Westpac rose 0.04% to $23.74.
Sigma Pharmaceuticals has recorded a net loss of $235.4 million for the year ending January 31, with the result including a non-cash impairment charge of $258.3 million.
But that loss represents a significant improvement from its loss of $391.28 million it recorded in the previous corresponding period. The result has sent the company’s shares up 12% to $0.46.
In a statement, the company said underlying EBIT for the healthcare and pharmaceuticals divisions was $129.2 million combined. It also said the ongoing healthcare business remains “sound and profitable”.
“While the reported net loss was disappointing, it is pleasing to see at the operational level, the Healthcare Business has continued to grow and remain stable despite the recent challenging times,” managing director Mark Hooper said.
The company said in a statement that following the notification that one major supplier had withdrawn from its wholesaling model, resulting in the projected revenue decrease of 15%, the company “worked quickly to identify and implement mitigating strategies”.
“Our healthcare business has performed well during a challenging period for Sigma,” the company said.
Metals giant Fortescue is considering a partial listing on the Hong Kong exchange, according to a new report in the Australian Financial Review.
The report claims Fortescue chief executive Andrew Forrest has met with Hong Kong officials last week to talk about such a move.
“We will look at all of the options,” Forrest is reported as saying when questioned about the potential move.
The development comes after mining giant Clive Palmer delayed a float of his Resourcehouse company in Hong Kong.
Wesfarmers chairman Bob Every has defended the company’s discounts to The Australian, saying the decision to reduce prices for bread and milk were part of an overall plan to restore consumer confidence.
“It’s certainly not our intent to damage the supply chain,” Every said. “We want to work with the supply chain.”
“It has to be put in the context of the turnaround we are undertaking at Coles, where the company had lost the trust of the customer so there has been a major focus on the customer and this is all part of the value offer.”
Earths explorer Lynas’ multi-million agreement to sub-lease assets to explorer Forge Resources has been given the go-ahead by investment and advisory company Grant Samuel.
Lynas said in a statement Grant Samuel has said the deal is fair and reasonable, giving Forge the ability to sub-lease the Crown Rare Metals and Swan Phosphate deposits.
As part of the deal, Lynas will receive royalty payments.
New data from the American Commerce Department has found the US economy grew more quickly than first through during the fourth quarter of 2010.
The report found GDP rose at an annual rate of 3.1%, revised up from 2.8%. Economists have said spikes in petrol prices are to blame for more recent setbacks on consumer spending.
However, some say the impact may not last for very long. HIS Global Insight chief economist Nariman Behravesh told Reuters that any weakness is likely to be temporary.
“Assuming that oil prices stabilise and fall a little and that Japanese reconstruction and recovery will begin in the next few months, this softness in growth is likely to be short-lived,” he said.
Treasury secretary Timothy Geithner commented over the weekend that he does not expect the Japanese earthquake to affect the US economy in the long-term.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
