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Foster's, Paladin, Qantas, Telstra, Downer EDI: Australian Stock Preview
The following is a list of companies whose shares may rise or fall in Australia. This preview includes news announced after markets closed yesterday. All prices are from yesterday’s close unless otherwise stated.
The S&P/ASX 200 Index futures contract due in September fell 1.1 percent to 4,349 as of 6:58 a.m. in Sydney. The Bank of New York Australia ADR Index decreased 1.6 percent. The S&P/ASX 200 Index increased 0.2 percent to 4,412.70.
Mining shares: Copper futures for September delivery rose the most in five weeks, increasing 3 percent to $3.093 a pound in New York.
BHP Billiton (BHP AU), the world’s largest mining company, advanced 1.2 percent to A$38.75 in Sydney. Its American depositary receipts decreased 1.2 percent in New York trading. Rio Tinto Group (RIO AU), the world’s third-largest mining company, increased 2 percent to A$67.80 in Sydney.
BHP could spend $10 billion to $15 billion on a share buyback or a special dividend as higher prices for iron ore and coal boost profit, MF Global analysts said.
Oil companies: Crude oil for September delivery fell 1.3 percent to settle at $76.56 a barrel on the New York Mercantile Exchange.
Woodside Petroleum Ltd. (WPL AU), Australia’s second- largest oil and gas producer, decreased 1.7 percent to A$41.05. Rival Santos Ltd. (STO AU) dropped 0.9 percent to A$13.75.
Downer EDI Ltd. (DOW AU): The Australian engineering company may seek to raise as much as A$400 million to restore its credit rating when it releases earnings next month, the Australian Financial Review reported in its Street Talk column, citing an analyst at JPMorgan Chase & Co. Downer surged 5.6 percent to A$4.32.
Foster’s Group Ltd. (FGL AU): Australia’s largest brewer is targeting A$84 million in Australian wine earnings before interest and tax in 2011 after changing the name of the unit to Treasury Wine Estates, the Australian Financial Review reported, citing division head David Dearie. Foster’s fell 1.7 percent to A$5.84.
Paladin Energy Ltd. (PDN AU): Uranium supplies will exceed demand through 2012 and there is “limited upside” to prices for at least six months, London-based research company CRU said. Uranium explorer Paladin Energy decreased 1.1 percent to A$3.54.
Qantas Airways Ltd. (QAN AU): Australia’s biggest airline will buy seven new Q400 NextGen aircraft from Bombardier Aerospace valued at approximately $218 million based on the list price, the carrier said in an e-mailed statement. The stock increased 0.8 percent to A$2.40.
Telstra Corp. Ltd. (TLS AU): Australia’s largest telephone company will cut about 10 percent of its executive jobs as the company seeks to simplify its business. Telstra dropped 0.6 percent to A$3.22.
To contact the reporters for this story: Lisa Pham in Sydney at lpham14@bloomberg.net. Shani Raja in Sydney at sraja4@bloomberg.net.
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