Australian Market Report of March 30: A Slowdown after Weeks of Rallies

ABN Newswire - US stocks fell on Friday dragged by financial firms. Commodities producers also weighed down the market as oil and metal prices were lower. But on the week Dow index still surged 6.8%.

The Australian share closed slightly higher lifted by miners. The benchmark S&P/ASX200 index ended the day up 0.7%, or 25.7 points, at 3672.3, while the broader All Ordinaries index rose 0.8%, or 29.3 points, at 3615.6. For the week, the ASX200 added 6% and the All Ordinaries rose 6.2%.

Key Economic Facts and Figures

The Housing Industry Association has released new home sales data, which grew by 3.9% in February, following an 8.3% increase in December. House sales gained 4.7% in February while pre-contract sales of apartments and home units dropped 3.4% over the same period.

Today the quarterly Rabobank rural confidence survey is also published.

M&A News

The Australian government announced on Friday that it would not allow Chinese state-owned Minmetals to conduct the A$2.6 billion takeover of OZ Minerals (ASX:OZL) if it included the Prominent Hill copper-gold mine, OZ Minerals' most valuable asset. China Minmetals has revised its proposal to acquire OZ Minerals last night, excluding the Prominent Hill mine, but the bid remains subject to Foreign Investment Review Board approval.

Important Corporate News

Incitec Pivot (ASX:IPL) has established a facility to fund its working capital requirements for fiscal year 2009 and 2010. The funds available will average A$390 million over the term to October 2010. The company expects the 2009 forecast earnings (net profit before tax) to be A$450 million.

KPMG warned that a material uncertainty exists in funds manager and property developer City Pacific (ASX:CIY). The auditor casts doubts about the group's ability to continue as a going concern, and therefore whether the group is able to realise its assets at the amounts recorded.

From today National Australia Bank (ASX:NAB) will cut its term deposit rates while Commonwealth Bank (ASX:CBA) has also cut its rates in recent weeks to maintain or even improve their profit margins.

Telecommunications company Telstra (ASX:TLS) announced it will maintain its half-year interim dividend of A$0.14 a fully franked share, claiming it would conserve cash by pursuing further cost cuts.

Commonwealth Bank (ASX:CBA) says Bankwest will cut 400 jobs from its workforce due to the economic downturn. About 250 roles on the west coast of Australia and 150 on the east coast will be made redundant this year. Commonwealth bank has broken its promise there would be no lay-offs after acquiring Bankwest in October.

Biota Holdings Limited (ASX:BTA) today announced that Daiichi Sankyo (TYO:4568), the co-owner of the long acting neuraminidase inhibitor (LANI) CS-8958, has signed a contract to manufacture and market the product in Japan, pending the successful completion of the pivotal Phase III clinical studies and on obtaining registration approval.

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