Here are the headlines from the S&P/ASX 200 (INDEXASX: XJO)(ASX: XJO) and Australian finance circles on Wednesday morning.
But first, here’s the need-to-know data points:
Australian Dollar ($A) (AUDUSD): 73.87 US cents
Dow Jones (DJI): down 0.5%
Oil (WTI): $US74.14 per barrel
Gold: $US1,253 per ounce
Australian Investing News
Making news in Australia, New Zealand-based software company Gentrack Group Ltd (ASX: GTK) announced a capital raising equivalent to NZ$90 million. Recently, Gentrack purchased UK-based analytics business, Evolve, for NZ$44.2 million and announced its intention to pay down the debt associated with the acquisition by issuing new shares.
“Proceeds raised through the Offer will be used to pay down bank debt, providing capacity to support future debt-funded acquisition and growth opportunities,” Gentrack said in an ASX announcement today.
Metcash Limited (ASX: MTS) released the offer document for its $125 million share buyback. Metcash is the owner of IGA, Foodworks, Mitre 10 and more. The supermarkets and hardware retailer recently announced its intention to buy back shares despite a fall in profit.
After the market’s close yesterday Sirtex Medical Limited (ASX: SRX) revealed that its proposed takeover by CDH Fund V, L.P. and China Grand Pharmaceutical and Healthcare Holdings Limited has received FIRB approval, clearing one of the regulatory hurdles for the deal to proceed. Earlier this year, Sirtex found itself the target of two would-be acquirers, one from California and another from China.
Services company WorleyParsons Limited (ASX: WOR) announced that it will incur a tax expense of $58.2 million following cuts to US taxes. Worleyparsons said the expense relates to, “the potential loss in future years of currently available deductions and to the impact on the Group’s US deferred tax assets.”
Worleyparsons expects to incur total charges of $78.2 million for its 2018 financial year.
Outside of the local share market, investors will be keeping close tabs on news of the trade war tension between China and the USA. Yesterday, Australia’s RBA left the official interest rate on hold at 1.5% but highlighted the uncertainty in international trade.
“One uncertainty regarding the global outlook stems from the direction of international trade policy in the United States,” RBA Governor Phillip Lowe said. “There have also been strains in a few emerging market economies, largely for country-specific reasons.”
Are you worried about the global economy? Consider this: Warren Buffett was a millionaire in his late 20’s but ‘only’ worth $300m at his 50th birthday. Now he is a $US84 billion investor.
That means he made 99% of his wealth after turning 50! How does a 50-year-old do that when the world seems to be falling apart? Download the free Aussie investing ebook, “What Buffett’s Investing Checklist Can Teach Aussie Investors“ when you join the free Rask Group Investor Club Newsletter. You’ll get insights into the 4 steps Buffett uses to pick his investments.
Click here to join The Rask Group’s Investor Club Newsletter and Download The Ebook!
