BRIEFS

PROPERTY

By InvestSMART · 31 Jul 2012

By InvestSMART ·
31 Jul 2012

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PROPERTY

New sales up

New home sales edged up for the third straight month in June following the Reserve Bank's most recent interest rate cut in the same month. The Housing Industry Association's new home sales report showed a 2.8 per cent rise in sales, driven by a 15.7 per cent surge in apartments and townhouses.

MINING

Flinders bid

Flinders Mines says it can now start developing its flagship $1.1 billion Pilbara iron ore project after a bid for the miner by a Russian steel maker fell through this month. Flinders announced recently that Magnitogorsk Iron & Steel Works OJSC had terminated its $554 million proposed takeover.

BANKS

HSBC lifts

HSBC Holdings, Europe's largest bank, says first-half profit has risen 10 per cent, lifted by gains on asset sales. Pre-tax profit rose to US$12.7 billion, the London-based bank said yesterday. "We have made substantial and encouraging progress in key areas, increasing revenues in faster-growing markets such as Asia and continue to reshape the organisation," chief executive Stuart Gulliver said.

BLACKROCK

Iron ore vow

One of the world's biggest and most important investors, BlackRock, has pledged its continuing support to iron ore stocks, despite the sector slumping badly in recent times. BlackRock is among the biggest stakeholders in BHP Billiton and Rio Tinto and the chairman of its World Mining Trust, Anthony Lea, said it would stick with iron ore despite recently reviewing how best to invest.

RETAIL

Centro trust

The remaining piece of the Centro class action has fallen into place with the issue of 86.7 million shares into the new Centro Retail Australia trust. The new securities form the compensation package that was part of the settlement of the Class Action True-up Securities with some investors before Centro aggregated its business in its rescue deal.

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Frequently Asked Questions about this Article…

What did the Housing Industry Association report say about new home sales in June?

The Housing Industry Association reported new home sales edged up for the third straight month in June, showing a 2.8% rise overall. The increase was driven largely by a 15.7% surge in apartment and townhouse sales.

Did the Reserve Bank interest rate cut affect new home sales?

The HIA’s June data showed new home sales rose following the Reserve Bank’s most recent interest rate cut in the same month. The report notes the uptick coincided with that policy move, with particular strength in apartments and townhouses.

What’s the latest on Flinders Mines and its Pilbara iron ore project?

Flinders Mines said it can now start developing its $1.1 billion Pilbara iron ore project after a proposed takeover by a Russian steel maker fell through. That clears a major obstacle to moving the project forward.

What happened to the proposed takeover of Flinders by Magnitogorsk Iron & Steel Works?

Magnitogorsk Iron & Steel Works OJSC terminated its proposed $554 million takeover of Flinders Mines, meaning the offer did not proceed and Flinders is free to advance its Pilbara project.

How did HSBC perform in the first half and what drove the profit increase?

HSBC Holdings reported a 10% rise in first-half pre-tax profit, up to US$12.7 billion. The bank said the improvement was lifted by gains on asset sales, along with increased revenues in faster-growing markets such as Asia.

What is BlackRock’s position on iron ore stocks and how does that involve BHP and Rio Tinto?

BlackRock has pledged continuing support for iron ore stocks despite recent sector weakness. The firm is a major stakeholder in miners such as BHP Billiton and Rio Tinto, and the chairman of its World Mining Trust, Anthony Lea, said BlackRock will stick with iron ore.

What was resolved in the Centro class action and what are the new Centro Retail Australia trust shares?

The remaining element of the Centro class action was finalised with the issue of 86.7 million shares into the new Centro Retail Australia trust. Those new securities form part of the compensation package that was agreed in the Class Action True-up Securities settlement when Centro aggregated its business as part of its rescue deal.

Why should everyday investors care about these housing, mining, banking and retail updates?

These updates provide snapshots across sectors that matter to investors: housing data can signal demand shifts after RBA policy moves; Flinders’ cleared Pilbara project and BlackRock’s support for iron ore show continued activity and institutional confidence in resources; HSBC’s profit boost highlights how asset sales and Asia exposure affect bank earnings; and the Centro settlement affects security holdings and compensation outcomes for some retail trust investors.