Kathmandu shares in strong debut on ASX: Economy Roundup

Shares in camping and outdoor wear retailer Kathmandu have opened at $1.775 today on their first day on the Australian Securities Exchange, above the company’s price of $1.70.

The development comes after analysts criticised the company’s institutional bookbuild earlier this week, which saw the company’s share price set at the lower end of its indicative price range.

The rise the company’s share price also comes after department store Myer’s IPO was labelled a disappointment, with shares falling 8% after its first sessions. Shares are still yet to rise above its offer price of $4.10.

Kathmandu, which has a market value of about $340 million, expects sales of $197 million for the current financial year, with EBITDA of $47 million.

Meanwhile, the Australian Securities and Investment Commission has said it will now hold credit rating agencies accountable for ratings on investment products as part of new reforms.

Rating agencies will be required from next year to hold Australian Financial Services license, and will be required to have adequate resources to manage the scale of their businesses and ensure credit analysts are properly trained.

Also, firms will not be permitted to raise ratings for anti-competitive purposes, and will now be required to give consent to their ratings being used.

Shares lower after losses on Wall Street

The Australian sharemarket has opened lower today following disappointing results in the US, after retail giant Wal-Mart posted a hesitant outlook for the next year ahead.

The benchmark S&P/ASX200 index was down 51.8 points or 1.09% to 4696.1 at 12:00 AEST. The Australian dollar moved slightly lower to US92c.

ANZ shares lost 1.2% to $22.66, while NAB lost 3.7% to $28.98. Commonwealth Bank shares lost 0.5% to $54.32, while AMP lost 0.2% to $6.34.

Gaming machine manufacturer Aristocrat Leisure has nominated two new directors to its board, although both are still subject to regulatory approval.

It said former International Game Technology chief operating officer Stephen Morrow, and CSR chairman Ian Blackburne have been nominated to board positions.

“These additions will further enhance the board’s strategic capabilities, and give us significant insights into the critical US market,” chairman David Simpson said in a statement.

GPT Group completes unwinding of hedges

Meanwhile, GPT Group has completed the unwinding of its $1.2 billion of excess offshore interest rate hedges at $152 million, assisted by the stronger value of the Australian dollar.

“We have now terminated our excess offshore interest rate and income hedges, removing the potential for substantial mark to market volatility within these instruments and significantly reducing our interest cost,” chief financial officer Michael O’Brien said in a statement.

“The strength of the Australian dollar against the US dollar and the Euro provided us with the opportunity to unwind the positions at a substantially lower cost than if we had unwound earlier in the year.”

Becton Property Group has said it is considering a number of plans to recapitalise its three business units, but says no decision has been made.

The company has said in a market update that it is “undertaking a number of initiatives” during 2010 in order to help strength the company, including a number of capital management and “business simplification” plans.

In the US, Wall Street stocks fell after retail giant Wal-Mart gave a less optimistic outlook for the year ahead. While the company recorded higher-than-expected quarterly profit, its estimates for the holiday period were lower than Wall Street expectations.

Additionally, the Labour Department announced that the number of workers filing for jobless claims has fallen for a second consecutive week, with the four-week moving average now at year-low.

The Dow Jones Industrial Average fell 93.79 points or 0.91% to 10,197.47.