The local market had a positive lead from the Dow overnight which gained more than 1% but the Aussie market extended those gains and closed at a 10 month high. The major banks all rallied today with Commonwealth bank up 4.88%. The market didn’t like Telstra’s outlook which dragged on the telco sector.
The S&P/ASX 200 Index closed 93 points higher at 4,436 while on the futures market, the SPI200’s up 105.
To company news around this afternoon: Shares in iron ore miner Fortescue Metals (ASX:FMG) are in a trading halt ahead of an announcement the company will make on Monday about financing talks and commercial negotiations it has been in. Speculation continues about a Chinese investor and Fortescue Metals shares last traded at $4.45.
Biotech firm Biota (ASX:BTA) said it will return $20 million to shareholders from cash reserves it has accumulated from royalties on its Relenza flu drug. Biota’s shares closed 1.96% higher at $2.08 today.
Also making news: copper and gold miner Panaust (ASX:PNA) said it has managed to clear a major impediment in its funding talks with a Chinese investor to raise $216 million.
Bunnings Warehouse Property Trust (ASX:BWP) has reported a full year loss of $11.7 million but said underlying distributable profit came in at $40.5 million for the year.
Taking a look at some of the stories covered in our earlier reports: Telstra (ASX:TLS) reported that full year net profit improved 10.3% to $4.073 billion for the year to June 30. The telco also said it is now constructively engaged in talks with the government about its involvement in the national broadband network but expects its earnings growth to slow in the coming year.
Coca-Cola Amatil (ASX:CCL) announced a first half net profit that was 10.4% higher than the same period a year ago at $189.8 million.
Now to the best and worst performers: The best performing sector at close was the Financial excluding the Real Estate Investment Trust index, up 188 points to 5,117; while the worst performing sector at close was the Telecommunications index; down 14 points to 1,229.
The best performing stock in the S&P/ ASX200 was Virgin Blue on improving expectations for the economy. Shares gained 20.63% to $0.38, taking total gains from the past 3 days to over 30%. Shares in Valad Property and James Hardie also closed higher after Macquarie raised its rating on the stock to outperform, with a 12-month price target of $6.45.
The worst performing stock was Sunland Group after the property development group said James Packer had resigned from its board and shares fell 10.13 per cent to $0.71. Shares in West Australian Newspapers and Commonwealth Property Office also closed lower.
In commodities, gold is trading at $US953.15 an ounce and light crude is up 69 cents at $US70.85 a barrel.
