It’s been a bumper start to the month of December for the local share market, with the index closing 1.93 per cent higher. BHP did most of the heavy lifting today and investors shrugged off concerns about compensation claims relating to the Samarco mine collapse. Both Dick Smith and Slater and Gordon shares also rallied hard after a couple of horror trading days.
The S&P/ASX 200 index closed 100 points higher to finish at 5,266.
The value of trades was $6.2 billion on volume of 1.08 billion shares at the close of trade. The top three stocks by value were Westpac Banking Corporation
(ASX:WBC), Commonwealth Bank of Australia
(ASX:CBA) and ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is 84 points higher.
Economic news
The Reserve Bank of Australia has once again kept interest rates on hold at a record low of two per cent, however hasn’t ruled out another cut in the new year. Inflation is yet to reach the RBA’s target band of 2 to 3 per cent. Also in economic news, latest figures from the Australian Bureau of Statistics have shown that building approvals have increased 3.9 per cent for the month of October to 19,652 dwellings. This figure beat expectations with many analysts predicting a fall of 2.5 per cent.
Company news AGL Energy Limited
(ASX:AGL) says it has entered into a 15 year Gas Storage Services Agreement for the provision of gas storage services from the Iona Gas Storage Facility. The agreement allows AGL to optimize its gas supplies by storing gas during low demand periods for re-use during peak demand periods. The agreement will result in more than a 30 per cent reduction in AGL’s costs to manage seasonal demand. Shares in AGL closed 1.69 per cent higher at $16.83.
Navitas Limited
(ASX:NVT) has appointed former iiNet CEO David Buckingham as Chief Financial Officer.
Decmil Group Limited
(ASX:DCG) has acquired telecommunications services business SC Holdings Pty Ltd for an upfront consideration of $14 million.
Freedom Foods Group Limited
(ASX:FNP) has completed the acquisition of cereal and snack producer Popina Foods.
Galaxy Resources Limited
(ASX:GXY) has announced it has repaid all outstanding historical debt from the proceeds of a new 3 year debt facility.
Best and worst performers
The best performing sector was Staples adding 2.8 per cent to close at 8,433. The sector with the least gains was Utilities, adding 0.6 per cent to close at 6,843 points.
The best performing stock in the S&P/ASX 200 was Slater and Gordon, rising 28.11 per cent to close at $1.19. Shares in Dick Smith and Metcash also closed higher.
The worst performing stock was Sigma Pharmaceuticals, dropping 2.87 per cent to close at 84 cents. Shares in Transpacific Industries and JB Hi-Fi also closed lower.
IPOs 8IP Emerging Companies Limited
(ASX:8EC) started trading today. The investment company listed with an issue price of $1.00, opened at $1.00 and a closed at $1.00.
Commodities and the dollar
Gold is trading at $US1,071 an ounce.
Light crude is down 6 cents at $US41.65 a barrel.
The Australian dollar is buying $US72.62 US cents.
