Australian stocks rallied ahead today, helped by gains in financials and materials stocks on higher metal prices. A number of small cap miners announcing mergers and acquisitions also boosted the sector.
The S&P/ASX 200 Index closed 69 points higher at 4,524 while on the futures market, the SPI200’s up 67.
The economic news of the day was: NAB’s monthly business survey which showed its measure of business confidence rose 8 points to a read of 18 points in August, its best result since 2003. The survey’s overall measure of business conditions added 3 points to 4 index points in August.
To company news around this afternoon: After selling his stake in Challenger Financial Services (ASX:CGF) last Friday, today James Packer resigned from the company’s board today, along with his closest adviser, Ashok Jacob. Challenger CEO Dominic Stevens said this afternoon that the pair’s commitment since 2003 has been significant to the development and growth of the company. Challenger Financial’s shares gained 2.53% to $3.24 today.
Junior iron ore developer United Mineral Corporation (ASX:UMC) has sold $27.2 million of new shares to state-owned China Railway Material Commercial Corp. The sale will fund the development of its Western Australian mine for production and is equivalent to a 11.4 per cent stake. The Perth-based explorer will also sell two million share options for 10 cents each to CRM, one of China's three biggest steel buyers and begin a non-renounceable rights issue for its existing shareholders. United Mineral Corporation’s shares closed 6.86% higher at $1.09.
Also making news today: Energy Metals (ASX:EME) said that Chinese state owned CGNPC Uranium Resources will acquire 70% of the Australian uranium explorer. The deal values Energy Metals at $119.46 million.
SingTel’s (ASX:SGT) subsidiary Optus has called for significant legislative change as part of the federal government's implementation of a national broadband network. The director of government and corporate affairs at Optus also said that Telstra’s behaviour will not change while industry regulation remains unchanged.
Taking a look at some of the stories covered in our earlier reports: Engineering company Downer EDI (ASX:DOW) says that its Mining division has secured over $500 million worth of new contracts and work under management.
AGL Energy (ASX:AGK) has been selected as the renewable energy supplier for South Australia’s new 100 gigalitre per annum desalination plant.
Now to the best and worst performers: The best performing sector at close was the Financials excluding the Real Estate Investment Trust index, up 120 points to 5,254; while the worst performing sector was the Real Estate Investment Trust index; down 6 points to 875.
The best performing stock in the S&P/ ASX200 was Macmahon Holdings and shares jumped 13.01 per cent to $0.695. Macquarie Media and Mt Gibson Iron were the next best performers.
The worst performing stock was Carnarvon Petroleum and shares fell 5.77 per cent to $0.49. Shares in Virgin Blue lost ground and ConnectEast Group shares declined as it is facing legal action over its EastLink toll road in Melbourne
In commodities, gold is trading at $1002.35 U.S an ounce and light crude is up 46 cents at $68.48 U.S a barrel.
