Australian shares enjoyed a strong session. The energy and utilities sectors lead gains as higher copper and oil prices overnight supported resource stocks. The banks also had a good day.
The S&P/ASX 200 Index closed 70 points higher at 4,734 while on the futures market, the SPI200’s up 59.
The economic news of the day was the Department of Education, Employment and Workplace Relations saying skilled vacancies index rose 1.2 per cent in September. The result was the second monthly gain in a row but the index is 50.4 per cent lower than this time last year.
To company news around this afternoon: Lynas Corp’s (ASX:LYC) shares were placed in a trading halt today pending an announcement on a bid from China Non-Ferrous Metal Mining. The Australian government has until October to make a decision on the deal which would see the $400 million in Chinese funds being used to fund the development of what is considered the world's largest undeveloped deposit of rare earths. Lynas Corp shares last traded at $0.90.
Fairfax Media (ASX:FXJ) chairman Ron Walker said today he will not stand for re-election unless he has the support of shareholders. Mr Walker and deputy chairman Roger Corbett will meet with shareholders next week to discuss the issue after John and Nichalas Fairfax called for his departure saying ‘change is needed’. Fairfax Media shares are 4.63% higher at $1.695.
Also making news today: Rio Tinto (ASX:RIO) has given un upbeat outlook for the diamond industry as it cancelling its planned shut-down if its Diavik diamond mine in Canada. Rio Tinto said sales of rough diamonds improved significantly in the second and third quarters of 2009.
Explorer Southern Gold (ASX:SAU) shares jumped as it said indications are good for a large gold discovery at its prospect in South Australia.
Stories covered in our earlier reports include: AWB Ltd (ASX:AWB) is tapping the market to raise $459 million to refinance its debt. AWB also said it is in discussions to sell its AWB Geneva division to focus on broadening its services and insurance offering under its Landmark brand.
Property investor Valad Property (ASX:VPG) announced an equity raising to raise almost $60 million to pay off a 29.5 million pound deferred payment to the Scarborough Vendors Group.
Now to the best and worst performers: The best performing sector at close was the Energy index after the price of oil gained overnight, the index was up 393 points to 16,699. The only sector that closed in negative territory was the Telecommunications index; which fell just 2 points to 1,137.
The best performing stock in the S&P/ ASX200 was Aristocrat Leisure. Analysts said the stock was catching up on the recent rallies of its global peers shares jumped 8.98 per cent to $5.22. Infigen Energy and Envestra shares also gained.
The worst performing stock was Western Areas and shares fell 4.9 per cent to $4.66. Shares in Karoon Gas and iSoft Group also lost ground.
In commodities, gold is trading at $1,016.90 U.S an ounce and since this morning light crude oil is down 28 cents at $71.48 U.S a barrel.
