Australian shares rallied strongly today after U.S. markets gained overnight on merger and acquisition news which boosted sentiment. Property and financial sectors lead gains locally.
The S&P/ASX 200 Index closed 76 points higher at 4,753 while on the futures market, the SPI200’s up 70.
To company news around this afternoon: Telstra (ASX:TLS) said today that it is negotiating with the federal government in order to separate its wholesale and retail businesses and said the interests of its shareholders is the telco’s priority. Chief executive David Thodey said the negotiations were being conducted with the government in a positive and constructive manner although he expressed disappointment that the government introduced this legislation at a time of change in the industry. Telstra shares finished 0.93% higher at $3.26 today.
Austar United Communications (ASX:AUN) said this afternoon that it expects to report a better second half because of new channels that it hopes will attract more customers. The pay TV group will offer 15 new channels as of November 15 and hopes to increase subscribers to 750,000 subscribers, up from 728,719 subscribers by the end of the year although chief executive John Porter said that market conditions remained challenging. Austar United Communications shares gained 2.09% at $1.22.
Also making news: Cazaly Resources (ASX:CAZ) has again lost a battle with Rio Tinto for control over the Rhodes Ridge iron ore project in Western Australia.
Western Plains Resources (ASX:WPG), which is currently in a dispute with the Defence Department over a potential joint venture in a sensitive military area with a Chinese company has extended the deadline for the deal until late January. The miner hopes that more time will allow it to assess the impact of the position taken by the Department of Defence and to engage in further discussions with Defence.
Some of the stories covered in earlier reports: Qantas (ASX:QAN) says group passenger numbers for August increased 6 per cent compared to the previous year.
ANZ Bank (ASX:ANZ) says it has officially opened its first rural bank in western China, making it the first Australian bank, and one of the first international banks, to enter China’s rural market.
In the best and worst performers: The best performing sector at close was the Real Estate Investment Trust index, up just 21 points to 951. All sectors gained today but the worst performing index by percentage points was the Utilities index; which gained 16 points to 4,178.
The best performing stock in the S&P/ ASX200 was Boart Longyear and shares jumped 8.47 per cent to $0.32. Shares in Karoon Gas Australia and Bank of Queensland also gained.
The worst performing stock was Panaust and shares fell 6.06 per cent to $0.465. Shares in Nufarm and Sundance Resources also lost ground.
In commodities, gold is trading at $992.10 U.S an ounce and since this morning light crude is up 1 cent at $66.85 U.S a barrel.
