Australian shares rallied strongly today, helped by miners, banks and property stocks on a positive outlook for economic recovery which was helped by the Reserve Bank’s interest rate decision yesterday.
The S&P/ASX 200 Index closed 104 points higher at 4,696 while on the futures market, the SPI200’s up 114.
The economic news of the day was the ABS releasing data that showed a 0.6 per cent fall in Australian housing finance for August.
To company news around this afternoon: Fertiliser and explosives maker Incitec Pivot (ASX:IPL) shares jumped after comments overnight from a rival U.S. fertiliser maker, Mosaic, about a recovery in fertiliser demand. The remarks have sent fertilizer companies from all over the world higher although RBS Morgans warned that Incitec's North American earnings will be hurt by the surging Australian dollar. Incitec Pivot shares finished the session 7.92% higher at $2.86.
Westpac (ASX:WBC) shares are in a trading halt pending a court case decision in New Zealand over structured finance transactions between Westpac and the NZ Inland Revenue Department. Shares are expected to come out of the halt by 11am Thursday morning and Westpac said the outcome of case could still depend on a future high court ruling. Westpac shares last traded at $25.51.
Also making news: Iluka Resources (ASX:ILU) said today that second half sales are so far in line with the sales volumes forecast in August. Iluka also said that it has greater confidence in most of its markets.
ASX Ltd (ASX:ASX) said it will begin trading renewable energy paper from November this year and carbon credits from early 2010.
Some of the stories covered in our earlier reports include: Rio Tinto Ltd (ASX:RIO) and Canada’s Ivanhoe Mines have signed a long awaited agreement with the Government of Mongolia for the development of the Oyu Tolgoi copper-gold mine in Mongolia. Under the agreement the Mongolian Government will own 34 per cent of the project and will be paid US$250 million in advanced royalties and taxes.
Brambles (ASX:BXB) shares slid today , the day after it said it would spend $110 million to improve its pallets to win customers in the United States and also as it announced a new CEO.
In the best and worst performers: The best performing sector at close was the Materials index, up 428 points to 11,384 while the worst performing index by percentage points was the Healthcare index; which lost 10 points to 8,545.
The best performing stock in the S&P/ ASX200 was Straits Resources and shares jumped 9.77 per cent to $1.685. Shares Independence Group and Minara Resources in also gained.
The worst performing stock was Brambles as the market reacted to changes it is making to its U.S. market. Shares fell 5.5 per cent to $7.04. Shares in Singapore Telecommunications and Sundance Resources shares also lost ground.
In commodities, gold is trading at $1,040.45 U.S an ounce and since this morning light crude is up 68 cents at $71.56 U.S a barrel.
