Australian shares rallied again today, despite a dull session on Wall Street overnight. Gains were broad based although the banks and financial sector lead the market higher.
The S&P/ASX 200 Index closed 73 points higher at 4,769 while on the futures market, the SPI200’s up 55.
The economic news the ABS has released data showing a surprise increase in employment of 40,600 in September, taking the unemployment rate down to 5.7 per cent, another indication that the economy may be improving.
To company news around this afternoon: BHP Billiton (ASX:BHP) said today that it will take two weeks to determine the impact on production of a shutdown of a key shaft at its Olympic Dam mine. Copper, gold and uranium production at the South Australian mine could be affected and BHP said the effects are being analysed. BHP shares finished the session 0.93% higher at $38.16.
ANZ (ASX:ANZ) and NAB (ASX:NAB) said they will both increase the cost of its variable mortgage rate by a quarter of a percentage point as of Monday. The rate rise will bring ANZ’s variable rate to 6.06% and NABs will increase to 5.99%. ANZ shares gained 3.73% at $24.74 while NAB shares improved 4.43% to $31.35 on a good day for banks.
Also making news: Oz Minerals (ASX:OZL) says it will vigorously defend a class action filed against it over its debt levels and refinancing commitments in August last year. The case alleges Oz Minerals caused damage to investors in its shares by making misleading statements during the credit crunch.
Penrice Soda Holdings (ASX:PSH) has signed a multimillion dollar soda ash and limestone supply contract with Amcor, one of its largest customers, which will see it supply Amcor for a further 2 years, until 2014.
Taking a look at some of the stories covered in our earlier reports: Westpac Bank (ASX:WBC) has lost a case against the New Zealand tax office in the New Zealand High Court. The bank will now have to pay NZ$961 million in taxes and interest to the Inland Revenue Department.
U.S. based aluminium producer Alcoa Inc (ASX:AAI) has reported a profit of US$77 million for the third quarter, compared to a loss of US$454 million in the second quarter of 2009.
In the best and worst performers: The best performing sector at close was the Financial excluding the Real Estate Investment Trust index, up 171 points to 5,768 while the worst performing index by percentage points was the Telecommunications index; which lost 8 points to 1,121.
The best performing stock in the S&P/ ASX200 was Virgin Blue and shares jumped 8.51 per cent to $0.51. Shares in Nexus Energy and Seek also gained.
The worst performing stock was Sundance Resources and shares fell 6.67 per cent to $0.14. Shares in Elders and Connecteast also lost ground.
In commodities, gold is trading at $1,054.25 U.S an ounce and since this morning light crude is up 65 cents at $70.22 U.S a barrel.
