Australian shares improved today despite a dull session on Wall Street overnight as investors sat on the sidelines. The local banking sector has lead gains on a report that said that bad debt charges could come in less than previously expected. Materials stocks also improved on higher metal prices overnight.
The S&P/ASX 200 Index closed 46 points higher at 4,786 while on the futures market, the SPI200’s up 34.
In economic news of the day was NAB’s monthly business survey of over 400 firms which showed that business confidence fell 4 points in September and the measure of business conditions fell one point in the month.
To company news around this afternoon: Toll Holdings (ASX:TOL) announced that it will buy the remaining 64 per cent that it doesn’t already own of Japanese freight company Footwork Express for $95 million. The logistics company said the acquisition was an important expansion for Toll and that it will be funded from existing cash reserves and be earnings per share positive within 12 months. Toll Holdings shares finished the session 0.23% higher at $8.59.
Analysts are expecting Rio Tinto (ASX:RIO) to lift its 2009 production guidance by as much as 7 percent ahead of its third quarter production report being released tomorrow because of improving conditions for steel makers. In separate Rio news, the mining giant has decided not to list on the New Zealand stock exchange to reduce secondary listings and listing costs and to streamline reporting processes. Rio Tinto shares improved 1.45% to $62.19 today.
Also making news: Crown (ASX:CWN) shares improved today as the stock continued to be supported by Friday’s news that James Packer had paid $200 million to increase his holding in the casino company to about 40% sparking privitisation speculation.
In response to GUD Holdings (ASX:GUD) takeover offer, Breville Group has advised shareholders to take no action and should wait for the board's recommendation before deciding whether to accept GUD's offer.
Taking a look at some of the stories covered in our earlier reports: Fairfax Media (ASX:FXJ) has unanimously chosen Roger Corbett as chairman effective upon the retirement of the present chairman Ronald Walker.
Fortescue Metals’ (ASX:FMG) looks set to walk away from a $US6 billion debt deal with Chinese investors and instead fund a $US2 billion-plus expansion to iron ore production primarily from internal cash flow.
In the best and worst performers: The best performing sector at close was the Financial excluding the Real Estate Investment Trust index, up 86 points at 5,800 while the worst performing was the Consumer Staples index; which lost 38 points at 7,437.
The best performing stock in the S&P/ ASX200 was Platinum Australia and shares jumped 12.85 per cent to $1.01. Shares in Hills Industries and Elders also gained.
The worst performing stock was Babcock & Brown Infrastructure for the second day in a row after the company said yesterday that an independent expert concluded that it’s $1.8 billion recapitalisation is fair and reasonable with regard to shareholders and as it raised $625 million from institutional investors. Shares declined 6.52% today to $0.043. Shares in Transpacific lost ground. Macquarie Media shares fell after the company warned investors about a potential debt problem at a U.S. unit and said it was considering raising cash to pay down debt at its Macquarie Southern Cross Media subsidiary.
In commodities, gold is trading at $1056.25 U.S an ounce and since this morning light crude is down 28 cents at $72.99 U.S a barrel.
