Australian shares rallied today, driven higher by gold, energy and bank stocks. An upbeat production report from Rio Tinto also boosted the market.
The S&P/ASX 200 Index closed 45 points higher at 4,831 while on the futures market, the SPI200’s up 44.
In economic news, the Westpac Melbourne Institute said its consumer sentiment index increased 1.7 per cent to 121.4 points in October. The result was the highest read since June 2007 as Australian consumers show improving sentiment about the economy.
To company news around this afternoon: Rio Tinto (ASX:RIO) has reported a 12 per cent jump in third quarter production and has increased its full year production forecast by 5 – 7.5 per cent. The world's second-largest miner said it saw early signs of recovery in some key markets and that shipments to China have been maintained at a high level. Rio Tinto shares improved 1.7% to $63.25 today.
Ansell (ASX:ANN) said today at its annual general meeting that its first quarter results have come in higher than expected, boosted by favourable foreign exchange rates. The rubber products maker said it now expects earnings per share for the 2009/10 financial year to come in at the top end of its guidance range of 56 US cents to 62 US cents per share. Ansell shares finished the session 1.63% higher at $10.60.
Also making news: Transfield Services Infrastructure Fund (ASX:TSI) says it had a strong first quarter and is on track to achieve its full year financial forecasts as its power station and wind farm assets perform well.
Lihir Gold’s (ASX:LGL) chief executive Arthur Hood said today that Australia’s second largest gold miner may paying its first dividend since 2003 after production and gold prices have improved.
Taking a look at some of the stories covered in our earlier reports: Electronics retailer JB Hi-Fi (ASX:JBH) says it expects sales to grow by 20 per cent in fiscal 2009 to around $2.9 billion.
Commonwealth Bank (ASX:CBA) has today agreed to pay a $100,000 penalty after the Australian Securities and Investment Commission issued an infringement notice in relation to the Bank’s poor disclosure during a capital raising in December 2008.
In the best and worst performers: The best performing sector at close was the Energy index, up 262 points at 16,835 while the worst performing was the Telecommunications index; which lost 8 points at 1,098.
The best performing stock in the S&P/ ASX200 was Karoon Gas and shares jumped 10.42 per cent to $8.37. Shares in Sundance Resources and Lynas Corp also gained.
The worst performing stock was Energy World Corp and shares declined 5.17% to $0.55. Shares in Elders and iSoft also fell.
In commodities, gold is trading at $1068.80 U.S an ounce and since this morning light crude is up 86 cents at $75.01 U.S a barrel, boosting stocks in energy companies globally.
