Australian stocks managed to shrug off losses and close mildly positive. Metal stocks were the highlight of the day as gold companies rallied on record prices. Retailers declined on lower retail sales data for September.
The S&P/ASX 200 Index closed 9 points firmer at 4,540 while on the futures market, the SPI200’s up 4.
The economic news of the day was: The ABS reporting that building approvals rose 2.7% in September. And September retail sales fell 0.2%.
To company news around this afternoon: Woolworths (ASX:WOW) and its U.S. based joint venture partner Lowes look close to taking over Danks Holdings (ASX:DKS). Danks Holdings said today that 95.31 per cent of acceptances have been received from shareholders, clearing the way for it to be taken over by the joint venture company called Carboxy. Woolworths shares lost 0.82% to $27.90 today.
Bank of Queensland (ASX:BOQ) said it will become a competitor to the major lenders as it rapidly grows its business despite the challenging economic environment. The bank said as it released its annual report to shareholders that it expects to continue to grow profitably in all aspects of its business and ahead of competitors while maintaining pricing and credit disciplines. Bank of Queensland shares lost 2.83% to $11.35.
Also making news: National Australia Bank (ASX:NAB) said today it has scrapped plans to sell $500 million in bonds because of uncertainty about new regulatory changes proposed by the Australian Prudential and Regulatory Authority concerning the way banks define their liquid assets.
Transpacific Industries (ASX:TPI) said at its AGM this morning that it continues to win new business and that its solid waste division and commodity prices had improved. Transpacific said that its liquid waste division remained subdued and shares declined.
Taking a look at some of the stories covered in our earlier reports: Westpac Banking Corporation (ASX:WBC) reported a 10.7 per cent fall in full year net profit this morning but shares gained as the market saw increasing revenue and an improving outlook for the bank as it said bad debts had peaked.
Coca-Cola Amatil (ASX:CCL) shares gained as it said strong conditions had continued in the third quarter, and it was on track to meet its guidance of high single digit growth.
In the best and worst performers: The best performing sector at the close was the Materials index, up 92 points at 11,162 on higher gold and metal prices. The worst performing by percentage points was the Real Estate Investment Trust index; which lost 12 points to 855.
The best performing stock in the S&P/ ASX200 was Kingsgate Consolidated and shares rose 10.39 per cent to $8.39. Shares in St Barbara gained and West Australian Newspapers shares also improved as it said circulation of The West Australian newspaper is on the rise without discounting its price.
The worst performing stock was Nexus Energy as shares lost 6.25% to $0.30. Babcock & Brown Infrastructure and Paperlinx shares also closed lower today.
In commodities, gold is trading at $1,084.55 U.S an ounce and since this morning light crude is down 25 cents at $79.35 U.S a barrel.
