Australian stocks finished mildly higher today after wiping out some of the morning gains in afternoon trade. The financial sector closed marginally in front while energy shares were generally lower.
The S&P/ASX 200 Index closed 10 points higher at 4,739 while on the futures market, the SPI200’s up 6.
In economic news, the Australian Bureau of Statistics said that Australian wages growth slowed in the three months ending September 30 and rose just 0.7 per cent. The news could give weight to the argument against increasing interest rates again in December.
To company news around this afternoon: Insurance Australia Group (ASX:IAG) shares rose as they opened this morning on speculation that QBE Insurance (ASX:QBE) could make a takeover offer. The speculation started from a column in the Australian Financial Review that suggested the insurance giants could reignite takeover talks although the column did not name sources. In May last year QBE withdrew an $8.7 billion offer for IAG. Insurance Australia Group shares closed 2.3% higher at $4.01 and QBE Insurance shares finished 2.54% higher at $23.01.
JPMorgan Chase & Co said today that Rio Tinto (ASX:RIO) has less reason to enter into a joint venture with BHP Billiton for assets in the Pilbara than it did when it agreed to the deal 5 months ago because of the rebound in commodity prices. JPMorgan said there is industrial logic in the tie up but also said it looks like Rio is trying to get out of the deal. Both companies are expected to save more than $10 billion because of the joint venture and Rio Tinto shares lost 1.09% to $72.60 today.
Also making news: Arrow Energy (ASX:AOE) shares gained today on expectations that it will report positive drilling results at its annual meeting on Friday or in the next few weeks.
And AGL Energy (ASX:AGK) has lodged an expression of interest in buying up some of the power assets that are up for sale from the NSW government.
Taking a look at some of the stories covered in our earlier reports: National Australia Bank (ASX:NAB) has moved to bolster its investment advisory and private and corporate banking operations in Asia after buying Hong Kong-based Calibre Asset Management for an undisclosed purchase price.
AWB (ASX:AWB) said it expects to report an improved profit result in 2010, as it announced a 2009 net loss of $250.8 million today.
In the best and worst performers: The best performing sector at the close was the Real Estate Investment Trust index, up 13 points at 906. One of the worst performing by percentage points was the Healthcare index; which lost 80 points to 8,398.
The best performing stock in the S&P/ ASX200 was Linc Energy and shares rose 12.87 per cent to $1.71. Shares in Arrow Energy and Aquila Resources also improved.
The worst performing stock was ING Industrial Fund as shares lost 8.51% to $0.43. Minara Resources and Abacus Property Group shares also closed lower today.
In commodities, gold is trading at $1,138.60 U.S an ounce and since this morning light crude is up 30 cents at $79.44 U.S a barrel.
