The Australian market closed higher after a strong afternoon session. The materials sector saw gains while banks were mixed and industrials closed in the red.
Reserve Bank Deputy Governor Ric Battellino said today that Australia can look forward to years ahead of economic growth built on booming resource investment, rapid population growth and rising household incomes. The upbeat comments fuelled speculation that interest rates will be increased at the next RBA meeting.
The S&P/ASX 200 Index closed 37 points higher at 4,722 while on the futures market, the SPI200’s up 31.
In economic news out today was the ABS saying construction work in the third quarter rose 2.2% compared to the previous quarter.
The Department of Employment and Workplace Relations says its index of skilled job vacancies increased 4.3% in November.
To company news around this afternoon: Worley Parsons (ASX:WOR) announced that its joint venture company has been awarded a $950 million, 5 year contact in the U.S. The contact is for maintenance and construction services at coal-fired plants and hydroelectric power facilities located in Tennessee, Kentucky and Alabama and Worley Parsons shares closed flat at $27.00.
The Australian Competition and Consumer Commission will oppose Gunns’ (ASX:GNS) proposed takeover of Elders’ ITC timber processing division on the grounds that it would lessen competition. The ACCC’s chairman Graeme Samuel said that ITC Timber’s 50% stake in SmartFibre was of particular concern saying that Tasmanian farmers and plantation owners would face lower prices for their timber. Gunns shares closed steady at $0.96.
Also making news: Cash Converters International (ASX:CCV) has increased its profit guidance after strong sales in the first four months. The second hand retailer said it now expects profit this financial year to be between $20.5 and $21 million, up from the previously forecast $18 million to $18.5 million.
Regional Express Holdings (ASX:REX) reported that first quarter net profit fell by 23 per cent compared to the same period last year and said that it isn’t able to provide a profit outlook for this year because of the volatile economic outlook, passenger demand, exchange rate and fuel prices but says there are signs of a recovery in the airline sector.
Taking a look at some of the stories covered in our earlier reports: Gaming company Aristocrat Leisure Ltd (ASX:ALL) says it trying to reduce the amount of damages it has to pay bondholders in a US convertible bond case.
GrainCorp Ltd (ASX:GNC) has recorded a profit of $63.2 million for the year to September 30 compared to a loss of $19.94 million the year before.
In the best and worst performers: The only sector recording gains was the Telecommunications index, which was up 26 points to 1,153. The worst performing by percentage points was the Industrials index; which lost 29 points to 3,787.
The best performing stock in the S&P/ ASX200 was Riversdale Mining and shares rose 11.89 per cent to $6.40. Shares in Cochlear and Aquila Resources also improved.
The worst performing stock was Connecteast as shares lost 4.76% to $0.40. Viterra and Spotless Group shares also closed lower today.
In commodities, gold is trading at $1,177.75 U.S an ounce and since this morning light crude is up 21 cents at $76.23 U.S a barrel.