The Australian market rallied today on broad based gains on hopes that Dubai’s debt problems will be contained. The market’s rebound from Friday’s sharp losses was the biggest one day gain since April and the banks were the standout performers today.
The major economic news was the TD Securities - Melbourne Institute’s monthly inflation gauge which rose 0.3% in November to an annual pace of 2.1%. The result brings the annual figure within the Reserve Bank’s target of 2 – 3% but economists are expecting the RBA to lift rates at its monthly meeting tomorrow.
The S&P/ASX 200 Index closed 129 points higher at 4,701 while on the futures market, the SPI200’s up 99.
To company news around this afternoon: Atlas Iron (ASX:AGO) has reconfirmed that it has access to Fortescue Metal's Port Hedland port facility for the shipping of iron ore from Atlas' Pardoo project June 2010. The announcement comes in response to rumours that the companies’ 2008 port sharing agreement had ceased. Atlas Iron also said the sharing arrangement will continue until the Utah Point public access berth is commissioned. Atlas Iron shares gained 2.71% to $1.895.
Leighton Holdings (ASX:LEI) announced that its joint venture company Thiess John Holland has reached a conditional agreement with ConnectEast Group (ASX:CEU) over the settlement of Supreme Court proceedings. The agreement will finalize the terms of payments relating to the early completion of EastLink in Melbourne to better reflect increased traffic projections and also resolves a number of other commercial issues. Leighton Holdings shares improved 2.67% at $35.70.
In other news, David Jones (ASX:DJS) chief executive Mark McInnes said at its annual general meeting today that cost management and increasing profit margins will ensure it is well positioned to leverage off sales growth in the next up-cycle. The retailer also said it was cautiously confident about the upcoming Christmas sales.
Metgasco (ASX:MEL) said it has found the first major gas deposit in NSW in more than a century at its Kingfisher E1 well, near Casino in northern NSW. The gas producer said further testing will be undertaken to determine the full potential of the field but shares rocketed higher on the news.
Some stories covered in our earlier reports include: The Australian reported that Telstra (ASX:TLS) chief executive David Thodey plans to shake-up the management structure of the telco giant.
Oz Minerals (ASX:OZL) and fellow miner IMX Resources Ltd (ASX:IXR) are forming a joint venture to explore and develop copper-gold projects on IMX’s Mt Woods tenements in South Australia. The company also said it is seeking to boost output at its Prominent Hill mine in South Australia next year.
In the best and worst performers: All the sectors closed ahead. The best performing sector was the Financials excluding the Real Estate Investment Trust index, which gained 230 points to 5,414 while the worst performing by percentage points was the Telecommunications index; which improved 9 points to 1,164.
The best performing stock in the S&P/ ASX200 was Aquila Resources as the company upgraded its iron ore estimates to 156 million tonnes from the estimate of 62.9 million tones given in 2007. The miner also said it will issue bonus shares to its shareholders and shares jumped 11.87 per cent to $10.93. Shares in SMS Management and Technology and Energy World Corporation shares also improved.
The worst performing stock was Platinum Asset Management and shares lost 6.05% to $4.81. Paperlinx and Hills Industries shares also closed lower today.
In commodities, gold is trading at $1,165.30 U.S an ounce and since this morning light crude is up 16 cents at $76.21 U.S a barrel.
