The Aussie market managed to gain again today as energy and commodity stocks were boosted by news of a giant takeover by Exxon Mobil of XTO Energy in the U.S. for about $30 billion.
The S&P/ASX 200 Index finished 19 points higher at 4,674 while on the futures market, the SPI200’s down 11.
The economic news, the Australian Bureau of Statistics said Australian government spending and investment rose by 2 percent in the third quarter to $69.6 billion. The result was slightly less than economists were expecting.
To company news around this afternoon: CSR (ASX:CSR) is planning to demerge its sugar and renewable energy business from its building products operations and name it Sucrogen. CSR said the name Sucrogen, a combination of sucrose and generation, will replace the CSR brand on all of its household sugar products. The name has also been chosen to capture the company’s commitment to generation ofrenewable energy, ethanol and electricity cogeneration. Shareholders are due to vote on the demerger proposal in February. CSR shares finished 3.94% higher at $1.715.
BHP Billiton (ASX:BHP) and Rio Tinto (ASX:RIO) shares were helped by two analysts raising their outlook for iron ore prices. Yesterday JPMorgan raised its forecast to 20 percent growth and today Macquarie Group forecasts annual contract prices to rise 30 percent because of a surge in demand from China. Both companies had their ratings raised yesterday by JPMorgan. BHP shares gained 1.11% to $41.10 today while Rio shares closed 0.48% firmer at $70.85.
Also making news: Ausenco (ASX:AAX) said it has secured $25 million in engineering work for the development of a $1 billion coal terminal for Colombia’s third largest coal exporter.
Apollo Gas (ASX:AZO) today debuted on the Australian Stock Exchange and its share price doubled. The petroleum explorer’s initial public offer price was 20 cents and shares finished at 40 cents.
Taking a look at some of the stories covered in our earlier reports: Amcor (ASX:AMC) says it has received European Commission approval for its acquisition of the European businesses of Alcan Packaging that it is purchasing from Rio Tinto.
Funds manager Perpetual (ASX:PPT) has expanded its private wealth capabilities by acquiring advisory firm Fordham Group.
In the best and worst performers: The best performing sector today was the Energy index, which was up 149 points to 15,368. The worst performing by percentage points was the Telecommunications index; which lost 13 points to 1,177.
The best performing stock in the S&P/ ASX200 was Platinum Australia and shares gained 7.95% to $0.95. Shares in Paladin Energy and Paperlinx also improved.
The worst performing stock was Boart Longyear and shares lost 5.56% to $0.34. Murchison Metals and Medusa Mining shares also closed lower today.
In commodities, gold is trading at $1,125.60 U.S an ounce and since this morning light crude is up 31 cents at $69.82 U.S a barrel.
