The Australian share market has closed the session slightly higher today, trimming gains after NAB came out of a trading halt and announced a bid for AXA Asia Pacific.
The Aussie dollar fell below 89 cents today on a strengthening US dollar on a brighter outlook for the US economy.
The S&P/ASX 200 Index finished 8 points higher at 4,670 while on the futures market, the SPI200’s up 12. To company news around this afternoon: Global miner Rio Tinto Ltd (ASX:RIO) is to deliver its first shipment of iron ore to India. According to a report in The Australian, the first shipment of ore from Rio’s Pilbara operations in Western Australia is to be delivered to Indian steel maker Esser Steel in December. The paper reports iron ore chief executive Sam Walsh saying that while this is only one shipment, it is very significant in terms of forging a relationship with Esser, and potentially opening doors. Mr Walsh says it is also potentially significant given Rio’s iron ore project Orissa, which the company expects will be a source to supply the growing Indian market. Rio Tinto shares closed 1.2 per cent stronger at $71.65.
National Australia Bank Ltd (ASX:NAB) CEO Cameron Clyne has told shareholders that the bank is in talks to sell its UK subsidiaries, Clydesdale and Yorkshire Banks. Mr Clyne says NAB has been approached by a number of players in the UK market with regards to industry consolidation in the UK. He says these approaches indicate that the bank’s Clydesdale and Yorkshire banks are high quality assets that are an attractive platform for participation in UK market developments. Mr Clyne told investors that the bank will explore and assess what value these approaches offer for NAB shareholders. Earlier today the bank trumped an offer by AMP, agreeing to terms with AXA Asia Pacific Holdings Ltd (ASX:AXA) for the bank to acquire AXA AP’s Australian and New Zealand businesses.NAB shares close 4.65 per cent lower at $26.65.
Also making news: Fast food chain Domino’s Pizza Enterprises Ltd (ASX:DMP) expects to announce net profit after tax for the half year to January 3, 2010 of around $8.3 million, an increase of 35% on the $6.3 million recorded in the first half of fiscal 2009.
Construction company Watpac Ltd (ASX:WTP) says it has secured around $200 million worth of work since successfully completing a capital raising in early September.
Media company Macquarie Media Group (ASX:MMG) says total revenue fell 3.2% in the year to November at Macquarie Southern Cross Media.
And Woodside Petroleum's Ltd (ASX:WPL) $13 billion Pluto project will be disrupted by a four-day strike by employees from contractor Total Marine Services. The workers have voted unanimously to begin the strike tomorrow and are demanding higher wages to provide services to the offshore oil and gas rigs.
In the best and worst performers: The best performing sector today was the Real Estate Investment Trust index, which was up 21 points at 869. The worst performing by percentage points was the Financials Excluding Real Estate Investment Trust index; which lost 40 points to 5,313.
The best performing stock in the S&P/ ASX200 was AXA Asia Pacific Holdings, shares gained 12.74% to $6.37. Shares in Carnarvon Petroleum and ING Industrial Fund also gained.
The worst performing stock was Gunns; shares lost 4.97% to $0.86. NAB and Billabong International shares also closed lower today.
In commodities, gold is trading at $1,132.30 U.S an ounce and light crude is down 25 cents at $72.41 U.S a barrel.
