The Australian share market has closed the session higher today amid light trading volumes ahead of the Christmas holiday period, with stronger commodity prices boosting the miners, and gains in the major banks after settling a tax dispute with New Zealand authorities.
Wall St provided a positive lead for the local market this morning, overnight US stocks rose as strength in the technology sector and commodities offset a report from the US Commerce Department that showed new home sales dropped by 11% in November to an annual rate of 355,000 units. Economists had expected a rise to 438,000 units.
The S&P/ASX 200 Index finished 52 points higher at 4,791 and is up 139 points on the short trading week while on the futures market, the SPI200’s up 74.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index gained 138 points on the short trading week this week. The S&P500 Index rose 18, the NASDAQ added 58 points and the 100 index advanced 45 points.
To company news around this afternoon: Explorer of coal resources Linc Energy Ltd (ASX:LNC) has increased its coal lease holdings in the US. Linc’s subsidiaries in Wyoming and Montana in the US, have signed agreements with Wyoming based GasTech and its related company Wold Oil Properties, to acquire 81,268 acres of additional coal lease areas in Wyoming, Montana and North Dakota. Linc will pay GasTech US$20 million worth of its shares, paid in instalments of US$5 million each. Shares in Linc Energy closed 0.33 per cent higher at $1.51. Trinity Ltd (ASX:TCQ) says it has commenced action in the Supreme Court of Queensland against Don O’Rorke as guarantor and his associated entity, Doroshin as trustee for outstanding contractual amounts due and owing to Trinity in relation to a development project known as the Jindalee Project. Trinity sold the Jindalee project for $7.15 million in May 2009, and says under the contractual arrangement Doroshin as trustee is obliged to pay Trinity Development Group 25% of the losses. Trinity’s claim is for $1.189 million plus GST. Shares in Trinity closed 7.69 per cent stronger at $0.14.
Re-capping some of the headlines earlier today: The Federal Court has rejected claims made by the Australian Securities and Investments commission against Fortescue Metals Group (ASX:FMG). ASIC had claimed that chief executive Andrew Forrest and Fortescue misled the market by over claiming it had signed agreements with Chinese companies in 2004 to build and finance its Pilbara iron ore projects.
And in a rare move of unity, Australia’s major four banks made a joint statement yesterday and said they had collectively settled a dispute with the New Zealand tax authorities and will pay $NZ2.2 billion between them to end all claims against them.
Taking a look now at some of the big stories this week: Macarthur Coal (ASX:MCC) made an all share bid for smaller rival Gloucester Coal (ASX:GCL) valuing Gloucester Coal at $591.3 million. The deal would create Australia's biggest independent coal miner.
Qantas Airways Ltd (ASX:QAN) says it expects to report a profit after tax of between $50 million and $150 million for the first half of the 2010 financial year.
And Lend Lease Group (ASX:LLC) has been selected by the Barangaroo Delivery Authority on behalf of the NSW Government to develop Stage 1 of Barangaroo.
In the best and worst performers: The best performing sector at close was the Financials Excluding Real Estate Investment Trust index, which was up 96 points to 5,517. At the other end the worst performing sector at close today was the Real Estate Investment Trust index closed flat at 875.
The best performing stock in the S&P/ ASX200 was Murchison Metals shares gained 6.25% to $2.38. Shares in Gunns and Extract Resources also closed higher today.
The worst performing stock was Dexus Property Group and shares lost 2.38% to $0.82. IOOF Holdings and Abacus Property Group shares also closed lower today.
The Aussie dollar is currently buying 88.27 U.S cents and is up almost a cent on the week. Gold is trading at $1,097.20 U.S an ounce and is down $14.90 on the week.
Finally, oil is up $0.76 at $77.43 U.S a barrel.
