The local share market has closed the session higher this afternoon, after a roller coaster day of trading that had the market struggling to hold on to earlier strong gains.
The S&P/ASX 200 Index finished 10 points higher at 4,863, while on the futures market, the SPI200 is up 2.
In economic news: Manufacturing activity grew at its fastest pace in two years this quarter, an industry survey shows. The Westpac-Australian Chamber of Commerce and Industry survey of industrial trends shows manufacturing activity rose 6.3 points to a read of 56.7 for the first quarter of 2010. The reading is well above the 50 level that separates expansion from contraction, and is the highest since the last quarter of 2007.
To company news around this afternoon: Outgoing BHP Billiton Ltd (ASX:BHP) chairman Don Argus says the mining giant is cautious about the state of the global economy and has warned governments to be careful about tax changes and winding back stimulus packages. In his final letter to shareholders before retiring on March 30, Mr Argus says it is vital that any policy or tax changes made by governments are easy to understand and do not hinder investment or growth potential in economies. There is mounting speculation that the Rudd government’s Henry tax review will recommend scrapping state-based royalties on mining projects and replacing them with a 40% resource rent tax. The tax change would raise billions more in revenue than the current system and could reportedly cost BHP and Rio Tinto a combined $5.42 billion in earnings per year. Mr Argus says the company plans to spend about $20 billion on capital expenditure next year. Shares in BHP Billiton fell 0.32% to $43.16.
Internet service provider iiNet Ltd (ASX:IIN) says it is confident of successfully defending an appeal in its court battle over illegal downloading and plans to emerge in an even stronger position. The company today filed a notice of contention in the Federal Court seeking to reaffirm the court’s finding in February that iiNet could not be held responsible for what its customers did online. A consortium of 34 film studios that took the original action, including Village Roadshow and News Ltd’s Twentieth Century Fox, are now appealing the ruling. iiNet CEO Michael Malone says the company has filed the notice of contention to secure and strengthen its original judgement. Shares in iiNet are steady at $2.45.
Also making news: Leighton Holdings Ltd (ASX:LEI) has appointed a new managing director of Leighton Contractors to replace Peter McMorrow who is retiring. Craig Laslett, who is currently Leighton Contractors’ executive general manager of resources, will take over the role on September 2.
Shares in junior explorers Resource Generation Ltd (ASX:RES) and Minemakers Ltd (ASX:MAK) rose this afternoon on news they are planning secondary listings in South Africa and Namibia respectively.
Corporate Express Australia Ltd (ASX:CXP) has agreed to a buy-out by its majority shareholder in a deal that values the office products’ supplier at $1 billion. Staples, the world’s largest office products company, has offered $5.60 a share for the remaining 41.4% stake in Corporate Express that it doesn’t already own.
And Rio Tinto Ltd (ASX:RIO) executive Stern Hu and his three Chinese colleagues are expected to go on trial in Shanghai next week. The trial will be conducted in a closed session and Australian consular officials will not be allowed to attend.
In the best and worst performers: The best performing sector at close was the Real Estate Investment Trust index, up 13 points at 868. Among the worst performing sectors was the Health Care index; falling 79 points to 8,893.
The best performing stock in the S&P/ ASX200 was Elders, shares rose 9.09% to $1.38. Shares in Independence Group and Mermaid Marine also closed higher today.
And it was a tie between Sundance Resources and ConnectEast Group for the worst performing stock, shares in both were down 3.33%, with Sundance closing at $0.145 and ConnectEast at $0.435. While shares in Transfield Services also closed lower today.
In commodities, gold is trading at $1,123.15 U.S an ounce and light crude is down $0.55 to $82.38 U.S a barrel.
