The local share market has closed a short trading week on a higher note today lifted by gains in the miners and commodity stocks following some merger and acquisition activity in the resource sector.
Today Lihir gold rejected a $9.2 billion takeover approach from fellow gold miner Newcrest Mining and coal miner Macarthur Coal yesterday rejected an approach from US giant Peabody Energy.
The S&P/ASX 200 Index finished 32 points higher at 4,908, up 11 points on the week, while on the futures market, the SPI200’s up 58.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index rose 6 points on the three trading days this week. The S&P500 Index added 3, the NASDAQ also gained 3 and the 100 index lifted 6 points.
To company news around this afternoon: Shipbuilder Austal Ltd (ASX:ASB) has secured a $4.4 million contract with Oman’s National Ferries Company for the maintenance of seven large high-speed craft. The initial contract is for one year with options for an additional four years. Managing director Bob Browning says this latest contract continues the growth of Austal’s vessel maintenance and technical management offering, important for establishing predictable, multi-year revenue streams. Shares in Austal closed 3.53% weaker at $2.46.
The Australian Competition and Consumer Commission says it intends to oppose the proposed acquisition of Goodman Fielder Ltd’s (ASX:GFF) edible fats and oils business by Cargill Australia. The $240 million sale to Cargill was first brought to light in December after the company opened the door for expressions of interest in May 2009. ACCC Chairman Graeme Samuel says the watchdog’s investigation found that the proposed acquisition would lead to a significant concentration of refining assets in Australia and remove one of only a small number of competing refiners that offer a wide range of fats and oils products. Goodman Fielder says it is disappointed with the ACCC’s decision and says it will now consider the implications of the issues raised. The company says if a resolution of these issues cannot be reached it will retain ownership of the business and proceed to develop and substantially restructure its operations to improve profitability. Shares in Goodman Fielder closed 3.15% higher at $1.475.
Also making news: Fitch ratings has upgraded Westpac Banking Corporation (ASX:WBC) long-term credit rating citing the bank’s strong performance through the global financial crisis, an improvement in the operating environment and the successful integration with St George Bank.
And Queensland based child care operator Early Learning Services Ltd (ASX:ELY) is to acquire 10 childcare centres, funded via the proceeds of a capital raising.
In the best and worst performers: The best performing sector at close was the Materials index, up 261 points at 13,067. The worst performing sector was the Health Care index; down 54 points to 8,984.
The best performing stock in the S&P/ ASX200 was Lihir Gold after the company rebuffed the advances of fellow gold miner Newcrest Mining today, shares rose 33.33% to $4.04, while shares in Paladin Energy and CSR also closed higher today.
The worst performing stock was ING Industrial Fund, shares fell 3.37% to $0.43. Shares in Sundance Resources and Sigma Pharmaceuticals also closed in the red today.
And finally, the Aussie dollar is trading at 91.65 US cents - and is up just over a cent on the week. In commodities, gold is trading at $1,112.75 U.S an ounce and is up $7.15 on the week, and light crude is $0.32 lower at $83.44 U.S cents a barrel.
