The local share market has closed the session higher today, lifted by gains in resource stocks on stronger commodity prices, investors undeterred by the RBA’s decision to raise interest rates for the fifth time since October.
The S&P/ASX 200 Index finished 46 points higher at 4,954, approaching the 5000-point mark, while on the futures market, the SPI200’s up 38.
In economic news: The central bank has bumped up its cash rate by another 25 basis points to 4.25% and flagged further rises. RBA governor Glenn Stevens said it was appropriate for interest rates to be closer to average, considering growth is likely to be on trend and inflation close to target over the coming year.
And the Australian Chamber of Commerce and Industry’s (ACCI) survey of investor confidence shows business conditions continued to improve during the first quarter of 2010. The survey’s business conditions index rose 56.2 points from 54.9 points in the previous quarter – its highest level since the September quarter of 2008.
To company news around this afternoon: Property developer and investor GPT Group Ltd (ASX:GPT) has acquired a 50% stake in a Sydney office building for $333 million. The GPT Wholesale Office Fund has pre-purchased the property at 163 Castlereagh Street from Grocon Developments. GPT expects the deal to deliver an unlevered internal rate of return of about 11% with a capitalisation rate of 6.75%. Shares in GPT Group closed 0.85% stronger at $0.59.
Macarthur Coal Ltd (ASX:MCC) has advised its shareholders to take no action on a sweetened takeover bid by US coal giant Peabody Energy worth $3.6 billion. Shares in Macarthur entered a trading halt this morning pending an announcement about the increased offer, but have now resumed trading. Peabody has raised its bid for the company by 8% to $14 per share. Macarthur says it will also go ahead with a shareholder vote on April 12 on its plan to take over smaller rival Gloucester Coal. Shares in Macarthur Coal closed 1.55% higher at $15.10.
Also making news: Infigen Energy Ltd (ASX:IFN) has sold its French wind farm business to European renewable energy fund I LP for $118.41 million.
Gas producer Po Valley Energy Ltd (ASX:PVE) says the installation of its surface plant at Sillaro in Italy is on schedule for pre-commissioning start-up by April 12. Heavy snow had hampered progress on the final stages of the installation.
Rio Tinto Ltd (ASX:RIO) has reportedly followed BHP and Vale’s lead and asked its customers for quarterly iron ore pricing contracts rather than the traditional annual contracts.
And aluminium producer Alcoa Inc (ASX:AAI) is to increase its investment in a planned $10.8 billion aluminium project in Saudi Arabia after a number of the company’s partners in the consortium left.
In the best and worst performers: Almost all sectors closed the session in positive territory, but the best performing sector at close was the Energy index, up 283 points at 16,319. The only sector to close in the red was the Health Care index; down 14 points to 8,970.
The best performing stock in the S&P/ ASX200 was Lynas Corp, shares rose 9.09% to $0.54, while shares in Atlas Iron and Kingsgate Consolidated also closed higher today.
The worst performing stock was Sigma Pharmaceuticals, shares fell 8.89% to $0.41. Shares in Lihir Gold and Goodman Fielder also closed in the red today.
In commodities, gold is trading at $1,128.35 U.S an ounce and light crude is down $0.13 to $86.49 U.S a barrel.
