At the close of a shortened trading week, the Australian share market has closed slightly higher supported by gains in mining and energy stocks following heated takeover activity in the coal sector.
The S&P/ASX 200 Index finished 10 points higher at 4,948, up 40 points on the week, while on the futures market, the SPI200’s up 28.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index closed flat for the four trading days this week. The S&P500 Index gained 8, the NASDAQ rose 34 and the 100 index lifted 21 points.
In economic news: The Australian Industry Group/Housing Industry Association performance of construction index fell 4.1 points to a read of 48.7 in March. The drop places the index below the 50 mark separating expansion from contraction.
To company news around this afternoon: Biopharmaceutical company CSL Ltd (ASX:CSL) has maintained its guidance for net profit of between $970 million and $1.07 billion for the year. In its half-year report released today, the company says it is well positioned for the expected international growth for plasma-derived therapies with a broad portfolio underpinned by new product and market development activities. Chairman Elizabeth Alexander says subject to a number of key variables and using financial year 2008/2009 exchange rates, CSL continues to forecast a net profit of between $1.16 and $1.26 billion, a 14 to 24% growth in underlying operational profit, and the company anticipates a result in the upper end of this range. CSL shares closed 0.22% lower at $36.
A hot battle is playing out for control of Aussie coal miner Macarthur Coal Ltd (ASX:MCC) with the miner this afternoon rejecting a takeover bid by New Hope Corporation Ltd (ASX:NHC). The Macarthur board has unanimously decided that the offer of 2.7 New Hope shares for every one Macarthur share does not represent an adequate premium for control of the company. New Hope’s offer values the company at $3.71 billion and trumps a $3.56 billion revised offer made by US coal giant Peabody Energy. There are also rumours circulating that Swiss mining giant Xstrata Coal is poised to make an offer for Macarthur as well. At this stage Monday’s meeting to vote on a proposal to acquire fellow miner Gloucester Coal Ltd (ASX:GCL) and Noble Group’s interest in the Middlemount joint venture is to go ahead. Shares in Macarthur Coal closed 8.29% stronger at $15.55.
Also making news: Kerry Stokes move to merge the Seven Network Ltd (ASX:SEV) and mining and industrial equipment business WesTrac has received support from Mackenzie Cundill, who are reportedly to vote in favour of the deal at an investor meeting on April 20.
And financial services company ThinkSmart Ltd (ASX:TSM) has expanded its presence in Italy after signing a two year distribution agreement with Italian computer retailer Computer Discount.
In the best and worst performers: The best performing sector at close was the Energy index, up 160 points at 16,319. The worst performing sector was the Consumer Staples index; down 15 points to 7,871.
In the S&P/ ASX200 Macarthur Coal was the best performing today after a big week of takeover interest in the company, shares rallied - price as mentioned before. Meanwhile shares in Whitehaven Coal benefitted from the interest in Macarthur closing higher, with shares in Emeco Holdings also closing stronger today.
The worst performing stock was Macmahon Holdings, shares fell 3.53% to $0.82. The company today denied a takeover from Leighton Holdings but said it is likely to be awarded a $90 million contract with the government. Shares in Panoramic Resources and Pacific Brands also closed weaker today.
And finally, the Aussie dollar is trading at 92.86 US cents - and is up just under a cent on the week. In commodities, gold is trading at $1,155.10 U.S an ounce and is up $29.60 on the week, and light crude is $0.55 higher at $85.94 U.S cents a barrel.
