A positive lead from Wall St overnight and flurry of merger and acquisition activity in the resource sector helped to lift the market today with Aussie stocks closing firmly in the black. News of a plan to rescue Greece from its debt woes also added to a positive day for the market.
The benchmark index pushed through the 5,000 barrier at one point today, the first time since the onslaught of the global financial crisis. The S&P/ASX 200 Index closed the day 36 points higher at 4,984. While on the futures market, the SPI200’s up 37.
In economic news: The RBA released figures showing that the total value of credit and charge card transactions, including advances, increased by 6.05% in February.
To company news around this afternoon: Property investor GPT Group (ASX:GPT) is to raise $400 million via a capital raising through the company’s unlisted GPT Wholesale Office Fund. GPT says the proceeds will be used to retire debt and strengthen the company’s balance sheet. CEO Michael Cameron says the company sees it as a good time to raise equity given current stabilization of real estate pricing and the demand from investors for quality Australian office assets. As at March 31, GPT says the fund had gearing of around 22% and over $250 million in undrawn facilities. Shares in GPT Group closed flat at $0.58.
The fight for control of Aussie coal miner Macarthur Coal Ltd (ASX:MCC) continues with the miner postponing today’s shareholder meeting to vote on the takeover of fellow coal mine Gloucester Coal Ltd (ASX:GCL) and interest in the Middlemount joint venture from Noble Group, until next Monday the 19th. Macarthur is also seeking clarification from Noble Group in relation to a media release that said major shareholders CITIC Group, ArcelorMittal and POSCO would all vote in favour of the miner’s takeover of Gloucester. Meanwhile Gloucester Coal reaffirmed its support for Macarthur’s proposed takeover. In relation to ongoing speculation that Swiss giant Xstrata is to make a bid for the miner, Macarthur says as yet it has received nothing. The miner says it intends to ask New Hope and Peabody Energy if there is any further information which may be material to Macarthur shareholders decision on whether or not to vote in favour of the Gloucester proposal. Shares in Macarthur Coal closed 6.24% higher at $16.52.
Also making news: Internet service provider iiNet Ltd (ASX:IIN) has announced a partnership with Play FetchTV which will allow the company to deliver digital TV channels directly to customers via a broadband connection. This will mean that customers will be able to get their internet, telephone and television services from the one provider.
Shares in drug maker Sigma Pharmaceuticals Ltd (ASX:SIP) soared today after speculation surfaced that private equity firms Archer Capital and Ironbridge were reportedly in talks to buy the company.
Ausbil Dexia and Perennial Value, two of the Seven Network Ltd’s (ASX:SEV) largest shareholders have indicated they will vote in favour of the planned merger of the television network and heavy equipment firm WesTrac.
And Aussie gold miner Lihir Gold (ASX:LGL) says Newcrest Mining Ltd (ASX:NCM) will need to substantially increase its offer for the company for it be successful.
In the best and worst performers: Majority of sectors closed in positive territory today, however the best performer was the Materials index, up 167 points at 13,315. One of the sectors with the smallest gains today was the Consumer Staples index; up 9 points at 7,881.
The best performing stock in the S&P/ ASX200 was Sigma Pharmaceuticals, shares rose 10.64% to $0.52, while shares in Ausenco and Atlas Iron closed higher.
The worst performing stock was Nufarm, shares fell 4.96% to $7.86. Nufarm today said that Sumitomo’s offer for the company has received acceptances of 81.45%. Shares in Primary Health Care and Newcrest Mining also closed weaker today.
In commodities, gold is trading at $1,165.10 U.S an ounce and light crude is up $0.31 to $85.23 U.S a barrel.
