The Australian share market has closed the session higher following a firm overnight lead from Wall Street and a strong performance from financial stocks such as National Australia Bank. The bank’s share price rallied as the market reacted favourably to the rejection of its bid to buy AXA Asia Pacific Holdings’ Australian assets.
The S&P/ASX 200 Index closed the day 11 points higher at 4,926, recouping some of Monday’s losses as fears faded over the fallout from fraud charges against Goldman Sachs. On the futures market, the SPI200’s up 14.
In economic news: Business sales grew at the fastest pace in eight months in March, according to an indicator that tracks spending on credit and debit cards, sparking hope for a revival in retail sales. The Commonwealth Bank’s measure of business sales rose 0.7% in March in trend terms, the third straight month of improvement and the highest reading in eight months. Spending was 6% higher than in March last year, the strongest reading in two years.
To company news around this afternoon: ANZ Banking Corporation Ltd (ASX:ANZ) has ruled itself out as a bidder for AXA Asia Pacific Holdings Ltd (ASX:AXA) after National Australia Bank Ltd’s (ASX:NAB) offer was knocked back by the competition regulator. The bank had been thought to be a potential new bidder for the insurer, but it today revealed it would not be joining the bidding race.ANZ has told The Australian Online its primary focus is integrating ING Australia and on organic growth in the wealth management market. News came last night that the Australian Competition and Consumer Commission has decided to oppose NAB’s bid for AXA Asia Pacific and clear AMP Ltd’s (ASX:AMP) rival offer. AMP is now expected to deliver a fresh bid for the insurer worth at least $6.43 a share through a cash and scrip component. ANZ Bank shares closed 0.2% stronger at $25.13.
Seven Network Ltd (ASX:SEV) shareholders have approved the controversial $3 billion merger of its media interests with heavy equipment firm WesTrac. The merger was approved by a majority of 88% of votes and roughly 70% of actual shareholders at a meeting in Sydney today. Kerry Stokes, who controls both Seven and WesTrac, will end up with a 68% stake in the combined group after the all-share merger. The new entity will be called Seven Group Holdings. Shares in Seven Network resumed trading after today’s meeting and closed 0.52% lower at $7.70.
Also making news: Fortescue Metals Group Ltd (ASX:FMG) says its iron ore shipments rose by 53% during the March quarter, compared to the previous corresponding period, and production remained steady at about 40 million tonnes per annum.
Diversified conglomerate Wesfarmers Ltd (ASX:WES) says it will restructure its industrial divisions. Wesfarmers Energy and Wesfarmers Chemicals and Fertilisers divisions will merge to form a new division to be called Wesfarmers Chemicals, Energy and Fertilisers.
Takeover target Macarthur Coal Ltd’s (ASX:MCC) plan to take over Gloucester Coal Ltd (ASX:MCC) has fallen over after Gloucester’s major shareholder Noble Group was unable to convince shareholders to vote in favour of the deal.
And Watpac Ltd’s (ASX:WTP) civil and mining division has been awarded two major contracts by Western Australian iron ore company BC Iron (ASX:BCI) worth in excess of $300 million.
In the best and worst performers: The best performing sector at close was the Telco Services index, up 12 points at 1,075. Among the worst performing sectors today was the Consumer Discretionary index; down 10 points at 1,642.
The best performing stock in the S&P/ ASX200 was Mineral Resources, shares rose 4.62% to $8.60, while shares in Centennial Coal and Mt Gibson Iron also closed higher.
The worst performing stock was Wotif.com Holdings, shares fell 10.26% to $6.82. Shares in Biota Holdings and Harvey Norman also closed weaker today.
In commodities, gold is trading at $1,136.75 U.S an ounce and light crude is up $0.57 at $82.02 U.S a barrel.
