The Australian share market has closed firmly in the black today as news that an emergency fund worth close to $1 trillion has been set up by European leaders and the International Monetary Fund as a safety net to protect Euro zone economies from experiencing the same debt woes as Greece, eased investor fears. Today local mining stocks and banks rallied in response.
The S&P/ASX 200 Index closed the day 119 points higher at 4,600. While on the futures market, the SPI200’s up 135.
To company news around this afternoon: Dexus Property Group (ASX:DXS) says it has acquired Centrewest Industrial Estate in Silverwater, NSW, for $24.43 million, with an initial passing yield of 9.7% and a weighted average lease expiry by income of 3.8 years. The estate is located adjacent to Dexus’s existing estate at Egerton Street in the key Sydney inner west industrial market of Silverwater. The company says this will enable it to reposition both properties in the future to create a combined estate of over $64 million. Dexus Property Group’s industrial portfolio has $1.5 billion under management. Shares in Dexus Property Group closed 1.92% higher at $0.795.
Shares in developer of anti-infective pharmaceutical programs Avexa Ltd (ASX:AVX) plummeted today after the company announced its decision to cease any further development of its HIV drug, ATC, after failing to get a global pharmaceutical company on board to licence the product. Chairman Nathan Drona says unfortunately for ATC, the compound's successful development did not translate into a commercial deal to partner the program and as a result the program is no longer viable. In addition to this the company also announced the resignation of CEO Julian Chick effective immediately. Avexa will now conduct a strategic review of all of its remaining programs and intends to consider suitable merger, acquisition, in-licensing opportunities and other corporate intiatives. As at March 31, 2010, the company had a net cash position of $26.6 million but expects to have around $23 million in net cash as at June 30, 2010 after the expected redundancies and restructuring costs. Avexa shares closed 75% weaker at $0.03.
Also making news: Online travel agent Webjet Ltd (ASX:WEB) has confirmed that it expects profit for the six months to June 30, 2010 to be similar to the six months to December 31, 2009 at $5.2 million after tax.
Mineral explorer and developer Cape Lambert Resources Ltd (ASX:CFE) has sweetened its offer for DMC Mining Ltd. The offer is now an unconditional cash offer of 50 cents for every one DMC Mining share.
BHP Billiton Ltd (ASX:BHP) chief Marius Kloppers says uncertainty created by the federal government’s planned resource profit tax could result in the stalling of its $20 billion Olympic Dam project.
And toll road operator Transurban Group (ASX:TCL) has bought Sydney’s Lane Cove Tunnel for $630.5 million. The group says it will fund the acquisition by raising $542 million in capital in an entitlement offer.
In the best and worst performers: The best performing sector at close today was the Financials excluding Real Estate Investment Trust index, up 195 points at 5,404. At the other end, one of the sectors with smallest gains today was the Health Care index; up 23 points at 8,429.
The best performing stock in the S&P/ ASX200 was Murchison Metals, shares rose 11.79% to $2.18, while shares in Kagara and Cudeco also closed higher.
The worst performing stock was Ardent Leisure after releasing disappointing third quarter results today, shares dropped 5.56% to $1.19. Shares in Emeco Holdings and Macarthur Coal also closed weaker today.
In commodities, gold is trading at $1,198.05 U.S an ounce and light crude is up $2.23 to $77.34 U.S a barrel.
