Gains in gold stocks gave Aussie shares a chance to shine today, with the local market closing stronger on the back of a new record high in the price of the precious metal.
Shares in local gold miners Newcrest Mining and Lihir Gold lifted, but financial stocks took a tumble after midday following news litigation funder IMF (Australia) Ltd is proposing the biggest class action in corporate history against Australia’s banks.
The S&P/ASX 200 Index finished the day 25 points higher at 4,573. While on the futures market, the SPI200’s up 27.
In economic news: The value of credit card purchases rose by 12.2% to $19.9 billion over the year to March according to data from the Reserve Bank. The number of transactions in March was just over 139 million, with an average transaction size of $150.26.
To company news around this afternoon: IMF (Australia) Ltd (ASX:IMF) plans to fund a class action against Australia’s banks for overcharging millions of customers $5 billion in penalty and late fees. The company will pay for over 10 class actions against the banks, including the big four, in a bid to claim back at least $400 million in what it will allege is a systematic gouging of banking customers. Another seven banks are expected to be targeted for alleged wrongful and unfair overcharging. For the first time, the Reserve Bank of Australia revealed last year that banks charged exception fees of almost $1.2 billion in the 2008 financial year. Shares in IMF (Australia) closed 10.1% higher at $1.58.
Stemcell therapies developer Mesoblast Ltd (ASX:MSB) has announced it will buy the remaining shares in Angioblast Systems Inc that it doesn’t already own, allowing it to gain full rights to certain regenerative medicine technology. As a result of the merger, the group will have a combined market capitalisation of about $455 million. The acquisition will be funded by a capital raising of $37 million from new and existing investors. The biotechnology company reported cash reserves of $12.6 million as at March 31. Late last month it revealed that the first trial of its stem-cell treatment for spinal-fusion patients in New York showed the therapy was safe and promoted earlier bone growth and fusion. Mesoblast shares closed 2.84% higher at $1.99.
Also making news: Property firm Mirvac Ltd (ASX:MTR) has confirmed that it expects operating earnings of 9.2 cents per share for fiscal 2010 following the completion of its share offer. The company has offered to buy out its rival Westpac Office Trust and announced a share issue to fund the acquisition.
Renewable energy company Infigen Energy Ltd (ASX:IFN) is part of a consortium that has been shortlisted for federal government funding for the construction of solar power plants under the Solar Flagships Program.
The Commonwealth Bank of Australia (ASX:CBA) says unaudited cash earnings, the banks preferred measure of profitability, for the March quarter came to $1.5 billion.
And toll-road operator Transurban Group (ASX:TCL) has rejected a takeover bid from three of its biggest shareholders, but says it is willing to explore opportunities to work with the companies.
In the best and worst performers: Among the better performing sectors at close today was the Consumer Staples index, up 115 points at 7,417. And among the worst performers was the Telco Services sector; down 21 points at 1,015.
The best performing stock in the S&P/ ASX200 was St Barbara, shares rose 14.81% to $0.31, while shares in Eldorado Gold and Isoft Group also closed higher.
The worst performing stock was Sigma Pharmaceuticals, shares dropped 6.41% to $0.365. Shares in Energy World Corp and Nufarm also closed weaker today.
In commodities, gold is trading at $1,234.30 U.S an ounce, and light crude is down $0.79 to $75.58 U.S a barrel.
