Aussie stocks have closed the week on a high note today as investors snapped up bargains. Bank and retail stocks rallied as fears for the spread of Europe’s debt woes, eased and optimism that the RBA will leave rates on hold for the next few months.
The S&P/ASX 200 Index closed 78 points higher at 4,458, up 152 points on the week, while on the futures market, the SPI200’s up 85.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index closed 66 points stronger for the four trading days this week. The S&P500 Index up 15 points, the NASDAQ gained 49 and the 100 index advanced 40 points.
To company news around this afternoon: Qantas Airways Ltd (ASX:QAN) says passenger numbers increased 5.3% in April compared to April last year. For the financial year to April 2010, travellers rose 7.8% from the previous year. The company says its earnings expectations for underlying profit before tax of between $300 and $400 million for fiscal 2010, remains unchanged. Earlier today, budget airline Virgin Blue Holdings (ASX:VBA) issued an earnings downgrade and says it expects average fares to fall by 10%. Shares in Qantas closed 1.24% higher at $2.45.
Suncorp-Metway Ltd (ASX:SUN) has priced a $1 billion offer of residential mortgage backed securities. Due to significant investor demand, Suncorp says it doubled the size of the transaction from $500 million to $1 billion. The company says 14 investors participated in the transaction with the majority of Class A1 notes bought by domestic fund managers. The Australian Office of Financial Management bought all of the Class A2 notes. CEO David Foster says this transaction further supports the Bank’s strong funding and liquidity position, and strengthens the balance sheet and underpins profitable growth for the bank. Shares in Suncorp-Metway closed 1.62% stronger at $8.14.
Also making news: Consolidated Media Holdings Ltd (ASX:CMJ) says shareholders have shown strong support for its share buyback, with over 95.6% of ConsMedia’s issued capital voting in favour of the on-market buyback.
And CSR says an agreement to acquire Mackay Sugar’s 25% stake in the joint venture sugar refining businesses, Sugar Australia and New Zealand Sugar, has expired. CSR’s sugar business, Sucrogen, owns 75% of the joint venture.
Taking a look back at some of the stories that made headlines this week: Brewer Foster’s Group Ltd (ASX:FGL) says it has decided to pursue a demerger of its wine and beer assets, spinning them off into a new ASX listed company.
Shopping centre owner Westfield Group (ASX:WDC) says it is starting to see more positive signs emerging in the markets in which it operates with its first quarter of operations this year confirming this better outlook. In separate news Chief Frank Lowy has been named the richest person in Australia in 2010 by BRW.
And OneSteel (ASX:OST) became the latest company to launch an attack on the Federal Government’s proposed Resources Super Profits Tax, saying the proposed tax would have a major and immediate impact on its competitiveness in New South Wales and South Australia.
In the best and worst performers: Majority of sectors closed in the black today, however the sector with the biggest gain at close today was the Real Estate Investment Trust index, up 35 points at 863. The sector with the smallest gain at close was the Materials index; up 17 points at 4,015.
In the S&P/ ASX200 the best performing stock was Gunns with shares up 43.64% to $0.395. The company announced the retirement of its Chairman John Gay yesterday. Meanwhile shares in Eastern Star Gas and Panoramic Resources also closed stronger today.
The worst performing stock was Virgin Blue Holdings after its earnings downgrade today, shares dropped 27.91% to $0.31. Shares in Ausenco and St Barbara also closed weaker today.
And finally, the Aussie dollar is trading at 85.13 US cents - and is up almost 2 cents on the week. In commodities, gold is trading at $1,214 U.S an ounce and is up $38.85 on the week, and light crude is down a cent at $74.54 U.S a barrel.
