The Australian market closed flat today, with the S&P/ASX200 down just under a point and the broader All Ordinaries index up 1.4 points, recovering losses throughout the session. Taking a closer look: The S&P/ASX 200 Index closed flat at 4,566 up 73 points for the week. And on the futures market, the SPI200 is down 8 points.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index closed 209 points up for the four trading days this week. The S&P500 Index is up 24 points, the NASDAQ is up 38 points and the 100 index is up 41.
In economic news: The Reserve Bank of Australia released its quarterly statement on monetary policy today, maintaining its forecast for Australia’s economy to have grown 3% in the year to June 2010, rising to 4% by December. The RBA also forecast inflation would be largely unchanged from May rising to 2.25% in December this year.
To company news around this afternoon: Boral Ltd (ASX:BLD) says it has completed the final stage of its $490 million equity raising. The building products firm says entitlements attributed to renouncing and ineligible retail shareholders, were sold through the retail bookbuild completed today. The clearing price was $4.25 per share, representing a 3.7% premium to the underwritten issue price of $4.10 for the entitlement offer. On Wednesday Boral announced the sale of its precast panel operations for $15 million. Boral says it is focusing on strengthening core operations and its balance sheet. Shares in Boral are 0.69% up at $4.38.
Aurox Resources Ltd (ASX:AXO) has announced its shareholders have overwhelmingly approved the proposal for a merger with Atlas Iron Ltd (AGO). Under the scheme, Aurox shareholders will receive 1 share in Atlas for every 3 shares they hold in Aurox on the record date, 20 August. Aurox says the Atlas platform and prospects should deliver its shareholders greater value with lower risk. The merger is expected to be worth around $143 million. Shares in Aurox Resources are 2.88% up at $0.715.
Orica Ltd (ASX:ORI) says it has reached a final settlement with the Australian Taxation Office regarding the sale of its pharmaceuticals business to Zeneca BV in 1998. The settlement will result in the reversal of $95.5 million of the $192 million expense recorded as a material item for the six months to 31 March.
Graincorp Ltd (ASX:GNC) says its planned merger with grain pools operator AWB (ASX:AWB) will create synergy benefits in excess of $40 million and create the largest diversified rural service business in Australia.
Resmed Inc (ASX:RMD) has reported a 19% increase in revenue to US$1.1billion for the year ended 30 June 2010, net income up 30% to US$190.1 million.
The Australian Competition and Consumer Commission (ACCC) is said to be very concerned about rumours surrounding National Australia Bank Ltd's (ASX:NAB) proposed $13.3 billion takeover of AXA Asia Pacific Holdings Ltd (ASX:AXA). The ACCC’s chairman, Graeme Samuel, says that the Commission’s processes are being targeted for potential manipulation through innuendo and background briefing. NAB and AXA APH have until August 31 to secure ACCC approval.
In the best and worst performers: The best performing sector at close was the Consumer Staples index, up 77 points at 7,637. The worst performing sector was Financials Excluding Real Estate Investment Trusts index, down 34 points at 5,111. The best performing stock in the S&P/ ASX200 was Elders shares rose 7.45% to $0.505. Shares in Gindalbie Metals and Aristocrat Leisure also closed higher. The worst performing stock was Aquarius Platinum, shares fell 4.18% to close at $4.58. Shares in Mirabella Nickel and Perseus Mining also closed weaker today.
The Australian Dollar is trading at 91.64 US cents, up one cent on the week.
In commodities, gold is trading at $1197 U.S an ounce and is up $16.80 on the week. Light crude is up $0.25 at $82.26 U.S a barrel.
