The local share market has closed higher today, investor confidence boosted by strong economic data out of China and news that Aussie banks are well equipped to handle new capital requirements agreed to by global regulators over the weekend.
In an effort to ward of future financial crises, regulators from 27 nations more than doubled their capital requirements for banks but gave lenders up to 8 years to fully comply. However, analysts say Aussie banks are already above the requirement and will not need to raise additional cash.
The S&P/ASX 200 Index is up 55 points to finish at 4,615. On the futures market, the SPI200 is up 66 points.
To company news around this afternoon: Leighton Holdings Ltd (ASX:LEI) has announced the retirement of long standing CEO Wal King and the appointment of chief operating officer David Stewart as his successor. Mr Stewart will take over the reins from the first of January next year, Mr King stepping down after 23 years at the helm of the company will stay on as a consultant. Earlier today Leighton subsidiary John Holland announced that it has won a $276 million contract for work on Rio Tinto’s Cape Lambert Port B in Western Australia. Shares in Leighton Holdings closed 2.91% higher at $34.34.
Gold explorer Renaissance Minerals Ltd (ASX:RNS) is to acquire Newmont Mining Corp’s Pinjin gold project in Western Australia. Renaissance will pay $200,000 upfront in cash and issue around 1.5 million of its shares to Newmont. The junior explorer will also make a cash payment of $1 million to Newmont upon establishment of a JORC resource of at least 0.5 million ounces of gold and another cash payment of $1 million once a JORC resource of at least 1 million ounces of gold is reached. Shares in Renaissance Minerals closed 15% stronger at $0.23.
Also making news: Arafura Resources Ltd (ASX:ARU) says it has successfully produced commercial quality separated rare earth oxides and will use the technology to extract maximum value from its Nolans Project due to begin production in 2013.
Coal explorer Stanmore Coal Ltd (ASX:SMR) shares rallied today after the company said a study had shown that its 100% owned The Range project in QLD is economically and technically viable.
MetroCoal Ltd (ASX:MTE) $30 million joint venture with China Coal Import and Export Company has been given the tick of approval by Chinese authorities.
And shares in Biota Holdings Ltd (ASX:BTA) soared today following news that the drug developer’s Japanese partner, Daiichi Sankyo, has been given the green light to manufacture and market a new influenza drug, Inavir, in Japan.
In the best and worst performers: Most sectors closed in the black today. The best performing sector at close was the Financials excluding Real Estate Investment Trusts with the index up 88 points at 5,174. The worst performing sector at close was the Health Care sector with the index down 13 points at 8,172.
The best performing stock in the S&P/ ASX200 was Sundance Resources shares were 25% higher at $0.25. Last week the company said it has signed an MOU with China Africa Construction to establish the scope, cost and delivery program for the railway track and rolling stock needed to support Sundances project in West Africa. Shares in Biota Holdings and Mincor Resources also closed higher. The worst performing stock was Virgin Blue Holdings with shares falling 5% to close at $0.38. Shares in Elders and Envestra also closed weaker with Envestra going ex dividend today.
In commodities, gold is trading at $1248 US an ounce. And light crude is up $0.84 at $77.29 US a barrel.
