The local share market managed to squeeze out a gain today closing slightly higher thanks to gains in the banks and miners. However investors remain cautious with concerns over the health of the US economy still lingering.
The S&P/ASX 200 Index is 8 points higher to finish at 4,625. On the futures market, the SPI200 is down 2 points.
In economic news: The yearly rate of the Westpac-Melbourne Institute leading index of economic activity was 6.8 per cent in July, well above its long term trend of 3.2 per cent. The result adds further weight to the prospect of potential rate hikes to come from the RBA.
To company news: Telstra Corporation Ltd (ASX:TLS) is poised to cut staff as part of a move to simplify its business and enhance customer experience. The Australian Associated Press reports that Telstra’s CFO John Stanhope told an audience at a business lunch today, that the Telco’s plan to simplify the business would impact on employees and is likely to result in job losses. Shares in Telstra Corporation closed 2.21% weaker today $2.66.
Spark Infrastructure Group (ASX:SKI) has launched a $295 million capital raising and announced plans to simplify its existing listed security structure. New shares in the company are to be issued in a two for seven entitlement offer at an offer price of $1 a share. The company says proceeds from the raising are to be used to repay $200 million in debt and fund equity investments. Subject to shareholder and regulatory approval, Spark says it also plans to simplify its listed security structure from a five stapled security to a listed dual stapled security. Shares in Spark Infrastructure Group are in a trading halt and last traded at $1.145.
Also making news: Alesco Corp Ltd (ASX:ALS) says the company had performed below expectations so far in the 2011 fiscal year and that conditions remain challenging.
The Australian Associated Press reports Air New Zealand Ltd (ASX:AIZ) CEO Rob Fyfe saying the Australian Competition and Consumer Commission’s decision to block its alliance with Virgin Blue Holdings Ltd (ASX:VBA) could threaten the airlines future, saying the alliance is central to its strategy of growth.
David Jones Ltd (ASX:DJS) has achieved a record full year profit of $171 million, and says profits are likely to grow by 5-10 per cent in fiscal 2011.
And BHP Billiton Ltd’s (ASX:BHP) CEO Marius Kloppers full year salary has risen 9 per cent to US$11.3 million, on the back of a 16 per cent increase in BHP's fiscal 2010 results.
In the best and worst performers: The best performing sector at close was Health Care with the index up 113 points to 8,162. The worst performing sector was Telco Services with the index down 19 points to 918.
The best performing stock in the S&P/ ASX200 was Ausenco shares were 9.78% higher at $3.03. Shares in Macquarie Atlas Roads and Challenger Infrastructure Fund also closed higher.
The worst performing stock was TPG Telecom with shares falling 5.29% to close at $1.61. Shares in Perseus Mining and ResMed closed weaker today.
In commodities, gold is trading at $1291 US an ounce. And light crude is up $0.23 at $75.20 US a barrel.
