The Australian share market advanced today to close over one per cent higher, fuelled by an economic stimulus injection by the Federal Reserve into Wall St. Miners climbed on strong commodity prices as investors responded positively to news from the Reserve Bank of Australia that our country’s economy is growing as expected.
The S&P/ASX 200 Index closed 55 points stronger to finish at 4,801 and was up 139 points for the week. On the futures market, the SPI200 up 53 points.
Looking to the US and on Wall Street, the Dow Jones industrial index is up 316 points over the four trading days this week. The S&P500 Index is up 38 points, the NASDAQ up 70 points and the 100 index up 63.
In economic news: Following the RBA’s surprise 0.25 percentage point rate hike on Tuesday to 4.75 per cent, in the bank’s monetary policy statement out today, the RBA has indicated rates may stay on hold with the outlook for inflation in the last quarter of the year easing to 2.75 per cent, down from 3.25 per cent in the August statement. Also out today, the Australian Industry Group - Housing Industry Association’s Performance of Construction Index rose 3.2 points to 44 in October. The result was soft, considering a read under 50 shows contraction in activity.
To company news: Westfield Group (ASX:WDC) says its institutional offer to security holders today closed fully subscribed. On Wednesday the property group announced a $3.5 billion capital raising through a restructure that will create a new entity called Westfield Retail Trust. The separately listed property trust will be launched through distributing units in the new trust to Westfield Group’s security holders. Shares in Westfield Group closed 0.86% lower at $12.70.
Ten Network Holdings Ltd (ASX:TEN) has revealed its second-largest shareholder, Bruce Gordon, has backed media lawyer Paul Mallam to become the third new director to its board. The announcement comes following Ten offering board seats to James Packer and Lachlan Murdoch, and news today that executive chairman Nick Falloon will step down from his post after Ten’s annual general meeting in December. Mr Gordon has a 13 per cent interest in the media group, compared to the 18 per cent stake last week secured by Mr Packer. Shares in Ten Network Holdings rose 1.71% to close at $1.485.
Qantas Airways (ASX:QAN) CEO Alan Joyce says it is too early to determine the financial impact of grounding the airline’s fleet of Airbus A380 superjumbos, following an engine explosion on one of its A380 aircraft yesterday on route from Singapore to Sydney.
Property developer Stockland (ASX:SGP) has announced the sale of an office building, in St Leonards of New South Wales, for $61.5 million and says the sale is for a non-core asset.
AXA Asia Pacific Holdings Ltd (ASX:AXA) has confirmed its majority shareholder France's AXA SA has resumed talks with AMP Ltd (ASX:AMP), igniting speculation that AMP will pitch another bid for AXA APH, after its offer was last year trumped by a superior bid from National Australia Bank Ltd (ASX:NAB).
Cape Lambert Resources Ltd (ASX:CFE) has announced the sale of its wholly owned subsidiary DMC Mining Ltd to Stirling Minerals Ltd (ASX:SMZ) for a price of $83 million plus royalties.
In the best and worst performers: Most sectors closed in the black today, the best performing sector at close was Materials, with the index up 454 to 13,985. The worst performing sector was Utilities with the index down 6 points to 4,604. The best performing stock in the S&P/ ASX200 was Cudeco shares rose 13.44% to close at $2.87. Shares in Equinox Minerals and Platinum Australia also closed stronger. The worst performing stock was Murchison Metals shares slid 8.33% to close at $1.375. Shares in Lynas Corporation and Ausenco also closed weaker today.
In commodities, gold is trading at $1390 US an ounce which is up $31.25 on the week. And light crude is up $0.69 at $US87.18 a barrel. The Australian Dollar is buying $US1.0152, which up over three cents on the week.
