The Australian share market closed relatively flat today with gains in financials offset by a weaker resources sector. Following a solid opening this morning, the local market retrieved during the day. Shares in ANZ, National Australia Bank, Westpac and Commonwealth Bank closed higher. Shares in AXA were also higher after the company announced five out of six of its independent directors, including its chairman, would recommend AMP’s takeover bid to shareholders.
The S&P/ASX 200 Index closed 12 points higher to finish at 4,700. On the futures market, the SPI200 up 5 points.
AWB Ltd (ASX:AWB) shareholders have overwhelmingly supported the proposed takeover by Canadian agricultural company Agrium Inc. The company has offered to acquire AWB for $1.24 billion and will also absorb AWB’s net debt of around $535 million. For the takeover to be successful, at least 75 per cent of votes cast were needed coupled with the majority of shareholders voting in favour. At the company’s general meeting today, 97.8 per cent of shares backed the proposal while 80 per cent of shareholders themselves voted in favour of the takeover. A court hearing into the scheme of arrangement is scheduled to be heard this Thursday. Shares in AWB closed 0.34 per cent higher at $1.495
National Australia Bank (ASX:NAB) chief executive Cameron Clyne has seen his total pay package jump to $7.7 million while his rewards for the 2010 financial year increased by over 50 per cent. Mr Clyne's pay is reflective of a significant improvement in the bank’s net profits which increased from $2.5 billion in 2009 to $4.2 billion this financial year. Although Mr Clyne’s remuneration has dramatically increased, he remains the lowest paid of the big four bank bosses. Commonwealth Bank's chief Ralph Norris is the highest paid with a pay package of $16.1 million; ANZ’s CEO Mike Smith comes in second at $10.85 million and Westpac boss Gail Kelly picked up a cool $9.58 million for the same period. Shares in National Australia Bank closed 0.475 per cent higher at $24.78.
OceanaGold Corporation (ASX:OGC) has appointed Mick Wilkes as its new chief executive. He replaces outgoing CEO Paul Bibby and will take the reins in mid-January next year.
Commonwealth Bank of Australia Ltd’s (ASX:CBA) subsidiary BankWest is the latest to join the list of financial institutions that are lifting interest rates beyond the Reserve Bank’s official increase. BankWest is increasing its mortgage rate by 0.4 percentage points to 7.7 per cent tomorrow.
Suncorp Metway Ltd (ASX:SUN) has divested its wealth management arm, Tyndall Investments, to Japanese fund manager Nikko Asset Management for $128.5 million.
South African-focused Continental Coal Ltd (ASX:CCC) is poised to become the country’s latest export coal producer, after acquiring South African coal miner and producer Mashala Resources.
In the best and worst market performers: The best performing sector was Financials excluding Real Estate Investment Trust which closed 47 points higher to 5,052. The worst performing sector was Telco with the index falling 10 points to 901. The best performing stock in the S&P/ ASX200 was Cudeco as shares were 10.77 per cent higher to $4.01. Shares in Energy World and Straits Resources also closed higher. The worst performing stock was OM Holdings, with shares dropping 5.81 per cent to $1.46. Shares in Lynas Corporation and Mt Gibson also closed in the red.
In commodities, gold is trading at $US1,364 an ounce. Light crude is down 14 cents to $84.72.
