Aussie shares closed 0.4 per cent stronger, following the second day of strong offshore leads. While initially higher in early trade, the market trimmed gains ahead of key US jobs data with the materials and energy sectors leading the gains.
The S&P/ASX200 Index added 18 points to close at 4,694. On the futures market, the SPI is up 14 points.
In economic news: The Australian Industry Group/Commonwealth Bank Australian Performance of Services Index dropped 4.5 points to 46.2 in November. The decline represents the ninth time this year that the index has delivered a read below 50, the level separating contraction from expansion.
Company news: David Jones Ltd (ASX:DJS) has defended settling the sexual harassment lawsuit brought by former employee Kristy Fraser-Kirk, which the Australian Financial Review reports cost DJs $3.55 million. Speaking at the retailer’s annual general meeting, new CEO Paul Zahra did not update the retailer’s earnings guidance, but did say the company had never been better prepared for the Christmas trading period. Shares in David Jones slipped 0.68 per cent to close at $4.39.
BHP Billiton Ltd (ASX:BHP) and Rio Tinto Ltd (ASX:RIO) have agreed to pay a one-off $350 million payment to the West Australian government, following the state’s approval to integrate their Pilbara iron ore activities, according to the Australian Associated Press. AAP reports that 11 state agreements held by the global miners will be changed to allow both BHP and Rio to combine their operations and build shared infrastructure and rail. Shares BHP Billiton gained 0.59 per cent to close at $44.59.
Faixfax reports Myer Holdings Ltd (ASX:MYR) is creating a website that will enable the retailer to avoid GST by shipping goods from a Chinese warehouse to Australian customers, in a bid to make Myer more competitive. Leighton Holdings Ltd’s (ASX:LEI) subsidiary, John Holland, has been awarded the management of the Country Regional Network by the New South Wales Government's Country Rail Infrastructure Authority, valued at $1.5 billion.
Documents released by the US Federal Reserve have shown National Australia Bank Ltd (ASX:NAB) and Westpac Banking Corporation Ltd (ASX:WBC) were among the global banks that borrowed billions of dollars in emergency funds from the Fed during the GFC.
Suncorp-Metway Ltd’s (ASX:SUN) proposed business restructure has received regulatory approval, enabling it to proceed with separating its general, banking and life insurance divisions.
In the best and worst performers: and most sectors closed in the black today, the best performing sector at close was Materials, with the index rising 103 to 13,773. The worst performing sector was Utilities with the index dropping 21 points to 4,429. The best performing stock in the S&P/ ASX200 was Aquila Resources shares lifted 7.94% to close at $9.96. Shares in Energy World Corporation and James Hardie Industries and also closed higher. The worst performing stock was Infigen Energy shares fell 8.26% to close at $0.50. Shares in Lynas Corporation and Medusa Mining also eased today.
In commodities, gold is trading at $1391 US an ounce. And light crude is down $0.29 at $87.71 US a barrel. The Australian Dollar is buying 97.57 US cents.
