The Australian share market closed higher today lead by gains in the major banks and miners. The Big Four closed in the black as they escaped harsh regulations in the Federal Government’s new banking reforms. The major miners also closed higher despite strong inflation figures that emerged from China over the weekend, signaling that Australia’s biggest trading partner is set to cool its economy.
The S&P/ASX200 Index firmed 11 points to close at 4,757. On the futures market, the SPI is up 2 points.
To company news: Westfield Group Ltd’s (ASX:WDC) $2 billion dollar spin off, Westfield Retail Trust, has made a disappointing debut on the market. The company dropped by more than 4 per cent below its offer price of $2.75 as it hit the boards of the Australian Securities Exchange. Westfield Retail Trust raised a less-than-expected $2 billion in new equity, the proceeds of which will be used to pay down Westfield Group’s debts. Shares in Westfield Group closed 23.27 per cent lower to $9.63.
BHP Billiton Ltd (ASX:BHP) is receiving pressure from the Greens as they want the mining conglomerate to forgo mining uranium when it expands its proposed Olympic Dam project in South Australia. A report by an academic from Monash University shows that a no-uranium option is technically feasible as it would provide significantly better environmental outcomes. The Greens are lobbying the State and Federal governments to help urge BHP consider the no-uranium option. Shares in BHP Billiton closed steady at $45.44.
Qantas Airways Ltd (ASX:QAN) has bought West Australia-based air charter company Network Aviation. Qantas says the acquisition gives the airliner exposure to an important fly-in-fly-out air charter market and also presented a strong growth opportunity amid WA’s mining boom.
National Australia Bank Ltd’s (ASX:NAB) chief Cameron Clyne says banks have got themselves in trouble with the public and politicians over time by linking their mortgage rate increases with the Reserve Bank’s rate moves.
Tabcorp Holdings Ltd (ASX:TAH) says it plans to more than triple investment plans for casinos as it plans to inject $625 million into three casinos in Queensland.
The Australian has reported that Rio Tinto Ltd (ASX:RIO) is gearing up to sell some of its Alcan smelters and refineries in a bid to improve its business strategy.
In the best and worst performers: The best performing sector at close was Financials Excluding Real Estate Investment Trusts, with the index gained 46 to close at 5,160. The worst performing sector was Real Estate Investment Trust with the index losing 13 points to close at 847. The best performing stock in the S&P/ ASX200 was Sundance Resources shares rose 8.43 per cent to close at $0.45. Shares in Regis Resources and Boart Longyear also advanced today. The worst performing stock was FKP Property Group as shares dropped 5.92 per cent to close at $0.795 Shares in Tower Australia and Platinum Australia also closed lower today.
In commodities, gold is trading at $US1,387 US an ounce and light crude is up $0.31 at $US88.10 a barrel.
