The Australian share market closed slightly stronger today as gains by the miners eclipsed falls by the banks. Resources stocks closed higher on the back of firmer commodity prices, particularly copper. BHP Billiton gained at close as news merged that it is in talks with Russian mining giant Norilsk Nickel about developing the Honeymoon Well. Rio Tinto also advanced at close as the company announced it is in talks with an Indian firm to develop iron ore mines on the sub-continent.
The S&P/ASX200 Index firmed 10 points to close at 4,767. On the futures market, the SPI is up 17 points.
Economic news: National Australia Bank’s monthly business survey shows confidence fell 2 points in November from 8.1 to 6.2. The interest rate hike in November did little to provide much-needed optimism for businesses, with confidence now falling eight out of the past nine months.
Figures from the Australian Bureau of Statistics show that housing starts have plunged by 13.2 per cent in the September quarter, the most since the depths of the global financial crisis. The figure far outpaces the median market forecast which was tipped to come in at 5 per cent.
Timber giant Gunns Ltd (ASX:GNS) has raised $25 million help fund its purchase of a sawmill at Bell Bay from Forest Enterprises Australia. Gunns issued almost 43 million shares at $0.60 each with the backing of its major shareholders. It is unknown if Gunns’ biggest shareholder, Mathews Capital, supported the raising, but its second-largest investor, Concord Capital, backed the transaction. Shares in Gunns closed 0.75 per cent lower at $0.665.
Qantas Airways Ltd’s (ASX:QAN) budget carrier Jetstar Airways has added three new routes between Australia and New Zealand this week, increasing its trans-Tasman services by almost 20 per cent. The expansion comes amid news that rival companies Virgin Blue and Air New Zealand are awaiting regulatory approval for a trans-Tasman alliance. Shares in Qantas Airways closed 0.75 per cent higher at $2.70.
Toro Energy Ltd (ASX:TOE) has acquired the Dawson-Hinkler uranium project near Wiluna in Western Australia valued at $6.2 million. The acquisition increases Toro’s Wiluna resource base by 25 per cent.
Copper explorer Sandfire Resources Ltd (ASX:SFR) has raised $37 million, through a one-for-twelve entitlement offer to retail investors, completing the final phase of a $103 million capital raising.
Education services provider Navitas Ltd (ASX:NVT) has inked a deal to acquire media technology training specialist SAE Group for $289 million.
Woodside Petroleum Ltd’s (ASX:WPL) $30 billion Browse LNG gas hub in Western Australia has been given the green light from the state government, although it is facing mounting criticism from environmental groups.
Best and worst performers: The best performing sector at close was Materials, with the index gaining 120 to close at 14,088. The worst performing sector was Utilities with the index losing 99 points to close at 4,355. The best performing stock in the S&P/ ASX200 was Cudeco shares rose 11.81 per cent to close at $4.64. Shares in PanAust and OZ Minerals also advanced today. The worst performing stock was AGL Energy as shares dropped 4.92 per cent to close at $15.07. Shares in White Energy and Ansell also closed lower today.
In commodities, gold is trading at $US1,402 an ounce and light crude is down $0.33 at $US88.28 a barrel.
