The Australian share market closed higher today with the miners leading the way on firmer metal prices, a wave of merger activity and the Argus report on the planned mining tax, all seen wins for the sector. All the major banks closed higher as well.
The S&P/ASX200 Index up 35 points today to close at 4,772. On the futures market, the SPI is up 45 points.
Economic news: The Federal Government has confirmed that Treasury secretary Dr. Ken Henry is resigning from his role in early 2011. He will be replaced by Climate Change Department secretary Martin Parkinson. Dr Henry’s resignation follows after 10 years in the position and 25 years in the department. Confirming Dr Henry’s resignation this morning was Prime Minister Julia Gillard who called him “one of the greatest of all Treasury secretaries.”
Company news: Uranium miner Paladin Energy Ltd (ASX:PDN) has expanded into Canada with a deal to acquire uranium explorer Aurora Energy Resources for $261 million. Paladin says the purchase of Fronteer Gold’s subsidiary nicely rounds up its global portfolio and will make a substantial contribution to the company’s production as early as 2017. Aurora Energy holds uranium assets within the highly prospective Central Mineral Belt of Newfoundland and Labrador. Shares in Paladin Energy closed 1.19 per cent lower at $4.97.
Atlas Iron Ltd (ASX:AGO) is continuing to expand its reach in Western Australia’s Pilbara region by making a friendly $828 million bid for Giralia Resources NL (ASX:GIR). Atlas has offered Giralia shareholders either 1.5 shares per Giralia share or 1.33 shares plus $0.50 cash for each Giralia share. The offer has been unanimously recommended by Giralia’s directors. Atlas’s managing director David Flanagan says the merger will be a great way to grow production, reduce operating costs and maximise cash flow. Shares in Atlas Iron closed 1.35 per cent lower at $2.92.
Virgin Blue Holdings Ltd’s (ASX:VBA) chief financial officer, Keith Neate, has resigned after seven years at the company, citing personal reasons. Mr Neate will step down from his role at the end of March next year.
Fletcher Building Group Ltd’s (ASX:FBU) $740 million takeover proposal for Crane Group is set to go hostile after its Australian target recommended that shareholders reject its cash and stock offer as inadequate.
Property developer Lend Lease Group (ASX:LLC) has secured Bilfinger Berger’s engineering and construction business, Valemus Australia for $960 million.
Rio Tinto Ltd (ASX:RIO) has formalised a bid for Riversdale Mining at what is reportedly believed to be pitched around $16 a share. Shares in Riversdale were placed in a trading halt this morning.
Best and worst performers: The best performing sector at close was Materials, with the index lifting 168 points to close at 14,104. The worst performing sector was Healthcare with the index dropping 36 points to close at 8,909. The best performing stock in the S&P/ ASX200 was Sundance Resources, as shares added 6.59 per cent to close at $0.485. Shares in Lend Lease and Transpacific Industries also advanced today. The worst performing stock was Energy Resources of Australia as shares lost 9.26 per cent to close at $11.95. Shares in PaperlinX and Charter Hall Retail also fell today.
In commodities, gold is trading at $US1,386 an ounce and light crude is up $0.02 at $US89.39 a barrel.
