The Australian share market closed firmer today, as it maintained its eight-month high, driven by strong demand for resources and higher commodity prices. Gold has climbed to its highest in three weeks and silver has also risen toward a 30-year high. A positive offshore session coupled with the Australian dollar reaching a record high today also underpinned the local market. The mining majors, BHP and Rio Tinto closed firmer today and the big banks were mostly higher.
The S&P/ASX200 Index is 15 points higher to close at 4,790. On the futures market, the SPI is 22 points higher.
Company news: Queensland-focused Cockatoo Coal Ltd (ASX:COK) has ceased production at its Baralaba open pit mine after heavy rains and flooding in Queensland affected operations. Cockatoo joins a growing list of Queensland coal miners who have been significantly impacted by the widespread flooding across the state, with most companies announcing mine closures and declaring force majeure. Cockatoo says it will examine the full extent of the flood impact once the waters recede. Shares in Cockatoo Coal closed 1.92 per cent higher at $0.53.
Shares in Berkeley Resources Ltd (ASX:BKY) fell today as investors feared a $275 million takeover offer from Russia’s Severstal might not eventuate. Berkeley said the two companies have not been able to agree on terms in order to make an agreed bid, after their exclusivity agreement expired yesterday. Berkeley says it has received an alternative transaction proposal from Severstal and will continue discussions with the Russian steel giant. Shares in Berkeley Resources fell 1.4 per cent at $1.765.
Shares in Rio Tinto Ltd’s (ASX:RIO) UK operations have slipped after the company reported that heavy rains and flooding in Queensland is impacting its coal mining operations.
Perilya Mining Ltd (ASX:PEM) has updated its 2010 ore reserve statement after the company said ore reserves at its Broken Hill operations in New South Wales have increased by over 18 per cent.
PanAust Ltd (ASX:PNA) has raised its EBITDA guidance for 2010 as the company increased sales following an unscheduled fourth shipment from its flagship operation in Laos.
Austal Ltd’s (ASX:ASB) US-arm has been awarded a contract by the US Navy for the purchase of 10 Austal combat vessels valued at $432 million.
Best and worst performers: The best performing sector at close was Utilities, with the index gaining 38 points to close at 4,443. The worst performing sector was Financials excluding Real Estate Investment Trust, the index falling 4 points to close at 5,129. The best performing stock in the S&P/ ASX200 was Lynas Corporation as shares rallied 10.03 per cent to close at $1.975. Shares in Energy World and PanAust also advanced today. The worst performing stock was White Energy shares lost 3.57 per cent to close at $3.24. Shares in Aristocrat Leisure and Eastern Star Gas also closed in the red today.
In commodities, gold is trading at $US1,413 an ounce and light crude is up $0.17 at $US91.29 a barrel.
