After a weak start the Australian share market clawed out from the red to close 0.13 per cent higher, following on from yesterday’s rally. Financials and consumer staples gained, while the telcos and miners lost ground. The week has certainly been defined by the unfolding flooding crisis in Queensland, investors starting to count the cost as the full extent of the impact becomes clear.
The S&P/ASX200 Index lifted 6 points to close at 4,802, while on the week it was 96 points stronger. On the futures market, the SPI is up 6 points.
Looking to the US and on Wall St, the DOW Jones Industrial Average was up 57 points, over the last four trading days. The S&P 500 Index was up 12 points, the NASDAQ was up 32 and the 100 Index was up 29.
Company news: Australia’s big banks have all been forced to close branches and suspend ATM services in the flood ravaged state of Queensland. ANZ Banking Group (ASX:ANZ) has confirmed it hopes to today start to open eight of its branches that remain closed, a company spokesperson advising the bank’s focus is on returning services to ATMs near evacuation centers. ANZ, Commonwealth Bank of Australia (ASX:CBA), National Australia Bank Ltd (ASX:NAB) and Westpac Banking Corporation (ASX:WBC) are also offering certain payment suspensions and exceptions for those impacted by the floods. Shares in ANZ added 0.39 per cent today to close at $23.05. Qantas Airways Ltd (ASX:QAN) has agreed to pay $US26.5 million to settle a US class action concerning its involvement in an alleged freight cartel. The settlement releases Australia’s largest airline from the lawsuit over price-fixing, pending court approval. Also today, Qantas has flagged a new codeshare arrangement with American Airlines to co-ordinate its trans-Pacific operations. Shares in Qantas slipped 0.4 per cent to close at $2.51.
The nation’s major telcos look set to face a bill of over $50 million. Telstra Corporation Ltd’s (ASX:TLS) director of service delivery says Brisbane’s communication services will be back up and running within four days. Central and Western Queensland face a wait of up to 18 days.
Two of the largest insurers in Queensland will suffer a hit to earnings according to Credit Suisse, the financial services company downgrading Insurance Australia Group Ltd’s (ASX:IAG) full year earnings by 3 to 4 per cent, while Suncorp Group Ltd’s (ASX:SUN) full year forecast has been struck with an 11 percent downgrade.
Global miner Rio Tinto Ltd (ASX:RIO) has advised the floods are severely affecting the supply of aluminium from smelters near Gladstone. Rio says it is investigating alternative arrangements.
Food manufacturer Goodman Fielder Ltd (ASX:GFF) says a limited range will be available due to road closures and flooding in the state, but expects all facilities will be returning to full operations soon.
In the best and worst performers: The best performing sector at close was Consumer Staples with the index advanced 145 to close at 7,847. The worst performing sector was Telco Services with the index fell 6 points to close at 984. The best performing stock in the S&P/ASX200 was The Reject Shop shares gained 5.5% to close at $13.80. Shares in Carsales.com and Aquarius Platinum also firmed today. The worst performing stock was Avoca Resources shares fell 3.18% to close at $3.35. Shares in OceanaGold and DuluxGroup also dropped today.
In commodities, gold is trading at $US1,377 an ounce and is up $8.50 on the week. Light crude is 31 cents down at $US91.09 a barrel.
The Australian dollar is trading at 99.65 US cents, and is slightly up on the week.
