Following strong leads, Aussie shares closed up 0.9 per cent with all sectors in the black. The miners advanced while financials lagged behind, dragged down by insurers with IAG, Suncorp and QBE all closing in negative territory ahead of Cyclone Yasi in Queensland, tipped to be the most powerful cyclone to hit the country. The S&P/ASX200 Index rose 44 points to close at 4,797. On the futures market, the SPI is 39 points higher.
Company news: Queensland based insurer Suncorp Group Ltd (ASX:SUN) expects the net claims costs which will arise from Cyclone Yasi to be capped at $10 million. The company says that a range of reinsurance protections are in place which will minimise the financial impact of the cyclone. The insurance industry already faces claims of more than $1.5 billion for flood damage in eastern Australia over the past two months. Shares in Suncorp dipped 1.79 per cent to close at $8.21.
Shares in Resmed Inc (ASX:RMD) fell more than 2 per cent today after the medical device company’s CEO Kieran Gallahue resigned. Remed’s net profit for the six months leading up to the end of last December was $116 million, coming in higher than the net profit for the same time in 2009 of $88.9 million. Shares in Resmed fell 2.85 per cent to close at $3.07.
WA Independent Grocer's Association says companies such as Metcash Ltd (ASX:MTS) owned IGA in Western Australia are being forced to slash milk prices to keep up with Wesfarmers Ltd's (ASX:WES) owned Coles and Woolworths Ltd (ASX:WOW).
Oil and gas producer Beach Energy Ltd (ASX:BPT) says its interest in Impress Energy Ltd (ASX:ITC) has now grown to 70 per cent and its offer of 8.5 cents per Impress share will close on the 21st this month.
Northern Energy Corporation Ltd (ASX:NEC) has rejected New Hope Corporation Ltd's (ASX:NHC) sweetened takeover bid, claiming the $225 million offer undervalues the company.
PaperlinX Ltd (ASX:PPX) has announced changes to save around $15 million per year through streamlining its management and head office structure. In the best and worst performers: The best performing sector at close was Materials, with the index rising 284 points to close at 14,022. The sector with the smallest gains was Financials Excluding Real Estate Investment Trusts, the index firming 4 points to close at 5,176. The best performing stock in the S&P/ASX200 was Murchison Metals shares advanced 14.83% to close at $1.51. Shares in Sundance Resources and Ardent Leisure also gained today. The worst performing stock was Straits Resources shares slid 25.44 per cent to close at $1.70, its shares going ex-entitlement following its demerger of Straits Metals. Shares in Lynas Corporation and Resmed also closed weaker today.
In commodities, gold is trading at $US1,341 an ounce. Light crude is down $0.05 to $US90.72 a barrel.
