The Australian share market closed 0.9 per cent stronger at a 10-month high, boosted by the miners and banks. QBE Insurance rallied after it revealed it will buy Bank of America’s home insurance unit. The Aussie dollar climbed to a one month high against the greenback following the RBA forecasting a healthy outlook for the country’s economy.
The S&P/ASX200 Index rose 42 points to close at 4,863 while on the week it was 88 points higher. On the futures market, the SPI is up 58 points.
Looking to the US and on Wall Street, the DOW Jones Industrial Average was up 239 points over the four trading days this week. The S&P 500 Index was up 31 points, NASDAQ was up 67 and the 100 Index was up 53.
Economic news: The Reserve Bank of Australia today published its quarterly Statement on Monetary Policy, maintaining an optimistic outlook for the Australian economy, despite the country’s recent catastrophic floods. The central bank’s upbeat view has led economists to tip that the cash rate will rise to 5.5 per cent before the end of the year.
Company news: Insurance Australia Group Ltd (ASX:IAG) says that it expects claim costs from floods in Queensland, New South Wales and Victoria to hit between $135 million to $170 million. The insurer expects costs from the floods in Queensland and New South Wales to total $110 million to $130 million, while the costs of Victoria’s floods are estimated to reach between $25 million to $40 million. CEO Michael Wilkins says the company's reinsurance program this year is similar to last years and includes a main catastrophe program to cover losses from between $250 million up to $4.1 billion. Shares in IAG slipped 0.53 per cent to close at $3.73.
Shares in Avoca Resources Ltd (ASX:AVO) lifted today, after the gold miner said its half-year net profit has improved 28 per cent on the back of increased production. The company says its unaudited net profit for the six months to 31 December last year was $44.2 million, up from $34.6 million a year earlier. Avoca Resources today traded on the Australian Securities Exchange for the last time, and will continue as Alacer Gold Corp, following its merger with Anatolia Minerals Development. Shares in Avoca Resources climbed 5.43 per cent today to close at $3.30.
ANZ Banking Group (ASX:ANZ) is gearing up to cut around 45 jobs as it works to increase efficiency by restructuring two departments.
Airport owner MAP Group (ASX:MAP) has posted a 6.7 per cent rise in earnings for Brussels Airport, EBITDA came in at $261.97 million for calendar 2010, while revenue lifted a mere 0.4 per cent.
In the best and worst performers and all sectors closed in the black: The best performing sector at close was Telco Services with the index lifting 21 to close at 983. The sector with the smallest gains was Real Estate Investment Trusts, closing steady at 880. The best performing stock in the S&P/ ASX200 was Elders shares gained 13.59 per cent to close at $0.585. Shares in QBE Insurance Group and St Barbara also closed stronger today. The worst performing stock was Energy World Corporation shares fell 3.19% to close at $0.455. Shares in Paladin Energy and Aurora Oil & Gas also dropped today.
In commodities, gold is trading at $US1,353 an ounce and is up $18.40 on the week. Light crude is 31 cents up at $US90.85 a barrel.
The Australian dollar is trading at 1.019 US cents, and is up on the week.
