The Australian share market has ended the day one per cent higher thanks to stronger resources and financial stocks. As the shock of events in Japan begin to subside, investors are focusing on the rebuilding ahead and on commodity prices
The S&P/ASX200 Index lifted 47 points to close at 4,700. On the futures market, the SPI is up 51 points.
Economic news: Australia’s miners have won a major concession regarding the planned 30 per cent profits tax. The Federal Government will reimburse mining companies for any future increase in state royalties. The Reserve Bank of Australia has stated in its biannual financial stability report that Australian banks are well placed to deal with new regulatory requirements, but are likely to face slower growth.
Company news: Singapore Telecommunications Ltd’s (ASX:SGT) wholly owned subsidiary Optus says it’s in last minute negotiations with the federal government regarding the National Broadband Network. The Optus chief executive Paul O’Sullivan says he’s seeking changes to the amended legislation within the next 48 hours. Mr O’Sullivan declined to say what the telco’s options were if it could not negotiate the changes. Optus and other carriers fear the legislation will give Telstra an unfair advantage. SingTel shares shed 0.87 per cent to close at $2.27.
Westpac Banking Corporation (ASX:WBC) says the quality of its lending assets is improving as its watchlist and substandard loans declined. The bank said it had the lowest level of impaired assets of its peers. Its balance sheets boasted a Tier 1 capital ratio of 9.2 per cent. Customer deposits represented 52 per cent of total loan funding. Shares in Westpac rose 1.69 per cent to close at $23.42.
Seven Group Holdings Ltd (ASX:SVW) chairman Kerry Stokes says he’s happy with his investment in Consolidated Media Holdings Ltd (ASX:CMJ). He has spoken publicly in response to speculation that ConsMedia may be privatised.
Fletcher Building Ltd (Australia) (ASX:FBU) has announced it has a relevant interest in more than 70 per cent of Crane Group Ltd (ASX:CRG) and a further 3.5 per cent of shares are still in the process of being accepted.
Qantas Airways (ASX:QAN) has hiked the price of its domestic fares for the second time this year in response to rising fuel prices, this time by up to $10 per sector.
Fortescue Metals Group Ltd (ASX:FMG) has announced that its Pilbara iron ore base in Western Australia has risen over 10 billion tons. Meanwhile Fortescue’s founder and CEO Andrew Forrest has scored the top spot in BRW’s Executive Rich list.
To the best and worst performing sectors now: The best performing sector today was Materials gaining 216 points to close at 13,699. The worst performing sector was Telco Services falling 3 points to close at 911.
The best performing stock in the S&P/ASX200 was Atlas Iron shares rising 8.44 per cent to close at $3.47. Shares in Panoramic Resources and Gindalbie Metals also closed in the black. The worst performing stock was Caltex Australia, shedding 5.26 per cent to close at $15.31 cents. Shares in Bow Energy and Carnarvon Petroleum also closed weaker today.
In commodities, gold is trading at $US1,439 an ounce and Light crude is 33 cents weaker at $US105.42 a barrel.
