The Australian share market closed 0.9 per cent higher today, its sixth straight day of gains and the local bourses strongest week in four months. All sectors ended in positive territory, led by gains in the energy sector. The Australian dollar continued its recent rally, trading above $US1.02.
The S&P/ASX200 Index gained 43 points to close at 4,743, for the week it advanced 116 points. On the futures market, the SPI is up 51 points.
On Wall Street, the DOW Jones Industrial Average was up 312 points over the four trading days this week. The S&P 500 Index was up 30 points, NASDAQ was up 93 and the 100 Index was up 91.
Company news: The federal government has labelled BHP Billiton Ltd's (ASX:BHP) latest $9.5 billion investment into mining expansion as "a ringing endorsement" of its newly proposed minerals resource rent tax. Following a series of failed takeovers, BHP today announced it will pour the funds into developing its own operations and infrastructure. The news comes only one day after the government finalised its commodities tax plan. BHP will inject $6.6 billion to boost its iron ore operations in Western Australia, $2.5 billion on metallurgical coal operations in Queensland's Bowen Basin and $400 million to ramp up a thermal coal mine in the New South Wales’ Hunter Valley. Shares in BHP Billiton rose 0.11 per cent today and closed at $44.76.
Centro Properties Group (ASX:CNP) has responded to a price query from the Australian Securities Exchange after its shares advanced up to 45 per cent this week. The debt-laden property investment company says it is not aware of any reasons for the movement that saw shares rise from 5.4 cents on Monday to 7.9 cents before entering a trading halt yesterday. As well as stating it has no explanation for the increased volume of trade, Centro today issued a full year forecast and says it expects underlying profit to fall by substantially more than 15 per cent in the 2011 financial year. Today shares in Centro Properties Group shed 15.19 per cent to close at $0.067 cents.
Tower Australia Group Ltd (ASX:TAL) has announced that its suitor, Japan’s Dai-ichi Life Insurance, has received the green light from Australia’s Foreign Investment Review Board to proceed with its $1.8 billion takeover of the Australian insurance company.
Shares in Samson Oil & Gas Ltd (ASX:SSN) fell 2.7 per cent today after the dual-listed oil and gas producer advised it will sell some it its US gas assets for $6.3 million to a group of private buyers.
Best and worst performers: All sectors closed in positive territory. The best performing sector was Energy with the index advancing 354 to close at 16,900. The sector with the smallest gains was Real Estate Investments Trusts, adding 2 points to close at 867. The best performing stock in the S&P/ASX200 was Energy Resources of Australia, shares gained 6.34 per cent to close at $8.56. Shares in Bow Energy and Kagara ended the week stronger. The worst performing stock was Murchison Metals, shares sagged 1.85 per cent to close at $1.06. Shares in Eldorado and DuluxGroup also closed in the red today.
Commodities: Gold is trading at $US1,433 an ounce and is up $15.55 on the week. Light crude is 3 cents up at $US105.63 a barrel. The Australian dollar is trading at $US1.00208 cents, and is up almost 2.5 cents on the week.
