The Australian share market put in a solid performance today on the back of firmer metals prices. Gold in particular was a standout. The market also leveraged off a strong performance in Asian equities.
The S&P/ASX200 Index rose 66 points to close at 4,822. On the futures market, the SPI is up 58 points.
In economic news: Figures from the Australian Bureau of Statistics show that job vacancies fell 1.7 per cent in February. However the data also shows the number of unemployed competing for each available job actually fell from 3.2 to 3.1.
In company news: BHP Billiton has announced its Olympic Damn Project has progressed into the Feasibility study phase. The project aims to develop a new open pit copper mine...increasing its copper production from 180 thousand tonnes per annum to 750 thousand tonnes over the next 30 years. The world’s biggest miner is now waiting for permission from the government to publish the Supplementary Environmental Impact Statement. A final decision by the Commonwealth is expected in the second half of this year. Shares in BHP Billiton rose 2.04 per cent to close at $45.61.
And Telstra’s chief executive David Thodey has welcomed amendments to laws governing the National Broadband Network or NBN. It comes despite reports that Telstra did not get many of the changes it had pushed for. The amendments clear the path for Telstra to move its fixed line monopoly to NBN co. Despite some controversy, Mr Thodey says the amendments were in the spirit of Labor’s original plans for the high speed network. Shares in Telstra rose 1.45 per cent to close at $2.80.
Also making news: Myer says it’s not interested in buying any brands from clothing and footwear retailer Colorado...which was today put in the hands creditors. And Rio Tinto says it will go ahead with its 3.9 billion dollar takeover offer for Riversdale Mining...even if it ends up with a minority stake in the coal miner.
In other news: Harvey Norman says it will launch an online store “within weeks”. The department store has also signaled it will cease its public battle with the government over internet shopping…now looking to build its own online presence.
And In response to rising fuel prices, Qantas Airways has announced a series of cost cutting measures. Qantas CEO Alan Joyce says the significant and sustained increases in the price of fuel is the most serious challenge Qantas has faced since the Global Financial Crisis.
To the best and worst performing sectors now: The best performing sector today was the Materials sector gaining 282 points to close at 14,031. The worst performing sector was the Real Estate Investment Trust rising 3 points to close at 866.
The best performing stock in the S&P/ASX200 was Iluka...shares rising 7.28 per cent to close at $12.23. Shares in Aquila and Elders also closed in the black. The worst performing stock was GWA International, shedding 2.65 per cent to close at $3.30. Shares in Sundance and TPG also closed weaker today.
In commodities, gold is trading at $US1,418 an ounce and Light crude is 29 cents weaker at $US104.50 a barrel…the Aussie dollar is trading at 103.28 US cents.
