After a mixed start, the share market put in a solid performance today – led higher by resources stocks...Woodside being a standout. The banking sector also pushed forward.
The S&P/ASX200 Index gained 24 points to close at 4,862 while for the week it advanced 119 points. On the futures market, the SPI is up 9 points.
Looking to the US and on Wall Street, the DOW Jones Industrial Average was up 99 points over the four trading days this week. The S&P 500 Index was up 12 points, NASDAQ was up 38 and the 100 Index was up 23.
In economic news: The Australian Industry Group/PriceWaterhouseCoopers performance of manufacturing index (PMI) fell 3.2 points to 47.9... taking it below the 50 level that marks the threshold between contraction and expansion. The survey revealed the cost of raw materials and the rising Australian dollar hurt the sector.
In company news: there are reports this afternoon that Leighton Holdings (ASX:LEI) is in discussions with NBN Co. over the construction of the 36 billion dollar National Broadband Network. It comes after NBN Co. suspended its construction tender on value-for-money concerns. It seems NBN Co. is looking at abandoning its original plan to have several companies construct parts of the network in favour of just one firm. Shares in Leighton Holdings rose 0.58 per cent to close at $29.66.
And James Warburton has launched a cross-claim for damages against the Seven Network (ASX:SEV). It follows news today that Seven has dropped its claim that Ten (ASX:TEN) induced Mr Warburton to break his original contract with the network. Seven has agreed to pay Ten’s costs. The main hearing is scheduled to get underway this Tuesday afternoon – Seven seeking orders to ensure Mr Warburton not to start at Ten until October 2012. Shares in Ten Network Holdings rose 1.53 per cent today and closed at $1.32 point 5 cents.
In other news: The National Australia Bank (ASX:NAB) has called for tax concessions on deposits to be a top priority for the October tax forum. It comes amid concerns about the over-reliance on offshore wholesale funding. And speculation continues regarding a move by BHP Billiton (ASX:BHP) on energy giant Woodside Petroleum. Woodside (ASX:WPL) chief executive Don Voelte, however, has told the Australian Financial Review that he’s unaware of any takeover interest from BHP.
In the best and worst performers: The best performing sector was Consumer Staples with the index advancing 108 to close at 7,838. The worst performing sector was Telecommunications, losing 2 points to close at 961.
The best performing stock in the S&P/ASX200 was Bow Energy shares gained 4.98 per cent to close at $1.05 and a half cents. Shares in Intrepid and Austar ended the week stronger. The worst performing stock was Karoon, dropped 3.63 per cent to close at $6.90. Shares in JB Hi-Fi and Panoramic also closed in the red today.
In commodities, gold is trading at $US1,434 an ounce and is up $5.45 on the week. Light crude is 28 cents up at $US107 a barrel. The Australian dollar is trading at 1.03.49 US cents, and is up almost a cent on the week.
