The Australian share market closed at a fresh 6 week high...trading in a fairly narrow range on low volumes...as investors await key offshore economic developments...not least of which being a potential rate hike from the European Central Bank tomorrow night. Healthcare stocks and gold miners were in favour.
The S&P/ASX200 Index lifted 13 points to close at 4,913. On the futures market, the SPI is up 15 points.
In economic news: According to the Australian Bureau of Statistics, the number of home loans fell 5.6 per cent to 45,393 in February – with NSW posting its biggest monthly decline in 14 years. Floods, high prices, rising interest rates and economic uncertainty have all impacted demand.
Turning to company news: ANZ’s (ASX:ANZ) chief Mike Smith has questioned Treasurer Swan’s recent comments about the proposed merger between the ASX (ASX:ASX) and the Singapore Exchange. He says the decision highlights rising protectionism around the world. Treasure Swan meanwhile insists Australia is still open to business. Mr Smith has been a vocal supporter of the tie-up between the ASX and the Singapore Exchange. Shares in the ASX rallied 0.15 per cent to close at $33.75.
And mining giant Rio Tinto (ASX:RIO) remains below its 47 per cent target in Riversdale. The offer of $16.50 a share depends on Rio getting at least a 47 per cent stake in Riversdale by late today, otherwise it will pay $16 a share. An outright takeover has proved difficult with steel producers Tata Steel and CSN increasing their investments in Riversdale since the offer was made. According to Reuters Rio Tinto had a 46.78 per cent stake just this morning. Shares in Rio Tinto fell 0.07 per cent to close at $86.10.
Also making news: Sundance (ASX: SDL) has put a 4.46 billion dollar development cost on its iron ore project in central West Africa. The project, which the miner says will make Sundance a key player in the global iron ore market, straddles the republics of Cameroon and Congo. Meanwhile beer and wine maker Foster's (ASX:FGL) says it may face a 39.5 million dollar tax claim relating to its former brewing business in India - now owned by SABMiller.
Taking a look at other news: Flight Centre Ltd (ASX:FLT) has confirmed that it is on track to achieve a record full year pre-tax profit of between 220 and 240 million dollars. The travel company says international leisure demand remains strong given competitive airfares and a higher dollar. And Southern Cross Media Group (ASX:SXL) has initiated a 471 million dollar rights issue to partially fund its takeover bid for Austereo Group Ltd (ASX:AEO).
To the best and worst performing sectors now: The best performing sector today was Healthcare gaining 121 points to close at 9,029. The worst performing sector was Consumer Discretionary falling 10 points to close at 1,505.
The best performing stock in the S&P/ASX200 was Oceana Gold...shares rising 9.09 per cent to close at $2.88. Shares in MacMahon and Alacer Gold also closed in positive territory. The worst performing stock was Sigma Pharmaceuticals, shedding 4.35 per cent to close at 33 cents. Shares in Murchison Metals and Lynas also closed weaker today.
In commodities, gold is trading at $US1,454 an ounce and Light crude is 17 cents weaker at $US108.17 a barrel.
