The Australian market finished slightly higher this afternoon, after paring its gains at the close. Materials and energy led the market higher but financial, consumer and industrial sectors capped gains ahead of what is expected to be a tough budget.
The S&P/ASX200 Index closed 14 points higher at 4,757. On the futures market, the SPI is 21 points higher.
In economic news, NAB’s monthly business survey has found that business conditions and confidence softened in April alongside the strong Aussie dollar and coupled with the hurt sentiment from the increasing likelihood of an interest rate rise. The index fell four points to +5 index points in April.
In company news, Gloucester Coal Limited (ASX:GCL) may be facing two potential acquisitions as well as a capital raising.
Gloucester owns almost 50 per cent of the Middlemount project in Queensland's Bowen Basin with Macarthur Coal, which has also seen off interest from suitors in recent years. The company will remain in a trading halt until Wednesday, unless it makes a prior announcement. It was last traded at $9.90 on Friday.
Shares in Caltex Australia Ltd (ASX:CTX) rose today after the oil refiner and marketer flagged a lift in first half production. The company said it expected production for the six months to June 30 would be between 4.8 and 5.0 billion litres, up from 4.3 billion litres for the first half of 2010. Caltex shares closed the day 3.65 per cent higher at $14.20.
Also making news, Atlas Iron Limited (ASX:AGO) has signed an agreement to expand capacity at its iron ore mine in Western Australia's Pilbara by 75 per cent to 7 million tonnes per annum. The company said it had entered into a six-year infrastructure agreement with Global Advanced Metals.
And Sims Metal Management Ltd (ASX:SGM) has been upgraded by JP Morgan to an ‘overweight’ recommendation. This afternoon’s Australian Financial Review reported the company’s third quarter result suggested demand for ferrous scrap in the US was improving, pushing Sims margins up.
Taking a look at earlier headlines news: Fertiliser maker Incitec Pivot Ltd (ASX:IPL) have increased first half profit by 25 per cent to $165.6 million for the six months to March 31. And Crown Ltd (ASX:CWN) is reportedly gearing up to inject $100 million into developing gaming operations at its Crown Casino in Melbourne.
The best performing sector was Energy with the index adding 154 to close at 16,312. The worst performing sector was Telco Services, losing 13 points to close at 1,002. The best performing stock in the S&P/ASX200 was Hastie Group; shares rose 23.91 per cent to close at $0.285. Shares in Spotless and Carnarvon also closed in positive territory today. The worst performing stock was Gunns, shedding 5.26 per cent to close at $0.45. Shares in Southern Cross Media and Fairfax also closed in the red today.
In commodities, gold is trading at $US1,502 an ounce and Light crude is up $1.76 cents at $US98.94 a barrel.
