A positive end to the day, Australian stocks rebounding from a three-month low with strong Chinese industrial production data outweighing anxiety surrounding higher than expected inflation figures.
The S&P/ASX200 Index closed 23 points higher at 4,585. On the futures market, the SPI is up 52 points.
Economic news
Business conditions fell in May, with the National Australia Bank’s monthly business survey showing conditions fell four points.
And lending finance rose in April, housing finance for owner occupation was up by 6.3 per cent, commercial finance commitments by lenders fell by 8.8 per cent, total personal finance commitments rose 0.4 per cent and lease finance was up by 2.4 per cent.
In economic news for China, inflation grew to 5.5 per cent in May, that’s a 34-month high. Industrial output rose 13.3 per cent from a year earlier.
Company news
IOOF Holdings Ltd (ASX:IFL) has made an $88 million takeover bid for DKN Financial Group. IOOF currently holds just over 18 per cent of DKN’s listed shares, offering to pay 75 cents for the remaining shares for complete ownership. Shares in IOOF dropped 1.07 per cent today, closing at $6.46.
The Territory Resources Ltd (ASX:TTY) board today recommended its shareholders accept a takeover offer from Noble Group. The directors of the junior iron ore producer unanimously backed the unconditional cash offer of 50 cents a share from Noble. Shares in Territory Resources fell 1.92 per cent today, closing at $0.51.
Fresh bets that Foster's Group Ltd (ASX:FGL) may be a takeover target as Mexico’s Grupo Modelo seeks support from its top shareholder, according to media reports.
Austal Ltd (ASX:ASB) has won a bid to build and maintain eight patrol boats for the Australian Customs and Border Protection Service.
The volcanic ash that has spread through the air from Chile has brought Qantas Airways Ltd’s (ASX:QAN) crisis management practices into question. Qantas cancelled all flights to and from New Zealand, Tasmania and Adelaide while Virgin Blue was flying as normal.
And Insurance Australia Group Limited (ASX:IAG) has reaffirmed its growth guidance of three to five per cent, aiming to accelerate growth in the future.
Sectors
The best performing sector was Financials Excluding Real Estate Investment Trusts, adding 56 points to close at 4,907. The worst performing sector was Energy, losing 20 points to close at 15,567.
Stocks
The best performing stock in the S&P/ASX200 was Infigen Energy. Shares rose 7.58 per cent to close at $0.355. Shares in Sundance Resources Ltd and Perseus Mining Ltd also closed higher today.
The worst performing stock was Paladin Energy falling 6.45 per cent to close at $2.61. Shares in Murchison Metals Ltd and Transpacific Industries Group Ltd also closed lower today.
Commodities
In commodities, gold is trading at $US1,523 an ounce and Light crude is up $0.29 at $US97.59 a barrel.
