Following positive leads the Australian share market rose today to finish up 0.28 per cent, boosted by healthcare, utilities, and financials excluding REITS. The S&P/ASX200 Index closed 13 points higher at 4,474. On the futures market, the SPI is up 27 points.
Economic news The Reserve Bank of Australia’s (RBA) Assistant Governor said today that local banks have been paying down foreign debt over the past year, while cutting back on short-term debt and expanding deposit bases. He said the RBA would be able to meet a temporary liquidity shortfall by lending Australian dollars against the stressed bank's assets.
Company news RIO Tinto
(ASX:RIO) boss Tom Albanese reportedly told a business event in Perth today that the company is planning to grow in line with resource demand over the coming decade. He also said that in light of the sovereign debt problems in Europe, investors will be "climbing a world of worry" during that same time. Shares in RIO Tinto
(ASX:RIO), rose 0.69 per cent today, closing at $80.35.
Qantas Airways Ltd
(ASX:QAN) has faced a fresh round of criticism from a leading aviation analyst from New Zealand, who says the airline’s real reason for grounding planes while ash from a Chilean volcano was in the air, was because of the company’s financial situation. A Forsyth Barr aviation analyst says it’s easier to decide not to fly when a company is running at a loss, and that Qantas does not have the customer loyalty Air New Zealand does. Shares in Qantas Airways Ltd
(ASX:QAN) closed the day down 2.94 per cent at $1.81.5.
Analysts are wary of an equity raising and cut to Duet Group’s
(ASX:DUE) dividend, after the company announced yesterday that it has entered into a binding agreement with Canada's ATCO to increase its stake in the lucrative Dampier Bunbury Pipeline (DBP) to 80 per cent from 60 per cent.
National Australia Bank’s
(ASX:NAB) CEO Cameron Clyne told a business forum today that the bank hasn’t seen a rise in defaults, and that its funding costs had not increased materially due to the European debt crisis.
AMP Ltd
(ASX:AMP) says it expects to pay $30 million in transaction costs relating to its merger with AXA Asia Pacific Holdings Ltd
(ASX:AXA).
And News Corporation
(ASX:NWS) has boosted its digital media assets by paying about $45 million for parenting website, Kidspot.
Sectors and stocks The best performing sector was Health Care, adding 161 points to close at 8,229. The worst performing sector was Industrials, losing 30 points to close at 3,410.
The best performing stock in the S&P/ASX200 was Gunns
(ASX:GUN), shares rose 3.92 per cent to close at $0.26.5. Shares in Platinum Asset Management Limited
(ASX:PTM) and Fleetwood Corp Ltd
(ASX:FWD) also closed in higher today.
The worst performing stock was Bow Energy Ltd
(ASX:BOW) falling 5.56 per cent to close at $0.85. Shares in AlacerGold
(ASX:AQG) and Infigen
(ASX:IFN) also closed lower today.
Commodities Gold is trading at $US1,497 an ounce and Light crude is down by $0.04 cents at $US90.57 a barrel.
