After strong US lead the Australian share market opened higher and advanced throughout the day. The local bourse closed at near session highs, buoyed by M&A activity and some encouraging earnings results as the reporting season wraps up. All sectors finished stronger, with the major banks and miners gaining more than 1 per cent.
The S&P/ASX200 Index advanced 63 points to close at 4,263. On the futures market the SPI is 51 points higher.
Economic news
New home sales have slumped to their lowest level in more than 10 years. The Housing Industry Association-JeldWen survey of Australia’s major residential builders has revealed the second straight monthly 8 per cent fall in sales, bringing the total number of new homes sold in July to 6,428.
Company news
Shares in Macquarie Group Limited (ASX:MQG) rose today after a consortium arranged by the investment bank made a $1.7 billion bid for Charter Hall Office Real Estate Investment Trust (ASX:CQO). A Macquarie Capital executive has told Reuters if the bid is successful it plans to privatise Charter Hall and retain Charter Hall Group as manager. The offer of $2.39 per trust unit sent Charter Hall’s shares up more than 16 per cent at close. Shares in Macquarie Group gained 2.64 per cent, closing at $24.89.
Shares in Northern Energy Corporation Limited (ASX:NEC) surged today after coal miner New Hope Corporation Limited (ASX:NHC) made a $2.00 per share all-cash off-market bid to buy all the coking coal explorer’s shares that it does not already own. New Hope currently holds an 80.83 per cent stake in Northern Energy and its offer is at a 29 per cent premium to the company’s last closing price. Shares in Northern Energy surged 29.03 per cent, finishing at $2.00.
Coal hauler QR National (ASX:QRN) has rebounded to a full year net profit of $349.5 million, from a loss of $36.8 million the year before. A final dividend of 3.7 cents per share has been declared.
Breads and spreads manufacturer Goodman Fielder Limited (ASX:GFF) has posted an annual net loss of $166.7, weighed down by impairment charges. A final dividend of 2.5 cents per share has been declared.
Count Financial Limited (ASX:COU) has more than doubled its full year net profit, generating a record $52 million. A final dividend of 4 cents per share has been declared.
Toll road operator Macquarie Atlas Roads Limited (ASX:MQA) has narrowed its first half loss to $106 million and forecast earnings and revenue to rise in the year ahead.
Best and worst performers
All sectors rallied: The best performing sector was Real Estate Investment Trusts, rising 25 points to close at 783. The sector with the smallest gains was Telco Services, adding 3 points to close at 1,054. The best performing stock in the S&P/ASX200 was Charter Hall Office Real Estate Investment Trust shares soared 16.21 per cent, closing at $3.37. Shares in FKP Property Group and Seven West Media also closed in higher today. The worst performing stock was Telecom Corporation of New Zealand, falling 21.69 per cent to close at $2.13. Shares in Pacific Brands and Fleetwood Corporation also closed lower today.
Commodities
Gold is trading at $US1,812 an ounce. Light crude is up $0.27 cents at $US85.64 a barrel.
