Buoyed by strong offshore leads the Australian share market spiked 2 per cent today, almost recovering from the steep losses of earlier this week. Optimism over Europe’s sovereign debt crisis pushed stocks up at open, remaining at session highs for the rest of the day, led by strong gains from property, energy and financial stocks.
The S&P/ASX200 Index closed 78 points higher at 4,149, but was down 45 points for the week. On the futures market the SPI is 57 points higher.
To Wall Street, over the four trading days this week: The Dow Jones Industrial Average was 441 points higher. The S&P 500 Index was 55 points higher. The Nasdaq was 139 points higher. The 100 Index was 123 points higher.
Company news
Fortescue Metals Group Limited’s (ASX:FMG) founder and former CEO, Andrew Forrest, has spent around $100 million on acquiring the iron ore miner’s stock in the past month. The buy-up, at an average price of $6.00 per share, has been done as part of a scheme implemented by Mr Forrest to help Fortescue’s executives boost their stake in the company. The latest $42.2 million parcel of stock may not be the last, with Fortescue today telling the ASX that "further similar transactions may follow". Shares in Fortescue Metals Group ended the day 3.57 per cent higher at $6.09.
One of the worst performers of this week, bionic ear-maker Cochlear Limited (ASX:COH), today revealed that its CEO scored a 17 per cent pay rise in 2011. Chris Roberts took home $2.5 million in the same period Cochlear’s net profit grew 16 per cent to $180 million. Earlier this week Cochlear said it will voluntarily recall one of its failed implants, propelling investors to sell out of the company. While shares in Cochlear lifted 1.79 per cent today to finish at $51.20, the stock lost more than $20.00 in value over the week.
Shares in toll road owner and takeover target ConnectEast Group (ASX:CEU) lost ground today after the company’s largest shareholder and suitor, fund manager CP2, declared its $0.55 per share bid as final amid rising speculation the offer won’t go through when it goes to a shareholder vote at the end of the month.
Shares in Myer Holdings Limited (ASX:MYR) also finished the day and week lower. The department store retailer today said it would inject $9 million in a new website expected to annually generate $40 million in sales revenue. Yesterday Myer warned it expects its net profit to fall by 10 per cent in the next financial year.
Best and worst performers
All sectors closed higher: The best performing sector was Real Estate Investment Trusts, lifting 27 points to close at 781. The sector with the smallest gains was Telco Services, adding almost 1 point to close at 1,050 points. The best performing stock in the S&P/ASX200 was Energy World Corporation, shares rising 8.55 per cent to close at $0.635. Shares in Sandfire Resources and Goodman Group also finished stronger today. The worst performing stock was ConnectEast Group, dropping 3.92 per cent to close at $0.49. Shares in Acrux and Sigma Pharmaceuticals also fell today.
IPOs
Cradle Resources Limited (ASX:CXX) started trading today at $0.22, a 2 cent premium to its issue price of $0.20. The Pilbara-focused base metals and iron ore explorer closed 13.64 per cent higher at $0.25.
Commodities
Gold is trading at $US1,770 an ounce and fell by $87.00 over the week.
Light crude is up $0.10 cents to $US89.50 a barrel.
The Australian dollar
The Australian dollar is buying $US1.034 and is 1.2 cents down on the week.
