Following last week’s heavy losses, the Australian share market has today recovered some ground on hopes for a resolution to Europe’s debt problems. Strong offshore leads have pushed equities up more than 3 per cent. All sectors trading higher with resources and financials leading gains.
The S&P/ASX200 index has bounced 117 points to 3,980. On the futures market the SPI is 111 points higher.
Company news
Telstra Corporation’s Limited (ASX:TLS) fourth generation, or 4G, network is expanding. While some business customers last month got a taste of the super-speedy network, today’s roll-out will see coverage expanded to a five kilometre radius around central business districts. Telstra will start selling mobile broadband modems for customers to access the new 4G network that has been under construction since May. 4G download speeds are expected to be 25 times faster than the 3G network’s initial speeds. Shares in Telstra are 0.33 per cent higher at $3.05.
CP2’s $2.17 billion takeover bid for toll road owner, ConnectEast Group (ASX:CEU), looks set to go ahead. According to The Australian ConnectEast’s major shareholder, Lazard, backed the bid at this morning’s shareholder meeting to vote on the deal. After initially being opposed, Lazard has reportedly changed its mind due to the current volatility in financial markets. Shares in ConnectEast Group entered into a trading halt yesterday, having last traded at $0.485.
Best and worst performers
All sectors have advanced: The best performing sector is Financial Excluding Real Estate Investment Trusts, rising 160 points to 4,316. Shares in Macquarie Bank have risen 7.44 per cent and trading at $21.52. Shares in National Australia Bank and Bank of Queensland are also higher. The sector with the smallest gains is Health Care adding 32 points to7,568. Shares in Equatorial Resources have eased 2.45 per cent and trading at $2.39. Shares in Biota Holdings and CSL are also lower.
New Zealand
The NZSX50 has jumped 42 points. Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock up 3.6 per cent at $2.59 followed by Fletcher Building, Westpac and AMP.
Gold and the dollar
Gold is trading at $US1,629 an ounce. The Australian dollar is buying 98.55 US cents.
