The Australian share market closed 3.6 per cent higher today, after steady afternoon gains on the back of positive signs that efforts are being made to solve the Eurozone debt crisis.
The S&P/ASX200 Index closed 141 points higher at 4,005. On the futures market, the SPI is up 145 points.
Company news
The sale of ConnectEast Group (ASX:CEU) to Horizon Roads was approved today, with 79 per cent of institutional shareholders giving the thumbs up. The chances of the vote passing was boosted after Lazard, who own a seven per cent stake in ConnectEast, came on board after being expected to vote against the takeover. Horizon offered 55 cents per share. Shares in ConnectEast Group (ASX:CEU) gained 13.4 per cent, closing at 55 cents.
RIO Tinto Limited (ASX:RIO) has officially bought the Koodaideri South tenement from Iron Ore Holdings Limited (ASX:IOH) for $32 million. Meanwhile, RIO has also lifted its stake in Ivanhoe mines to 49 per cent, through a privately negotiated share trade. The company says the acquisition of shares was made in compliance with existing contractual arrangements. Shares in RIO Tinto Limited (ASX:RIO) closed 5.35 per cent higher today at $63.42.
Telstra Corporation Limited (ASX:TLS) has launched its 4G mobile network. The network will be rolled out across more than 30 regional and metropolitan centres, and hopes to enable access to some of the fastest mobile download and upload speeds available – 10 times faster than 3G speeds.
Goodman Fielder Limited (ASX:GFF), announced a capital raising of $259 million so it can free up its balance sheet and pursue its medium and long term goals. It says it is also aiming to provide for additional headroom under its financing facilities. Goodman Fielder was placed in a trading halt before it made the announcement, and last traded at 59 cents.
Bannerman Resources Limited (ASX:BNM) says despite ongoing regulatory investigations into insider trading by Hanlong executives, it’s still aiming to advance takeover talks. Bannerman today said Hanlong’s due diligence is well progressed.
Meanwhile, Bannerman was joined by Lynas Corporation Limited (ASX:LYC) among other midcap miners today when they leapt between 10 and 20 per cent in morning trade. By lunchtime Lynas was up 22.28 per cent at $1.07, after yesterday’s low of 85.7 cents. Sundance jumped 12.05 per cent, and Bannerman 21.27 per cent. Lynas closed the day 34.8 per cent higher at $1.18.
Best and worst performers
The best performing sector was materials, gaining 516 points to close at 10,953. The worst performing sector was healthcare, but still gained 38 points to close at 7,574 points.
The best performing stock in the S&P/ASX200 was Lynas, as saw earlier, lifting almost 35 per cent. Shares in Gryphon and Sundance also finished the day stronger.
The worst performing stock was Coalspur Mines Limited, down 4.55 per cent closing at $1.26. Southern Cross Media and Cabcharge also closed lower.
Commodities
Gold is trading at $US1,653 an ounce. Light crude is up $2.05 at $US82.29 a barrel.
