The Australian share market closed 0.9 per cent higher, a one-week high for the local bourse. The miners and banks lead gains with healthcare the only sector in the red.
The S&P/ASX200 Index closed 35 points higher at 4,040. On the futures market, the SPI is up 27 points.
Economic news
The Australian Housing Industry Association’s figures show the total number of new homes sold in August rose by 1.1 per cent across the nation to 6,487, but they’re still hovering around the decade low of 6,428 set in July.
Meanwhile, the NAB Property Index fell 14 points in the September quarter after a five-point fall in the June quarter. Those surveyed said access to credit was the biggest restriction when it came to buying a property.
Company news
National Australia Bank (ASX:NAB) has rejected an offer of 2 billion pounds, or AU$3.1 billion, for its Clydesdale and Yorkshire Banks. A Sky News UK report said the rejection was immediate. Just three weeks ago the bank was tight lipped about reports it may be selling the assets to NBNK for the lower price of AU$2.3 billion, and last week it denied it was planning to make any sales at all. Shares in National Australia Bank (ASX:NAB) gained 2.55 per cent, to close at $22.95.
Wesfarmers Limited (ASX:WES) sold its Premier Coal subsidiary to Austar Coal today, a subsidiary of Yanzhou Coal, for $269.8 million. But Western Australian premier Colin Barnett said the growing foreign ownership of resources in the state raises concerns about the long-term security of the state’s power supplies. He also said although they’re private companies, the coal was still owned by the state. Shares in Wesfarmers Limited (ASX:WES) closed 1.05 per cent higher today at $31.88.
The ACCC has cleared the Foster’s Group Limited (ASX:FGL) takeover by SABMiller. It said the $10.7 billion acquisition won’t substantially reduce competition for the supply of beer.
Nufarm Limited (ASX:NUF) posted a net loss of $49.9 million for the 2011 financial year. It said climate related factors accounted for the dip in profit, and it will now focus on its product diversification strategy. It won’t pay a dividend.
Gunns Limited (ASX:GNS) Tasmanian pulp mill has been cleared to proceed by the state’s Environmental Protection Agency. Gunns has until the end of the month to complete “substantial commencement” of the Bell Bay project, or the approval will lapse.
And uranium miner Paladin Energy Limited (ASX:PDN) is in a trading halt until September 30, upon reports it’s seeking up to $70 million to strengthen its balance sheet.
Best and worst performers
The best performing sector was real estate investment trusts, gaining 21 points to close at 780. The worst performing sector was healthcare, losing 16 points to close at 7,558.
The best performing stock in the S&P/ASX200 was Coalspur, lifting 9.92 per cent to $1.38.5. Shares in Boart Longyear and Sandfire also finished the day stronger.
The worst performing stock was Fortescue, it lost 7.94 per cent to close at $4.52. Lynas and Coca-Cola Amatil also closed lower.
Commodities
Gold is trading at $US1,643 an ounce. Light Crude Oil is down $1.54 to $82.91 a barrel.
