The Australian sharemarket has rallied 3.7 per cent as buyers returned. There was renewed optimism today that a solution is near for the euro-zone debt crisis.
The S&P/ASX200 Index closed 143 points higher at 4,070. On the futures market, the SPI is up 129 points.
Economic news
Sales of new vehicles dipped 1.4 per cent in September, seasonally adjusted, following sharp rises in August and July, but up 2.1 per cent on the same month last year.
Company news
Ken Henry’s dual role as National Australia Bank Limited (ASX:NAB) director and government adviser is not a conflict of interest according to the Prime Minister. Dr Henry took up the role at the bank on Wednesday night. He is also writing a white paper on the impact of the rise in Asia as special adviser to the PM. A spokesperson for the Prime Minister says Dr Henry consulted with the department before taking the position at NAB, and the Prime Minister was aware of the appointment when she asked him to lead the white paper. NAB shares gained 5 per cent, closing at $22.87.
Stockland (ASX:SGP) has welcomed the dropping of legal action against its Caloundra South project in Queensland. Sunshine Coast Regional Council has stopped planned legal action against the declaration of the site as an urban development area. The proposed site would be the property group’s largest ever development. The project’s development scheme still needs approval by the Queensland government. It’s expected the decision will be made by the end of the year. Stockland shares gained 0.67 per cent to close at $2.99.
Focus Minerals Limited (ASX:FML) has completed its $68 million take-over of Crescent Gold Limited (ASX:CRE), maintaining its production target of more than 200,000 ounces of gold a year.
Steelmaker ArcelorMittal and US coal miner Peabody have extended their takeover bid for Macarthur Coal Limited (ASX:MCC) for a second time.
Hochtief director Manfred Wennemer will take a seat on the Leighton Holdings Limited (ASX:LEI) board.
Woodside Petroleum Limited’s (ASX:WPL) head of international oil and gas, Jeff Soine has resigned and more departures are expected, according to The Australian.
Best and worst performers
All sectors ended the day in the black. The best performing sector was Financials Excluding Real Estate Investment Trusts, gaining 185 points to close at 4,415.
The sector with the smallest gains was Utilities, adding 43 points to close at 4,284.
The best performing stock in the S&P/ASX200 was Paladin Energy, lifting 16.24 per cent to close at $1.36. Shares in Karoon Gas and Bathurst Resources also finished the day stronger.
The worst performing stock was Sundance Resources, down 1.09 per cent closing at $0.455. SP AusNet and Medusa Mining also closed lower.
Commodities
Gold is trading at $US1,648 an ounce. Light crude is down $0.09 at $US79.59 a barrel.
