The Australian share market closed 0.9 stronger for the fourth straight session. Despite Wall Street closing last week lower, after Italy and Spain had their credit rating downgraded, local stocks have continued to trade on hopes for the re-capitalization of Europe’s banks. Gains were across the board, led by the Energy and Telco stocks.
The S&P/ASX200 Index finished 38 points stronger at 4,201. On the futures market the SPI is currently 21 points higher.
Economic news
Jobs advertisements in Australia fell for a third straight month. The latest ANZ job ads survey fell 2.1 per cent in September following after a fall of 0.7 per cent the month before.
Company news
BHP Billiton Limited’s (ASX:BHP) $US20 billion expansion of its Olympic Dam copper and uranium mine in South Australia has won environmental approval from the state and federal governments. More than 100 environmental conditions will apply to the project including an area of around 140,000 hectares devoted to conservation and environment protection programs. Shares in BHP Billiton lost 0.27 per cent to close at $37.10.
Shares in Extract Resources Limited (ASX:EXT) jumped more than 10 per cent this morning amid speculation that it’s largest shareholder, Kalahari Minerals, is being lined up as a takeover target from a Chinese company. Kalahari Minerals has almost a 43 per cent stake in uranium explorer Extract, that has entered into a trading halt pending an announcement relating to media speculation. Rio Tinto Limited (ASX:RIO) also holds a 14 per cent stake in Extract and closed more than 1 per cent higher today. Shares in Extract Resources jumped 10.2 per cent to $8.86.
The new chairman of Australia's competition regulator has warned he will be keeping an eye on supermarket giants, Woolworths Limited (ASX:WOW) and Wesfarmers Limited (ASX:WES)-owned Coles. Rod Sims says the regulator will be watching closely to ensure the company’s supply deals don’t involve unconscionable conduct.
Australian and Thai regulators have approved the $477 million takeover bid for Mongolia-focused coal explorer Hunnu Coal Limited (ASX:HUN) from Thai coal miner Banpu Public Company.
Asciano Limited (ASX:AIO) has announced that the chief of its troubled Patrick ports division, Paul Garaty, will leave the company early next year. A search is understood to be underway for his replacement.
Hastie Group (ASX:HST) has announced the appointment of the former deputy CEO of Leighton Holdings Limited (ASX:LEI), Bill Wild, as its interim CEO.
Best and worst performers
All sectors advanced: The best performing sector was Energy, rising 249 points to close at 13,582. The sector with the smallest gains was Health Care, firming 3 points to close at 7,853.
The best performing stock in the S&P/ASX200 was Gunns shares gained 13.79 per cent to close at $0.165. Shares in Paladin Energy and Extract Resources also closed higher.
The worst performing stock was SMS Management & Technology, falling 3.96 per cent to close at $5.09. Shares in Sandfire Resources and Ardent Leisure also dropped today.
Commodities
The price of gold is $US1,652 an ounce.
Light crude is up $0.67 cents at $US83.65 a barrel.
