The Australian share market closed 0.63 per cent higher today, posting its fifth day of gains in a row.
The S&P/ASX200 Index closed 27 points higher at 4,228. On the futures market, the SPI is up 40 points.
Economic news
NAB’s Business Survey for September showed business conditions rose five index points to plus two points, moving above the zero level that separates expansion from contraction.
But going the other way, a survey of building activity and profits came in lower, which could lead to job losses. Master Builders Australia’s September quarter survey showed expectations for activity and profits in the sector were the weakest since the December quarter of 2008. The measure of expectations for employment growth signalled likely job losses in the sector, and was at its weakest point since June 2009.
Company news
Sundance Resources Limited (ASX:SDL) said its takeover bid is still on track. It says Hanlong will have to tell Sundance if there is any material development leading to the non-fulfilment of a regulatory approval, and that Hanlong has no reason to provide such notification. Its announcement came after media reports this morning said the Foreign Investment Review Board told Hanlong it won’t clear its $1.65 billion takeover bid until more findings are released from the investigation of the suspected insider trading of its executives. Shares in Sundance Resources Limited (ASX:SDL) lost 1.15 per cent today, closing at 43 cents.
Australia and New Zealand Banking Group (ASX:ANZ) is freezing the pay of more than 900 of staff in its top two tiers of executives. Chief executive Mike Smith told staff in an email that as leaders of the business, it’s the right thing to do in the current climate. News of the pay freeze saw ANZ shares rise 0.95 per cent to $21.20.
Kagara Limited (ASX:KGA) said its production of lead, zinc and nickel rose for the September quarter and operating costs fell. Zinc was up 13 per cent on the June quarter, but copper was down three per cent. The company said the results were in line with expectations.
BHP Billiton Limited (ASX:BHP) may have copped a lot of criticism from the Greens today after it announced the expansion of its Olympic Dam mine yesterday, but it got a pat on the back from independent industry experts. The Greens said the decision would result in enormous harm to public health, but the Australian Uranium Association said independent expert advice underpins the federal and South Australian government’s approval, and that leading scientists and environmental experts were involved.
Union troubles for Qantas Airways Limited (ASX:QAN) are far from over as the Australian Licensed Aircraft Engineers Association dished out a warning to passengers today to stay away from the iconic airline. Full day stoppages have been prewarned for the end of the month. The company’s share price rose 1.97 per cent today despite the troubles, to $1.55.
And firms looking after SABMiller’s takeover of Foster’s Group Limited (ASX:FGL) are reportedly charging bills of up to $45 million. The AFR said the defence advisors, Goldman Sachs and Gresham Partners, will pocket between $30 and $45 million for the deal, which if successful will be the largest M&A for the nation of the year.
Best and worst performers
The best performing sector was consumer discretionary, up 15 points to close at 1,227. The worst performing sector was real estate investment trusts, losing 4 points to close at 774 points.
The best performing stock in the S&P/ASX200 was Gindalbie, lifting 11.4 per cent to close at 63.5 cents. Shares in Gunns and Transpacific Industries also finished the day stronger.
The worst performing stock was Karoon, down 4.76 per cent closing at $3.80. Beach Energy and James Hardie also closed lower.
IPOs
Stratum Metals Limited listed today at 20 cents, opened at 22 cents, and closed its first trading day at 22 cents.
Commodities
Gold is trading at $US1,681 an ounce. Light crude is down 11 cents at $US85.30 a barrel.
