Lifted by positive leads and optimism for Europe’s sovereign debt crisis the Australian share market posted a strong start to the week, closing 1.7 per cent higher on light volume. Equities jumped more than 1 per cent at open and moved up throughout the day. All sectors added value, led by the miners and banks.
The S&P/ASX200 Index finished 70 points stronger at 4,275. On the futures market the SPI is 63 points higher.
Economic news
Sales of new motor vehicles in Australia fell more than expected last month. The Australian Bureau of Statistics has reported that sales fell 1.5 per cent in September after three months of increasing. Year on year sales were 1.3 per cent higher.
Total personal finance commitments increased 2.2 per cent in August. Total commercial finance was 7.9 per cent higher. Lease finance added 6.6 per cent. Housing finance for owner occupation edged up 0.6 per cent.
Company news
Shares in Fortescue Metals Group Limited (ASX:FMG) gained today after the Pilbara focused iron ore miner said it had shipped 20.6 per cent more iron ore in the first quarter of its 2012 financial year. In the three months to September 30, 2011 the miner shipped 12.36 million tonnes of iron ore and is targeting to ship up to 14 million tonnes in the December quarter. Fortescue has also cautioned that iron ore prices could continue to soften as Chinese growth moderates slightly. Shares in Fortescue Metals Group gained 4.5 per cent today, closing at $5.11.
ASX Limited's (ASX:ASX) rival trading platform, Chi-X, has been given the final all-clear from the local securities watchdog to launch at the end of the month. The Australian Securities and Investments Commission has granted Chi-X approval to operate Australia’s newest securities market with a soft launch period on October 31, 2011. Chi-X Australia is a subsidiary of Chi-X Global Inc, owned by a subsidiary of Japanese investment bank Nomura Holdings. Shares in ASX Limited closed 0.69 per cent higher at $30.48.
Super Retail Group Limited (ASX:SUL) has announced it will buy sporting goods retailer, Rebel Group Limited, from private equity firm Archer Capital for $610 million.
Reports have emerged that BHP Billiton Limited (ASX:BHP, NYSE:BHP, LON:BLT) is planning to launch takeover bid for Brazilian group Ferrous Resources, valued at €2 billion or around $2.7 billion. The miner is also rumoured to be considering a $6 billion bid for US-based Walter Energy.
Shares in Energy Resources of Australia Limited (ASX:ERA) traded ex-entitlement. The Rio Tinto Limited (ASX-RIO) controlled uranium miner said it had raised $380 million from institutional investors to develop its Ranger uranium mine in the Northern Territory .
Shares in Rio Tinto Limited (ASX:RIO, NYSE:RIO, LON:RIO) closed higher after the global miner today said it will sell 13 aluminum units to streamline its Alcan aluminum business and increase the division’s performance.
Best and worst performers
All sectors advanced: The best performing sector was Materials, rising 253 points to close at 11,828. The sector with the smallest gains was Utilities, lifting 31 points to close at 4,406.
The best performing stock in the S&P/ASX200 was Gunns shares jumped 14.29 per cent to close at $0.24. Shares in Coalspur Mines and Karoon Gas Australia also closed higher.
The worst performing stock was Pacific Brands, falling 3.45 per cent to close at $0.70. Shares in JB Hi-Fi and Qantas Airways also dropped today.
Commodities
The price of gold is $US1,682 an ounce. Light crude is up $0.30 cents at $US87.10 a barrel.
