The Australian share market powered ahead today, jumping 2.7 per cent on hopes European leaders are progressing towards a solution for the region’s debt crisis. All sectors advanced at open and extended gains after better than expected Chinese PMI data pushed the miners to the best performers of the day.
The S&P/ASX200 Index today finished 113 points stronger at 4,255. On the futures market, the SPI is 93 points stronger.
Economic news
Producer prices in Australia rose less than expected in the last quarter. The Australian Bureau of Statistics producer price index rose 0.6 per cent in the September quarter, up from 0.8 per cent the quarter before and 2.7 per cent higher than the same time a year before.
Data from HSBC Holdings and Markit has shown China’s manufacturing sector picked up in October. HSBC's China Flash Purchasing Managers' Index rose to 51.1, climbing above 50 points for the first time since July.
Company news
Rio Tinto Limited’s (ASX:RIO) CEO Tom Albanese told an audience in Sydney today the global mining giant’s shipments are strong and its selling everything it can produce. Rio is planning to boost production by 50 per cent to 333 million tonnes per annum by 2015, underpinned by forecast 6.5 per cent growth in its iron ore business. Mr Albanese also today confirmed the miner’s long term demand outlook remains the same despite current volatility in the macro environment. Shares in Rio Tinto gained 4.89 per cent today, closing at $65.63.
Shares in Aquila Resources Limited (ASX:AQA) closed higher after the company said it had inked a 10-year transportation contract with QR National (ASX:QRN). Under the agreement QR will transport up to 1.6 million tonnes of coal per annum from the Washpool coal project to the Wiggins Island coal terminal at the Port of Gladstone. While the value of the deal has not been disclosed, shares in QR National closed higher and shares in Aquila Resources lifted 9.46 per cent today, closing at $5.67.
Shares in Origin Energy Limited (ASX:ORG) closed higher after the energy company confirmed that it expects a 30 per cent increase in its underlying profit and 35 per cent growth in underlying earnings in the current 2012 financial year.
Shares in Pharmaxis Limited (ASX:PXS) jumped more than 65 per cent at one point today, after the drug developer informed the market that European regulators reversed a negative ruling for its its cystic fibrosis drug.
Qantas Airways Limted’s (ASX:QAN) budget carrier, Jetstar, has inked a $10 million deal with Tourism Australia aimed at marketing Australia into Asia over the next three years.
Rio Tinto’s $10.8 billion takeover of Coal & Allied Industries Limited (ASX:CNA) has been deemed as fair and reasonable by an independent expert. The proposal will be put to shareholders on November 28, 2011.
Best and worst performers
All sectors rallied: The best performing sector was Materials, advancing 403 points to close at 11,445. The sector with the smallest gains was Health Care, lifting 89 points to close at 7,950. The best performing stock in the S&P/ASX200 was OM Holdings shares jumped 12.5 per cent to close at $0.675. Shares in Lynas Corporation and Gindalbie Metals also gained. One of the few stocks to end in negative territory was The Reject Shop, losing 1.09 per cent to close at $9.97. Shares in AlacerGold and Singtel also eased today.
Commodities
The price of gold is $US1,647 an ounce. Light crude is up $0.65 cents at $US88.05 a barrel.
