Buoyed by strong offshore leads the Australian share market soared almost 3 per cent at the open and is 2.5 per cent higher at noon. A pledge from global central banks to fight the eurozone’s debt crisis has boosted sentiment. All sectors are adding value, led by solid gains from the miners.
The S&P/ASX 200 index has soared 86 points and is 4,206. On the futures market the SPI is 100 points stronger.
Economic news
Retail trade edged up but building approvals fell in October, according to the Australian Bureau of Statistics. The ABS has reported retail trade increased 0.2 per cent. It was the fourth straight monthly gain but came in lower than expected. Building approvals were down 10.7 per cent. It was the second straight monthly drop and defied expectations for a rise. Over the year to October, building approvals have sunk 29.8 per cent.
Manufacturing activity eased slightly less than the month before. The Australian Industry Group and PriceWaterhouseCoopers performance of manufacturing index added 0.3 per points to 47.8 in November. The level under 50 indicates contraction.
Company news
Foster's Group Limited (ASX:FGL) will no longer be known as Australia’s own brewer, with shareholders overwhelmingly approving the takeover bid from global brewer SABmiller worth about $12 billion. Just last week Federal Treasurer Wayne Swan gave the green light for the takeover to proceed that will now see Foster’s stop trading on the Australian Securities Exchange (ASX) on Friday. SAB will take control on December 16 and shareholders will receive $5.30 per share by December 21, having already received a 13.25 cent dividend. Shares in Foster's Group are steady at $5.38.
Agricultural chemicals supplier Nufarm Limited (ASX:NUF) has provided its first half profit guidance and announced a new acquisition. Nufarm has spent about $54 million to buy an American sunflower seed company with annual revenues of about $US20 million. Nufarm has also advised it expects to deliver a first half net profit broadly in line with the previous corresponding period’s $22.7 million. Shares in Nufarm have eased 0.21 per cent and are trading at $4.74.
Best and worst performers
All sectors have advanced: The best performing sector is: Materials lifting 355 points to 11,285. Shares in Iluka Resources have risen 5.07 per cent and trading at $15.34. Shares in Cudeco and Gunns are also stronger.
The sector with the smallest gains is Telco Services, adding 3 points to 1,084. Shares in Telecom Corporation of New Zealand have pulled back 0.65 per cent and trading at $1.525. Shares in Enerji and Hutchinson Telecommunications are both steady.
New Zealand
The NZSX50 is 13 points higher: Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock easing 0.99 per cent to $2.01 followed by Chorus, Westpac and Fletcher Building.
Gold and the dollar
Gold is trading at $US1,748 an ounce.
The Australian dollar is buying $US1.0224.
