Market Wrap: Aus shares up on central bank action

Market Reports

The Australian sharemarket has jumped 2.6 per cent, a fourth day of gains as the world’s major central banks moved to ease a liquidity crunch.

The S&P/ASX 200 Index ended 109 points higher at 4,229. On the futures market, the SPI is currently 122 points higher.

Economic news

Building approvals slumped during the month of October, falling 10.7 per cent, seasonally adjusted according to the Australian Bureau of Statistics. Analysts had expected a rise of 3 per cent.

Retail sales rose again in October, the fourth month in a row. Sales were up 0.2 per cent seasonally adjusted for the month.

The Australian Industry Group/PricewaterhouseCoopers Australian Performance of Manufacturing Index (PMI) rose to 47.8 in November, a level below 50 indicates a contraction.

And economic news out of China, manufacturing activity contracted for the first time since February 2009. The Purchasing Managers Index fell to 49 in November from 50.4, indicating a contraction.

Company news

The NSW Supreme Court has approved the $7 billion restructure of Centro Properties Group (ASX:CNP) according to the Australian Financial Review. There has been overwhelming support for the restructure. Under the restructure the Centro parent will be amalgamated with the retail trust and other unlisted funds. Former auditor PricewaterhouseCoopers is reportedly challenging the legality of the arrangements. Centro Properties Group shares last traded at $0.04.

Foster's Group Limited (ASX:FGL) shareholders have approved SABMiller’s takeover bid. 99.1 per cent of shareholders voted in favour. The takeover now requires approval from the Supreme Court of Victoria. The court will consider the transaction tomorrow. If the deal is approved, Foster’s shares could stop trading as soon as Friday. Shareholders will then receive $5.40 per share. Foster’s shares gained 0.19 per cent today, closing at $5.39.

Rio Tinto Limited (ASX:RIO), (NYSE:RIO) has succeeded in its $627 million bid to acquire Canadian uranium miner Hathor, extending its offer by ten days to acquire outstanding shares.

Westpac Banking Corporation (ASX:WBC) is reviewing its advertising campaigns after ASIC questioned the “stress free” tag line on some products.

The Australian Competition and Consumer Commission has approved Virgin Blue Holdings Limited’s (ASX:VBA) alliance with Singapore Airlines.

A busy day for the ACCC, the body has ruled it will not oppose Arrow Energy’s plan to acquire Bow Energy Limited (ASX:BOW).

Best and worst performers

All sectors closed in the black. The best performing sector was Materials, lifting 431 points to close at 11,361. The sector with the smallest gains was Real Estate Investment Trusts, gaining just under 1 point to close at 813 points.

The best performing stock in the S&P/ASX 200 was Boart Longyear, gaining 10.1 per cent to close at $3.27. Shares in Kagara and Lynas Corporation also finished stronger.

The worst performing stock was Navitas, dropping 2.99 per cent to close at $3.25. Shares in Chorus and Murchison Metals also lost value.

IPO

Bligh Resources Limited (ASX:BGH) opened at $0.16, $0.09 below its IPO price, and closed at $0.15.

Commodities

The price of gold is $US1,748 an ounce and Light crude is up $0.42 at $US100.78 a barrel.

 

 

 

 

 

 


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