The Australian share market started the week more than 1 per cent higher today, having slightly pulled back from session highs. Sentiment lifted stocks higher after a better than expected read on US consumer confidence and the EU Summit saw leaders agree on tighter budget controls in the region.
The S&P/ASX 200 Index lifted 50 points to finish at 4,253. On the futures market the SPI is 70 points higher.
Economic news
Data from the Australian Bureau of Statistics has shown Australia’s trade surplus shrank in October and the number of home loans approved expanded in October.
Australia’s trade surplus came in at a seasonally adjusted $1.595 billion, narrowing more than expected and hitting a three month low.
Home loans approved increased 0.7 per cent to 51,981 in October, surpassing expectations by rising for the fourth straight month. Total housing finance by value dropped 2.5 per cent in the same month.
Company news
Coal companies Whitehaven Coal Limited (ASX:WHC) and Aston Resources Limited (ASX:AZT) have agreed to a merger worth $5.1 billion. Whitehaven will acquire Nathan Tinkler’s listed Aston Resources and his private coal vehicle Boardwalk Resources. Aston shareholders will receive 1.89 Whitehaven shares for every share they own and existing Whitehaven shareholders will receive a special dividend of 50 cents per share, fully franked. Shares in Aston Resources closed 1.43 per cent higher today, while shares in Whitehaven Coal lost 1.37 per cent to close at $5.74.
Shares in Indophil Resources NL (ASX:IRN) jumped after the minerals explorer said it’s considering listing its shares in the Philippines next year and announcing a $98 million share placement. Indophil boosts a 37.5 per cent interest in the Tampakan project, Southeast Asia’s biggest underdeveloped copper and gold prospect. The company also today announced its shareholder Alsons Power Holdings has agreed to a $98 million share placement. Shares in Indophil Resources jumped 5.95 per cent today, closing at $0.445.
Shares in Wesfarmers Limited (ASX:WES) closed lower after the conglomerate advised it expects its Coregas business to take a $190 million writedown because of changes to its contracts with BlueScope Steel.
Shares in BlueScope Steel Limited (ASX:BSL) rose on the news. The steel company is currently undertaking a restructure of its Port Kembla operations which will lower its demand for industrial gases and so impacting its supplier, Coregas.
Shares in Qantas Airways Limited’s (ASX:QAN) dipped on the same day the airline held its strategy day meeting. CEO Alan Joyce told investors Qantas is still in talks for a premium airline in Asia and also advised its domestic bookings are back to normal levels.
Shares in News Corporation (ASX:NWS) firmed by day’s end. Peter Macourt has resigned as chief operating officer from the media company’s Australian arm, News Limited, and will leave at the end of the year. A replacement has not as yet been named.
Best and worst performers
Most sectors advanced: The best performing sector was Energy, rising 288 points to close at 13,707. The only sector to close in the red was Consumer Staples, losing 14 points to close at 7,610 points.
The best performing stock in the S&P/ASX 200 was Mesoblast, jumping 8.86 per cent to close at $7.99. Shares in Mineral Deposits and Intrepid Mines also finished stronger.
The worst performing stock was Beadell Resources, dropping 5.56 per cent to close at $0.68. Shares in Alacer Gold Corporation and Goodman Fielder also lost value.
Commodities
The price of gold is $US1,693 an ounce.
Light crude is down $0.24 at 99.17 US cents a barrel.
