The Australian sharemarket closed almost 1 per cent higher today, to a two week high, responding positively to US economic data that sparked a rally on Wall Street.
Today, the S&P/ASX 200 index gained 40 points to finish at 4,287. On the futures market, the SPI is currently 43 points higher.
Economic news
Consumer confidence took a hit this month. Westpac and the Melbourne Institute’s survey of consumer sentiment showed consumer confidence dropped 5 per cent to 96.1 points in March.
Housing starts fell more than expected in the last three months of 2011. According to the Australian Bureau of Statistics dwelling unit starts dropped 6.9 per cent in the December quarter to 33,653 units, following a drop of 5.8 per cent in the September quarter 2011.
Company news
Fortescue Metals Group Limited (ASX:FMG) is seeking to raise $US1 billion for its expansion plans. The Pilbara focussed iron ore miner has launched a bond offering of senior unsecured notes. The capital raising is geared towards the acquisition of a mobile mining fleet to support its 155 million tonne a year production plans. Fortescue shares closed 1.04 per cent higher at $5.83.
Stockland (ASX:SGP) has announced the extension of its share buyback and that it will receive $123 million for selling its stake in the Moorebank Industrial Property Trust. The property group is now gearing up to double its buyback to 10 per cent of its issued capital. Stockland has also today inked a deal to sell Qube Logistics Holdings Limited (ASX:QUB) a 55 per cent stake in the Moorebank Industrial Property Trust. Stockland shares closed 2.93 per cent higher at $3.16.
Ludowici Limited (ASX:LDW) confirms its Scottish suitor, Weir Group, has officially withdrawn its bid.
Ausenco Limited (ASX:AAX) is awarded a contract to work on Base Resources Limited (ASX:BSE) mineral sands project in Kenya. The value of the contract has not been disclosed.
Lawyers for the National Rugby League, Australian Football League and Telstra Corporation Limited (ASX:TLS) are appealing against a decision that gives rival Optus near-live coverage of football games.
And Whitehaven Coal Limited (ASX:WHC) defends its decision to buy Nathan Tinkler’s privately held coal vehicle for $393 million to $491 million despite an independent valuation well below those figures.
Best and worst performers
The best performing sector was Consumer Discretionary adding 18 points to close at 1,296.
The sector with the smallest gains was Telco Services, gaining less than a point to close at 1,113 points.
The best performing stock in the S&PASX 200 was Mirabela Nickel, rising 7.74 per cent to close at $0.905. Shares in Energy World Corporation and Seek also closed higher.
The worst performing stock was Intrepid Mines, dropping 6.04 per cent to close at $0.855. Shares in Perseus Mining and Kagara also closed lower.
Commodities
Gold is trading at $US1,676 an ounce.
Light crude is $0.07 higher at $US106.78 a barrel.
The Australian dollar is buying $US1.0542.
