Despite opening lower, the Australian share market made a significant recovery closing 1.1 per cent higher after China unveiled its stimulus package that included a loosening of its monetary policy.
Today, the S&P/ASX 200 index closed 46 points up to finish at 4,114. On the futures market, the SPI is currently 42 points higher.
Economic news
The Housing Industry Association has reported new home sales figures for April have jumped 6.9 per cent for the month after a 9.4 per cent decline in March.
Company news
Wesfarmers Limited (ASX:WES) has extended the employment contract of Coles boss Ian McLeod. The supermarket giant says “Ian and his team achieved outstanding results over the past four years, delivering at Coles a sustained period of industry out-performance in both sales and profit growth.” Although Wesfarmers did not disclose the details of the contract, the retail group said Mr McLeod was initially employed on a five-year fixed-term contract to lead the turnaround of Coles after Wesfarmers acquired the company, and will move to a new employment contract after June next year. Mr McLeod is said to have been paid $15.6 million last year. Shares in Wesfarmers closed 1.22 per cent up at $29.01.
Qantas Airways Limited (ASX:QAN) has reportedly removed all of its appointed directors from the board of Fiji’s Air Pacific. According to Fairfax Media this afternoon, Qantas advised Air Pacific’s chairman that its four directors would immediately stand down. The action reflects the tension between the two airlines, who have been unable to reach an agreement on a price for Qantas’ 46 per cent stake in the Fijian airline. Shares in Qantas closed 1.33 per cent up at $1.52.
Suncorp Group Limited (ASX:SUN) says it is performing above expectations and is on track to meet growth targets.
Bandanna Energy Limited (ASX:BND) has received approval from the Queensland Competition Authority for the construction of the Wiggins Island Rail project.
Dart Energy Limited (ASX:DTE) says it will defer the float of its international arm due to poor market conditions and a weakening in its share price.
Tatts Group Limited (ASX:TTS) says it will raise $200 million by issuing seven-year unsecured bonds to investors in order to pay off its bank debt.
Best and worst performers
The best performing sector was Energy adding 335 points to close at 12,866.
The worst performing sector was Real Estate Investment Trusts, losing 5 points to close at 860 points.
The best performing stock in the S&PASX 200 was Aquarius Platinum Limited (ASX:AQP) rising 15.45 per cent to close at $1.27. Shares in Linc Energy and Senex Energy also closed higher.
The worst performing stock was Bathurst Resources Limited (ASX:BTU),dropping 2.3 per cent to close at $0.42. Shares in Evolution Mining and Integra Mining also closed lower.
IPOs
Allegiance Coal (ASX:AHQ) floated today with an issue price of $0.20 opening at $0.19 and a closing price of $0.12.
Commodities
Gold is trading at $US1,576 an ounce.
Light crude is $0.46 up at $US91.32 a barrel.
The Australian dollar
The Australian dollar is buying 98.63 US cents.
