Defying negative leads the Australian share market gained up to 0.5 per cent this morning before retreating to finish almost where it started on the back of weak Chinese manufacturing data. Gains in the mining sector supported the local bourse, fuelled by Arrium Limited’s
(ASX:ARI) takeover approach.
The S&P/ASX 200 index added 2 points to end the session at 4,389. On the futures market the SPI is 14 points higher.
Chinese economic news
The latest read on manufacturing in the world’s second largest economy has continued to indicate contraction. China’s official manufacturing purchasing managers' index increased to 49.8 in September from 49.2 the month before, remaining under the 50 level which indicates contraction.
Australian economic news
Manufacturing activity in Australia continues to shrink, contracting for the seventh straight month. According to the Australian Industry Group and PricewaterhouseCoopers the Performance of manufacturing index dropped 1.2 points to 44.1 in September, with a read below 50 indicating contracting activity.
TD Securities and the Melbourne Institute inflation gauge increased 0.2 per cent in the month of September and 2.4 per cent over the year to September, remaining with the the Reserve Bank of Australia's 2 per cent to 3 per cent target band.
Company news Shares in Arrium Limited
(ASX:ARI) surged on news the mining group formally known as OneSteel has received a $1 billion takeover bid from a consortium including Singapore’s Noble Group and Korea’s POSCO. Arrium has rejected the unsolicited and conditional offer of 75 cents per share claiming it is highly conditional, carries significant risk and has been made amid volatile commodity prices and market conditions. Shares in Arrium surged 24.77 per cent today, finishing at $0.68.
Shares in Newcrest Mining Limited
(ASX:NCM) lost ground by session’s end after Australia’s biggest gold miner confirmed a private exploration company has lodged a claim aimed at preventing from expanding its $2 billion Cadia East project in New South Wales. Newcrest plans to vigorously defend Gold and Copper Resources claims that Newcrest is attempting to construct the mine over an area which it does not have a mining lease. Shares in Newcrest Mining fell 0.34 per cent today, ending at $29.04.
Shares in Fortescue Metals Group Limited
(ASX:FMG) firmed as the iron ore miner said it has processed the first ore at its second Christmas Creek ore processing facility in Western Australia.
Shares in DuluxGroup Limited
(ASX:DLX) lifted as the paint marker extended its takeover offer acceptance period for Alesco Corporation Limited
(ASX:ALS) shareholders until December 7, 2012.
Shares in Paperlinx Limited
(ASX:PPX) closed steady on news the paper merchant has appointed Michael Barker as its new chairman, replacing Harry Boon.
Shares in Nufarm Limited
(ASX:NUF) dipped after the agricultural chemicals manufacturer said it had priced $US325 million of unsecured notes to pay down existing debt.
Best and worst performers
The best performing sector was real estate investment trusts adding 3 points to close at 929.
The worst performing sector was telco services, losing 13 points to close at 1,330 points.
The best performing stock in the S&PASX 200 was Arrium Limited
(ASX:ARI), surging 24.77 cent to close at $0.68.
Shares in Mirabela Nickel Limited
(ASX:MBN) and Macmahon Holdings Limited
(ASX:MAH) also closed stronger.
The worst performing stock was Saracen Mineral Holdings Limited
(ASX:SAR), dropping 6.06 per cent to close at $0.47.
Shares in Energy World Corporation Limited
(ASX:EWC) and FKP Property Group
(ASX:FKP) also closed lower.
Commodities
Gold is trading at $US1,768 an ounce.
Light crude is $0.69 down at $US91.50 a barrel.
The Australian dollar
The Australian dollar is buying $US1.035.
