Following soft offshore leads, the Australian share market rose sharply at open and extended gains to hit a 14 month high as investors picked up stocks on the back of yesterdays interest rate cut. Real estate investment trusts and Consumer Discretionary stocks performed strongly before noon until investor sentiment dipped following news that Spain is not considering a sovereign bailout request from the Eurozone, seeing the market close flat.
The S&P/ASX 200 index closed 6 points up to finish at 4,439. On the futures market, the SPI is currently 3 points up.
Economic newsThe ABS has released trade deficit data for August, indicating a 32 per cent rise in Australia’s trade deficit, which reached a seasonally adjusted $2.03 billion. Exports dropped by 3 per cent in August, while Imports rose by one per cent.
Company newsAPA Group
(ASX:APA) has confirmed a two week extension on its takeover offer for Hastings Diversified Utilities Fund
(ASX:HDF). The energy infrastructure company has adjusted the acceptance deadline from the 11
th to the 25
th of October. APA announced it would waive all remaining conditions last month, with the exception of minimum ownership, in an increased bid of $2.60 per Hastings security. As at October 2, APA had an aggregate interest of 47.37 per cent in HDF securities. Shares in APA Group closed 0.83 per cent lower at $4.78.
Fairfax Media Limited
(ASX:FXJ) CEO Greg Hywood was granted a pay rise despite the struggles being experienced by the company, which widened its full year net loss to $2.7 billion last month. According to the media giants annual report, Mr Hywood’s package increased from $1.52 million last year to $2.02 million for 2012, including salary, cash bonuses and share inclusions. However Mr. Hywood is said to have voluntarily foregone half of his performance bonus, approximately $420 thousand, owing to the difficult trading environment. Shares in Fairfax fell to a record low of 39.5 cents this morning, before closing 1.23 per cent down at $0.40.
Dual listed gold producer Gold One International Limited
(ASX:GDO) has advised that salary-motivated strikes have now spread to its recently acquired Ezulwini operation in South Africa.
Boart Longyear Limited's
(ASX:BLY) CEO Craig Kipp will stand down from the mining services and equipment company immediately, with Chairman David McLemore to step into the role.
Suncorp Group Limited
(ASX:SUN) has successfully completed the book build for its proposed offer of convertible preference shares, allocating $500 million worth of shares and declaring the offer officially open.
Sandfire Resources NL
(ASX:SFR) has produced its first copper concentrate from its wholly owned DeGrussa Copper-Gold Project in Western Australia, and is on track to commence full production in the first half of 2013.
Best and worst performersThe best performing sector wasReal Estate Investment Trusts adding 8 points to close at 949.The worst performing sector was Healthcare, losing 78 to close at 10,473 points.
The best performing stock in the S&PASX 200 wasDiscovery Metals Limited
(ASX:DML), rising 6.99 per cent to close at $1.46.Shares in Bathurst Resources Limited
(ASX:BTU) and Gindalbie Metals Limited
(ASX:GBG) also closed higher.
The worst performing stock was Mirabela Nickel Limited
(ASX:MBN), dropping 5.38 per cent to close at $0.44. Shares in Buru Energy Limited
(ASX:BRU) and APN News and Media Limited
(ASX:APN) were also lower at market close.
CommoditiesGold is trading at $US1,775 an ounce. Light crude is $0.27 down at $US91.62 a barrel. The Australian dollar is buying $US1.02.
