Local stocks ended a weak day of trade just slightly higher after US stock markets were forced to close as Hurricane Sandy approached. It is the first time since September 2001 US financial markets have been forced to shut due to unscheduled events and markets are expected to remain closed for a second straight day as the tropical storm hits New York and the US Northeast.
The S&P/ASX 200 index added 9 points today in soft trade to end at 4,486. On the futures market the SPI is flat.
Economic news
New home sales in Australia have plummeted to an 18-year low. According to the Housing Industry Association new home sales dropped for the third straight month, down 3.7 per cent in September following a fall of 5.3 per cent the month before.
Company news Shares in Virgin Australia Holdings Limited
(ASX:VAH) lifted after the airline announced deals with Singapore Airlines, Tiger Airways and Skywest Airlines Limited
(ASX:SXR). Firstly, Singapore Airlines will invest $105 million for a 10 per cent stake in Virgin. Secondly, Virgin has paid $35 million to buy a 60 per cent stake in budget airline Tiger Airways Australia. Virgin has also inked a $95 million deal to buy Skywest Airlines, sending the regional airline’s shares up by more than 50 per cent by session’s close. Shares in Virgin Australia lifted 5.43 per cent today to close at $0.48.
Shares in Neptune Marine Services Limited
(ASX:NMS) soared almost 30 per cent today after scoring a $58 million takeover bid from a substantial shareholder. The subsea engineering services provider has been offered 3.2 cents cash per share from Singapore's MTQ Corporation Limited to acquire the 85 per cent of the company it does not already hold. Shares in Neptune Marine Services soared 29.17 per cent today to close at $0.03.
Global miner BHP Billiton Limited
(ASX:BHP) has predicted its Queensland coking coal production capacity will climb 50 per cent by 2014 and confirmed its West Australian iron ore projects remain on schedule and on budget.
The Chairman of Australia’s largest bank, Commonwealth Bank of Australia
(ASX:CBA), has warned global financial instability will continue beyond next year, citing an uncertain medium to long term economic climate in Australia with subdued credit demand.
Shares in Western Desert Resources Limited
(ASX:WDR) slumped 27 per cent after its Chinese suitor Meijin Energy Group withdrew its $435 million takeover bid for the iron ore explorer.
Shares in Elders Limited
(ASX:ELD) sank 22 per cent one day after the agribusiness announced it is looking take control of selling its Rural Services business.
Best and worst performers
The best performing sector was telco services adding 14 points to close at 1,408.
The worst performing sector was industrials, losing 9 points to close at 3,393 points.
The best performing stock in the S&PASX 200 was Pacific Brands Limited
(ASX:PBG), rising 6.25 per cent to close at $0.59. Shares in Virgin Australia Holdings Limited
(ASX:VAH) and Mermaid Marine Australia Limited
(ASX:MRM) also closed higher.
The worst performing stock was Energy World Corporation Limited
(ASX:EWC), dropping 5.41 per cent to close at $0.35. Shares in Gryphon Minerals Limited
(ASX:GRY) and Bathurst Resources Limited
(ASX:BTU) also closed lower.
Commodities
Gold is trading at $US1,711 an ounce.
Light crude is $0.18 down at $US85.36 a barrel.
The Australian dollar
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The Australian dollar is buying $US1.03.
