The Australian Share Market has finished slightly ahead today after receiving support from a plethora of economic data, although investors remain largely pensive ahead of the US Federal elections and the latest RBA interest rate decision tomorrow. Following gains in European markets and dips on Wall Street the market began its trading week flat this morning.
The S&P/ASX 200 index finished the day 14 points up to finish at 4,474. On the futures market, the SPI is currently 15 points higher.
Economic news
Retail sales rose a little more than expected in September. The Australian Bureau of Statistics reported retail spending grew 0.5 per cent to almost $22 billion in September, up from a rise of 0.3 per cent the month before.
The ABS has also reported Australia’s trade deficit shrank less than expected in September. Australia's trade deficit narrowed 22 per cent to almost $1.5 billion, as exports eased 1 per cent and imports fell 2 per cent.
Consumer prices rose last month: TD Securities and the Melbourne Institute’s monthly inflation gauge has shown consumer prices lifted 0.1 per cent in October, for an annual gain of 2.4 per cent last month.
Company news
Sundance Resources Limited (ASX:SDL) suitor Hanlong mining has secured an additional round of finance to fund its acquisition of the iron ore explorer. Hanlong has secured a financier commitment letter from China Everbright Bank for $US438 million, which takes its total finance in excess of the amount required to fund the Scheme consideration between the two company’s. Shares in Sundance Resources closed 2.86 per cent up at $0.36.
PrimeAg Australia Limited (ASX:PAG) says it has gauged considerable interest in its August proposal to sell its farms and water rights. The Rural Investor embarked on the proposal in response to an inadequate share market recognition of its asset value. CEO Roger Corbett told shareholders that PrimeAg expects final proposals by December ahead of settlement by the end of March 2013. Shares in PrimeAg Australia closed 1.34 per cent lower today at $1.10.
Westpac Banking Corporation’s (ASX:WBC) annual cash earnings rose 5 per cent to $6.6 billion in fiscal 2012, however the bank’s full year net profit dropped 15 per cent to $5.97 billion, impacted by the tax implications of its acquisition of St George.
An IMF Australia Limited (ASX:IMF) led action group has won its Federal Court case against ratings agency Standard & Poors (S&P) and two other defendants.
Northern Iron Limited (ASX:NFE) shares plummeted over 36 per cent today after its Indian suitor, Aditya Birla, has withdrawn from its takeover proposal following a lengthy due diligence period.
Paperlinx Limited (ASX:PPX) shares firmed 1.82 per cent at close after the paper merchant confirmed the sale of its eastern European operations to pulp, paperboard and paper trader the Heinzel Group as part of its strategic review.
Best and worst performers
The best performing sector was Materials adding 26 points to close at 10,241.The worst performing sector was Consumer Discretionary, losing 12 points to close at 1,245. The best performing stock in the S&PASX 200 was Atlas Iron Limited (ASX:AGO), rising 3.27 per cent to close at $1.58. Shares in DEXUS Property Group (ASX:DXS) and APN News and Media Limited (ASX:APN) were also trading higher at market close.
The worst performing stock was Aquila Resources Limited (ASX:AQA), dropping 6.98 per cent to close at $2.40. Shares in Gryphon Minerals Limited (ASX:GRY) and Saracen Mineral Holdings Limited (ASX:SAR) also finished the day lower.
Commodities
Gold is trading at $US1,678 an ounce. Light crude is $0.23 up at $US85.09 a barrel. The Australian dollar is buying $US1.036.
