Positive offshore leads boosted the Australian share market today, trading in positive territory to end 0.5 per cent higher. Stocks have now lifted to this year’s highs as investors remain cautiously optimistic the US will strike a budget deal to prevent falling off the fiscal cliff by the end of the year.
The S&P/ASX 200 index gained 23 points to finish at 4,618.
The value of trades was $4.6 billion on volume of 933 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Rio Tinto Limited
(ASX:RIO) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 23 points higher.
Economic news A gauge indicating the likely growth of the Australian economy three to nine months into the future has shown softening conditions. Westpac Banking Corporation
(ASX:WBC) and Melbourne Institute’s leading index of economic activity has fallen to 2.9 per cent in October from 4.1 per cent the month before.
Company news ANZ Banking Group
(ASX:ANZ) has warned the bank will face challenging conditions next year as the mining boom nears its peak. Shareholders were told at ANZ’s annual general meeting today Australia’s will face weakening mining investment and softer commodity prices amid a frustratingly weak global recovery. ANZ shareholders also today backed the bank’s executive remuneration report, which saw CEO Mike Smith taking home more than $10 million over the year. Shares in ANZ Banking Group firmed 0.53 per cent today, finishing at $24.64.
Billabong International Limited
(ASX:BBG) has cut its profit forecast and confirmed it has received a takeover bid for $1.10 cash per share from company executive, Paul Naude, and his associates. The troubled surfwear retailer’s shares have dropped more than 50 per cent since the beginning of the year, in the same period it has received numerous takeover approaches which have fallen through. Billabong says it plans to consider the latest indicative and non-binding proposal. Shares in Billabong International sank 13.27 per cent today, ending at $0.85.
Coal miner Whitehaven Coal Limited
(ASX:WHC) has confirmed its held talks with China’s Shenhua Group about business development opportunities but denied it has received any offers to acquire the company or its assets.
Infrastructure provider Cardno Limited
(ASX:CDD) has bought a South American engineering firm expected to generate about $US28 million in revenue over the next year.
Rare earths producer Lynas Corporation Limited
(ASX:LYC) says it has been successful in defending another challenge from the Save Malaysia Stop Lynas group and the appeal against its licence to produce has been dismissed.
Skycity Entertainment Group Limited
(ASX:SKC) has been given the green light to install more gaming tables and machines at its Adelaide casino and committed more than $300 million to redevelop the site.
Best and worst performers
The best performing sector was energy adding 143 points to close at 12,429.
The worst performing sector was real estate investment trusts, losing 2 points to close at 972 points.
The best performing stock in the S&PASX 200 was Whitehaven Coal Limited
(ASX:WHC), rising 8.1 per cent to close at $3.47. Shares in Macmahon Holdings Limited
(ASX:MAH) and Ten Network Holdings Limited
(ASX:TEN) also closed higher.
The worst performing stock was Billabong International Limited
(ASX:BBG), sinking 13.27 per cent today to end at $0.85. Shares in OZ Minerals Limited
(ASX:OZL) and Resolute Mining Limited
(ASX:RSG) also closed lower.
Commodities
Gold is trading at $US1,673 an ounce.
Light crude is $0.07 down at $US88.33 a barrel.
The Australian dollar
The Australian dollar is buying $US1.051.
