The Australian share market maintained its gains in afternoon trade to finish 0.6 per cent stronger, after hitting a fresh five year high as investors toasted news that hawkish candidate Larry Summers has withdrawn from the reckoning for the US Federal Reserve’s chairman seat, taken as an indication the Fed is less likely to wind back economic stimulus hastily. Energy stocks led the gains for the local market today.
The S&P/ASX 200 index closed 28 points up to finish at 5,248. The value of trades was $3.5 billion on volume of 608 million shares at the close of trade. The top three stocks by value were National Australia Bank Limited
(ASX:NAB), BHP Billiton Limited
(ASX:BHP) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 26 points up.
Company news
AGL Energy Limited
(ASX:AGK) has appointed three directors to the Australian Power and Gas Company Limited
(ASX:APK) board and announced a change of CEO after taking voting power of approximately 81 per cent in the target. The energy company earlier announced it will acquire additional shares in Australian Power and Gas Company Limited
(ASX:APK) for up to 52 cents per share, and is now intent on exercising its right to appoint a majority of directors. AGL has appointed CFO Brett Redman, company secretary Paul McWilliams and head of capital markets John Hobson as APG's new non-executive directors. Shares in AGL closed 1.24 per cent down at $15.18.
Resource services company Sedgman Limited
(ASX:SDM) has announced a $186 million construction contract as part of the Thiess Sedgman Joint Venture (TSJV). The contract is for a coal handling plant for Boggabri Coal, part of an expansion for its operation in the Gunnedah Basin in New South Wales. Shares in Sedgman closed 5.11 per cent up at $0.72.
Westfield Group
(ASX:WDC) will divest seven non-core shopping centres in the US to private investment firm Starwood Capital Group for $US1.64 billion.
Atlas Iron Limited
(ASX:AGO) shares rose 4.62 per cent after reports the miner is ready to appoint an investment bank to help find an equity partner for its early-stage McPhee Creek mine, in a deal that could value the asset at up to $700 million.
Lynas Corporation Limited
(ASX:LYC) shares jumped 6.17 per cent despite widening its full year loss to $107.4 million, associated in part with costs around the commissioning of its rare earths processing plant in Malaysia.
Australian Agricultural Company Limited
(ASX:AAC) has completed a significant equity raising, doubling its capital base as the company targets an Asian expansion. The company’s capital raising made about $219 million, while an institutional offer raised about $129 million.
Best and worst performers
The best performing sector was Energy adding 117 points to close at 14,122.
The worst performing sector was Utilities, losing 38 points to close at 5,348 points.
The best performing stock in the S&PASX 200 was Billabong International Limited
(ASX:BBG), rising 6.98 per cent to close at $0.46. Shares in Silver Lake Resources Limited
(ASX:SLR) and Emeco Holdings Limited
(ASX:EHL) also closed higher.
The worst performing stock was Discovery Metals Limited
(ASX:DML), dropping 11.54 per cent to close at $0.12. Shares in Ten Network Holdings Limited
(ASX:TEN) and CuDeco Limited
(ASX:CDU) also closed lower.
Commodities
Gold is trading at $US1,324 an ounce. Light crude is $0.39 down at $US108.21 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9335.
