The Australian share market spiked at session highs to end the day more than 1 per cent higher and 3.3 per cent stronger over the week. The weekly gain was the largest since April and snapped a month of losses as the long-awaited Santa-rally finally got into gear.
Though the key index remains 1.25 per cent down for the month the recent bout of optimism was sparked by the US Federal Reserve’s decision to start winding back its economic stimulus program. Gold stocks were initially hammered but the sector staged an incredible recovery today, back-flipping from one of the worst to the best performing sector by close.
In the week ahead Australian investors will pause for the Christmas break and Boxing Day public holidays mid-week.
Figures
The S&P/ASX 200 index climbed 63 points today, widening the weekly gain of 178 points to finish at 5,265.
The value of trades was $8.8 billion on volume of 1.4 billion shares at the close of trade.
The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), BHP Billiton Limited
(ASX:BHP) and Rio Tinto Limited
(ASX:RIO).
On the futures market the SPI is 42 points higher.
Wall Street
US indices have advanced over the trading days this week: The Dow Jones Industrial Average added 440 points, the S&P 500 Index added 34 points, the Nasdaq added 60 points and the 100 Index added 38 points.
Divestments and acquisitions
Telstra Corporation Limited
(ASX:TLS) has sold its entire holding in Hong Kong-based mobile business CSL to HKT Limited for $US2.4 billion. Australia’s largest telco says the decision to divest its 76.4 per cent stake in the business is a significant opportunity to maximise shareholder value. Shares in Telstra Corporation rose 1.76 per cent today, ending the week at $5.20.
Amcor Limited
(ASX:AMC) has inked a deal to acquire a selection of US assets from Constar International Holdings for an amount yet to be finalised. Constar has filed for bankruptcy and produces food and drink containers in America and Europe. Amcor says Constar’s assets will be an attractive fit for its rigid plastics business. Shares in Amcor dipped 0.19 per cent today, ending the week at $10.43.
Contract awards
Construction giant Leighton Holdings Limited
(ASX:LEI) has capped off a busy week of contract awards by announcing its subsidiary Leighton Contractors has scored a $100 million contract to build Aurizon Holdings Limited’s
(ASX:AZJ) Hunter Valley train support facility in New South Wales. Shares in Leighton Holdings slipped 0.13 per cent today, ending the week at $15.37.
Property developer Watpac Limited
(ASX:WTP) has ended a bumper week of contracts with yet another announcement revealing it has been awarded a $36 million contract to design and construct a major redevelopment of a sport facility in Victoria. Shares in Watpac lost 5.62 per cent today, ending the week at $0.84.
Best and worst performers
The best performing major market sector was telco services, advancing 31 points to close at 1,801.
The worst performing sector was utilities, losing 2 points to close at 5,353 points.
The best performing stock in the S&PASX 200 was OZ Minerals Limited
(ASX:OZL), jumping 9.22 per cent to close at $3.08. Shares in Forge Group Limited
(ASX:FGE) and Resolute Mining Limited
(ASX:RSG) also closed higher.
The worst performing stock was Perseus Mining Limited
(ASX:PRU), dropping 4.35 per cent to close at $0.22. Shares in OceanaGold Corporation
(ASX:OGC) and Ten Network Holdings Limited
(ASX:TEN) also closed lower.
IPOs
iBuy Group Limited
(ASX:IBY) started trading today. The e-commerce website operator listed with an issue price of $0.32, opened at $0.35 and closed at $0.33.
Commodities
Gold fell to three year lows this week – now buying $US1,196 an ounce after having shed $33.20 over the week.
Light crude is $0.97 firmer at $US98.77 a barrel.
The Australian dollar
The Australian dollar slightly rebounded today after having dropped to a three-and-a-half year low earlier this week and is now buying $US0.8868.
