Sydney, Sept 13, 2007 (ABN Newswire) -
The share market found its way into positive territory today. Sentiment was mixed throughout the session banking shares were sold off early ? offsetting gains in energy firms following a rise in oil prices. Analysts say trading will remain choppy ahead of next week's Federal Reserve decision on interest rates.
The S&P/ASX 200 Index closed up 10 points to 6231, and on the futures market the SPI 200 gained 9 points.
In economic news, dwelling starts fell in the June quarter. According to the Australian Bureau of Statistics, dwelling commencements fell four per cent to 36,512. Westpac economist Matthew Hassan says while the result was weaker than expected, it didn't point to a serious downturn in new home building.
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http://abnnewswire.net/lnk/96833781Turning to company news now, an independent expert examining the Coles/Wesfarmers deal says the Wesfarmers offer was in shareholders' best interests even though it's below fair value. The expert says the choice for shareholders is essentially between the Wesfarmers' proposal and a standalone turnaround strategy that is subject to considerable risk. According to Reuters, the expert valued Coles at between $16.21 and $18.23 a share well above Wesfarmers offer of around $14.87 to $15.44. Coles is due to announce its full year results next week, but has already flagged sluggish growth as it loses market share to rival Woolworths. Shares in Wesfarmers closed 0.52% lower at $38.55. Meanwhile shares in the Coles Group closed 0.34% lower at $14.51.
And the National Australia Bank today unveiled its new business. Dedicated to servicing the $335 billion government sector, and the $20.5 billion local government market, NAB Government Business ? as it's to be known ? is the latest specialised business to be offered to customers. The new business will be headed by Helen Silver, a former deputy secretary of the Victorian Department of Premier and cabinet. According to Fairfax press, the federal government income of $260 billion was about five times the size of some of the country's top firms. Shares in the National Australia Bank closed steady at $38.59.
In other news today, shares in Bluescope Steel rose after Credit Suisse upgraded its rating on the company from underperform to neutral. The investment bank cited a recent decline in its share price and expectations of stronger steel prices for the move.
And shares in RAMS Home Loans surged as word got out Merrill Lynch had started coverage on the mortgage lender with a buy rating and a price target of $1.20.
BHP Billiton says global markets for its products look very good in the medium and long term. The world's biggest miner says it's now seeking to grow aggressively in India.
Qantas has suspended most flights using Q400 aircraft made by Canada manufacturer Bombardier after the Canadian government said the planes needed to be inspected.
Now to today's best and worst performers, the best performing index was the Energy index gaining 117 points to 14313, while the worst performing index was the Utility index shedding 62 points to 7249.
Boom Logistics was the best performer in the S&P/ASX top 200 climbing 5.36% to $2.75; Insurance Australia Group and Flight Centre were also in favour today.
CSR was the worst performing stock today sliding 6.92% to $2.96; Compass Resources and MFS Limited also retreated.
To commodities now, gold is currently trading at $710.60 US an ounce and light crude is 18 cents lower at $79.73 US a barrel.
Source: Finance News Network © 2007
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