US stocks rallied on Friday on the belief that the market is becoming more stable. Investors decided to return to the market as rallies in Asia and new economic data fuelled their confidence on economy recovery. Raw material stocks posted a strong surge, driven by a weaker US dollar.
The Australian share market ended higher on Friday, led by banking stocks. The benchmark S&P/ASX200 index rose 62.4 points, or 1.66 per cent, to 3,818.1, while the broader All Ordinaries index gained 59.4 points, or 1.58 per cent, to 3,813.3.
Key Economic Facts and Figures
Reserve Bank of Australia is expected to remain the official interest rate unchanged at its board meeting this week, as signs show that the global economy is on its way of recovery. But economists say more rate cuts will not be ruled out by the end of the year, if domestic and global economic conditions worsen.
The TD Securities-Melbourne Institute's monthly inflation gauge fell 0.3 per cent in May, after an unchanged reading in April. Annual inflation slowed to 1.5 per cent in May, from 2.1 per cent in April.
Today the Australian Bureau of Statistics (ABS) releases business indicators for the March quarter and retail trade data for April. The Housing Industry Association will unveil its new home sales report for April. The Reserve Bank of Australia is to release index of commodity prices for April. Australian performance of manufacturing index for May by the Australian Industry Group/PricewaterhouseCoopers is also due.
M&A News
ANZ Bank (ASX:ANZ) emerged as the only main contender for a majority of the Royal Bank of Scotland's (LON:RBS) Asian portfolio after the withdrawal of two bidders. The RBS is considering a revision of the sale in order to promote more of a bidding battle, says industry sources.
Important Corporate News
Grocery and liquor merchant Metcash Limited (ASX:MTS) posted a 2.55 per cent rise in annual net profit to A$202.5 million for the year ended April 30, up from A$197.4 million in the prior corresponding period. The company says it expects no weakening in its core grocery market in the months ahead.
Goodman Group (ASX:GMG) said in a statement that it currently holds 28% stake in the New Zealand Listed Goodman Property Trust (NZE:GMT) and has no intention to sell the business. The announcement is made in response to a media report that it the group is looking to offload its New Zealand-based Goodman Property Trust.
Shares in PaperlinX (ASX:PPX) have entered a trading halt pending an announcement about the sale of its Australian Paper unit. The trading halt will remain in place until Wednesday, June 3, or until the announcement is made.
The trading halt in shares of BC Iron Ltd (ASX:BCI) has been turned into a suspension, as the company continues to negotiate the agreement to access to Fortescue Metals Group's (ASX:FMG) rail and port facilities in Western Australia.
Kangaroo Metals Ltd (ASX:KML) has entered a heads of agreement with Alexis Minerals International Pty Ltd. The agreement will give KML the option to enter a joint venture in relation to its sought-after Bara Pratama and Mitra Bara Karya projects in Indonesia.
Rio Tinto (ASX:RIO) said it has extended the deadline for Chinalco to decide if it will participate in the expansion of the Yarwun alumina refinery.
Contact
Michelle LiangAsia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
Related Companies
Royal Bank of Scotland Group plc
Australia and New Zealand Banking Corporation
Aluminum Corporation of China (CHINALCO)
Related Industry Topics: