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The local share market has closed the week on a high note, following positive offshore leads. All sectors closed higher today led by the banks and miners on hopes of a compromise on the proposed resources tax. Stronger than expected economic data out of China also fuelled optimism in the global economic recovery and boosted investor appetite for riskier assets.
The S&P/ASX 200 Index closed 70 points higher at 4,506, up 56 points on the week, while on the futures market, the SPI200’s up 73.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index closed 241 points stronger for the four trading days this week. The S&P500 Index up 22 points, the NASDAQ is flat and the 100 index lost 2 points.
To company news around this afternoon: Copper, gold miner Oz Minerals Ltd (ASX:OZL) says uncertainty surrounding the Federal Government’s proposed resources tax, means that a planned underground project at Prominent Hill, may be delayed. According to The Age newspaper, CEO Terry Burgess told a Melbourne Mining Club audience yesterday, that while a technical study into the underground project will be finished this month, he will not be in a position to recommend the board proceed with project until a full financial evaluation can be given. The Age says Mr Burgess relayed his concern for the development timeline of the project, saying it would mostly likely be delayed. Oz Minerals has recently indicated its interest in acquiring another copper and gold project and says this is still a focus and it has made two offers recently. Shares in Oz Minerals closed 0.99% higher at $1.02.
Bauxite miner Cape Alumina Ltd (ASX:CBX) says it reviewing the future direction of the company after deciding to abandon its proposed $400 million Pisolite Hills project on Cape York. The move follows the Queensland Government’s decision to declare the Wenlock River Basin a wild river area under the State’s Wild Rivers legislation. This means that no mining will be allowed in a 500 metre buffer zone around the tributaries and small springs in the vicinity of Pisolite Hills. The company says the decision by the State Government has made the project economically unviable. Cape Alumina says included in its review of the company’s future direction, will be the grounds for a legal challenge to the Government’s decision, a case for compensation for the value that has been destroyed by the Government’s actions and options for resurrecting the project as originally planned. Shares in Cape Alumina last traded at $0.40.
Also making news: Nickel miner Minara Resources Ltd (ASX:MRE) says production of nickel at its Murrin Murrin mine will re-commence next week following repairs undertake at the operation. Minara also confirmed previous guidance for full year production between 30,000 and 34,000 tonnes of nickel at Murrin Murrin, with year to date production tracking at the lower end of this range.
And Murchison Metals Ltd (ASX:MMX) shares jumped today after announcing that it has secured letters of intent from North Asian steel mills to purchase more than 50 million tonnes a year of iron ore from the Jack Hills Expansion project.
Taking a look back at some of the stories that made headlines this week: US private hospital operator Tenet Healthcare has pulled out of the bidding race for Aussie hospital operator Healthscope Ltd (ASX:HSP).
Karoon Gas Australia Ltd (ASX:KAR) says it’s considering listing its South American assets.
And BHP Billiton Ltd (ASX:BHP) puts pressure on the government’s proposed resources tax after announcing a bigger than expected reserve and resource at its Jansen potash project in Canada, highlighting the opportunities available to the miner outside of Australia.
In the best and worst performers: All sector’s closed in the black today with the best performing sector at close the Financials excluding Real Estate Investment Trust index, up 108 points at 5,164. The sector at close with the smallest gain was the Real Estate Investment Trust index; up half a point at 882.
In the S&P/ ASX200 the best performing stock was Gunns after issuing an earnings upgrade this afternoon, shares rose 16.09% to close at $0.505, followed by Sundance Resources and Murchison Metals.
The worst performing stock was iSoft Group, shares dropped 5.77% to close at $0.245. Shares in Medusa Mining and Avoca Resources also closed weaker today.
And finally, the Aussie dollar is trading at 84.41 US cents - and is up 2 cents on the week. In commodities, gold is trading at $1,221.35 U.S an ounce and is up $2.35 on the week, and light crude is down 15 cents at $75.33 U.S a barrel.