The Australian share market closed relatively flat, as the major banks gave up earlier gains. The banks picked up steam earlier today, offsetting soft resource stocks. Westpac was the best performer of the Big Four, as the company announced it expected the economy to improve in the forthcoming year. The major miners closed lower after having a good run over the last week.
The S&P/ASX200 Index is up 1 point to close at 4,768. On the futures market, the SPI is down 11 points.
Economic news: Figures from the Australian Bureau of Statistics show that new vehicle sales have slightly risen by 0.2 per cent in November, with Tasmanians leading the charge. The figures are worse-than-expected as economists tipped new motor vehicle sales to lift by 1 per cent.
Figures from the Westpac Melbourne Institute Index of Consumer Sentiment reveal that consumer confidence rose marginally in December, even though the Reserve Bank raised interest rates in November. Consumer sentiment edged slightly by 0.3 per cent in December. Strong employment growth and a rally in equity markets helped offset the November rate hike.
Ten Network Holdings (ASX:TEN) has appointed Grant Blackley as the company’s new chief executive. He replaces Nick Falloon, who stepped down at Ten’s annual general meeting earlier this month. Mr Blackley is currently the CEO of Ten’s television and will also continue to hold that position. Ten’s chairman Brian Long says the network will be in very good hands under Mr Blackley’s leadership as he has already lead the organisation through a period of strategic development. Shares in Ten Network closed steady at $1.45.
Commonwealth Bank of Australia Ltd’s (ASX:CBA) chief executive Ralph Norris has refuted claims that the Big Four banks operated as an oligopoly in Australia and insists that banking competition is very strong. Mr Norris told the Senate inquiry on banking competition that customers are in fact reaping the benefits of interest rate rivalry between financial institutions. Shares in Commonwealth Bank closed 0.3 per cent lower at $50.50.
Westpac Banking Corporation Ltd (ASX:WBC) chairman Ted Evans says the bank supports the banking reform package introduced over the weekend but warns the Government not to implement regulation that would threaten the stability of the Australian banking system.
A senior official of Indian state-run iron ore miner NMDC, says a consortium of five Indian state-run companies, including Steel Authority of India, may make a bid for Riversdale Mining Ltd (ASX:RIV) by the end of the month.
Origin Energy Ltd (ASX:ORG) has confirmed it will buy the retail businesses of Country Energy and Integral Energy in a deal worth $3.25 billion. The deal is going to be partially funded by an equity raising next year.
The Australian competition watchdog says it will not oppose the proposed takeover of the Australian Securities Exchange Ltd (ASX:ASX) by Singapore Exchange Ltd in a deal valued at $8.4 billion.
Best and worst performers: The best performing sector at close was Telco Services, with the index gaining 11 points to close at 954. The worst performing sector was Consumer Discretionary with the index losing 5 points to close at 1,487. The best performing stock in the S&P/ ASX200 was Crane Group shares rose 22.56 per cent to close at $9.40. Shares in Energy World Corporation and Paperlinx also advanced today. The worst performing stock was Billabong as the company cut its half-year and full-year profit forecasts. Shares in Billabong dropped 8.89 per cent to close at $8.10. Shares in Cudeco and Boart Longyear also closed lower today.
In commodities, gold is trading at $US1,395 an ounce and light crude is down $0.39 at $US87.89 a barrel.
