The Aussie sharemarket is up 1.21 per cent today, with real estate investment trusts and utilities pulling the market up, but also after we heard China’s inflation slowed sharply in October, a three month tumble since its peak of 6.5 per cent in July.
The S&P/ASX200 Index closed 52 points higher at 4,346. On the futures market, the SPI is up 58 points.
Economic news
RBA’s rate cut earlier this month gave a boost to consumer sentiment as it hit a six-month high in November. The Westpac-Melbourne Institute Index of Consumer Sentiment rose for the third straight month, 6.3 per cent to 103.4 from 97.4 in October.
Housing finance lifted for the third month in a row in September. The Bureau of Statistics says home loan grants rose a seasonally adjusted 2.2 per cent to 51,821 for the month, from a downwardly revised 50,706 in August.
Company news
Seven Group Holdings Limited (ASX:SVW) says its first half profit’s going to be higher than last year’s. Chairman Kerry stokes is expecting an underlying net profit before minority interest to range between $140 and $150 million. Stokes, who formed the company after bringing together his mining and television interests in a $3 billion merger, says currently volatility in world markets may impact the price of the company’s investments.
Meanwhile it was announced this afternoon that John Hartigan, chairman and CEO of Seven’s media rival News Limited (News Corporation) (ASX:NWS), will step down as CEO at the end of the month. Shares in Seven Group Holdings Limited (ASX:SVW) closed 2.64 per cent higher at $7.78.
Lend Lease Limited (ASX:LLC) has a positive outlook on most of its key sectors, but it still recognises weak sentiment may impact the business. Chief executive Steve McCann told today’s AGM the company’s seen reduced trading levels in the financial year to date, and even with last week’s interest rate cut, he’s still cautious about the residential outlook. Shares in Lend Lease Limited (ASX:LLC) gained 0.13 per cent to close at $7.51.
In other company news headlines today, Downer EDI Limited (ASX:DOW) Chief executive Grant Fenn confirmed full year net profit for the train manufacturer and engineering firm will recover up to $180 million from last year’s net loss.
Suncorp Group Limited (ASX:SUN) says its credit quality remains stable despite the flooding and cyclones in Queensland earlier this year. Chief executive David Foster says lending was sluggish for the first quarter, but renewed marketing activity’s resulted in significantly improved mortgage pipeline growth for Octover.
Myer Holdings Limited (ASX:MYR) confirmed its annual guidance, despite posting a soft start to the 2012 financial year. The retailer posted a 3.5 per cent fall in total sales to $681.4 million, and like for like sales fell 5.1 per cent.
And reports out today say Wesfarmers Limited (ASX:WES) chief executive Richard Goyder’s expected pay packet may be opposed. The Australian Council of Superannuation Investors (ACSI) and the Australian Shareholders Association (ASA) are expected to join forces to oppose letting the company pay Goyder as much as $6.7 million in shares by adjusting performance goals in his incentive plan.
Best and worst performers
The best performing sector was real estate investment trusts, gaining 16 points to close at 809.
The worst performing sector was telcos, losing 6 points to close at 1,072.
The best performing stock in the S&P/ASX200 was Downer EDI, lifting 8.57 per cent to close at $3.42. Shares in Aquarius Platinum and Myer also finished the day stronger.
The worst performing stock was White Energy, dropping a massive 46.69 per cent closing at 80.5 cents. The Bank of Queensland and Mesoblast also closed lower.
Commodities
Gold is trading at $US1,790 an ounce. Light crude is up seven cents at $US96.87 a barrel.
