The Australian sharemarket has opened at a three month high after positive leads from both the United States and Europe, where investors become optimistic after European leaders cracked a massive debt deal.
The benchmark S&P/ASX200 index was up 36 points or up 0.8% 4384.3 at 12.00 AEST, while the Australian dollar surged up to $US1.07c.
ANZ shares rose 1.18% to $22.26, while Commonwealth Bank shares rose 0.84% to $50.41. AMP shares rose 2.31% to $4.42, Westpac shares rose by 1.54% to $23.11.
In the United States, the Dow Jones Industrial Average rose by 2.9% or 339 points or 12,208.6.
Macquarie shares lift on buyback plan, despite lower-than-expected first-half result
Shares in Macquarie Group are 4% higher after the investment bank flagged a buyback for 10% of its shares.
Macquarie this morning posted a $305 million first-half profit this morning, lower than expectations and the previous corresponding period.
“This has resulted in low levels of client activity, significant volatility in capital and commodity market and disruption to many capital markets functions,” chief executive Nicholas Moore said.
It added that only if conditions improve would it meet last year’s annual profit result of $956 million. “The group is well positioned to deliver superior performance in the medium-term,” he said.
“We continue to adapt our portfolio mix to changing market conditions.”
“We are maintaining a strong and conservative balance sheet and have a proven risk management framework and culture.”
Packer speaks out on “two strikes” rule
Billionaire James Packer has pledged to use his 46% stake in Crown to prevent a board spill should the company’s shareholders vote down a remuneration report next year, thereby prompting a spill motion, which would need 50% to pass.
Crown yesterday received a 55% “no” vote for its remuneration package, with directors banned from voting.
Packer said yesterday that despite owning 46%, he was not allowed to vote. ”I do not receive any remuneration from Crown, but I am not permitted to vote. My interest in ensuring that remuneration of Crown executives is fair is exactly aligned with every other shareholder.”
”If we receive a second strike again next year, we will be left in the farcical position of the board being subject to a spill. If that happens, I will use my votes to ensure all directors are voted back in immediately.”
Crown shares were 1.7% higher this morning in positive trade.
PM urges cooperation at CHOGM
Prime Minister Julia Gillard has said Commonwealth leaders need to work together and cooperate at this year’s Commonwealth Heads of Government Meeting.
“At a time when global economic power is shifted, when we see new and emerging countries playing an increasing important role, organisations such as the Commonwealth… have a new sense of purpose and promise,” she told reporters, according to AAP.
“The challenge for us as leaders over the next three days will be to seize this opportunity to make sure we realise that purpose and promise.”
Fairfax to hold radio assets
Fairfax will hold on to its radio assets after considering a sale, after the company received no acceptable offers, according to AAP.
Fairfax announced in a statement earlier this year that it would consider selling its metropolitan radio stations, but has now announced it will keep them.
“Despite strong interest from multiple entities, no party in the process has ultimately been able to put forward a proposal that is acceptable to Fairfax Media,” the company said in a statement.
It was also stated Fairfax non-executive director Michael Anderson will oversee a new strategy to help the business perform better, while the company also confirmed the float of TradeMe is on track.
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