The Australian share market rose to a seven year high just short of the 6,000 mark following China’s rate cut over the weekend. Despite gaining up to 0.7 per cent the benchmark pulled back to end 0.5 per cent higher ahead of Australia’s monthly rates decision tomorrow. The Big Four Banks and major miners all finished stronger while supermarket giants Woolworths Limited
(ASX:WOW) and Wesfarmers Limited
(ASX:WES) continued to decline.
Figures
The S&P/ASX 200 index advanced 30 points to close at 5,959.
The value of trades was $5.4 billion on volume of 778 million shares at the close of trade.
The top three stocks by value were Woolworths Limited
(ASX:WOW), BHP Billiton Limited
(ASX:BHP) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 24 points higher.
Economic news
The Australian Industry Group’s performance of manufacturing index declined 3.6 points to 45.4 in February.
TD Securities-Melbourne Institute's inflation gauge was flat in February after adding 0.1 per cent over the month before.
RP Data-Core Logic’s Home Value Index has shown home values gained 0.3 per cent in February across metropolitan areas.
The Housing Industry Association has reported new home sales rose 1.8 per cent in January on the back of strength in multi-unit sales.
Company news
Shares in Seven West Media Limited
(ASX:SWM) jumped to the benchmark index’s best performer after its Presto Entertainment joint venture with Foxtel scored regulatory approval. The Australian Competition and Consumer Commission (ACCC) has given the streaming media partnership the green light to proceed. Both Seven West Media and Foxtel will each control 50 per cent of Presto TV and the management team is expected to be soon revealed. Shares in Seven West Media jumped 9.12 per cent to close at $1.61.
Shares in Myer Holdings Limited
(ASX:MYR) sank to the benchmark index’s worst performer after its CEO and chief financial officer stepped down. The department store retailer says CEO Bernie Brookes will be replaced by Richard Umbers. Outgoing CFO Mark Ashby will depart for overseas and his replacement has not as yet been named. Shares in Myer Holdings sank 10.78 per cent to close at $1.66.
Shares in Orica Limited
(ASX:ORI) gained after the mining services group announced a $400 million share buyback after tying up the $750 million sale of its chemicals business.
Shares in Phytotech Medical Limited
(ASX:PYL) rose after the first medical marijuana company to list on the ASX struck a deal to commercialise a vaporiser device to administer medical cannabis.
Shares in Sirius Resources NL
(ASX:SIR) dropped after the nickel miner inked an offtake deal with BHP Billiton Limited
(ASX:BHP) and provided an exploration update for its Baloo gold deposit.
Shares in Navitas Limited
(ASX:NVT) fell despite the education provider renewing its agreement with the University of Massachusetts Dartmouth for its University pathway program.
Best and worst performers
The best performing sector was utilities, adding 1.9 per cent to close at 6,845.
The worst performing sector was consumer staples, losing 2.5 per cent to close at 9,263 points.
The best performing stock in the S&P/ASX 200 was Seven West Media Limited
(ASX:SWM), rising 9.12 per cent to close at $1.61. Shares in Cabcharge Australia Limited
(ASX:CAB) and Iluka Resources Limited
(ASX:ILU) also closed higher.
The worst performing stock was Myer Holdings Limited
(ASX:MYR), dropping 10.78 per cent to close at $1.66. Shares in Sirius Resources NL
(ASX:SIR) and Metcash Limited
(ASX:MTS) also closed lower.
Commodities
The price of gold is buying $US1,221 an ounce.
Light crude is $1.59 higher at $US49.76 a barrel.
Currencies
The Australian dollar is buying $US0.7768.
