The Australian share market jumped on open after strong gains on Wall Street and it maintained its momentum to close almost 0.8 per cent up.
The energy sector led the way today and the banks also booked some solid gains.
Sirtex medical took a hit as it reported poor clinical trial results, while minutes from the RBA’s March meeting pointed towards a wait and see approach from the central bank on whether further monetary easing is necessary. The Aussie dollar traded lower on the news.
The S&P/ASX 200 index closed 44 points up to finish at 5,842.
The value of trades was $5.1 billion on volume of 768 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), BHP Billiton Limited
(ASX:BHP) and National Australia Bank Limited
(ASX:NAB).
On the futures market the SPI is 43 points up.
Company news
Shares in Sirtex Medical Limited
(ASX:SRX) have plunged after revealing clinical trial results for its specialised liver cancer treatment. The drug developer says preliminary analysis determined the primary endpoint of the SIRFLOX clinical study did not show a meaningful improvement. A company spokesperson told FNN today’s stock drop was an overreaction and the results are by no means the end of the story. Sirtex Medical closed 55.05 per cent down at $17.53
BHP Billiton Limited
(ASX:BHP) has revealed the demerger of its proposed $US15 billion spin-off South32 will likely cost the company about $US738 million. The diversified mining giant says the charges include stamp duty and cash tax, set up, separation and execution costs, including financial advisor costs. Shares in BHP closed 1.26 per cent up at $29.77
Australia’s Big Banks have joined relief efforts after Tropical Cyclone Pam hit the Pacific Islands over the weekend and devastated Vanuatu.
Mineral sands miner Iluka Resources Limited
(ASX:ILU) has inked a term sheet with junior mining company Monax Mining Limited
(ASX:MOX).
DuluxGroup Limited
(ASX:DLX) has outlined plans to spend $165 million to build a new paint factory in Melbourne.
Rio Tinto Limited
(ASX:RIO) says it paid $US7.1 billion in taxes around the world last year.
Best and worst performers of the day
The best performing sector was telco services adding 1.7 per cent to close at 2,206. The worst performing sector was REITs, losing 1.1 per cent to close at 1,291 points.
The best performing stock in the S&P/ASX 200 was Karoon Gas Australia Limited
(ASX:KAR), rising 14.04 per cent to close at $2.60. Shares in Mount Gibson Iron Limited
(ASX:MGX) and Beadell Resources Limited
(ASX:BDR) also closed higher.
The worst performing stock was Sirtex Medical Limited
(ASX:SRX), dropping 55.05 per cent to close at $17.53. Shares in Sundance Energy Australia Limited
(ASX:SEA) and Evolution Mining
(ASX:EVN) also closed lower.
Commodities
Gold is trading at $US1,155 an ounce.
Light crude is $0.93 down at $US46.13 a barrel.
The Australian dollar is buying $US0.7638.
