The Australian share market was full of optimism today closing almost 2 per cent higher in the wake of doveish comments made by the US Federal Reserve overnight.
Despite weakness in the iron ore price the miners made gains as investors deduce that US rates will stay low for some time yet.
The Aussie dollar lifted on the news and pundits are more certain than ever that the RBA will be forced to further cut its cash rate in the next few months.
Commonwealth Bank extended its gains to hit a record high of $95.61 as the ASX once again approaches the 6,000 point mark.
The S&P/ASX 200 index closed 109 points up to finish at 5,951.
The value of trades was $7.1 billion on volume of 1 billion shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), Westpac Banking Corporation
(ASX:WBC) and National Australia Bank Limited
(ASX:NAB).
On the futures market the SPI is 47 points up.
Company news
Myer Holdings Limited
(ASX:MYR) dropped to the day’s worst performer as it reported a fall in its interim profit and forecast its profit will also drop over the full 2015 financial year. The department store retailer’s net profit declined 23 per cent to $62.2 million in the first half of the 2015 financial year while total sales rose 1.5 per cent to $1.8 billion. Myer closed 10.13 per cent down at $1.38
Sigma Pharmaceutical Limited
(ASX:SIP) posted gains today on the back of its full year results despite a slight dip in profits. The pharmaceutical company says revenue and earnings both saw growth and a dividend of 2 cents per share will be paid declared. Shares in Sigma closed 9.3 per cent up at $0.94
Finbar Group Limited
(ASX:FRI) has inked a deal to buy a mixed use development site in South Perth for $7.25 million it expects to develop into a $60 million project.
Telstra Corporation Limited
(ASX:TLS) has inked a deal to buy a provider of media services for broadcasters in Australasia called Globecast Australia.
ANZ Banking Group
(ASX:ANZ) has predicted the gold price could more than double by 2030 on the back of strong demand from Asia and a finite supply of the commodity.
Shares in Watpac Limited
(ASX:WTP) have jumped on news of $78 million construction deal for the Brisbane Airport hotels and conference centre development.
Best and worst performers
All major sectors were up today. The best performing sector was REITs adding 3.2 per cent to close at 1,325. The sector with the least gains was consumer staples, gaining 0.8 per cent to close at 9,303 points.
The best performing stock in the S&P/ASX 200 was Sigma Pharmaceutical Limited
(ASX:SIP), rising 9.3 per cent to close at $0.94. Shares in Fortescue Metals Group Limited
(ASX:FMG) and Newcrest Mining Limited
(ASX:NCM) also closed higher.
The worst performing stock was Myer Holdings Limited
(ASX:MYR), dropping 10.13 per cent to close at $1.38. Shares in Horizon Oil Limited
(ASX:HZN) and Atlas Iron Limited
(ASX:AGO) also closed lower.
Commodities
Gold is trading at $US1,171 an ounce.
Light crude is $1.46 up at $US46.65 a barrel.
The Australian dollar is buying $US0.7734
