The Australian share market got off to a vigorous start this morning and after volatile trade it closed almost 0.7 per cent higher. Resources stocks were the best performer on the back of a bounce in the iron ore price.
The release of minutes from the RBAs April meeting pointed towards a further easing bias, the bank made it clear it’s waiting on more data which leaves tomorrow’s release of inflation rate numbers as being a vital indicator. If the ABS shows price rises are weak then there will be more pressure for a further cut in the cash rate to stimulate the economy.
The S&P/ASX 200 index closed 39 points up to finish at 5,872.
The value of trades was $4.5 billion on volume of 655 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 Rio Tinto Limited
(ASX:RIO).
On the futures market the SPI is 37 points up.
Company news now
Rio Tinto Limited
(ASX:RIO) shares gained on news its iron ore and coal production gained in the first quarter of its financial year. The global miner boosted global iron ore output by 12 per cent to 74.7 million tonnes, but missed analyst expectations of up to 82.7 million tonnes. The company also increased global iron ore shipments by 9 per cent to 72.5 million tonnes over the March quarter. Rio Tinto closed 1.54 per cent up at $5.50.
Brambles Limited
(ASX:BXB) shares dipped saying it would deliver profit growth over the full year despite disappointing third quarter sales growth. The supply chain logistics company expects to boost its annual underlying profit up to 13 per cent to between $US1.055 billion and $US1.085 billion. Shares in Brambles closed 2.39 per cent down at $11.04
Singapore Telecommunications Limited
(ASX:SGT) is making moves to delist from the ASX due to low liquidity and weak demand for its CDIs.
Anteo Diagnostics Limited
(ASX:ADO) has filed a new patent and launched a third subsidiary company in the energy sector.
Shares in Cochlear Limited
(ASX:COH) closed higher with further news of a judgement being entered in a US patent infringement case.
Pro Medicus Limited
(ASX:PME) shares are up as it signs a $9.5 million deal with the University of Florida Health Network.
Best and worst performers
The best performing sector was materials adding 1.9 per cent to close at 9,180. The only major sector making losses was energy, losing 0.4 per cent to close at 11,571 points.
The best performing stock in the S&P/ASX 200 was OZ Minerals Limited
(ASX:OZL), rising 6.17 per cent to close at $4.13. Shares in Sandfire Resources
(ASX:SFR) and Independence Group
(ASX:IGO) also closed higher.
The worst performing stock was G8 Education Limited
(ASX:GEM), dropping 6.46 per cent to close at $3.33. Shares in MMA Offshore Limited
(ASX:MRM) and Karoon Gas Australia Limited
(ASX:KAR) also closed lower.
Commodities
Gold is trading at $US1,195 an ounce.
Light crude is $0.55 up at $US57.88 a barrel.
The Australian dollar is buying $US0.7690
