The Australian share market closed 0.71 per cent higher after strong gains in banks and retailers following the Federal Budget spending incentives for small business.
Economic news from China shows factory output there rose 5.9 in April, well below forecasts. Investors are now waiting for signals the Chinese government will provide a further boost to its lagging economy after cutting interest rates earlier this week.
The S&P/ASX 200 index closed 40 points up to finish at 5,715.
The value of trades was $5.7 billion on volume of 806 million shares at the close of trade. The top three stocks by value were National Australia Bank Limited
(ASX:NAB), BHP Billiton Limited
(ASX:BHP) and Commonwealth Bank of Australia
(ASX:CBA)
On the futures market the SPI is 38 points up.
Economic news
And figures released today show that wages growth is currently the slowest on record. The ABS says that total hourly rates of pay rose just 0.5 per cent in the March quarter. Wages over the 12 months to March grew by a seasonally adjusted 2.3 per cent, the lowest year-on-year rise in the 17 years since records began.
Company news
Sirius Resources Limited
(ASX:SIR) has struck a deal to supply the first three years of the copper sulphide concentrate produced at its Nova mine to a Dutch commodity group. Trafigura owns and operates storage facilities in China and across the globe. Production of the concentrate is expected to commence in 2016. Shares in Sirius Resources closed 5.52 per cent higher at $3.25.
Myer Holdings Limited
(ASX:MYR) has upped sales by 2.4 per cent in the third quarter. Total sales for the year to date are up 1.7 per cent to $2.4 billion. The result was helped along by major refurbishments and 2 new stores launched before Christmas. The retailer says it is continuing on with a strategic review and will announce details soon. Shares in Myer surged 10.28 per cent to $1.55.
Shares in STW Communications Group Limited
(ASX:SGN) suffered after the communications company revealing performance was lagging behind last year after a period of challenging conditions.
Australian Agricultural Company Limited
(ASX:AAC) has swung to an annual profit in the year to March from a loss of almost $40 million the year before.
BHP Billiton Limited
(ASX:BHP) says it expects capital and exploration expenditure to decline to $US9 billion from $US12.6 billion in the current financial year.
And SurfStitch Group Limited
(ASX:SRF) say they will pay $13.8 million in cash and 4.8 million shares to acquire Magicseaweed and Stab Magazine, an online surf forecaster and online magazine.
Best and worst performers
The best performing sector was staples adding 1.65 per cent to close at 9,215. The worst performing sector was utilities, losing 0.4 per cent to close at 6,524 points.
The best performing stock in the S&P/ASX 200 was the aforementioned Myer Holdings. Shares in GUD Holdings and Sundance Energy also closed higher.
The worst performing stock was STW Communications, dropping 8.63 per cent to close at $0.64. Shares in Ansell and Oz Forex also closed lower.
Commodities
Gold is trading at $US1,193 an ounce. Light crude is $1.45 up at $US61.74 a barrel. The Australian dollar is buying 79.7 US cents.
