The Australian share market closed 0.13 per cent higher today snapping a six day losing streak.
The Aussie dollar has been on a roller coaster ride today, the dollar plunged over half a cent after the disappointing consumer sentiment figures but regained all that and more when Reserve Bank Governor Glenn Stevens alluded to the possibility of further interest rate cuts at a speech in Brisbane today.
The S&P/ASX 200 index closed 7 points up to 5,479.
The value of trades was $4.3 billion on volume of 702 million shares at the close of trade. The top three stocks by value were Westpac Banking Corporation
(ASX:WBC), Commonwealth Bank of Australia
(ASX:CBA) and ANZ Banking Group
(ASX:ANZ)
On the futures market the SPI is 16 points up.
Economic news
The weekly ANZ-Roy Morgan index showed a fall of 1.2 per cent to 112.1 points. Meanwhile the monthly consumer sentiment report from Westpac slipped a seasonally adjusted 6.9 per cent in June, wiping out May’s 6.4 per cent increase buoyed by the Federal Budget’s tax break for small business.
Company news
Melbourne IT Limited
(ASX:MLB) announced a majority shareholding in Outware Systems with an option to buy the rest of the company. Melbourne IT will pay $21.7 million for 50.2 per cent of the privately owned app developer. Shares in Melbourne IT jumped 9.33 per cent to $1.64.
STW Communications Group Limited
(ASX:SGN) says its new management structure will forge stronger relationships with key businesses. A new Chief Talent Officer will allow the acquisition and retention of high quality personnel. The company will slash costs and streamline finances in a bid to maintain its strong operating margins.Shares in STW Communications rose 6.42 per cent to $0.58.
Westpac Banking Coroporation
(ASX:WBC) says it will split its business into two divisions in a bid to simplify banking operations and focus on the customer.
Qantas Airways Limited
(ASX:QAN) has expanded its joint venture with American Airlines and will revive its Sydney-San Francisco route.
Amalgamated Holdings Limited
(ASX:AHD) will acquire the Museum Art Hotel in Wellington, New Zealand.
And Mesoblast Limited
(ASX:MSB) took a rise after yesterday’s report that its phase 2 trial therapy in diabetic patients produced a positive result.
Best and worst performers of the day
The best performing sector was energy , adding 1.5 per cent to close at 11,417. The worst performing sector was telco services, losing 0.9 per cent to close at 2,113 points.
The best performing stock in the S&P/ASX 200 was the aforementioned STW Communications. Shares in Platinum Asset Management and Karoon Gas also closed higher.
The worst performing stock was Bradken, dropping 6.47 per cent to close at $2.17. Shares in Senex Energy and Pacific Brands also closed lower.
Commodities
Gold is trading at $US1,181 an ounce. Light crude is $2.00 up at $US60.14 a barrel. The Australian dollar is buying 77.3 US cents.
