Following a horror day of trade yesterday which saw more than $55 billion wiped from the local share market, the ASX has made a stellar rebound and finished the session 2.1 per cent higher. The big banks have been the star performers of the day, with CBA in particular leading the charge. The big miners BHP and Rio Tinto have also managed to erase yesterday’s losses.
The S&P/ASX 200 index closed up 103 points to finish at 5,022.
The value of trades was $6.2 billion on volume of 1.02 billion 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 ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is up 120 points.
Economic news
Data from the Australian Bureau of Statistics has shown that building approvals have fallen a seasonally adjusted 6.9 per cent for August to a total of 18,701. This is compared to a 4.2 per cent increase in July. Economists had forecasted a fall in approvals but only around 2 per cent. Meantime, figures from the Reserve Bank of Australia have shown private sector credit grew by 0.6 per cent in August, just beating economists’ expectations.
Company news Qantas Airways Limited
(ASX:QAN) says passenger numbers for the financial year 2016 to date have increased by 1.5 per cent from the previous year. In particular international passenger numbers on Qantas flights rose 7.4 per cent for the year. Shares in Qantas closed 0.27 per cent higher to $3.72.
Austal Limited
(ASX:ASB) says Austal USA has been awarded five service contracts by the Naval Sea Systems Command worth about US$22 million. Austal currently has in place a $3.5 billion block-buy contract from the US Navy to build 10 combat ships, as well as a $1.6 billion contract to build 10 EPF vessels. Shares in Austal closed up 2.27 per cent to finish at $2.25.
Rio Tinto Limited
(ASX:RIO) has sold a 40 percent interest stake in its Bengalla coal mine to New Hope Corporation.
TPG Telecom Limited
(ASX:TPM) has formed a $1 billion partnership with Vodafone Hutchison Australia.
MYOB Group Limited
(ASX:MYO) has acquired New Zealand-based payroll provider Information Management Services Limited.
Origin Energy Limited
(ASX:ORG) has announced a $2.5 billion entitlement offer.
Best and worst performers
The best performing sector was Financials excluding REITs adding 2.6 per cent to close at 6,591. The only sector posting losses was Utilities, losing 0.1 per cent to close at 6,483 points.
The best performing stock in the S&P/ASX 200 was Fortescue Metals, rising 8.98 per cent to close at $1.82. Shares in M2 Group and Evolution Mining also closed higher.
The worst performing stock was Mesoblast, dropping 8.93 per cent to close at $3.16. Shares in Santos and Credit Corp also closed lower.
IPOs iBosses Corporation Limited
(ASX:IB8) started trading today. The Entrepreneurship training and consultancy provider listed with an issue price of 20 cents, opened at 21 cents and a closed at 20 cents.
Commodities and the dollar
Gold is trading at $US1,126 an ounce.
Light crude is up 80 cents at $US45.23 a barrel.
The Australian dollar is buying 70.13 US cents.
