Australian stocks managed to close just ahead as gains in energy and materials stocks outweighed losses in the healthcare and property sectors. Reporting season is the main focus of news today – after the close Rio Tinto
(ASX:RIO) reported a 65% slump in its first half profit to $US2.5 billion, compared to a year earlier.The S&P/ASX 200 Index closed 4 points firmer at 4,378 while on the futures market, the SPI200’s down 14.In economic news, the Reserve Bank’s latest monthly bulletin showed that Australians spent $19.365 billion on their credit and charge cards in June, an increase of 9.19 per cent compared to May.
To company news around this afternoon: Lend Lease (ASX:LLC) reported a full year net loss of $653.6 million but an operating profit of $307.5 million. The net loss was hurt by write downs on its assets and expenses associated with cost cutting. But the developer said its strong liquidity and capital leave it well-placed. Shares closed the day 5.16% lower at $9.01.
Engineering and infrastructure group Downer EDI (ASX:DOW) posted a 14 jump in full year profit to $189.4 million and predicted further growth ahead which the market liked. Downer EDI shares were the best performing in the S&P/ASX200 index and closed 10.17% higher at $7.80.
Also making news today: Construction supplies company Adelaide Brighton (ASX:ABC) reported a first half net profit of $43.9 million which was 8 per cent lower compared to a year ago.
Stock exchange operator ASX (ASX:ASX) shares lost ground after it posted a full year net profit of $313.6 million which was 14 per cent lower than the previous year on lower listing revenue although it also said it saw signs of recovery.
Taking a look at some of the stories covered in our earlier reports: Wesfarmers (ASX:WES) posted a 45 percent increase in full year profit, but shares declined as the result missed expectations. The conglomerate also said that profit from its resources business would fall which fuelled uncertainty over its outlook.Macquarie Infrastructure Group (ASX:MIG) reported a net loss for the year to June 30, and says it may split its toll road businesses in the U.S., Europe and Australia into two ASX listed companies to avoid a fire sale of its assets as the company struggles with debt levels.
Now to the best and worst performers: The best performing sector at close was the Energy index, up 290 points to 15,583; while the worst performing sector at close was the Healthcare index; down 185 points to 8,284.
The best performing stock in the S&P/ ASX200 was Downer EDI as it reported better than expected profit. Shares in Amcor gained as it raised $1.2 billion in an institutional share sale. Panaust shares also closed higher.
The worst performing stock was ING Industrial Fund as shares declined 7.69% to $0.36. Shares in Boral and Energy Resources of Australia also closed lower.
In commodities, gold is trading at $946.10 U.S an ounce and light crude is up 15 cents at $72.57 U.S a barrel.
