The local share market has kicked off the month of February on a high note, with the index maintaining positive momentum throughout the session and closing 0.76 per cent higher. We had some favourable local economic data out today in terms of manufacturing PMI and inflation and investors didn’t seem too phased by China’s manufacturing read, which hit a 3-year low. Healthcare stocks were the star performers today followed by the telcos.
The S&P/ASX 200 index closed 38 points higher to finish at 5,044.
The value of trades was $5.2 billion on volume of 781 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), National Australia Bank Limited
(ASX:NAB) and ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is up 37 points.
Economic news
Melbourne has now become Australia’s best performing capital city in terms of house prices, beating Sydney, according to latest figures from Core Logic/RPData. For the year to January, prices in Melbourne grew by 11 per cent, compared to 10.5 per cent in Sydney.
Also out today was the latest PMI figures for January, showing our economy is still growing but at a slower rate than December. Latest data from AI Group revealed a PMI read of 51.5, which shows expansion. However, this is down 0.4 points of December’s read.
Finally in economic news, inflation in Australia has reached a 15 month high of 2.3 per cent, which falls within the Reserve Bank of Australia’s target range of between 2 and 3 per cent, signaling that further rate cuts may be off the cards.
Company news
CIMIC Group’s ( ASX:CIM) companies Pacific Partnerships and CPB Contractors have been selected by the ACT Government as the preferred proponent to deliver the first stage of Canberra’s light rail project. Revenue to the CIMIC Group companies will be finalised at the point of contract execution expected in the coming months. Shares in CIMIC Group closed 2.74 per cent higher at $24.73.
Bega Cheese
(ASX:BGA) says Coles supermarkets has informed the company of its intention to change suppliers for its “own brand” cheese manufacturing and packaging from January 2017.
Brainchip Holdings Limited
(ASX:BRN) says it has signed an agreement with Applied Brain Research to work together in a referral relationship in the emerging markets of artificial intelligence.
WAM Capital Limited
(ASX:WAM) has announced a record interim profit of $103 million up a whopping 225 per cent after tax.
Best and worst performers
The best performing sector was Healthcare adding 2.8 per cent to close at 19,865. The sector with the least gains was Financials excluding REITs, adding 0.3 per cent to close at 6,598 points.
The best performing stock in the S&P/ASX 200 was Independence Group, rising 6.85 per cent to close at $2.34. Shares in Mineral Resources and Worley Parsons also closed higher.
The worst performing stock was Bega Cheese, dropping 10.48 per cent to close at $6.32. Shares in Blackmores and AWE also closed lower.
Commodities and the dollar
Gold is trading at $US1,122 an ounce.
Light crude is $0.40 up at $US33.62 a barrel.
The Australian dollar is buying $US0.7076.
