Fed countdown: Aus shares close 0.68% higher

Market Reports

by Carolyn Herbert

The Australian share market finished the day on a positive note closing 0.68 per cent higher, with investors hedging their bets that the Federal Reserve will keep rates on hold when it meets for its September meeting early tomorrow morning our time. The industrials space along with the energy sector did the bulk of the heavy lifting this session, with the stock LNG gaining over 10 per cent and Origin Energy adding 2.5 per cent. Also a solid session for the big four banks, all of which closed the day in positive territory.

The S&P/ASX 200 index closed 36 points up to finish at 5,340.

The value of trades was $5.48 billion on volume of 817 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia (ASX:CBA), ANZ Banking Group (ASX:ANZ) and Westpac Banking Corporation (ASX:WBC).

On the futures market the SPI is 33 points up.

Company news

BHP Billiton (ASX:BHP) says it has cut CEO Andrew Mackenzie’s salary in half following the Samarco disaster in Brazil last year, that killed 19 people. Mr Mackenzie was paid $2.24 million last financial year compared to $4.58 million in the previous year. But the company cited that Samarco wasn’t the only reason for the pay cut, but also the ongoing decline in commodity markets. Shares in BHP closed 0.53 per cent up at $20.72.

Kathmandu Holdings Ltd (ASX:KMD) says its NPAT increased by 64.2% to $33.5 million for FY16.

Fonterra Co-Operative Group Ltd (ASX:FSF) has increased its Farmgate Milk Price by 50 cents.

Nufarm Ltd (ASX:NUF) has reported net profit after tax fell 36% to $27.5 million – due to one-off restructuring costs.

Best and worst performers

The best performing sector was Industrials adding 1.29 per cent to close at 5,113. The worst performing sector was Telcos, losing 0.2 per cent to close at 1,819 points.

The best performing stock in the S&P/ASX 200 was ALS rising 5.41 per cent to close at $5.65. Shares in Infigen Energy and Nufarm also closed higher.

The worst performing stock was Vocus Communications, dropping 9.91 per cent to close at $6.09. Shares in Galaxy Resources and TPG Telecom also closed lower.

Commodities and the dollar

Gold is trading at $US1,319 an ounce.
Light crude is $0.19 higher at $US44.05 a barrel.
The Australian dollar is buying $US0.7558.





 

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