It’s been a great start to the trading week and certainly a big improvement over last Friday’s disappointing session. The Australian share market opened higher, maintained its momentum the whole day and closed 0.78 per cent higher.
At lunchtime, financials was the best performing sector, but has now been overtaken by Energy shares. Once again, it wasn’t a good trading day for Healthcare.
The S&P/ASX 200 index closed 43 points up to finish at 5,479.
The value of trades was $2.7 billion on volume of 398 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), Telstra Corporation Limited
(ASX:TLS), and Westpac Banking Corporation
(ASX:WBC).
On the futures market the SPI is 47 points up.
Economic newsFactory activity in Australia has rebounded from its lowest level in over a year. The Australian Industry Group’s performance of manufacturing index (PMI) regained 2.9 points to 49.8 in September. In the month before that, it was much lower at 46.9. A figure below 50 indicates industry contraction – as opposed to expansion. The rebound in September was due to a recovery in food and beverage manufacturing.
Company newsNational Australia Bank Ltd
(ASX:NAB) has sold 80% of its life insurance business to the Nippon Life Insurance Company for $2.4 billion. The Bank has today announced that completion of the sale has occurred. NAB will retain a 20% stake in the new life insurance business, and retain full ownership of the existing investment business. NAB closed 0.75 per cent higher at $28.08.
OZ Minerals Limited
(ASX:OZL) says that electricity will be progressively restored in the next 7 to 10 days at its Prominent Hill operations in South Australia. The company is expecting copper production to remain on track, but says it’s possible gold production may now fall at the lower end of guidance.
European Metals Holdings Limited
(ASX:EMH) has announced it has raised $3 million from its largest shareholder Rare Earth Minerals via a placement and exercise of options.
nib holdings limited
(ASX:NHF) says it has entered into a white-labelling distribution partnership with the New Zealand Automobile Association, an iconic Kiwi brand known to most as the ‘AA’. The deal builds on existing white-label partnerships nib has in place with The Warehouse Group in New Zealand and Qantas and Apia in Australia.
Best and worst performersThe best performing sector was Energy adding 1.3 per cent to close at 8,525. The worst performing sector was Healthcare, losing 0.3 per cent to close at 21,634 points.
The best performing stock in the S&P/ASX 200 was the Australian Agricultural Company, rising 9.79 per cent to close at $1.79. Shares in Southern Cross Media and GWA Group also closed higher.
The worst performing stock was Orocobre, dropping 5.63 per cent to close at $3.52. Shares in Syrah Resources and Resolute Mining also closed lower.
CommoditiesGold is trading at $US1,315 an ounce.
Light crude is $0.22 up at $US48.05 a barrel.
The Australian dollar is buying $US0.7651.
