Aussie stocks have closed the session stronger today, led by gains in Telstra, and news that China will allow its currency to move.
The S&P/ASX 200 Index rose 61 points to finish at 4,613. And on the futures market, the SPI200’s up 39 points.
In economic news: The ABS reports that new motor vehicle sales fell 3.2% in May. Sales rose 16.4% in the year to May.
To company news around this afternoon: Iron ore miner Atlas Iron Ltd (ASX:AGO) says mining has commenced at its Wodgina DSO project in the Pilbara of Western Australia. Aquila says it is also on track to quadruple exports to 6 million tonnes per annum by December this year. Wodgina is the company’s second mine, with its first, Pardoo, going into production in 2008. Atlas, who has been using Fortescue Metals Group, port facilities at Port Hedland, will be shipping iron ore through new births being developed at Utah Point later this year. The company says ore from its Pardoo project is currently being stockpiled in Port Hedland in preparation for ship loading through Utah with the next shipment scheduled for late June/July. Shares in Atlas Iron closed 6.98% higher at $2.30.
Explosives maker Orica Ltd (ASX:ORI) has announced that it intends to expand ammonium nitrate production capacity at its Kooragang island in NSW by 320,000 tonnes a year to a total 750,000 tonnes per annum. Orica says the estimated cost of the expansion is in the range of $600 million to $750 million and expects commissioning to occur in 2014/2015. The company says it has also agreed to acquire the explosives businesses of its long term distributor and joint venture partner in Western Canada, and its distributors in Alaska and Colorado. Orica says terms of the transaction are subject to confidentiality arrangements. Shares in Orica closed 0.41% lower at $26.74.
Also making news: Aquila Resources Ltd (ASX:AQA) has signed a memorandum of understanding with China Development Bank to assist with the development of Aquila and expand the Chinese bank’s business in Australia.
The Australian Competition and Consumer Commission is set to release its finding into mining giants BHP Billiton Ltd (ASX:BHP) and Rio Tinto Ltd (ASX:RIO) iron ore joint venture on July 22. The proposed JV has sparked anger from Europe and Asia who fear that prices will rise in the merger goes through.
Perth-based mining firm Sundance Resources Ltd (ASX:SDL) has halted its operations in Africa to search for six Australian board members missing and feared dead, after a plane carrying 11 people disappeared soon after taking off in Cameroon, west Africa, on Saturday. Sundance Resources non-executive director, Craig Oliver, also missing on the flight is the CFO of mid-tier nickel sulphide producer, Western Areas NL (ASX:WSA).
And the Federal Government has struck an $11 billion deal with Telstra Corp Ltd (ASX:TLS) that clears the way for its planned National Broadband Network. The agreement will allow the state-owned NBN Co, which is building the network to provide high-speed Internet, to have access to Telstra’s infrastructure.
In the best and worst performers: All sectors closed in positive territory today, however the sector at close with the biggest gain was the Telco Services index, up 35 points at 1,126. The sector with the smallest gain was the Utilities index, up 1.5 points at 4,247.
The best performing stock in the S&P/ ASX200 was Murchison Metals, shares rose 8.37% to $2.33. Shares in Gindalbie Metals and Carnarvon Petroleum also closed higher.
The worst performing stock was Sigma Pharmaceuticals, shares fell 4.76% to close at $0.50. Shares in SP AusNet and Transfield Services also closed weaker today.
In commodities, gold is trading at $1,261.90 U.S an ounce, and light crude is up $1.66 at $78.84 U.S a barrel.
