Encouraged by positive leads, the Australian share market advanced throughout the day to close 1.3 per cent stronger. Resource and energy stocks rose on the bank of higher commodity prices and all sectors ended the day in positive territory.
The S&P/ASX200 Index advanced 63 points to close at 4,756. On the futures market, the SPI is 62 points higher.
Economic news: The Australian Bureau of Statistics' quarterly wage survey has shown that the average weekly ordinary time earnings for adult full-time employees increased 1 per cent in the three months to February, taking the annual rate to 3.8 per cent.
Company news: National Australia Bank Ltd’s (ASX:NAB) British subsidiary, Clydesdale Bank, will make a $152 million provision relating to the mis-selling of Payment Protection Insurance in the UK. NAB says that the provision reflects an assessment of future Payment Protection Insurance claims in relation to a wide range of uncertain factors. Payment Protection Insurance is usually sold with mortgages, loans, or credit cards, enabling the borrower to have protection should they be faced with unforeseen circumstances, such as an accident. Shares in National Australia Bank today rose 1.75 per cent to close at $27.40.
Resources and investment company Cape Lambert Resources Ltd (ASX:CFE) says it will pay $80 million to boost its stake in Pinnacle Group Assets from 47.4 per cent to 90.2 per cent. The interest will provide Cape Lambert with majority ownership of two potentially large scale iron ore projects in West Africa. Cape Lambert will pay $20 million in cash and $40 million of its shares for the Pinnacle stake, and has also offered to buy the remaining 9.8 per cent stake. Shares in Cape Lambert Resources advanced 3.19 per cent today, closing at $0.485.
The head of Rio Tinto Ltd’s (ASX:RIO) iron ore division, Sam Walsh, has told Reuters that he expects prices for the commodity to stabilise in the September quarter after a volatile start to the year.
Bank of Queensland Ltd’s (ASX:BOQ) CEO David Liddy has told The Australian that another rate hike would be painful, noting that falling tourism and deflated real estate values have pushed Queensland's economy to its weakest level in five years.
Building materials manufacturer James Hardie Industries (ASX:JHX) today posted a full year loss of $US347 million, widening from a loss of $US85 million the year before.
Ratings agency Moody’s has cut its credit rating for Australia’s big four banks, claiming their reliance on wholesale funding is the reason for a one-notch downgrade, from Aa1 to Aa2.
In the best and worst performers, and all closed in positive territory: Energy was the strongest, rising 327 points to close at 16, 210. The sector was the smallest gains was Utilities, easing 18 points to close at 4,372. The best performing stock in the S&P/ASX200 was Sandfire Resources shares gained 7.74 per cent to close at $6.82. Shares in Beach Energy and Aquila Resources also closed higher today. The worst performing stock was PaperlinX, falling 5.26 per cent to close at $0.18. Shares in Infigen Energy and Henderson Group also lost ground today.
Commodities: Gold is trading at $US1,495 an ounce. Light crude is down $0.20 cents at $US99.90 a barrel.
