The Australian share market has ended the day marginally higher after selling off mid way through the session on weaker Chinese industrial activity.
The S&P/ASX200 Index rose 6 points to close at 4,556. On the futures market, the SPI is 9 points higher.
Economic news
China’s factory sector contracted for the first time in a year. The HSBC flash purchasing managers’ index, the earliest available indicator of China’s industrial activity fell to 48.9 in July, a 28 month low and well below the 50-point level that indicates growth.
And Australian business conditions marginally improved last quarter, but confidence declined. The National Australia Bank’s quarterly survey’s measure of business conditions gained 1 point to stand at 3 points for the second quarter. Its index of confidence dropped 5 points to stand at 6.
Company news
News Corporation (ASX:NWS) has been cleared in the US of journalistic wrongdoing by the Dow Jones Special Committee. A week ago two US senators had urged officials to investigate whether the British phone hacking scandal had reached American shores. Meanwhile, closer to home, Opposition Leader Tony Abbott has said there’s no evidence of wrongdoing by News Corp in this country, and that the Prime Minister should “put up or shut up” – in Mr Abbott’s own words - over questions she wanted answered by News Ltd. News Corp shares were up 1.57 per cent at the end of the day, to close at $15.48.
Petrohawk founder and chief executive Floyd Wilson will be a major beneficiary of BHP Billiton Ltd’s (ASX:BHP) bid for the US shale gas company. The resources giant has agreed to pay Mr Wilson millions in retention bonuses as well as a consulting agreement. Within sixty days of the deal’s completion Mr Wilson will receive $US2 million, a base salary of $US1 million and a pro rata portion of last year’s bonus which was $US2.5 million. After the initial sixty days Mr Wilson will become a consultant for six months, working no more than 20 per cent of the time he would have previously worked for, for an additional $US3 million. Shares in BHP Billiton closed up by 0.32 per cent at $43.58.
Santos Ltd (ASX:STO) reported an eight per cent rise in second quarter production. The oil and gas firm says its flagship liquefied natural gas project remains on track.
Newcrest Mining Ltd (ASX:NCM) reported a 16 per cent jump in quarterly gold production and expects to return to full production rates by the end of the current quarter.
Gindalbie Metals Ltd (ASX:GBG) has completed the institutional component of its new share sale, raising $35 million. The miner plans to raise a total $209 million in the equity raising.
Standard and Poor’s has maintained its BBB long term and A-2 short term corporate credit ratings on Leighton Holdings Ltd (ASX:LEI) on CreditWatch with negative implications.
Sectors and stocks
The best performing sector was Financials Excluding Real Estate Investment Trusts, rising 22 points to close at 4,792. The worst performing sector was Real Estate Investment Trusts, falling 7 points to close at 810.
The best performing stock in the S&P/ASX200 today was White Energy Company Ltd, shares rising 11.65 per cent to close at $2.06. Shares in Gindalbie Metals Ltd and Paladin Energy Ltd also closed in positive territory today.
The worst performing stock was CSR Ltd shedding 4.03 per cent to close at $2.62. Shares in Resolute Mining Ltd and ResMed Inc also closed weaker today.
Commodities
Gold is trading at $US1,603 an ounce and Light crude is 9 cents higher at $US98.49 a barrel.
