The Aussie sharemarket had a turbulent day today. With a dramatic drop at the open, then a fall by as much as 220 points to a new intraday two-year low, it recovered strongly in afternoon trade, to close up 1.22 per cent. The S&P/ASX200 Index closed 49 points higher at 4,035. On the futures market, the SPI is up 47 points.
Economic news
The People's Bank of China says the nation’s consumer price index jumped 6.5 per cent in July from the year before, exceeding expectations. It was the highest rate for more than three years.
Locally, housing finance to owner-occupiers remained subdued in June, with lending flat in the month. Details revealed that new lending increased by 1.3 per cent in the month, while finance for the construction of new dwellings fell by 0.8 per cent.
And the National Australia Bank’s business conditions survey shows Australia’s economy grew at a below-trend rate in July. Last month, business conditions fell by three index points to -1, while in the same period, business confidence lifted two points to 2 index points.
Company news
National Australia Bank Limited's (ASX:NAB) chief executive Cameron Clyne told a briefing to the market today that the banking sector will survive the panic and crisis unfolding in global financial markets. He said the bank’s strategy continued to deliver earnings momentum during the June quarter despite challenges. Shares in National Australia Bank Limited (ASX:NAB) rose 2.87 per cent to close at $21.50.
Centro Properties Group (ASX:CNP) is set to bundle its Australian assets. The company will create a new vehicle with a portfolio of $4.4 billion. Earlier this year it sold its US assets for $US9.4 billion. Shares in Centro Properties Group (ASX:CNP) lost 6.38 per cent to close at 0.044 cents.
Cochlear Limited (ASX:COH) met forecasts today with a 16 per cent rise in full-year net profit. Revenue for the hearing implant maker rose 10 per cent to a record $809.6 million.
Leighton Holdings Limited (ASX:LEI) is set to sell its HWE Mining to BHP Billiton Limited (ASX:BHP) for $705 million. BHP said the deal was part of a previously flagged move from a contract mining to owner-operator mining.
Commonwealth Bank of Australia (ASX:CBA) and Westpac Banking Group (ASX:WBC) have cut fixed home loan rates. Commonwealth slashed rates by up to 60 basis points, and Westpac by 20.
And Coca-Cola Amatil Limited (ASX:CCL) reported a slightly better than expected first half result today, an increase of 5.5 per cent in underlying net profit. The company said it is planning to consolidate its food processing factories from three to two. As a result, it will increase its interim dividend by 7 per cent to 22 cents.
Sectors and stocks
The best performing sector was financials excluding real estate investment trusts, gaining 102 points to close at 4,297. The worst performing sector was healthcare, falling 91 points to close at 7,335.
The best performing stock in the S&P/ASX200 was OceanaGold Corporation (ASX:OGC) shares rising 9.95 per cent to close at $2.10. Shares in Gryphon Minerals Limited (ASX:GRY) and OM Holdings Limited (ASX:OMH) also closed in positive territory today.
The worst performing stock was Aurora Oil & Gas Limited (ASX:AUT), shedding 5.71 per cent to close at $2.64. Shares in West Australian Newspapers Holdings (ASX:SWM) and TPG Telecom Limited (ASX:TPM) also closed weaker today.
In commodities, gold is trading at $US1,749 an ounce and Light crude is $2.60 weaker at $US78.71 a barrel.
