The Australian share market has closed more than one per cent stronger today, maintaining afternoon gains. The market had surged 1.5 per cent higher in morning trade on the back of positive offshore leads, before settling to near closing levels.
The S&P/ASX200 Index closed 45 points higher at 4,213. On the futures market, the SPI is 46 points higher.
Economic news
The HIA-Commonwealth Bank Housing Affordability Index improved by 0.8 per cent in the June quarter, global economic uncertainty responsible for the improvement.
Company news
Woolworths Limited (ASX:WOW) expects a tough year ahead, with net profit growth to slow to between 2 and 6 per cent this year. For the year to June 30 the country’s biggest supermarket chain posted a net profit of $2.124 billion, more than 5 per cent higher than the previous corresponding period, just missing analyst’s forecasts. It was the lowest growth in over a decade. Woolworths declared a final dividend of 65 cents, fully franked, taking the total dividend to $1.22. Woolworths shares ended the day 5.57 per cent lower at $25.75.
Leighton Holdings Limited’s (ASX:LEI) board and management shake-up has nothing to do with Spanish Group ACS, which controls its parent Hochtief. That’s according to Leighton Holdings, as reported by the Australian Financial Review. Leighton confirmed it has replaced its chief executive David Stewart with the head of its Asian operations, and appointed non-executive director Stephen Johns as chairman to replace David Mortimer. Leighton shares closed 3.28 per cent weaker today at $20.61.
Metcash Limited (ASX:MTS) is closer to a successful takeover of rival Franklins, with the Federal Court rejecting the ACCC’s bid to block the acquisition.
Insurance Australia Group Limited (ASX:IAG) has posted a $250 million after tax profit for 2011, up from $91 million the year before. The strong result achieved despite claim costs for natural disasters hitting $610 million.
Toll Holdings Limited (ASX:TOL) increased full year profit by one per cent, with net profit rising to $281 million for the year to June 30.
Transfield Services Limited (ASX:TSE) shares plunged after posting a full year loss of just under $20 million.
Best and worst performers
The best performing sector was Energy, the index gaining 300 points to close at 13,509. The worst performing sector was Consumer Staples, falling 78 points to close at 7,465.
The best performing stock in the S&P/ASX200 was Virgin Blue Holdings, shares gained 14.89 per cent to close at $0.27. Shares in Dart Energy and Toll Holdings also gained today.
The worst performing stock was Transfield Services, shedding 22.3 per cent to close at $2.30. Shares in Woolworths and OceanaGold Corporation also fell today.
Commodities
Gold is trading at $US1,741 an ounce and Light crude is up 3 cents to $US85.19 a barrel.
