The Australian share market was up strongly today after three days of losses, helped by the financials and materials sectors and the reporting of a robust GDP.
The S&P/ASX200 Index closed 108 points higher at 4,183. On the futures market, the SPI was up 127 points.
Economic news
GDP was a seasonally adjusted 1.2 per cent higher for the second quarter, up from a revised fall of 0.9 per cent in the March quarter.
And the Australian Industry Group-Housing Industry Association's performance of construction index (PCI) fell four points to 32.1 in August.
Company news
Qantas Airways Limited (ASX:QAN) released its annual report today, revealing CEO Alan Joyce has had a pay rise of 71 per cent to $5 million.
The airline’s share price fell 16 per cent over the period, but its profit doubled. Meanwhile, part of the airline’s ongoing dispute with unions over employee pay came somewhat to an end today. Media reports this afternoon say Fair Work Australia has upheld its decision to use cheaper New Zealand pilots on trans-Tasman flights. Shares in Qantas Airways Limited (ASX:QAN) gained 1.92 per cent, to close at $1.59.
Rio Tinto Limited (ASX:RIO) and BHP Billiton (ASX:BHP) are calling for urgent talks with the NSW government after the release of its budget yesterday, which included the proposal to raise mining royalties. The miners say a royalty increase could compel the federal government to raise its mining tax. Shares in Rio Tinto Limited (ASX:RIO) closed 3.2 per cent higher today at $70.60.
Reports yesterday that National Australia Bank Limited (ASX:NAB) may be selling its Clydesdale and Yorkshire banks gained momentum today. The sale to NBNK Investments is said to be worth up to $2.3 billion, and would mean NAB would no longer have a share of the British Banking market.
Ten Network Holdings Limited (ASX:TEN) had strong growth in ad sales for August, according to figures obtained by the Australian from research house SMI. The data said the network's share of the $250 million metropolitan free-to-air television market rose two percentage point to almost 30 per cent last month.
Macquarie Group Limited (ASX:MQG) today confirmed that markets have been particularly tough for it in the first half, fuelling speculation that the bank is about to make another round of job cuts.
And Virgin Blue Holdings (ASX:VBA) said its domestic traffic figures rose by 10.4 per cent, and capacity rose 5.4 per cent for July.
Best and worst performers
The best performing sector was financials excluding real estate investment trusts, gaining 140 points to close at 4,452.
The worst performing sector was real estate investment trusts, gaining 9 points to close at 775.
The best performing stock in the S&P/ASX200 was Virgin Blue, lifting 7.41 per cent to close at 29 cents. Shares in Austar United and Aquila finished the day stronger.
The worst performing stock was Goodman Fielder, losing 4.62 per cent to close at 62 cents. Oceanagold and Medusa also closed lower.
Commodities
Gold is trading at $US1,837 an ounce. Light Crude Oil is up 65 cents to $86.67 a barrel.
