The Australian share market had a volatile trading day, opening slightly higher, dipping at lunch and closing 0.7 per cent higher with miners in positive ground and all sectors trading in the black.
The S&P/ASX200 Index closed 32 points higher at 4,072. On the futures market, the SPI is up 41 points.
Economic news
Westpac and the Melbourne Institute’s Leading Index says the economy is likely to slow in the second half of the year. The index says the likely pace of economic activity three to nine months into the future sits at 3.1 per cent. The annualised growth rate of the coincident index, indicating current activity, came in at 0.2 per cent, under the long-term term trend of 2.8 per cent.
Company news
News Corp’s (ASX:NWS) News Ltd is rumoured to be rebranding to ‘News Australia’. Crikey said a leaked 41-page document from the company, said it was keen to fight a growing public perception that it’s an “arrogant newspaper company”. Shares in News Corp (ASX:NWS) lost 0.18 per cent, to close at $16.36.
David Jones Limited (ASX:DJS) today reported a full year net profit to July 30 of $168.14 million, a 1.5 per cent drop on the previous year. CEO Paul Zahra said despite difficult trading conditions, the company was excited about the future. DJ's will pay a fully franked dividend of 15 cents, which will bring the total payout for the year to 28 cents. Shares in David Jones Limited (ASX:DJS) closed 2.22 per cent higher today at $2.76.
Kathmandu Holdings Limited (ASX:KMD) has tripled its net profit to $32 million for the 2011 financial year. The outdoor clothing and equipment brand listed in New Zealand and Australia at the end of 2009 and has this year seen positive results. Over the past year, sales were up 24.5 per cent, earnings were up 32 per cent. Kathmandu will pay a fully franked dividend of 7 cents.
Lynas Corporation Limited (ASX:LYC) shares took a tumble today after a JP Morgan analyst downgraded fellow rare earths producer Molycorp Incorporated (NYSE:MCP). The analyst told his clients prices for rare earths have fallen, and forecasted demand outside China to be down.
BHP Billiton Limited’s (ASX:BHP) chief executive Marius Kloppers has had a generous 8.5 per cent pay rise. His pay packet now holds $US11.6 million for the year, a year that saw the company post a record Australian corporate profit increase of 86 per cent to US$23.6 billion.
And the National Australia Bank’s (ASX:NAB) denied the fierce speculation that it was preparing to sell its British banking assets. The bank has told media it’s in no rush to make a sale, and will only exit markets on its own terms.
Best and worst performers
The best performing sector was healthcare, gaining 221 points to close at 7,523. The worst performing sector was financials excluding real estate investment trusts, but it still gained 16 points to close at 4,253.
The best performing stock in the S&P/ASX200 was Paladin, lifting by 6.46 per cent to $1.56.5. Shares in James Hardie Industries and Origin Energy also finished the day stronger.
The worst performing stock was Lynas, it lost 12.33 per cent to close at $1.28. Gunns and Kagara also closed lower.
In commodities, gold is trading at $US1,811 an ounce. Light Crude Oil is down 24 cents to $86.68 a barrel.
