Market Wrap: Aus shares up 0.72%

Market Reports

The Aussie sharemarket closed 0.72 per cent higher. Most sectors were in positive territory, with better than expected economic data boosting investor appetite.

The S&P/ASX 200 Index gained 31 points to finish at 4,293. On the futures market, the SPI is up 40 points.

Economic news

The Australian economy grew as expected in the three months to the end of September. The Bureau of Statistics says gross domestic product increased a seasonally adjusted one per cent, from an upwardly revised 1.4 per cent increase the quarter before. In the year to September GDP increased a seasonally adjust 2.5 per cent.

Construction in Australia improved in November, but still remained within the range that indicates contraction. The Australian Industry Group and Housing Industry Association’s Performance of Construction Index increased 4.9 points to 39.6 in November. The read, below 50, indicates contraction.

Company news 

He hasn’t quite said sorry, but Alan Joyce has said he acknowledges with “great regret” the impact his decision to ground the Qantas Airways Limited (ASX:QAN) fleet had on the tourism industry. The chief executive says it was the “only way” to bring an end to industrial action. Passenger numbers have now rebounded, the airline says. Shares in Qantas Airways Limited (ASX:QAN) closed flat, at $1.62.

The head of Orica Limited’s (ASX:ORI) crisis management team James Bonner says the company shouldn’t have waited two days to tell the health department about the chemical leak from its plant near Newcastle on August 8. He told a parliamentary enquiry today the company didn’t want to cause widespread or unnecessary public alarm, and so embarked on a doorknocking campaign as a personalised and targeted approach. Meanwhile media reports late this afternoon say another leak’s occurred at the plant today, but a spokeswoman says the solution’s equivalent to garden fertiliser and there’s no risk to the public. Shares in Orica Limited (ASX:ORI) closed 0.12 per cent higher today $25.88.

TPG Telecom Limited (ASX:TPM) says earnings before interest, tax, depreciation and amortisation (EBITDA) for the current year are expected to come in between $250 million and $260 million. The telco told shareholders at today’s AGM it’s added 19,000 broadband subscribers in the first four months of fiscal 2012.

BHP Billiton Limited’s (ASX:BHP) ramped up its US shale gas assets. Production at Petrohawk’s up 12 per cent on the previous quarter, but media reports say the miner may have already exceeded its 2011 capital spending budget. It’s planning on investing $US60 billion in development spending on its shale gas acquisitions over the next decade.

Dart Energy Limited (ASX:DTE) has entered into a Memorandum of Understanding for its first gas sales deal in NSW, and downstream project including a $65 million glasshouse development in Newcastle.

And Henderson Group plc (ASX:HGG) shares closed 4.19 per cent lower, on news the asset manager’s being sued by investors for what’s reported to be as much as $685 million, relating to a loss-making infrastructure investment.

Sectors and stocks

Healthcare was the best performer, up 104 points to 8,110. The worst performing sector was industrials, but it still gained 0.83 points, closing at 3,500.

The best performing stock in the S&P/ASX200 was Kagara, it rose 6.06 per cent to close at 35 cents. Shares in OM Holdings and Iluka also finished stronger today.

The worst performing stock was Bathurst Resources, it dropped 4.32 per cent to 66.5 cents, followed by Henderson and Gunns.

IPO

Titan Energy Services Limited (ASX:TTN) debuted on the market today, opening, listing and closing all at $1.

Commodities

The price of gold is $US1,729 an ounce and Light crude is up 14 cents at $US101.42 a barrel.


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