Despite soft offshore leads the Australian share market rose at open and lifted throughout the day to end 0.4 per cent up, off session highs ahead of a Spanish bond auction. Solid quarterly production reports stole the spotlight on the local front, pushing up the mining and energy stocks.
The S&P/ASX 200 index added 14 points to finish at 4,363. On the futures market the SPI is currently 14 points higher.
Economic news
International merchandise imports rose last month. According to the Australian Bureau of Statistics international merchandise imports rose 11 per cent to $22 billion in March from $19.8 billion the month before.
Business conditions picked up in the first three months of this year but business confidence dropped. National Australia Bank Limited’s (ASX:NAB) survey shows business conditions came in at 3 points in the March quarter from 2 points in the December quarter. Business confidence dropped 2 points to -1 point in the same period.
Residential land sales have slumped 40 per cent under the long-term average. According to the HIA-RP Data Residential Land Report, “Last year saw just under 44,000 land sales, which is 46 per cent lower than what was recorded over the 2009 calendar year.”
Company news
Cyclones in Western Australia have been blamed for Fortescue Metals Group Limited (ASX:FMG) missing its guidance and posting a 15 per cent fall in its third quarter iron ore production, compared to the quarter before. Compared to the year before, quarterly production increased 41 per cent on the back of the Pilbara focussed miner’s expansion plans in the region. Fortescue has today confirmed annual production guidance of 55 million tonnes per annum and that its expansion to 155 million tonnes is on budget and schedule. The miner also today cautioned it expects to launch a constitutional challenge to the mining tax within weeks. Shares in Fortescue Metals Group gained 1.52 per cent today, closing at $6.02.
Woodside Petroleum Limited’s (ASX:WPL) oil and gas production dropped 10 per cent in the first quarter as its operations were hit with cyclonic activity. However higher oil prices boosted first-quarter revenue by 20 per cent to about $1.2 billion. Woodside has confirmed it remains on track to deliver its full-year production target of up to 81 million barrels of oil equivalent. The company has also revealed it’s sold a gas permit stake to support its $15 billion Pluto project, where it expects to start producing liquefied natural gas within days. Shares in Woodside Petroleum gained 1.42 per cent today, closing at $35.04.
Oil and gas producer Santos Limited (ASX:STO) has confirmed its full-year output guidance after posting s 50 per cent jump in first quarter revenue, boosted by new projects.
Ports and rail operator Asciano Limited (ASX:AIO) has reached a final agreement with the Maritime Union for its Patrick container terminals, bringing the 20-month dispute to an end.
Australia’s biggest telco, Telstra Corporation Limited (ASX:TLS), has forecast the National Broadband Network roll-out will see it gain up to $3 billion and that the telco expects to maintain its dividend for this year and next.
Australia's largest property developer Stockland (ASX:SGP) says it will cut executive bonuses following a review of its remuneration policies.
Best and worst performers
Most sectors closed higher: The best performing sector was Consumer Staples adding 69 points to close at 7,564. The worst performing sector was Real Estate Investment Trusts, losing 5 points to close at 849 points.
The best performing stock in the S&PASX 200 was Intrepid Mines Limited (ASX:IAU), rising 6.85 per cent to close at $0.78. Shares in FKP Property Group (ASX:FKP) and Perseus Mining Limited (ASX:PRU) also closed higher.
The worst performing stock was Mirabela Nickel Limited (ASX:MBN), dropping 4.81 per cent to close at $0.495. Shares in Energy World Corporation Limited (ASX:EWC) and Energy Resources of Australia Limited (ASX:ERA) also closed lower.
Commodities
Gold is trading at $US1,639 an ounce.
Light crude is $0.03 down at $US102.64 a barrel.
The Australian dollar
The Australian dollar is buying $US1.0357.
