The Australian share market opened higher and rose to session highs after upbeat jobs data, but retreated after weak Chinese trade data only to recover by sessions end and climb 0.5 per cent in the last hour of trade. The miners led the gains while the banks dragged, weighed down by ANZ Banking Group (ASX:ANZ) trading ex-dividend today.
The S&P/ASX 200 index added 21 and to close at 4,296. On the futures market the SPI is 20 points higher.
Economic news
The latest figures on China’s export and import growth have come in weaker than expected. China’s General Administration of Customs has reported exports dropped to 4.9 per cent in April from 8.9 per cent the month before. Import growth fell to 0.3 per cent in April from 5.3 per cent the month before. The nation's trade surplus widened to $US18.4 billion in April from $US5.35 billion the month before.
Australia’s jobs figures have surpassed expectations with the unemployment rate hitting a 12 month low. The Australian Bureau of Statistics has reported the nation’s unemployment rate dropped from 5.2 per cent to 4.9 per cent in April. In the same period the economy added 15,500 jobs from the month before, defying expectations for a fall of 5,000.
Company news
National Australia Bank Limited (ASX:NAB) has booked a record first half cash profit at the same time its net profit dropped 15.5 per cent. Bad debts from the bank’s UK arm were attributed for the decline, with NAB affirming the global outlook remains challenging. An interim dividend of 90 cents per share has been declared. Shares in National Australia Bank fell 0.16 per cent today, closing at $24.57.
Singapore Telecommunications Limited’s (ASX:SGT) has reported a 4.3 per cent lift in its full year net profit and forecast growth ahead. The telco’s Australian arm Optus posted 2 per cent growth in its net profit, one week after unveiling a restructure and partnership with Vodaphone to cut costs. Optus has also today confirmed it will appeal a Federal Court ruling that found Optus breached copyright law by broadcasting near-live content on mobile phones. Shares in SingTel finished flat today, closing at $2.53.
Construction company Leighton Holdings Limited (ASX:LEI) has added to multiple contract wins this week announcing it has won $800 million in gas and water infrastructure contracts from Australia Pacific LNG.
Virgin Australia Holdings Limited (ASX:VAH) has today received the final green light from Australia’s competition regulator to proceed with its proposed alliance with regional airline Skywest (ASX:SXR).
Qube Logistics Holdings Limited (ASX:QUB) has secured $550 million in new funding facilities that it plans to use to refinance debt and fund growth opportunities.
Shares in CBD Energy Limited (ASX:CBD) surged today after the renewable energy company said it had inked a merger agreement with US-listed Westinghouse Solar Inc (NASDAQ:WEST).
Best and worst performers
The best performing sector was Materials adding 177 points to close at 10,496.
The worst performing sector was Real Estate Investment Trusts, losing 7 points to close at 870 points.
The best performing stock in the S&PASX 200 was Ramelius Resources Limited (ASX:RMS), rising 10.59 per cent to close at $0.47, after releasing a exploration update. Shares in OneSteel Limited (ASX:OST) and Perseus Mining Limited (ASX:PRU) also closed higher.
The worst performing stock was Mirabela Nickel Limited (ASX:MBN), dropping 13.33 per cent to close at $0.26. Shares in Gryphon Minerals Limited (ASX:GRY) also dropped while shares in ANZ Banking Group (ASX:ANZ), the stock traded ex-dividend.
Commodities
Gold is trading at $US1,595 an ounce.
Light crude is $0.20 down at $US96.81 a barrel.
The Australian dollar
The Australian dollar is buying $US1.0117.
