Despite weak leads the Australian share market gained steadily throughout the day to close 0.9 per cent higher. The banking sector led the gains after the release of central bank minutes gave a vote of confidence to the Australian economy and suggested no need for additional stimulus.
The S&P/ASX 200 index advanced 36 points to finish at 4,141. On the futures market the SPI is 33 points higher.
Economic news
The Reserve Bank of Australia’s July board meeting minutes reveal members saw no need to change the 3.5 per cent cash rate following recent rate cuts and signs the domestic economy has a little more momentum.
The Australian Bureau of Statistics has reported sales of new motor vehicles dropped 0.6 per cent in June but are still 18.4 per cent higher from the same time last year.
The Australian Bureau of Statistics also reported international merchandise imports dropped 2 per cent to $21.675 billion in June.
June quarter production reports
Rio Tinto Limited (ASX:RIO) has posted lower than expected second quarter iron ore sales but maintained its full year production guidance for the steel making commodity that generates 75 per cent of its profits. In the first half of its financial year the global miner achieves record production for iron ore, copper, bauxite, alumina, coking coal and titanium dioxide. Rio says while global economic conditions and sentiment dropped markedly in the second quarter its investment program and projects remain robust. Shares in Rio Tinto dipped 0.09 per cent to close at $54.44.
Fortescue Metals Group Limited (ASX:FMG) has achieved record fourth quarter shipments but warned its expansion will cost $US600 million more than expected. The West Australian iron ore miner met its goal of exporting 55 million tonnes per annum but says its planned ramp up to 155 million tonnes by next year will now cost $US9 billion. Shares in Fortescue Metals Group closed 2.16 per cent lower at $4.54.
Company news
Bank of Queensland Limited (ASX:BOQ) has sold $156 million of non-performing commercial property loans to investment bank Goldman Sachs.
Shares in Paperlinx Limited (ASX:PPX) slumped after the paper manufacturer announced it will sell more overseas assets as part of its strategic review and that its CEO Toby Marchant will depart at the end of the month.
The board of wealth advisory firm Clearview Wealth Limited (ASX:CVW) have unanimously rejected a $220 million takeover bid from private equity firm Crescent Capital Partners Management.
Gold producer OceanaGold Corporation (ASX:OGC) has reported a fatality at its Didipio Project after a severe storm hit the site in the Philippines.
Best and worst performers
All sectors closed higher: The best performing sector was Financials Excluding Real Estate Investment Trusts gaining 66 points to finish at 4,876. The sector with the smallest gains was Industrials, adding 1.4 points to close at 3,203.
The best performing stock in the S&PASX 200 was Coalspur Mines Limited (ASX:CPL), rising 8.7 per cent to close at $0.63. Shares in Imdex Limited (ASX:IMD) and Saracen Mineral Holdings Limited (ASX:SAR) also closed higher.
The worst performing stock was Paladin Energy Limited (ASX:PDN), dropping 3.45 per cent to close at $1.12. Shares in BlueScope Steel Limited (ASX:BSL) and Whitehaven Coal Limited (ASX:WHC) also closed lower.
Commodities
Gold is trading at $US1,592 an ounce.
Light crude is $0.21 higher at $US88.22 a barrel.
The Australian dollar
The Australian dollar is buying $US1.029.
