Following soft offshore leads, the Australian share market opened higher and rose through the day before closing at session highs, 1.1 per cent up.
The S&P/ASX 200 index closed 49 points up to finish at 4,330. On the futures market, the SPI is currently 37 points up.
Economic news
The Australian Bureau of Statistics today released its average weekly time earnings for three months to May revealing a 0.4 per cent rise in the average weekly ordinary time earnings for adult full-time employees. The quarterly figures showed an average weekly wage of $1,351 for the private and public sectors combined, while wages grew a seasonally adjusted 3.4 per cent in the year to May.
Company news
Wesfarmers Limited (ASX:WES) shares rallied today on the back of a third straight year of market beating performances from its Coles division. The conglomerate posted an 11 per cent rise for a full year net profit of $2.126 billion, buoyed by a 16.3 per cent increase from Coles with a pre tax profit of $1.356 billion in its ongoing price war with Woolworths. Wesfarmers other consumer divisions including Bunnings and Kmart also contributed solid results, while Target experienced a 12.9 per cent drop on the back of price deflation and a restructuring provision. The company has declared a final dividend of 95 cents per share. Shares in Wesfarmers closed 3.79 per cent up at $33.72.
BHP Billiton Limited (ASX:BHP) has flagged possible job losses at some of its Australian operations. The global miner was unable to confirm where the cuts may take place, saying that they continue to focus on reducing overheads and operating costs across the business amid falling commodity prices. BHP is expected to post a fall in its 2012 operating profit, estimated to be about $16.9 billion compared to the Australian record $23.6 billion recorded last year.
The potential job cutting measures are underpinned by a slow- down of industrial activity in China as well as the economic turmoil in Europe. Shares in BHP Billiton closed 0.8 per cent up at $32.88.
Internet service provider iiNet Limited (ASX:IIN) says its full year net profit was boosted by a series of acquisitions to rise 11 per cent to $37 million. The result was also aided by a 19 per cent increase in revenue on the back of the acquisition of TransACT and Internode, taking iiNet’s broadband market share to approximately 15 per cent.
Brambles Limited (ASX:BXB) has boosted its annual net profit by 21 per cent to $US576.3 million. The pallet supplier has forecast growth ahead after posting a result aided by acquisitions and exposure to emerging markets.
Market service provider ASX Limited (ASX:ASX) has reported a 3.7 per cent decline in its full year net profit, coming in at $339 million. The operator of the Australian Securities Exchange was impacted by market volatility over the year, with recent low volumes reflecting the ongoing uncertainty surrounding the European sovereign debt crisis and the global growth outlook.
Dual listed Nickel miner Western Areas NL (ASX:WSA) has applied to delist from the Toronto Stock Exchange (TSX), claiming the costs in maintaining the listing are no longer justifiable. Western Areas will continue trading on the Australian Securities Exchange Following the TSX delisting, expected to come at the end of August.
Best and worst performers
The best performing sector was Consumer staples adding 195 points to close at 8,363.
The worst performing sector was Real Estate investment trusts, losing 0.1 points to close at 914 points, the only sector to finish down today.
The best performing stock in the S&PASX 200 was Linc Energy Limited (ASX:LNC), rising 14.78 per cent to close at $0.66. Shares in Challenger Limited (ASX:CGF) and FlexiGroup Limited (ASX:FXL) also closed higher.
The worst performing stock was Adelaide Brighton Limited (ASX:ABC), dropping 10.77 per cent to close at $2.90. Shares in Saracen Mineral Holdings Limited (ASX:SAR) and Alumina Limited (ASX:AWC) also closed lower.
Commodities
Gold is trading at $US1,603 an ounce. Light crude is steady at $US94.33 a barrel. The Australian dollar is buying $US1.048.
