The Australian share market has made a small recovery today closing 0.3 per cent higher after it sunk in the red at open, thanks to weak Chinese economic data.
Today, the S&P/ASX 200 index closed 14 points up to finish at 4,330. On the futures market, the SPI is currently 28 points higher.
Economic news
A private measure of inflation has posted its largest monthly increase in almost 18 months. The TD Securities-Melbourne Institute inflation gauge rose 0.6 per cent in August, the biggest month-on-month increase since March last year.
Australia’s manufacturing sector has contracted for the sixth straight month according to The Australian Industry Group and PWC performance of manufacturing index for August. The index rose five points 45.3. A reading below 50 indicates contraction.
Company news
Oil Search Limited
(ASX:OSH) has signed a gas sales agreement with Barrick Niugini to supply up to 56 billion cubic feet of natural gas which will be used as electricity in the Hides Power station in Papua New Guinea. Oil Search’s Managing Director says it has been supplying gas to the Porgera gold mine since 1992 and an extension of the mine’s life has led to an ongoing supply of energy until at least 2021. Shares in Oil Search closed 0.53 per cent down at $7.48.
Forge Group Limited’s
(ASX:FGE) wholly owned subsidiary CTEC Pty Ltd has been awarded a $280 million engineering contract from Rio Tinto
(ASX:RIO) as the global miner prepares to expand its project in Cape Lambert in the Pilbara region. Shares in Forge closed 1.71 per cent up at $4.17.
Healthlinx Limited
(ASX:HTX) has been granted a US patent for its AGR2 Biomarker which forms part of the diagnostics for human tumours including ovarian and prostate cancers.
Fletcher Building Limited
(ASX:FBU) says it has entered into a conditional agreement to sell its electrical products distribution business Corys Electrical as well as two other subsidiaries that will generate about $90 million.
Shares in Virgin Australia Holdings Limited
(ASX:VAH) have dropped more than 5.5 per cent today following news that Etihad Airways has increased its interest to 10 per cent, weeks after receiving the go ahead from the federal regulator.
Commonwealth Bank of Australia
(ASX:CBA) has launched a $750 million hybrid issue, aimed at refinancing earlier hybrids and to additionally fund the bank’s business.
Best and worst performers
The best performing sector was Consumer Staples adding 116 points to close at 8,697.
The worst performing sector was Materials, losing 10 points to close at 9,248 points.
The best performing stock in the S&PASX 200 was APN News and Media Limited
(ASX:APN) rising 14.04 per cent to close at $0.33. Shares in Silver Lake Resouces and Medusa Mining also closed higher.
The worst performing stock was Energy World Corporation Limited
(ASX:EWC) dropping 9.8 per cent to close at $0.46. Shares in Mirabela Nickel Limited
(ASX:MBN) and Buru Energy Limited
(ASX:BRU) also closed lower.
Commodities
Gold is trading at $US1,687 an ounce.
Light crude is $1.85 up at $US96.47 a barrel.
The Australian dollar
The Australian dollar is buying $US1.027.
