Market Wrap: China trade data weighs on ASX

Market Reports

The Australian share market opened higher, slipped into the red following weak Chinese trade data but clawed back onto positive ground before close to end 0.2 per cent up. The mining sector supported gains, rising 2.3 per cent amid anticipation China could move to announce stimulus measures.  

The S&P/ASX 200 index closed 8 points higher at 4,334. On the futures market the SPI is currently flat.

Economic news

China’s export growth slowed as imports unexpectedly dropped last month. According to China’s National Bureau of Statistics August exports rose less than expected, up 2.7 per cent and August imports dropped more than expected, down 2.6 per cent. China’s trade surplus widened to $US26.7 billion in August. Chief China economist at Nomura in Hong Kong says, “The import surprise on the downside is very unusual. It is an alarming sign for the government”.
 
Australian home loans approved dropped in July. The Australian Bureau of Statistics has reported the number of home loans approved dropped 1 per cent to 44,804 in July, erasing the prior month’s gains. Total housing finance by value fell 1.8 per cent to $20.05 billion.

Company news
 
The BHP Billiton Limited (ASX:BHP) Mitsubishi Alliance has announced it will stop production at its Gregory coking coal mine in Queensland next month. The decision is understood to impact about 300 employees and contractors and has been made as the site is no longer profitable because of falling prices, high costs and a strong Australian dollar. Shares in BHP Billiton rose 1.5 per cent today, ending at $32.46. 
 
Lynas Corporation Limited (ASX:LYC) has had another win in Malaysia, successfully opposing an appeal to apply for a judicial review of the decision to grant Lynas a temporary operating licence. The rare earths developer scored the licence last week which will enable it to start transporting concentrate from its West Australian deposit and prepare for first feed to the Malaysian kiln next month. Shares in Lynas Corporation gained 1.83 per cent today, ending at $0.83. 
 
Shares in Pancontinental Oil & Gas NL (ASX:PCL) surged 91 per cent after the East Africa focussed explorer said it had made the first ever substantive hydrocarbon discovery offshore Kenya. 
 
Shares in Fisher & Paykel Appliances Holdings Limited (ASX:FPA) jumped 30 per cent after the kitchenware manufacturer confirmed it has received takeover approach from its 20 per cent shareholder, Haier. 
 
Shares in Agri Energy Limited (ASX:AAE) rocketed 80 per cent after the junior explorer announced a north east African oil and gas acquisition through the purchase of a stake in the African subsidiary of Canadian-listed Statesman Resources Limited. 
 
Lend Lease Group (ASX:LLC) lost 6.6 per cent as the property developer revealed it is investigating its wholly owned subsidiary Abigroup after identifying financial reporting discrepancies. 
 
Best and worst performers

The best performing sector was materials adding 213 points to close at 9,651.
The worst performing sector was consumer staples, losing 160 points to close at 8,568 points.
 
The best performing stock in the S&PASX 200 was Discovery Metals Limited (ASX:DML), rising 11 per cent to close at $1.11. Shares in Atlas Iron Limited (ASX:AGO) and Linc Energy Limited (ASX:LNC) also closed higher.
 
The worst performing stock was Arrium Limited (ASX:ARI), dropping 6.67 per cent to close at $0.56. Shares in Lend Lease Group (ASX:LLC) and GWA International Limited (ASX:GWA) also closed lower. 
 
Commodities

Gold is trading at $US1,738 an ounce.
Light crude is $0.22 down at $US96.20 a barrel.

The Australian dollar 

The Australian dollar is buying $US1.036. 

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?