The Australian share market has started the week in positive territory opening higher and rallying in afternoon trade led by strong gains in resource stocks.
The S&P/ASX 200 index closed 13 points up to finish at 4,403. On the futures market the SPI is currently 5 points higher.
Economic news
The Australian Bureau of Statistics has reported a jump in new motor vehicle sales in August following a 1.1 per cent decline in July. New car sales rose 3.6 per cent for the month to over 93,000 vehicles. Sales were up 6.4 per cent compared to August last year.
Company news Qantas Airways Limited’s
(ASX:QAN) code share alliance with South African Airways has been extended for another two years by an industry regulator. The approval was conditional based on both airlines operating at least 13 flights a week between Australia and South Africa. Qantas had requested an agreement to extend through to March 2016 but was denied on the grounds the alliance had the potential to delay competition beyond 2014. Shares in Qantas closed steady at $1.24.
Aquarius Platinum Limited
(ASX:AQP) has resumed operations at its Kroondal Mine in South Africa’s north west province, after it was temporarily suspended at the weekend. The world’s fourth largest platinum producer said rising tensions and protests in the region had forced its decision to close the mineto ensure the safety and security of its workers. The company says its processing operations were not affected. Shares in Aquarius closed 6.99 per cent up at $0.77.
Leighton Holdings Limited
(ASX:LEI) says large scale production of drinking water has started at its Victorian Desalination Plant.
Bionomics Limited
(ASX:BNO) has bought a US-based private biotechnology company called Eclipse Therapeutics Inc for $US10 million.
Macmahon Holdings Limited
(ASX:MAH) says a deteriorating financial performance in the construction sector has lowered its outlook for new construction activity and is due to make an announcement adjusting its earnings guidance.
Fortescue Metals Group Limited
(ASX:FMG) has won its appeal in the High Court of Australia that brings the iron ore miner closer to gaining access to BHP Billiton Limited's
(ASX:BHP) and Rio Tinto Limited's
(ASX:RIO) Pilbara rail network.
Best and worst performers
The best performing sector was materials adding 188 points to close at 10,155. The worst performing sector was health care, losing 253 points to close at 9,889 points.
The best performing stock in the S&PASX 200 was Intrepid Mines Limited
(ASX:IAU), soaring 20 per cent to close at $0.36. Shares in Mirabela Nickel and Iluka Resources also closed higher.
The worst performing stock was Energy World Corporation Limited
(ASX:EWC) dropping 5.43 per cent to close at $0.43. Shares in Primary Health Care and Telecom Corp of New Zealand also closed lower.
Commodities
Gold is trading at $US1,777 an ounce.
Light crude is $0.97 up at $US99.09 a barrel.
The Australian dollar
The Australian dollar is buying $US1.053.
