Following weak offshore leads, the Australian share market opened flat but rose at noon to session highs, closing 0.54 per cent stronger.
The S&P/ASX 200 index closed 24 points up to finish at 4,418. On the futures market, the SPI is currently 26 points higher.
Economic news
Westpac Banking Corporation (ASX:WBC) and the Melbourne Institute has forecast economic activity will remain soft in the next three to nine months. The index rose 2.2 per cent in July. Economists say while there has been some improvement it still remains below its long term trend of 2.7 per cent.
Reserve Bank of Australia (RBA) assistant Governor Christopher Kent says the mining boom set to continue for a while yet, and that Australia’s economy has adjusted well to its impact. Dr Kent said that "Output has grown at close to trend rates, unemployment has remained relatively low and inflation has been close to target."
Company news
ANZ Banking Group (ASX:ANZ) has sold its remaining shareholding in Visa Inc for $224 million. The bank decided to sell the shares as part of a continued focus on active capital management and shareholder returns. Shares in ANZ closed 0.66 per cent up at $24.55.
Paperlinx Limited (ASX:PPX) has announced the resignation of its chairman Harry Boon as well as two directors as the paper supplier continues to struggle with the fallout of consistent poor results. Boon’s departure comes after the exit of past CEO Toby Marchant earlier this year. Shares in PaperlinX closed 3.39 per cent down at $0.06.
Shares in David Jones Limited (ASX:DJS) slipped after the department store retailer reported a 40 per cent annual net profit drop, in line with its guidance.
Shares in Macmahon Holdings Limited (ASX:MAH) slumped almost 40 per cent after the construction company lowered its earnings guidance and announced the resignation of its CEO Nick Bowen.
Leighton Holdings Limited (ASX:LEI) has won a $230 million contract to build the Australian Embassy in Indonesia as part of a joint venture.
Shares in Karoon Gas Australia Limited (ASX:KAR) have jumped 8 per cent at market close after the oil and gas producer executed an agreement to farm out part of its Santos Basin exploration Blocks.
Best and worst performers
The best performing sector was Materials adding 127 points to close at 10,278.The worst performing sector was Real Estate investment trusts, losing 3 points to close at 921.
The best performing stock in the S&PASX 200 was Arrium Limited (ASX:ARI), rising 8.11 per cent to close at $0.60. Shares in Karoon Gas Australia Limited (ASX:KAR) and St. Barbara Limited (ASX:SBM) also closed higher.
The worst performing stock was Macmahon Holdings Limited (ASX:MAH), dropping 38.68 per cent to close at $0.33 after the lowering of its earnings guidance. Shares in Aquarius Platinum Limited (ASX:AQP) and Decmil Group Limited (ASX:DCG) were also lower at market close.
IPO's
Alicanto Minerals Limited (ASX:AQI) started trading today. The gold and base metals explorer listed with an issue and opening price of $0.20. It closed at $0.21.
Commodities
Gold is trading at $US1,778 an ounce. Light crude is $0.74 up at $US96.03 a barrel.
The Australian Dollar
The Australian dollar is buying $US1.046.
