After a positive lead from Wall Street the Australian share market advanced to close up 0.9 per cent for the day and up 2.45 per cent over the same week the Reserve Bank of Australia cut the nation’s official interest rate to 3.25 per cent. Local stocks delivered broad based gains led by the miners, ahead of America's monthly jobs report due for release this evening.
Figures
The S&P/ASX 200 index advanced 42 points today to end the week 116 points stronger at 4,494. On the futures market the SPI is now 36 points higher.
Wall Street, over its four trading days this week: The Dow Jones Industrial Average added 89 points, the S&P 500 Index added 14 points, the Nasdaq added 13 points and the 100 Index added 7 points.
Economic news
Construction activity in Australia declined for the 28th straight month in September. The Australian Industry Group’s performance of construction index dipped 1.3 points last month to sit at 30.9, remaining under the 50 level which indicates contraction.
Iron ore shipments to China from Port Hedland dropped to 15.1 million tonnes last month. According to the Port Hedland Port Authority shipments for the steel making commodity dropped 9.5 per cent in September from August and were unchanged from the year before. BHP Billiton Limited
(ASX:FMG) and Fortescue Metals Group Limited
(ASX:FMG) are among the port’s biggest users.
Company news National Australia Bank Limited
(ASX:NAB), Commonwealth Bank of Australia
(ASX:CBA) and Westpac Banking Corporation
(ASX:WBC) today cut their mortgage rates but all fell shy of the Reserve Bank of Australia’s (RBA) 25 basis point cut on Tuesday. NAB and CBA will lower their variable rate on home loans by 20 basis points each, taking NAB’s to 6.58 per cent and CBA’s to 6.6 per cent. Westpac will lower its variable rate on home loans by 0.18 per cent to 6.71 per cent. Shares in all the Big Four Banks rose today with National Australia Bank finishing the week 0.31 per cent higher at $26.23.
Shares in Bank of Queensland Limited
(ASX:BOQ) tumbled to the day’s worst performer after flagging a full year net loss and noting challenges in the broader economy and property market. The Brisbane-based regional lender revealed its second half profit will not be big enough to cancel out a first half loss and will result in an annual net loss of up to $20.6 million. Shares in Bank of Queensland tumbled 5.15 per cent today to end the week at $7.55.
Shares in Woolworths Limited
(ASX:WOW) lifted after the supermarket giant outlined plans to float $1.4 billion worth of properties under the name Shopping Centres Australasia Property Group. Shareholders will get their chance to cast a vote at Woolies Annual General Meeting (AGM) on November 22, 2012.
Shares in Macmahon Holdings Limited
(ASX:MAH) rose before entering into a trading halt today as takeover talk surrounds the contract mining and construction company. Macmahon has refuted rumours it has received a takeover approach from a Chinese joint venture and says it has no knowledge of who created the false information.
Best and worst performers
The best performing sector was materials adding 172 points to close at 10,138.
The worst performing sector was real estate investment trusts, losing 4 points to close at 959 points.
The best performing stock in the S&PASX 200 was Discovery Metals Limited
(ASX:DML), rising 13.75 per cent to close at $1.66. Shares in Arrium Limited
(ASX:ARI) and Ten Network Holdings Limited
(ASX:TEN) also closed higher.
The worst performing stock was Bank of Queensland Limited
(ASX:BOQ), tumbling 5.15 per cent to close at $7.55. Shares in GWA International Limited
(ASX:GWA) and Decmil Group Limited
(ASX:DCG) also closed lower.
Commodities
Gold is trading at $US1,794 an ounce, up $22.50 over the week.
Light crude is $0.33 lower at $US91.38 a barrel.
The Australian dollar
The Australian dollar is buying $US1.02, down $US0.014 over the week.
