Market Wrap: Aus shares sustain gains

Market Reports

The Australian share market has closed 0.8 per cent higher, sustaining session highs after jumping on positive offshore leads this morning. Gains in the mining sector were supported by the big miners and news Chinese steel output lifted in the first ten days of October.

The S&P/ASX 200 index closed 37 points up to finish at 4,528. On the futures market, the SPI is currently 39 points higher.

Economic news

Chinese steel output has lifted, with average daily crude steel output rebounding to 1.916 million tonnes in the first 10 days of October, a  4 per cent increase from the last ten days of September, according to data from the China Iron & Steel Association. Average daily steel production has been below 1.9 million tonnes since mid-August as weak demand pushed steel mills to curb output.

The Westpac -Melbourne Institute leading Indexes of Economic Activity reached three per cent in August, rising above its long term trend of 2.7 per cent.

Company news

Stockland (ASX:SGP) expects its earnings to fall by at least 10 per cent in the current financial year due to the weakened housing market. CEO Matthew Quinn says earning could even fall a further five per cent if conditions don’t improve in Victoria where the property developers profit per lot is significantly higher than the rest of its portfolio. Stockland began fiscal 2013 with 700 fewer contracts on hand than this time last year, and achieved no improvements in deposits in the first quarter. Shares in Stockland closed 3.66 per cent down at $3.42.

National Australia Bank Limited (ASX:NAB) has appointed Spiro Pappas as CEO of the bank’s Asian operations with an aim to boost growth in the region. Mr Pappas will be responsible for strengthening NAB’s franchise in Asia in coordination with the bank’s businesses in Australia and New Zealand. Shares in NAB closed 0.64 per cent higher today at $26.79.

Shares in BHP Billiton Limited (ASX:BHP) firmed 1.15 per cent after the global miner maintained its full year production guidance, posting a one per cent increase in its first quarter Western Australian iron ore output.

Tabcorp Holdings Limited (ASX:TAH) shares rose 1.38 per cent after the gaming company lifted its first quarter revenue by 2.9 per cent to $489 million.

Village Roadshow Limited (ASX:VRL) inked a deal with leading Chinese property developer Guangzhou R & F properties to establish a marine theme park on China’s Hainan Island.

Shares in K & S Corporation Limited (ASX:KSC) went up 3.13 per cent after it announced further expansion of its Western Australian operations with the acquisition of Bunbury based Collare transport group.

Best and worst performers

The best performing sector was Telco Services adding 27 points to close at 1,379.The worst performing sector was Consumer Staples, losing 14 points to close at 8,622.

The best performing stock in the S&PASX 200 was Coalspur Mines Limited (ASX:CPL), rising 11.11 per cent to close at $0.95. Shares in NRW Holdings Limited (ASX:NWH) and Fortescue Metals Group Limited (ASX:FMG) also closed higher.

The worst performing stock was Energy World Corporation Limited (ASX:EWC), dropping 8.11 per cent to close at $0.34. Shares in Ten Network Holdings Limited (ASX:TEN) and Fairfax Media Limited (ASX:FXJ) also finished the day lower.

Commodities

 Gold is trading at $US1,752 an ounce. Light crude is $0.14 up at $US92.23 a barrel. The Australian dollar is buying $US1.031.


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