Market Wrap: Aus shares close 0.7% higher

Market Reports

The Australian share market has finished the day 0.7 per cent higher, buoyed by better than expected third quarter capital expenditure data from the ABS and galvanised by Wall Street gains following optimistic US expectations of reaching a amicable budget agreement.

Today, the S&P/ASX 200 index closed 30 points up to finish at 4,478. The value of trades was $3.86 billion on volume of 826 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited (ASX:BHP), Commonwealth Bank of Australia (ASX:CBA) and ANZ Banking Group (ASX:ANZ).
 

On the futures market, the SPI is currently 37 points higher.

Economic news

The Australian Bureau of Statistics (ABS) released private new capital expenditure and expected expenditure data reports for the September quarter. New private capex rose 2.8 per cent, ahead of expectations, while the fourth quarter expenditure estimate is $173.4 billion, 3.3 per cent below the third quarter estimate.

Company news

Dexus Property Group (ASX:DXS) has confirmed it is in negotiations to sell off the remainder of its US assets with a prospective buyer.
Dexus says it is aiming to exit the US market in the next 1-2 years and has recently launched a marketing campaign to divest what remains of its portfolio. Shares in Dexus closed 1.03 per cent up at $0.98.

Mesoblast limited (ASX:MSB) has established a strategic manufacturing alliance with leading global biological product manufacturer Lonza.
As part of the agreement, Lonza will build Mesoblast a purpose-specific facility for its technology and products which Mesoblast expects will manufacture the majority of its clinical product supply in the near term. Shares in Mesoblast closed 4.18 per cent up at $5.98.

Winemaker Australian Vintage Limited (ASX:AVG) expects first half sales and profits for the current financial year to be lower amid tough conditions in the wine industry.

Rio Tinto Limited (ASX:RIO) will utilise capital efficiency measures and productivity boosts to keep its Pilbara iron ore expansion costs under $22 billion and ward off the impact of the strong Australian dollar.

Fallen mining magnate Nathan Tinkler’s 19.4 per cent stake in Whitehaven Coal Limited (ASX:WHC) is reportedly under threat of being lost to creditors.

Stockland (ASX:SGP) has appointed former UBS fund manager Mark Steinert as its new CEO, to replace departing chief Matthew Quinn in January.

Best and worst performers

The best performing sector was Health Care adding 192 points to close at 11,293.
The worst performing sector was Telco services, it was the only major sector down today, losing 7 points to close at 1,472 points.

The best performing stock in the S&PASX 200 was Ten Network Holdings Limited (ASX:TEN), rising 10.61 per cent to close at $0.36. Shares in Linc Energy Limited (ASX:LNC) and Coalspur Mines Limited (ASX:CPL) also closed higher.
 

The worst performing stock was NRW Holdings Limited (ASX:NWH), dropping 11.15 per cent to close at $1.31. Shares in Mineral Deposits Limited (ASX:MDL) and Bradken Limited (ASX:BKN) also closed lower.
 

Commodities

Gold is trading at $US1,719 an ounce. Light crude is $0.33 up at $US86.82 a barrel.

The Australian dollar

The Australian dollar is buying $US1.047.


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