Following gains in overseas markets on the back of positive US economic data, the Australian share market opened higher this morning, with resources stocks posting gains after Rio Tinto’s $14 billion write down. The ASX didn’t make a notable response to Chinese GDP data, flattening out in the afternoon to close 0.3 per cent higher. Over the week the index rose by 62 points, climbing steadily before surging to a 20 month high yesterday.
Today, the S&P/ASX 200 index closed 15 points up to finish at 4,771. The value of trades was $3.9 billion on volume of 752 million shares at the close of trade. The top three stocks by value were Rio Tinto Limited
(ASX:RIO), National Australia Bank Ltd.
(ASX:NAB) and BHP Billiton Limited
(ASX:BHP).
On the futures market, the SPI is 19 points up.
US Markets
Wall Street, over its four trading days this week: The Dow Jones Industrial Average added 125 points. The S&P 500 Index gained 9 points, the Nasdaq went up by 14 and the 100 Index added 3 points.
Economic news
The Chinese economy expanded above expectations in the 2012 calendar year. Figures from the National Bureau of Statistics in China indicate a 7.8 per cent annual growth in Chinese GDP. There was 7.9 per cent growth in the December quarter compared to the previous corresponding period, arresting seven straight quarters of slowing growth. The annual figures are below the 2011 result of 9.3 per cent.
Company news
BC Iron Limited
(ASX:BCI) has advised shareholders it oversubscribed its $10 million share purchase plan by approximately $3 million.
As a result, applications will be subject to scale back in accordance with the terms and conditions of the plan, with BC set to provide details on the new share allotment mid to late next week. Shares in BC Iron closed 0.29 per cent up at $3.41.
Galaxy Resources Limited
(ASX:GXY) has been advised by the East China Mineral Exploration and Development Bureau (ECE) that it is withdrawing its proposed investment in the company. ECE has told galaxy it may reconsider the investment when Galaxy’s Jiangsu Carbonate Plant in China resumes stable operation. Galaxy says it is continuing discussions with potential strategic investors, with the Jiangsu plant on track to resume operations early next month. Shares in Galaxy Resources closed 1.25 per cent down at $0.40.
Sydney Airport Limited
(ASX:SYD) served a record total of 36.9 million passengers during 2012. The total figure represents passenger growth of 3.6 per cent over the year.
Rio Tinto Limited
(ASX:RIO) investors reacted positively to the news of now ex-CEO Tom Albanese stepping down, with the global miners stocks posting solid gains today. Mr Albanese will be replaced by Rio’s Iron Ore chief Sam Walsh.
Best and worst performers
The best performing sector was Materials adding 81 points to close at 10,641.
The worst performing sector was Consumer Staples, losing 54 to close at 9,170 points.
The best performing stock in the S&PASX 200 was OZ Minerals Limited
(ASX:OZL), rising 5.19 per cent to close at $7.30. Shares in St. Barbara Limited
(ASX:SBM) and Perpetual Limited
(ASX:PPT) also closed higher.
The worst performing stock was Mineral Deposits Limited
(ASX:MDL), dropping 6.91 per cent to close at $3.50. Shares in Gindalbie Metals Limited
(ASX:GBG) and Ten Network Holdings Limited
(ASX:TEN) also closed lower.
IPOs Indoor Skydive Australia Group Limited
(ASX:IDZ) started trading today. The Adventure Sports company listed with an issue price of $0.20, opened at $0.215 and closed at $0.20.
Commodities
Gold is trading at $US1,689 an ounce, and is up $16.10 over the week. Light crude is $0.09 higher at $US96.03 a barrel.
The Australian dollar
The Australian dollar is buying $1.052 and is $0.005 down over the week.
