Defying negative offshore leads the Australian share market spiked at open at closed 0.8 per cent higher. Rebounding from yesterday’s 2.3 per cent drop local stocks pushed through 5,000 again but fell short of a weekly gain. The gold sector gained 3.5 per cent by close, clawing back some of this week’s losses. The bank and mining sectors also ended the busiest week of reporting season on a positive note.
Figures
The S&P/ASX 200 advanced 38 points today but lost 16 points over the week to close at 5,018.
The value of trades was $7.1 billion on volume of 1 billion shares at the close of trade.
The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Rio Tinto Limited
(ASX:RIO) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market, the SPI is 26 points higher.
Wall Street
US stocks lost ground over the shortened trading week: The Dow Jones Industrial Average lost 93 points. The S&P 500 Index lost 19 points, the Nasdaq lost 67 points and the 100 Index lost 60 points.
Economic news
The Reserve Bank of Australia’s governor is confident last year’s interest rate cuts will kick start economic growth. Speaking to a parliamentary committee in Canberra today Governor Glenn Stevens outlined the channels of monetary policy at work and said there is a good deal of interest rate stimulus in the pipeline.
China’s house prices have increased again this year. Following yesterday’s reports the world’s second largest economy is considering implementing measures to cool its property market, China’s National Bureau of Statistics has reported prices in the 70 cities surveyed rose in 53, stayed steady in 7 and eased in 10 over January.
Company news Takeover target Billabong International Limited
(ASX:BBG) has booked a first half net loss of $537 million, dragged down by asset write-downs.
The troubled surfwear retailer has also cut its full year earnings guidance but sought to reassure investors by affirming it remains in talks with two suitors. Shares in Billabong International dropped 5.49 per cent today, ending the week at $0.86.
Santos Limited
(ASX:STO) has maintained its full year production targets for the year ahead after revealing its net profit fell by almost a third last year.
The oil and gas producer posted a net profit of $519 million in the 2012 calendar year, falling from the year before when it benefitted from asset sales. Shares in Santos rose 1.26 per cent today, ending the week at $12.05.
Shares in James Packer's Crown Limited
(ASX:CWN) gained 1.7 per cent despite the casino operator’s first half net profit drop of 34 per cent, stung by its investment in Echo Entertainment Group Limited
(ASX:EGP).
Shares in Sims Metal Management Limited
(ASX:SGM) lifted 5.3 per cent after the scrap metal recycler narrowed its first half net loss to $295 million and announced the resignation of its CEO.
Best and worst performers
All sectors gained: The best performing sector was health care advancing 196 points to close at 12,296.
The sector with the smallest gains was real estate investment trusts, adding 0.3 points to close at 1,023 points.
The best performing stock in the S&PASX 200 was Medusa Mining Limited
(ASX:MML), rising 13.67 per cent to close at $4.49. Shares in Transpacific Industries Group Limited
(ASX:TPI) and Evolution
(ASX:EVN) also closed higher.
The worst performing stock was Billabong International Limited
(ASX:BBG), dropping 5.49 per cent to close at $0.86. Shares in Bathurst Resources Limited
(ASX:BTU) and Alumina Limited
(ASX:AWC) also closed lower.
Commodities
Gold is trading at $US1,583 an ounce, down $50.40 over the week.
Light crude is $0.43 higher at $US93.27 a barrel.
The Australian dollar
The Australian dollar is buying $US1.031, down $0.0049 over the week.
