The Australian share market closed 0.8 per cent up with retail stocks and the big banks leading the way. Local stocks started the week stronger on the back of upbeat offshore leads before easing from gains in afternoon trade after Chinese manufacturing data came in below expectations.
The S&P/ASX 200 index closed 38 points up to finish at 5,056. The value of trades was $4.1 billion on volume of 794 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Woodside Petroleum Limited
(ASX:WPL) and Rio Tinto Limited
(ASX:RIO).
On the futures market the SPI is 50 point higher.
Economic news
The HSBC Flash purchasing manager’s index (PMI) slipped to 50.4 in February, its lowest reading in four months. The index was 52.3 in January. Despite the fall, analysts say the underlying strength of Chinese growth recovery remains intact, as indicated by expanding employment and the recent pick up of credit growth.
Company news
QBE Insurance Group Limited
(ASX:QBE) has reportedly been implored by the Finance Sector Union (FSU) to confirm whether or not it intends to send 700 Australian jobs offshore to Manila. The FSU says it considers QBE’s decision to withhold from its workforce that they have been working on a plan to send 700 hard-working Australians’ jobs overseas to be a complete and utter disgrace. Shares in QBE closed 1.14 per cent down at $13.03.
Leighton Holdings Limited
(ASX:LEI) subsidiary Leighton Contractors has won a contract extension for underground works on the Chevron-operated Gorgon project in Western Australia. The value of work at the site has increased by $975 million to an estimated total value of $1.79 billion. Shares in Leighton Holdings closed 0.39 per cent stronger at $23.25.
Gold producer Kingsgate Consolidated Limited
(ASX:KCN) has reported a 76 per cent fall in its first half net profit of $8.1 million.
Qantas Airways Limited
(ASX:QAN) non-executive director Corinne Namblard has resigned from the airline’s board, saying her involvement in an Italian corruption investigation has become a distraction.
Financial services provider IOOF Holdings Limited
(ASX:IFL) net profit has slipped 28 per cent to $33.2 million in the six months to the end of December.
Caltex Australia Limited
(ASX:CTX) has swung to a full year net profit of $57 million from a $714 million loss last year.
Best and worst performers
The best performing sector was Consumer Discretionary, adding 25 points to close at 1,535.
The worst performing sector was Materials, losing 17 points to close at 10,652.
The best performing stock in the S&PASX 200 was NRW Holdings Limited
(ASX:NWH), rising 7.8 per cent to close at $2.21. Shares in Senex Energy Limited
(ASX:SXY) and Ten Network Holdings Limited
(ASX:TEN) also closed higher.
The worst performing stock was Macquarie Atlas Roads Limited
(ASX:MQA), dropping 5.54 per cent to close at $1.62. Shares in Medusa Mining Limited
(ASX:MML) and Buru Energy Limited
(ASX:BRU) also closed lower.
Commodities
Gold is trading at $US1,583 an ounce. Light crude is $0.10 down at $US93.03 a barrel.
The Australian dollar
The Australian dollar is buying $US1.028.
