The Australian share market has recovered some of yesterday’s losses to close 0.7 per cent higher. Local stocks started the day sharply higher and spent the day in positive territory with all major sectors posting gains.
The S&P/ASX 200 index closed 33 points up to finish at 5,037. The value of trades was $3.8 billion on volume of 730 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 Rio Tinto Limited
(ASX:RIO)
On the futures market the SPI is 42 points up.
Economic news
The Australian Bureau of Statistics says construction work done in the December quarter fell 0.1 per cent, coming in well below the median forecast of a 1.5 per cent rise. Over the year to the December quarter, the volume of construction work was up 11.9 per cent.
Company news
BHP Billiton Limited
(ASX:BHP), Atlas Iron Limited
(ASX:AGO) and Fortescue Metals Group Limited
(ASX:FMG) have locked down operations and evacuated staff as category 4 Cyclone Rusty bears down on the Pilbara Coast with wind gusts up to 230 kilometres an hour. BHP says any material impact on production would be revealed in its next quarterly report, and it will suspend additional operations if necessary. Shares in BHP closed 0.94 per cent up at $36.69.
Grocery wholesaler Metcash Limited
(ASX:MTS) has named the 52 year old former CEO of New Zealand’s Warehouse Group as its new chief. Ian Morrice, who will replace Andrew Reitzer on June 30, has also served as managing director and a senior executive at multiple UK retailers. Chairman Peter Barnes says Mr Morrice knows what it’s like to work in a fiercely competitive environment, and has an intimate working knowledge of the Australian market. Shares in Metcash closed 0.25 per cent down at $4.03.
Gas and electricity AGL Energy Limited
(ASX:AGK) says its acquisition of Australia’s third largest coal fired power station, Loy Yang, contributed to a $365 million first half net profit.
Mining and construction company Macmahon Holdings Limited
(ASX:MAH) shareholders have voted 85 per cent in favour of approving a deal to sell the company’s construction business to Leighton Holdings Limited
(ASX:LEI), however Indian owned suitor Sembawang has declared it will be back.
Law firm Slater & Gordon Limited
(ASX:SGH) has increased its first half net profit by 61.3 per cent and says it is on track to achieve its full year guidance and advance its UK expansion.
Engineering company UGL Limited
(ASX:UGL) says cost overruns on several infrastructure projects, as well as restructuring costs contributed to a 53 per cent first half profit slide.
Best and worst performers
All major sectors finished higher today: The best performing sector was Utilities adding 129 points to close at 5,526.
The sector with the least gains was Industrials, gaining 10 points to close at 3,917.
The best performing stock in the S&PASX 200 was Lynas Corporation Limited
(ASX:LYC), rising 7.69 per cent to close at $0.63. Shares in Buru Energy Limited
(ASX:BRU) and Seven Group Holdings Limited
(ASX:SVW) also closed higher.
The worst performing stock was Wotif.com Holdings Limited
(ASX:WTF), dropping 8.05 per cent to close at $5.37. Shares in Energy World Corporation Limited
(ASX:EWC) and Bathurst Resources Limited
(ASX:BTU) also closed lower.
Commodities
Gold is trading at $US1,611 an ounce. Light crude is $0.02 up at $US92.65 a barrel.
The Australian dollar
The Australian dollar is buying $US1.021.
