The Australian share market closed 0.9 per cent higher, ascending steadily throughout the day after record finishes on Wall Street, with Utilities the only major sector to finish lower.
The S&P/ASX 200 index closed 45 points up to finish at 4,995. The value of trades was $3.7 billion on volume of 633 million 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 48 points up.
Economic news
The Reserve Bank of Australia says in its half year financial stability review that exposure of Australian-owned banks to Asia was $112 billion in December last year, a $27 billion increase from five years earlier. The increase was primarily accounted for by the big four banks, with the RBA saying growth in Australian bank activity is likely to continue over the longer term as a growth in trade continues.
Company news
Macquarie Group Limited
(ASX:MQG) will reportedly sell its stake in software company Nintex to private equity firm TA Associates for up to $300 million. According to various media reports the sale will come as timely to Macquarie, with chief Nicholas Moore stating previously the group expects net profit to rise approximately 10 per cent in its financial year to the end of this month. Shares in Macquarie Group closed 3.30 per cent stronger at $37.26.
Transfield Services Limited
(ASX:TSE) has entered into an early services agreement with the Australian Defence Force for the supply of Land Material Maintenance. The contracts offers an initial term of six years and replaces three existing Defence contracts held by Transfield. Shares in Transfield Services closed 0.27 per cent up at $1.82.
Qantas Airways Limited
(ASX:QAN) shares firmed today after it received authorisation from the competition watchdog for its alliance with Emirates.
Gold explorer Alacer Gold Corp – CDI
(ASX:AQG) has committed to a $36 million budget to its Australian exploration program for 2013 and has eight drill rigs currently in operation along a 3,400 kilometre tenement holding in Western Australia.
Resources services company Sedgman Limited
(ASX:SDM) has extended an operating contract at Xstrata’s McArthur River lead and zinc mine in the Northern Territory. The extended contract is expected to generate total revenue of approximately $12 million.
Mineral explorer CuDeco Limited
(ASX:CDU) has mined 3,200 tonnes of native copper oar which it intends to stockpile for use in the commissioning of its Rocklands project in Queensland.
Best and worst performers
The best performing sector was Telco services adding 24 points to close at 1,564.
The worst performing sector was Utilities, the only major sector to finish lower, losing 10 points to close at 5,500.
The best performing stock in the S&PASX 200 was Decmil Group Limited
(ASX:DCG), rising 5.22 per cent to close at $2.42. Shares in Seven Group Holdings Limited
(ASX:SVW) and AMP Limited
(ASX:AMP) also closed higher.
The worst performing stock was Coalspur Mines Limited
(ASX:CPL), dropping 3.60 per cent to close at $0.54. Shares in Sandfire Resources NL
(ASX:SFR) and Bradken Limited
(ASX:BKN) also closed lower.
Commodities
Gold is trading at $US1,598 an ounce. Light crude is $0.28 down at $US96.06 a barrel.
The Australian dollar
The Australian dollar is buying $US1.046.
