The Australian share market closed 1.1 per cent up, rebounding powerfully from languishing in the red for the first two days of the trading week, with Telstra seeing high trade volume and financial stocks providing able support. Investors continue to shy away from the miners though, with some big losses characterizing cautious sentiment following the commodities blood letting of the past few sessions.
The S&P/ASX 200 index closed 54 points up to finish at 5,005. The value of trades was $4.5 billion on volume of 888 million shares at the close of trade. The top three stocks by value were Telstra Corporation Limited
(ASX:TLS), BHP Billiton Limited
(ASX:BHP) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 55 points up.
Economic news
The Westpac-Melbourne Institute Leading Index rose to 4.2 per cent in February, well above its long-term trend of 2.8 per cent. According to the index economic growth is on the rebound, owing to a rally in equities and recovery in commodity prices.
Company news
James Hardie Industries
(ASX:JHX) has confirmed the New Zealand Ministry of Education has commenced a representative action against two of its subsidiaries in the New Zealand High Court. The Ministry is claiming weather-tightness defects relating to several thousand New Zealand school buildings and claiming repair costs as well as damages. James Hardie says it is working with legal advisors to devise its reponse to the claim and is unable to provide any information on the possible financial impact of the claim. Shares in James Hardie Industries closed 1.84 per cent down at $9.59.
Harvey Norman Holdings Limited
(ASX:HVN) has increased sales by 0.6 per cent in its third quarter, totalling $1.28 billion, with home appliances, furniture and bedding divisions continuing to perform strongle. Northern Ireland was the chain dragger for the retail giant, with total third quarter sales falling 61.5 per cent. Shares in Harvey Norman closed 3.77 per cent up at $2.75.
Ausdrill Limited
(ASX:ASL) shares took some punishment today after the drilling services company touted a slightly diminished full year net profit of between $90 and $96 million owing to a slower than anticipated recovery in the Australian mining sector.
Tabcorp Holdings Limited
(ASX:TAH) will make a $20 million payment to the Queensland state government to extend its existing keno license to 2047.
Atlas Iron Limited
(ASX:AGO) has reaffirmed its outlook for record shipments in the March quarter. The Pilbara iron ore miner says it’s on track to achieve shipping guidance of 7.4 million tonnes for 2013.
Fertilizer manufacturer Incitec Pivot Limited
(ASX:IPL) will build a new ammonia plant in the United States at a cost of $822 million.
Best and worst performers
The best performing sector was Telco services adding 45 points to close at 1,661.
The worst performing sector was Materials, losing 36 points to close at 9,094 points.
The best performing stock in the S&PASX 200 was Ten Network Holdings Limited
(ASX:TEN), rising 5.26 per cent to close at $0.30. Shares in M2 Telecommunications Group Limited
(ASX:MTU) and iiNet Limited
(ASX:IIN) also closed higher.
The worst performing stock was Discovery Metals Limited
(ASX:DML), dropping 9.20 per cent to close at $0.40. Shares in Ausdrill Limited
(ASX:ASL) and St. Barbara Limited
(ASX:SBM) also closed lower.
Commodities
Gold is trading at $US1,373 an ounce. Light crude is $0.06 down at $US88.66 a barrel.
The Australian dollar
The Australian dollar is buying $US1.035.
