The Australian share market has rallied to finish 1.1 per cent stronger, with blue chip mining stocks posting firm gains on strong Chinese trade data. Industrial and financial stocks also performed notably on a trading day that took very positive leads from buying sprees in several global markets.
The S&P/ASX 200 index closed 56 points up to finish at 5,200. The value of trades was $5.3 billion on volume of 936 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), CSL Limited
(ASX:CSL) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 52 points up.
Economic news
China's exports and imports grew more than expected in April, offering the possibility of a better outlook for the world's second-largest economy. Exports rose 14.7 percent in the month, while imports grew 16.8 percent, leaving the country with a trade surplus of $US18.16 billion, according to the Chinese Customs Administration.
Company news
GPT Group
(ASX:GPT) has settled a class action levelled against it by law firm Slater & Gordon Limited
(ASX:SGH) for $75 million. The legal action, launched in 2011 as the law firm sought losses suffered by shareholders as a result of alleged misleading conduct by GPT, will be ended pending court approval. Shares in GPT Group closed 1.23 per cent up at $4.11.
Rio Tinto Limited
(ASX:RIO) is keeping its iron ore output expansion plans intact, according to its head of iron ore marketing in Asia. Alan Smith told an industry conference in Singapore the global miner expects Chinese steel demand to continue to grow about 3 per cent annually on average, which alongside an anticipated 800 million tonne boost in seaborne iron ore demand this decade, justifies Rio’s output intentions. Shares in Rio Tinto closed 2.63 per cent stronger at $58.90.
Seven West Media Limited
(ASX:SWM) shares jumped more than 10 per cent today, despite Chief Don Voelte saying he is expecting net profits after tax to fall by 2-to-4 per cent this financial year, even if advertising doesn't alter its present trends.
Worleyparsons Limited
(ASX:WOR) has been awarded a $US90 million general design contract for Maersk Oil Qatar for works associated with the Al Shaheen field located offshore Qatar.
Sigma Pharmaceutical Limited
(ASX:SIP) chairman Brian Jamieson is confident the company will be able to maintain high shareholder payout ratios for the foreseeable future, subject to its franking position and the usual business considerations.
Telstra Corporation Limited
(ASX:TLS) and Seven West Media Limited
(ASX:SWM) have entered a $10.4 million partnership with online consumer health website HealthEngine.
Best and worst performers
The best performing sector was Materials adding 199 points to close at 9,627.
The worst performing sector was Healthcare, losing 274 points to close at 12,770.
The best performing stock in the S&PASX 200 was Atlas Iron Limited
(ASX:AGO), rising 12.64 per cent to close at $1.02. Shares in Aquila Resources Limited
(ASX:AQA) and Northern Star Resources Limited
(ASX:NST) also closed higher.
The worst performing stock was Boart Longyear Limited
(ASX:BLY), dropping 8.91 per cent to close at $0.92. Shares in CSL Limited
(ASX:CSL) and Medusa Mining Limited
(ASX:MML) also closed lower.
Commodities
Gold is trading at $US1,452 an ounce. Light crude is $0.10 up at $US95.72 a barrel.
The Australian dollar
The Australian dollar is buying $US1.018.
