The Australian share market soared through and closed above the key 5,200 psychological barrier today. Surging up to 0.8 per cent at open stocks pared gains by close but still managed a weekly gain following a busy week of economic news hitting the headlines. Mining and energy sectors took charge today offsetting losses among the banks and telco stocks.
Figures
The S&P/ASX 200 index added 8 points today, extending the weekly gain of 77 points to finish at 5,206.
The value of trades was $4.8 billion on volume of 724 million shares at the close of trade.
The top three stocks by value were Westpac Banking Corporation
(ASX:WBC), ANZ Banking Group
(ASX:ANZ) and National Australia Bank Limited
(ASX:NAB).
On the futures market the SPI is 7 points higher.
Wall Street
US stocks have gained over the four trading days this week: The Dow Jones Industrial Average has added 251 points, the S&P 500 Index has added 29 points, the Nasdaq has added 69 points and the 100 Index has added 50 points.
Economic news
Ahead of Tuesday’s Federal Budget Australia’s central bank has cautioned the imminent peak in resource investment, the strong Australian dollar and ongoing fiscal consolidation could weigh on growth this year. The Reserve Bank of Australia’s Statement on Monetary Policy has also cut the consumer prices index (CPI) forecast to 2.25 per cent from an earlier forecast of 3 per cent in fiscal 2013 and affirmed the economy’s real growth will remain near 2.5 per cent in the same period.
Company news ANZ Banking Group
(ASX:ANZ) has trumped its banking rivals and slashed its rates by more than Australia’s central bank. ANZ has lowered its variable home loan rate by 27 basis points following the Reserve Bank of Australia’s surprise decision to cut the official cash rate by 25 basis points on Tuesday. The official cash rate now sits at a record low of 2.75 per cent while ANZ’s standard variable home loan rate comes in a 6.13 per cent. Shares in ANZ Banking Group dropped 1.5 per cent today, finishing the week at $30.13.
Oil Search Limited
(ASX:OSH) has flagged higher dividends as its flagship PNG LNG project comes online. The oil and gas explorer expects 2015 to be the first full year of sales at the $US19 billion Papua New Guinea liquefied natural gas project, following first deliveries as soon as in 2014. Chairman Richard Lee says the board will aim to strike the balance between sharing increased profitability with shareholders and retaining funds to fund growth. Shares in Oil Search fell 0.76 per cent today, ending the week at $7.80.
Shares in Karoon Gas Australia Limited
(ASX:KAR) soared to the best performer of the top 200 after the explorer boosted the potential size of its Bilby oil discovery off the coast of Brazil. Karoon says the find has fuelled confidence in its other Brazilian exploration block prospects.
Shares in Primary Health Care Limited
(ASX:PRY) fell to the worst performer of the top 200 despite the hospital operator and pathology group lifting its full year earnings guidance by up to $10 million based on current trends within the business continuing.
Best and worst performers
The best performing sector was health care adding 207 points to close at 13,132.
The worst performing sector was financials excluding real estate investment trusts, losing 39 points to close at 6,664 points.
The best performing stock in the S&PASX 200 was Karoon Gas Australia Limited
(ASX:KAR), rising 25.28 per cent to close at $6.69. Shares in St. Barbara Limited
(ASX:SBM) and Whitehaven Coal Limited
(ASX:WHC) also closed higher.
The worst performing stock was Primary Health Care Limited
(ASX:PRY), dropping 5.85 per cent to close at $4.99. Shares in Evolution
(ASX:EVN) and Virgin Australia Holdings Limited
(ASX:VAH) also closed lower.
IPOs Mighty River Power Limited
(ASX:MYT) started trading today on both on the Australian Securities Exchange (ASX) and the New Zealand Exchange: The New Zealand state-owned electricity generation and retailing company listed with an issue price of $2.50, opened at $2.21 and a closed at $2.17 on the ASX.
Commodities
Gold is trading at $US1,459 an ounce, down $15.20 over the week.
Light crude is $0.55 lower at $US95.85 a barrel.
The Australian dollar
The Australian dollar is buying $1.006, down $0.02 over the week.
