The Australian share market defied a sliding start to the week to punch its way into positive territory and close 0.7 per cent higher on the back of a rally in financials, although gains were tempered somewhat by weakness among the big miners.
The S&P/ASX 200 index closed 34 points up to finish at 4,826. The value of trades was $4.6 billion on volume of 789 million shares at the close of trade. The top three stocks by value were Westpac Banking Corporation
(ASX:WBC), BHP Billiton Limited
(ASX:BHP) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 48 points higher.
Economic news
The Australian Bureau of Statistics (ABS) says sales of new motor vehicles in Australia were flat in May, coming in little changed at 93,209. Total vehicle sales are now 0.2 per cent higher than in the corresponding period last year.
Company news
Employment services firm Skilled Group Limited
(ASX:SKE) will acquire Darwin based marine contractor Broadsword for $75.5 million.
CEO Mick McMahon says it is a carefully-targeted and financially compelling acquisition that expands Skilled groups’ exposure to the oil and gas sector. Shares in Skilled Group closed 9.63 per cent up at $2.39.
AGL Energy Limited
(ASX:AGK) has been granted government approval to hike up NSW gas prices by 9.2 per cent as of July 1st. The price hikes have been driven by increased spending by gas pipeline network operator, Chinese government controlled Jemena, which has successfully appealed to increase charges for its distribution network. Shares in AGL Energy closed 0.85 per cent up at $14.29.
Lend Lease Group
(ASX:LLC) shares fell almost 7.5 per cent after the property group warned shareholders construction output will be lower and flagged reduced earnings from construction in Australia, Europe and the Middle East.
Watpac Limited
(ASX:WTP) has finalised the sale of its Addison Quays development site in Brisbane to the De Luca Corporation for about $6.4 million.
Woolworths Limited
(ASX:WOW) and Wesfarmers Limited
(ASX:WES) owned Coles are reportedly set to establish a dispute resolution body with the Australian Food and Grocery Council.
Rio Tinto Limited
(ASX:RIO) will meet the government of Guinea this week to discuss the stalled Simandou iron ore project, with the Guinean government reportedly willing to allow a third party to build the railway at a cost of over $20 billion.
Best and worst performers
The best performing sector was Financials excluding real estate investment trusts adding 106 points to close at 6,241.
The worst performing sector was Materials, losing 58 points to close at 8,821.
The best performing stock in the S&PASX 200 was Asciano Limited
(ASX:AIO), rising 1.05 per cent to close at $4.79. Shares in Monadelphous Group Limited
(ASX:MND) and Ansell Limited
(ASX:ANN) also closed higher.
The worst performing stock was Premier Investments Limited
(ASX:PMV), dropping 1.22 per cent to close at $6.50. Shares in Treasury Wine Estates Limited
(ASX:TWE) and Mermaid Marine Australia Limited
(ASX:MRM) also closed lower.
Commodities
Gold is trading at $US1,388 an ounce. Light crude is $0.21 down at $US0.9764 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9638.
