The Australian share market has hit the day’s high to close 1 per cent stronger, with all the major sectors finishing ahead, led by some boisterous gains among industrials and materials stocks. Investor confidence improved markedly throughout the session as the eagerly awaited US Fed meeting this evening gets closer.
The S&P/ASX 200 index closed 47 points up to finish at 4,861. The value of trades was $4.1 billion on volume of 730 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Commonwealth Bank of Australia
(ASX:CBA) and Westpac Banking Corporation
(ASX:WBC).
On the futures market the SPI is 56 points up.
Economic news
The Westpac-Melbourne Institute leading index says Australian economic growth slowed in April however continues to track well above trend. The index predicting Australia's rate of economic growth three to nine months into the future grew at 5.4 per cent in April, above a long-term trend of 3 per cent.
Company news
Rio Tinto Limited
(ASX:RIO) will slash as many as 50 middle-to-senior staff from its regional iron ore headquarters in Western Australia as part of its ongoing push to cut costs due to persistently low commodity prices. According to various media reports, roles will be made redundant from the global miners base in Perth, with affected staff to either leave Rio Tinto or move to other divisions. Shares in Rio Tinto closed 1.55 per cent up at $54.38.
Transfield Services Limited
(ASX:TSE) has been awarded two contracts for works on the National Broadband Network in Victoria, with a total potential value of $366 million. One contract is an extension of a fibre optic network design deal worth as much as $300 million over two years, while the second is a new construction contract valued at $66 million. Shares in Transfield closed 1.37 per cent up at $0.74.
Whitehaven Coal Limited
(ASX:WHC) shares saw gains today after Nathan Tinkler sold 101 million shares to US investment firm Farallon Funds at $2.96 per share.
WestSide Corporation Limited
(ASX:WCL) is restructuring its business and has accepted the resignation of its CEO after PetroChina pulled out of its proposed takeover.
CFS Retail Property Trust
(ASX:CFX) has confirmed it’s in talks to sell four Victorian sub-regional shopping centres.
Charter Hall Retail REIT
(ASX:CQR) and its super fund Core Plus have paid $458 million for a Perth development housing Bankwest’s headquarters as well as the city’s largest retail space.
Best and worst performers
All major sectors finished stronger today. The best performing sector was Industrials adding 73 points to close at 3,603.
The sector with the fewest losses was Healthcare, firming by 27 points to close at 12,563.
The best performing stock in the S&PASX 200 was Boart Longyear Limited
(ASX:BLY), rising 9.70 per cent to close at $0.73. Shares in Mirabela Nickel Limited
(ASX:MBN) and Imdex Limited
(ASX:IMD) also closed higher.
The worst performing stock was News Corp
(ASX:NWS), dropping 6.89 per cent to close at $30.53. Shares in Perseus Mining Limited
(ASX:PRU) and Billabong International Limited
(ASX:BBG) also closed lower.
Commodities
Gold is trading at $US1,366 an ounce. Light crude is $0.22 up at $US98.89 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9493.
