The Australian share market closed 1.7 per cent up after rallying strongly for a second straight day. The ASX 200 has gained 1.5 per cent in the last week of fiscal 2013 and added about $25 billion to the markets value today as investors shrugged off any concerns about Labours game of musical chairs in Canberra. All the major sectors finished in positive territory while gold also snapped a losing streak.
The S&P/ASX 200 index closed 80 points up to finish at 4,811. The value of trades was $5.1 billion on volume of 897 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), BHP Billiton Limited
(ASX:BHP) and ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is 70 points up.
Economic news
The number of job vacancies in Australia fell in the May quarter, according to the Australian Bureau of Statistics. The total number of vacancies in the three months to May was 138,900, a 7.3 per cent drop on February.
Company news
Gold producer Troy Resources Limited
(ASX:TRY) has announced a range of cost cutting initiatives in the face of continued and increasing volatility in gold and silver prices. Changes include cuts to executive salaries and fees, a reduction to the exploration budget for its Casposo project in Argentina as well as job cuts at its Perth office and within its exploration sites. Shares in Troy Resources closed 1.34 per cent up at $1.52.
Downer EDI Limited
(ASX:DOW) and consortium partner GE Australia have won a contract to build stage one of the $350 million Boco Rock Wind Farm in New South Wales Snowy Mountains. When all stages are completed, the wind farm will consist of more than 100 turbines, with the engineering firms chief Grant Fenn saying the consortium looks forward to using its capabilities in the renewable energy sector. Shares in Downer EDI closed 3.43 per cent up at $3.62.
ASIC has recommended Suncorp Group Limited
(ASX:SUN) refund customers around $23 million following an investigation into the group's life and general insurance businesses.
News Corp
(ASX:NWS) has settled a lawsuit with shareholders over the British phone-hacking scandal, agreeing to pay $US139 million.
The ACCC says it won’t oppose Archer Daniels Midland’s Graincorp Limited
(ASX:GNC) takeover. Chairman Rod Sims says the acquisition would not substantially lessen competition because the new entity would continue to face competition from various sources.
Toll Holdings Limited
(ASX:TOL) announced an impairment cost of $200 million amid difficult market conditions, however reconfirmed its full year group operating earnings.
Best and worst performers
The best performing sector was Telco services adding 45 points to close at 1,650.
The sector with the fewest gains was Materials, gaining 31 points to close at 8,504.
The best performing stock in the S&PASX 200 was St. Barbara Limited
(ASX:SBM), rising 17.50 per cent to close at $0.47. Shares in Senex Energy Limited
(ASX:SXY) and AWE Limited
(ASX:AWE) also closed higher.
The worst performing stock was Alacer Gold Corp - CDI
(ASX:AQG), dropping 8.73 per cent to close at $2.09. Shares in Billabong International Limited
(ASX:BBG) and Discovery Metals Limited
(ASX:DML) also closed lower.
Commodities
Gold today rebounded from four days of losses to rally from its lowest point since August 2010. It’s currently trading at $US1,240 an ounce. Light crude is $0.40 up at $US95.90 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9305.
