Maintaining this week’s volatility the Australian share market reversed half of yesterday’s falls and closed more than 1 per cent stronger. Building from Wall Street’s upbeat lead local stocks put aside Europe’s financial turmoil and Egypt’s political chaos and sustained strength throughout the session. All major sectors ended higher, with an uptick in commodity prices fuelling the energy and mining sectors. Softer leads are expected tomorrow with US investors taking a break from trade for America’s Independence Day public holiday.
Figures
The S&P/ASX 200 index soared 51 points to close the session at 4,795.
The value of trades was $2.9 billion on volume of 579 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 Westpac Banking Corporation
(ASX:WBC).
On the futures market the SPI is 48 points higher.
Economic news
IBISWorld analysts have predicted the sectors poised to fly and fall in the current 2014 financial year.
Highest expected revenue growth in 2013/14:
Superannuation funds 40.5%
Iron ore mining 22.9%
Online shopping 13.3%
Internet publishing and broadcasting 12.7%
Wind and other electricity generation 11.3%
Lowest expected revenue growth in 2013/14:
Video and DVD hire outlets -12.3%
Automotive electrical component manufacturing -6.7%
Heavy industry and other non-building construction -5.4%
Book publishing -4.3%
Mineral exploration -3.5%
Australian building approvals dropped by more than expected last month. The Australian Bureau of Statistics reports approvals for the construction of new homes declined 1.1 per cent in May from the month before, compared to expectations of a 1 per cent fall.
New vehicles sales in Australia soared to a record high last month. The Australian Federal Chamber of Automotive Industries VFACTS report showed total vehicle sales rose a seasonally adjusted 5.8 per cent to 118,758 in June from the month before and were 5.5 per cent higher from the year before.
Company news
James Packer’s Crown Limited
(ASX:CWN) has beaten rival casino operator Echo Entertainment Group Limited
(ASX:EGP) with its proposal to build a new $1 billion hotel and casino in Sydney. Crown today scored New South Wales government backing to move into the third stage of the development process. Echo, the owner of Sydney’s The Star casino, will maintain its exclusive license to operate in Sydney until 2019. Shares in Crown rose 2.18 per cent to end the session at $12.21.
Santos Limited
(ASX:STO) and Drillsearch Energy Limited
(ASX:DLS) have teamed up to advance the Western Cooper project and expand Drillsearch’s Cooper Basin oil and gas projects. Under the joint venture Santos will take a 60 per cent stake and become the operator of the Western Cooper Wet Gas Project to accelerate the project to commercialisation. Shares in Drillsearch Energy surged 8.84 per cent today while shares in Santos rose 0.93 per cent to end the session at $12.97.
Shares in iron ore juniors Brockman Mining Limited
(ASX:BCK) and Flinders Mines Limited
(ASX:FMS) jumped after inking a deal to pool infrastructure and transportation resources in the Pilbara region of Western Australia.
Shares in Whitehaven Coal Limited
(ASX:WHC) gained 1.79 per cent after the coal producer secured final approval to build its $767 million Maules Creek project in New South Wales.
Shares in Woolworths Limited
(ASX:WOW) firmed 0.56 per cent after the supermarket giant won the green light from Australia’s competition regulator to buy a Supa IGA in the northern Canberra suburb of Hawker.
Shares in Hills Holdings Limited
(ASX:HIL) hiked up 10.95 per cent after the household goods manufacturer forecast a better than expected annual underlying profit - despite also expecting impairment charges due to restructuring costs.
Best and worst performers
The best performing sector was energy adding 337 points to close at 12,848.
The sector with the fewest gains was consumer staples, adding 56 points to close at 9,507 points.
The best performing stock in the S&PASX 200 was Billabong International Limited
(ASX:BBG), rising 15.38 per cent to close at $0.23. Shares in Linc Energy Limited
(ASX:LNC) and Sirius Resources NL
(ASX:SIR) also closed higher.
The worst performing stock was Echo Entertainment Group Limited
(ASX:EGP), dropping 4.28 per cent to close at $2.91. Shares in Computershare Limited
(ASX:CPU) and Adelaide Brighton Limited
(ASX:ABC) also closed lower.
Commodities
Gold is trading at $US1,253 an ounce.
Light crude is $0.02 up at $US101.26 a barrel.
The Australian dollar
The Australian dollar is buying 91.16 US cents.
