The Australian share market has endured a wild ride in the new financial year but ended the session and week on a high. Volatility prevailed as local stocks see-sawed higher and lower over a week marked by the Reserve Bank of Australia keeping rates on hold and European central bank’s pledging to maintain low rates.
The local rates decision on Tuesday sparked the market’s strongest performance since 2011 and despite back peddling 2 per cent on Wednesday stocks have since re-gained ground.
Though Wall Street will remain closed for the Independence Day public holiday this evening investor attention will now turn to America’s monthly jobs report, due this evening, amid expectations the world’s largest economy added 165,000 jobs in June [175,000 in May] and the unemployment rate ticked down to 7.5 per cent [7.6 per cent in May].
Figures
The S&P/ASX 200 index rose 47 points today, extending the weekly gain of 39 points to finish at 4,842.
The value of trades was $3.1 billion on volume of 680 million shares at the close of trade.
The top three stocks by value were ANZ Banking Group
(ASX:ANZ), BHP Billiton Limited
(ASX:BHP) and Westpac Banking Corporation
(ASX:WBC).
On the futures market the SPI is 50 points higher.
Wall Street
US indices put in a mixed performance over the week, shortened by the Independence Day public holiday: The Dow Jones Industrial Average ended 36 points lower, the S&P 500 Index added 2 points, the Nasdaq gained 42 points and the 100 Index rose 35 points this week.
Economic news
Construction activity in Australia continues to remain weak but improved over last month. The Australian Industry Group and Housing Industry Association’s Performance of Construction Index rose 4.2 points to 39.5 in June, but remained well below 50 which indicates contraction in the sector.
Company news
In the battle for aviation superiority Virgin Australia Holdings Limited
(ASX:VAH) latest traffic figures have revealed the carrier has lost domestic market share to rival airline Qantas Airways Limited
(ASX:QAN). The report shows Virgin carried less passengers in May 2013 from 2012, despite more available seats, compared to Qantas who posted higher domestic passenger numbers over the same period. While shares in Qantas lifted following the statistics, shares in Virgin Australia Holdings descended 2.25 per cent to end the week at $0.43.
The fight for infrastructure solutions is on in Western Australia’s Pilbara region with Fortescue Metals Group Limited
(ASX:FMG) lashing out at Brockman Mining Limited’s
(ASX:BCK) challenge to disrupt its rail monopoly. Iron ore producer Fortescue says its subsidiary, The Pilbara Infrastructure, does not have the capacity to allow iron ore junior Brockman rail capacity and has slammed Brockman’s proposal to gain third-party access to the miner's rail line as unviable. Shares in Fortescue Metals Group gained 1.82 per cent today, ending the week at $3.36.
Shares in Billabong International Limited
(ASX:BBG) continued to soar, ending the session 15.56 per cent stronger after rising more than 70 per cent over the week, one day after reports emerged US hedge funds have taken control of the troubled surfwear retailer’s loans.
Shares in Crown Limited
(ASX:CWN) maintained yesterday’s upward momentum, gaining 3.19 per cent today, after yesterday scoring New South Wales government backing to proceed with plans to develop Sydney’s second casino.
Echo Entertainment Group Limited
(ASX:EGP) investors were licking their wounds with shares in the casino operator continuing to slide, sinking 5.15 per cent and ending as the top 200's worst performer, despite reports the gaming company plans to push ahead with its redevelopment plans.
Shares in Range Resources Limited
(ASX:RRS) plunged 12.24 per cent after the hydrocarbon explorer inked a farm-in with Canada listed Niko Resources (TSX:NKO) to increase its acreage in Trinidad.
Best and worst performers
The best performing sector was real estate investment trusts, adding 19 points to close at 1,045.
The only major sector to end in negative territory was health care, losing 1 point to close at 13,250 points.
The best performing stock in the S&PASX 200 was Billabong International Limited
(ASX:BBG) surging 15.56 per cent to close at $0.26. Shares in Fleetwood Corporation Limited
(ASX:FWD) and Ausdrill Limited
(ASX:ASL) also closed higher.
The worst performing stock was Perseus Mining Limited
(ASX:PRU), dropping 10.4 per cent to close at $0.56. Shares in Silver Lake Resources Limited
(ASX:SLR) and Echo Entertainment Group Limited
(ASX:EGP) also closed lower.
Commodities
Gold is trading at $US1,239 an ounce, up $32.20 over the week.
Light crude is $0.17 lower at $US101.07 a barrel.
The Australian dollar
The Australian dollar is buying 91.39 US cents, down $0.014 over the week.
