The Australian share market bounced more than 1 per cent at open and stayed strong following reassurances America’s economic stimulus is set to continue for now. Investors were encouraged by comments from US Federal Reserve Chairman Ben Bernanke, maintaining accommodative monetary policy when speaking after the close of trade on Wall Street. Local stocks and the dollar rose in response with the mining sector climbing on the back of stronger metals prices.
Figures
The S&P/ASX 200 index gained 64 points today to close the session at 4,966.
The value of trades was $4 billion on volume of 759 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 51 points higher.
Economic news
Australia's jobless rate rose more than expected last month as full-time employment fell while part-time employment grew. The Australian Bureau of Statistics reports the nation’s unemployment rate was 5.7 per cent in June from an upwardly revised rate of 5.6 per cent the month before. The economy added 10,300 new jobs in June, against expectations for flat job growth.
Confidence in Australia’s property market has fallen, weighed down by declining rents and declining price growth. National Australia Bank Limited’s
(ASX:NAB) residential property index showed national house price growth stalled to 0.1 per cent in the second quarter of 2013. Despite improved affordability and lower interest rates, survey respondents have predicted national house prices will rise by 1.4 per cent in the next year and 2.4 per cent in the next two years.
Company news
One month after Newcrest Mining Limited
(ASX:NCM) revealed up to $6 billion in write downs the fall out continues for the gold producer. Media reports today claim the miner is set to cut more jobs from its Telfer mine in Western Australia. Separately, Perennial Investment Partners is understood to have sold its stake in the company. Shares in Newcrest Mining climbed 11.56 per cent today, ending at $11.10.
Iron ore producer Arrium Limited
(ASX:ARI) is considering expanding its focus and has flagged potential gold and copper opportunities near its iron ore mines. CEO Andrew Roberts told the Melbourne Mining Club today there are ferrous and non-ferrous opportunities and Arrium is open minded to expanding its commodity focus in the future. Shares in Arrium put on 5.45 per cent today to close at $0.87.
Shares in Westpac Banking Corporation
(ASX:WBC) closed 1.55 per cent stronger despite reports the Uniting Church of Australia is suing the bank for allegedly failing to notice a former Uniting Church employee stealing more than $4 million over seven years.
Shares in AGL Energy Limited
(ASX:AGK) ended 1.14 per cent higher after the gas and electricity provider revealing it has delayed a $550 million wind farm due to government policy uncertainty.
Shares in Starpharma Holdings Limited
(ASX:SPL) back-flipped to close 0.55 per cent lower after the biotechnology company secured a $548,000 grant to advance its dendrimer technology.
Shares in Redflex Holdings Limited
(ASX:RDF) lifted 1.83 per cent following news it has scored a contract to provide the New South Wales government with more mobile speed camera services.
Best and worst performers
The best performing sector was materials adding 296 points to close at 8,953.
The worst performing sector was real estate investment trusts, losing 5 points to close at 1,030 points.
The best performing stock in the S&PASX 200 was Perseus Mining Limited
(ASX:PRU), rising 23.71 per cent to close at $0.60. Shares in Medusa Mining Limited
(ASX:MML) and Evolution
(ASX:EVN) also closed higher.
The worst performing stock was Emeco Holdings Limited
(ASX:EHL), dropping 4.35 per cent to close at $0.22. Shares in TPG Telecom Limited
(ASX:TPM) and Fairfax Media Limited
(ASX:FXJ) also closed lower.
Commodities
Gold is trading at $US1,291 an ounce.
Light crude is $0.67 higher at $US107.19 a barrel.
The Australian dollar
The Australian dollar is buying 92.78 US cents.
