The Australian share market closed at its highest level in two months after spending the session in plus 5,000 territory, with gold mining stocks posting strong gains to finish as the market’s best performers. Among the sectors, Industrials and REIT’s were the only majors to finish slightly down.
The S&P/ASX 200 index closed 30 points up to finish at 5,002. The value of trades was $3.3 billion on volume of 590 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 Orica Limited
(ASX:ORI).
On the futures market the SPI is 18 points up.
Company news
James Hardie Industries PLC
(ASX:JHX) expects its US earnings to revenue margins to increase in the current financial year and plans to expand its capacity accordingly. James Hardie says the American operating environment continues to reflect an increasing number of housing starts and improved house values. Shares in James Hardie closed 0.94 per cent up at $9.68.
Origin Energy Limited
(ASX:ORG) will acquire a 50 per cent participating interest in an MEO Australia Limited
(ASX:MEO) drilling project with potentially significant gas and liquids resources. Origin will pay 80 per cent of the costs incurred so far as well as 80 per cent of a further exploration well on the Breakwater prospect offshore of north western Australia, capped at $35 million. Shares in Origin Energy closed 1.34 per cent up at $12.84.
Billabong International Limited
(ASX:BBG) shares firmed 5 per cent despite having its planned recapitalisation deal with Altamont Capital Partners challenged by two of its main creditors.
Phosphagenics Limited
(ASX:POH) shares fell 4.55 per cent as CEO Esra Ogru resigned, with the company continuing to investigate alleged irregularities in its financial accounts. Ms Ogru had been suspended by the board on July 1, and investigation findings are expected to be handed over tomorrow.
BC Iron Limited
(ASX:BCI) reached its target production rate of 6 mega tonnes ahead of schedule in the June quarter, with 1.6 million wet metric tonnes of ore shipped despite unseasonal heavy rainfall.
Macquarie Atlas Roads Limited
(ASX:MQA) shares rose more than 8 per cent after revealing toll revenue jumped 4.2 per cent in the June quarter due to more traffic and revised toll schedules put in place over the past 12 months.
Best and worst performers
The best performing sector was Energy adding 145 points to close at 13,659.
The worst performing sector was Industrials, losing 14 points to close at 3,683.
The best performing stock in the S&PASX 200 was Medusa Mining Limited
(ASX:MML), rising 20.88 per cent to close at $2.20. Shares in Resolute Mining Limited
(ASX:RSG) and Silver Lake Resources Limited
(ASX:SLR) also closed higher.
The worst performing stock was Leighton Holdings Limited
(ASX:LEI), dropping 5.12 per cent to close at $16.32. Shares in Ten Network Holdings Limited
(ASX:TEN) and Virgin Australia Holdings Limited
(ASX:VAH) also closed lower.
Commodities
Gold is trading at $US1,320 an ounce. Light crude is $0.39 up at $US108.26 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9223.
