The Australian share market closed 0.4 per cent stronger, bolstered by gains in the materials sector to finish in positive territory for a third straight day. The local market lost a bit of steam in the afternoon following weak Chinese manufacturing data, while the Aussie dollar fell from a one month high on that data and the ABS’s June quarter CPI figures. The S&P/ASX 200 index closed 18 points up to finish at 5,035.
The value of trades was $4.4 billion on volume of 786 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Telstra Corporation Limited
(ASX:TLS) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 16 points up.
Economic news
The Australian Bureau of Statistics has released the highly anticipated consumer price index for the June quarter and the figures are slightly below expectations. The quarterly CPI rise is 0.4 per cent and the annual rise is 2.4 per cent. According to the ABS, Inflation was boosted by a rise in medical and hospital services, tobacco, new owner-occupier home sales, furniture and rent. The weakened figures have increased the odds of an August rate cut.
Company news
Biotech company Phosphagenics Limited
(ASX:POH) has officially alleged that now dismissed chief Dr Esra Ogru implicated in and benefited from the misappropriation of $5.7 million of company funds. An investigation report by forensic accountants Deloitte claimed the funds were stolen between 2005 and 2013, by manner of the company paying funds in respect of false invoices. Shares in Phosphagenics closed 4.55 per cent up at $0.12.
Alliance Aviation Services Limited
(ASX:AQZ) has extended existing contracts with foundation customers Incitec Pivot Limited
(ASX:IPL) and Hong Kong listed resources company MMG. Incitec extended a fly-in, fly-out services contract for a further 5 years, while MMG extended a contract for 18 months. Shares in Alliance Aviation servies closed steady at $1.84.
Ruralco Holdings Limited
(ASX:RHL) director Shane Smith resigned today after almost four years in his role.
Commonwealth Bank of Australia
(ASX:CBA) is proposing to bring the management of the Commonwealth Property Office Fund
(ASX:CPA) and the CFS Retail Property Trust
(ASX:CFX) in-house.
National Australia Bank Limited
(ASX:NAB) has appointed Craig Drummond as group executive of finance and strategy.
Australand Property Group’s
(ASX:ALZ) first half net profit dropped to $88.4 million, a 1 per cent decrease on the same time last year.
Best and worst performers
The best performing sector was Materials adding 105 points to close at 9,351.
The worst performing sector was Healthcare, losing 158 points to close at 13,480.
The best performing stock in the S&PASX 200 was Energy World Corporation Limited
(ASX:EWC), rising 12.73 per cent to close at $0.62. Shares in Discovery Metals Limited
(ASX:DML) and Resolute Mining Limited
(ASX:RSG) also closed higher.
The worst performing stock was Billabong International Limited
(ASX:BBG), dropping 6.02 per cent to close at $0.39. Shares in Mineral Deposits Limited
(ASX:MDL) and Breville Group Limited
(ASX:BRG) also closed lower.
Commodities
Gold is trading at $US1,340 an ounce. Light crude is $0.12 down at $US107.11 a barrel. The Australian dollar is buying $US0.9255.
