The Australian share market has come off the days high but still finished slightly ahead on the last day of July. Among the sectors, healthcare led the way while Consumer discretionary saw some losses. The best performing stocks for the month were Billabong, Linc Energy and Energy World Corporation, while the worst were ALS, Emeco Holdings and Orica. Ahead of next weeks interest rate call from the Reserve Bank, Macquarie bank analyst Martin Lakos said this afternoon that the market is pricing in a 99 per cent of another cut next week.
The S&P/ASX 200 index closed 5 points up to finish at 5,052. For the month, the local market jumped 249.41 points, or 5.2 per cent. The value of trades today was $4.1 billion on volume of 731 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Rio Tinto Limited
(ASX:RIO) and Fortescue Metals Group Limited
(ASX:FMG).
On the futures market the SPI is 2 points up.
Economic news
The RBA says credit growth in the private sector rose by 0.4 per cent in June, following a 0.3 per cent lift in May. The central bank reported in its financial aggregates for June that annual growth came in at 3.1 per cent. Housing credit grew by 0.4 per cent for the month while business credit increased by 0.5 per cent.
Company news
Fortescue Metals Group Limited
(ASX:FMG) has had its outlook upgraded from negative to stable by ratings agency Standard and Poor’s, which expects the iron ore miners weak credit metrics to recover in the current financial year. The upgrade was granted on the back of improving production volumes, reduced cash costs and low capex forecasts. Shares in Fortescue closed 1.35 per cent down at $3.66.
Air New Zealand’s Limited
(ASX:AIZ) has had its bid to lift its stake in Virgin Australia Holdings Limited
(ASX:VAH) stalled by the consumer watchdog. The ACCC has delayed its review of the bid pending more information from Virgin, and has yet to announce a revised date. Shares in Air New Zealand closed 0.39 per cent down at $1.27.
Clough Limited
(ASX:CLO) shares soared more than 28 per cent following a takeover bid from South African contractor Murray & Roberts, already a 61.6 per cent stakeholder.
Lynas Corporation Limited
(ASX:LYC) will keep production at its Malaysian advanced materials plant at phase one levels until prices recover in the currently weak rare earths market.
Incitec Pivot Limited
(ASX:IPL) will split its global manufacturing operations into two divisions by October, after a review of the worldwide arm.
AGL Energy Limited
(ASX:AGK) says it has funding for two large scale solar projects in New South Wales, totalling $450 million.
Best and worst performers
The best performing sector was Healthcare adding 116 points to close at 13, 628.
The worst performing sector was Real estate investment trusts, losing 15 points to close at 1,021.
The best performing stock in the S&PASX 200 was Drillsearch Energy Limited
(ASX:DLS), rising 9.16 per cent to close at $1.37. Shares in Discovery Metals Limited
(ASX:DML) and Senex Energy Limited
(ASX:SXY) also closed higher.
The worst performing stock was McMillan Shakespeare Limited
(ASX:MMS), dropping 7.09 per cent to close at $8.13. Shares in Energy World Corporation Limited
(ASX:EWC) and Lynas Corporation Limited
(ASX:LYC) also closed lower.
Commodities
Gold is trading at $US1,333 an ounce. Light crude is $0.01 up at $US102.00 a barrel.
The Australian dollar
The Australian dollar is buying $US0.903.
