The Australian share market advanced more than 1 per cent today following a busy day of data releases. Despite negative leads stocks rose at open and accelerated following local jobs numbers. Chinese trade data showing stronger demand trigged even bigger gains - boosting the local bourse to session highs and the dollar to the highest point this month - but stocks lost steam later in the session to end off the high.
Figures
The S&P/ASX 200 index soared 54 points to finish at 5,065.
The value of trades was $4.2 billion on volume of 878 million shares at the close of trade.
The top three stocks by value were Telstra Corporation Limited
(ASX:TLS), BHP Billiton Limited
(ASX:BHP) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 45 points higher.
Economic news
China trade figures have brought relief by staging a recovery last month. The nation’s General Administration of Customs reports exports rose 5.1 per cent and imports surged 10.9 per cent which gave China a trade surplus of $17.8 billion in July.
Australia’s jobless rate has stayed steady, as it remained at a four-year high, in the same month the economy lost more jobs than expected. The Australian Bureau of Statistics reports the nation’s unemployment rate came in at 5.7 per cent in July, against expectations for a 0.1 per cent rise. The economy lost 10,200 jobs in July, against expectations for jobs growth.
Company news
Rio Tinto Limited
(ASX:RIO) has just revealed a steep drop in its first half net profit, slumping 71 per cent to $1.92 billion. The result was hit by falling commodity prices over a period in which market commentators heralded the end of the mining boom. While Rio has forecast a volatile medium-term economic outlook it did achieve $1.5 billion cost savings in the first six months of the year and is targeting $3 billion of cost savings annually by 2015. Earlier today the global miner announced a $US600 million bridge funding package into its subsidiary for the development of the Oyu Tolgoi copper mine in Mongolia after last week being forced to stop work at the mine. Shares in Rio Tinto ended the session 1.5 per cent higher at $59.48, before the results announcement was made.
BWP Trust
(ASX:BWP) has boosted its annual net profit by 58 per cent and announced a $271 million deal with Bunnings. The real estate investor has attributed the $110.6 million net profit result to growth in its property portfolio. BWP Trust has also exchanged contracts with Bunnings for the sale and leaseback of 10 Bunnings Warehouse stores across Australia. Shares in BWP Trust last traded at $2.41 before being placed into a trading halt yesterday afternoon.
Australia’s largest telco Telstra Corporation Limited
(ASX:TLS) has posted a better than expected full year result, improving its net profit by 13 per cent on the back of growth in its mobile division.
Fund manager Perpetual Limited
(ASX:PPT) has bought a $7.3 million stake in Fonterra Cooperative Group
(ASX:FSF) hot on the heels of the dairy company’s stock fall following a product safety scare.
Troubled gold mining company Newcrest Mining Limited
(ASX:NCM) will get more legal and investment banking experience on its board with today’s appointment of Peter Hay as a Non-Executive Director.
Investment company Magellan Flagship Fund Limited
(ASX:MFF) has delivered a 76 per cent improvement in net profit aided by a 12 per cent fall in the Australian dollar over the 12 month period.
Best and worst performers
The best performing sector was telco services adding 39 points to close at 1,769.
The worst performing sector was utilities, losing 10 points to close at 5,396 points.
The best performing stock in the S&PASX 200 was Billabong International Limited
(ASX:BBG), rising 17.35 per cent to close at $0.58. Shares in Mount Gibson Iron Limited
(ASX:MGX) and Atlas Iron Limited
(ASX:AGO) also closed higher.
The worst performing stock was Karoon Gas Australia Limited
(ASX:KAR), dropping 8.39 per cent to close at $5.13. Shares in CuDeco Limited
(ASX:CDU) and Discovery Metals Limited
(ASX:DML) also closed lower.
Commodities
Gold is trading at $US1,295 an ounce.
Light crude is $0.35 up at US$104.72 a barrel.
The Australian dollar
The Australian dollar is buying 90.76 US cents.
