The Australian share market overcame a tepid early performance and rallied in late trade to finish 1 per cent stronger as investors showed signs of confidence in the current earnings season. Health care led the way for the sectors, boosted by a strong day from CSL stocks which rallied 4 per cent as investors positioned themselves for a positive earnings report from the blood products maker tomorrow.
The S&P/ASX 200 index closed 49 points up to finish at 5,158. The value of trades was $4.4 billion on volume of 831 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 51 points up.
Economic news
Business confidence has hit an eight month low, while conditions remain at four year lows, according to the NAB’s monthly business survey for July. The survey indicated a 3 point fall in confidence, now sitting at negative 3, while business conditions remain languishing at negative 7.
Company news
Mirabela Nickel Limited
(ASX:MBN) has widened its first half loss by 14 per cent on falling nickel prices and a spike in currency exchange costs. The nickel miner reported a $US68.9 million loss for the six months to the end of June, including a $32.85 million hit on foreign exchange losses and a 26 per cent fall in revenue. Shares in Mirabela Nickel closed 7.78 per cent down at $0.08.
Stockland
(ASX:SGP) is set to offload its strategic 14.9 per cent stake in FKP Property Group
(ASX:FKP) with the proceeds to be used for new developments across the business, including its residential communities. Stockland today announced its full year net profit dived 79 per cent to $104.6 million, hit by a $355 million impairment in the value of the its residential book. Shares in Stockland closed 2.89 per cent down at $3.70.
Fairfax Media Limited
(ASX:FXJ) will offload managed funds internet site InvestSMART to boutique fund manager Australasian Wealth Investments Limited
(ASX:AWK) for $7 million, after buying it for $12 million six years ago.
Tatts Group Limited
(ASX:TTS) inked an unconditional contract to buy a Brisbane site from construction, mining services and property development group Watpac Limited
(ASX:WTP) for $8 million.
Bradken Limited
(ASX:BKN) posted a 33 per cent decline in its full year net profit of $66.9 million, including a one-off pre-tax charge of $30.4 million relating to Federal Court proceedings associated with the Norcast acquisition.
Domino's Pizza Enterprises Limited
(ASX:DMP) net profit for the full year rose to $28.7 million, missing its 15 per cent growth prediction, with 67 new stores opened.
Best and worst performers
The best performing sector was Healthcare adding 389 points to close at 13,872.
The worst performing sector was Utilities, losing 40 points to close at 5,398.
The best performing stock in the S&PASX 200 was St. Barbara Limited
(ASX:SBM), rising 13.86 per cent to close at $0.58. Shares in Bradken Limited
(ASX:BKN) and McMillan Shakespeare Limited
(ASX:MMS) also closed higher.
The worst performing stock was REA Group Limited
(ASX:REA), dropping 4.37 per cent to close at $32.86. Shares in FKP Property Group
(ASX:FKP) and Billabong International Limited
(ASX:BBG) also closed lower.
Commodities
Gold continued its recent rally stemming from the release of strong Chinese factory data last Friday, tipping three week highs. It’s currently trading at $US1,333 an ounce. Light crude is $0.10 down at $US106 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9123.
