The Australian share finished the day 0.5 per cent down however well off the day’s lows after picking up some steam on the back of strong Chinese manufacturing data. It was another big day for earnings, with some significant movements from reporting companies, namely Fortescue, Pacific Brands and Seven West. A boisterous full year result from Fortescue was not enough to lift the materials sector, which finished as the worst of the majors.
The S&P/ASX 200 index closed 24 points down to finish at 5,076. The value of trades was $5.72 billion on volume of 1 billion shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Commonwealth Bank of Australia
(ASX:CBA) and National Australia Bank Limited
(ASX:NAB).
On the futures market the SPI is 40 points down.
Economic news
China’s HSBC manufacturing purchasing manager’s index hit a four month high in August, indicative of stabilising growth. The index rose to 50.1 in the month, from 47.7 in July.
Company news
Telstra Corporation Limited
(ASX:TLS) has acquired Sydney-based technology service provider NSC Group for an undisclosed sum, part of efforts to grow its cloud computing business. Network Applications and Storage boss David Burns says the acquisition would make Telstra the nation’s leading provider of unified communications products such as video conferencing. Shares in Telstra closed 0.81 per cent down at $4.88.
Alumina Limited
(ASX:AWC) narrowed its first half net loss to $US2.4 million, from $US3.8 million in the previous corresponding period, and says the outlook for Aluminium and alumina remains tough. Despite this, CEO John Bevan says the recent strengthening of the US dollar against the Australian dollar and Brazilian real provides a welcome tailwind following a long period of sustained weakness. Shares in Alumina closed 2.5 per cent down at $0.97.
Fortescue Metals Group Limited
(ASX:FMG) shares jumped 4.16 per cent after it exceeded the expectations of analysts in delivering a full year net profit of $US1.74 billion, announcing plans to decrease capex and improve operating margins in the coming year as it moves towards the commencement of debt repayments.
Atlas Iron Limited
(ASX:AGO) shares fell 10.22 per cent after it widened its annual loss to $242 million, with weaker iron ore prices and asset write downs outweighing record export volumes.
Fairfax Media Limited
(ASX:FXJ) shares edged higher after it narrowed its full year loss to $16.4 million, from a monumental $2.73 billion loss last year, and reaffirmed the performance of its cost-cutting drive.
Origin Energy Limited
(ASX:ORG) shares rose 5.79 per cent despite booking a 60 per cent fall in its full year net profit of $378 million, after losses incurred by the movement of fair value instruments, increased expenditure on retail transformation and transition costs relating to the acquired NSW energy assets.
Best and worst performers
The best performing sector was Energy adding 16 points to close at 13,555.
The worst performing sector was Materials, losing 77 points to close at 9,543.
The best performing stock in the S&PASX 200 was Discovery Metals Limited
(ASX:DML), rising 46.88 per cent to close at $0.24. Shares in Decmil Group Limited
(ASX:DCG) and Ardent Leisure Group
(ASX:AAD) also closed higher.
The worst performing stock was Atlas Iron Limited
(ASX:AGO), dropping 10.22 per cent to close at $0.83. Shares in Magellan Financial Group Limited
(ASX:MFG) and SMS Management & Technology Limited
(ASX:SMX) also closed lower.
Commodities
Gold is trading at $US1,363 an ounce. Light crude is $1.26 down at $US104 a barrel.
The Australian dollar
The Australian dollar hit a three year low of $US0.8932 following the release of the US fed minutes, however recovered some losses on the China data and is now buying $US0.8989.
