The Australian share market has ended the last trading day of the month higher, having gained 1.6 per cent over August. Taking the lead from overseas markets local stocks climbed 0.5 per cent to end near session highs today.
Investors shrugged off the week’s concerns about emerging markets, a strike on Syria and jitters over when the US will pull back stimulating its economy. Instead, better than expected US growth figures supported the local bourse ahead of a busy week for local investors.
Next week will be dominated by events including the Reserve Bank of Australia’s (RBA) monthly interest rate decision, second-quarter local growth figures and Australia’s Federal election on Saturday 7 September.
Figures
The S&P/ASX 200 index gained 43 points today, extending the weekly gain of 80 points to finish at 5,135.
The value of trades was $6.2 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 Woolworths Limited
(ASX:WOW).
On the futures market the SPI is 42 points higher.
Wall Street
US stocks have lost ground over the trading week: The Dow Jones Industrial Average fallen 123 points, the S&P 500 Index has lost 19 points, the Nasdaq has dipped 18 points and the 100 Index has slipped 8 points.
Reporting season results
Harvey Norman Holdings Limited’s
(ASX:HVN) shares were given a boost after spruiking an upbeat outlook despite revealing a 17.5 per cent drop in net profit due to property write downs. Excluding these costs the electrical retailer’s annual profit dipped 3.3 per cent to $183 million, aided by improving conditions in the second half. CEO Gerry Harvey remains cautiously optimistic and hopes the current conditions will continue into Christmas. Shares in Harvey Norman Holdings jumped 4.51 per cent, ending the week at $3.01.
Virgin Australia Holdings Limited’s
(ASX:VAH) stock sank after the company swang to an annual net loss of $98.1 million from a profit the year before. Australia’s second largest carrier blamed the result on a difficult economic and competitive environment, restructuring and transformation costs and the carbon tax. The company declined to provide specific financial guidance but said in a separate release it has scored a cash injection from its major shareholders. Shares in Virgin Australia Holdings sank 3.7 per cent ending the week at 0.39.
Shares in Retail Food Group Limited
(ASX:RFG) gained 5.22 per cent after the owner of brands such as Donut King and Brumby's Bakery posted a 12 per cent rise in annual profit, underpinned by growth in its coffee and takeaway business. CEO Tony Alford says coffee remains a relatively unexploited opportunity with meaningful scope.
Shares in Austal Limited
(ASX:ASB) soared 5 per cent after the ship builder more than tripled its annual net profit on the back of record revenue. CEO Andrew Bellamy says Austal is currently targeting revenue of $1 billion and on the hunt for new defence vessel construction and service contracts.
Best and worst performers
The best performing sector was health care adding 186 points to close at 13,986.
The worst performing sector was real estate investment trusts, losing 0.1 points to close at 1,009 points.
The best performing stock in the S&PASX 200 was Perseus Mining Limited
(ASX:PRU), rising 9.86 per cent to close at $0.78. Shares in St. Barbara Limited
(ASX:SBM) and Beadell Resources Limited
(ASX:BDR) also closed higher.
The worst performing stock was Discovery Metals Limited
(ASX:DML), dropping 6.06 per cent to close at $0.15. Shares in Virgin Australia Holdings Limited
(ASX:VAH) and Horizon Oil Limited
(ASX:HZN) also closed lower.
Commodities
Gold is trading at $US1,407 an ounce, up $99.88 over the week.
Light crude is down $1.30 and sitting at $US108.80 a barrel.
The Australian dollar
The Australian dollar is buying 89.47 US cents, down $0.02 over the week.
