The Australian share market has ended the last day of the week flat ahead of the nation’s Federal Election tomorrow. Local stocks rebounded from session lows to enter positive territory as Australians gear up to elect our next prime minister.
Attention will also remain fixed on America as the nation’s monthly jobs report rolls in this evening. Investors will look to the release for indications of when the US Federal Reserve may start to taper its economic stimulus program.
As speculation circles the bond-buying program may soon be coming to an end the price of gold has remained at near a two-week low. The gold sector continued to struggle today while the broader bourse recovered from steeper losses.
Figures
The S&P/ASX 200 added 2.5 points today, increasing the weekly gain of 10 points to finish at 5,145.
The value of trades was $4.3 billion on volume of 743 million shares at the close of trade.
The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), BHP Billiton Limited
(ASX:BHP) and QBE Insurance Group Limited
(ASX:QBE).
On the futures market the SPI is 3 points higher.
Wall Street
US stocks gained over the trading week: The Dow Jones Industrial Average has added 97 points, the S&P 500 Index has added 17 points, the Nasdaq has added 38 points and the 100 Index has added 37 points.
Economic news
Australia’s construction industry continued to shrink last month despite record low interest rates. The Australian Industry Group and Housing Industry Association’s Performance of Construction Index eased 0.4 points to 43.7 in August, with a read below 50 indicating contraction.
Company news
Sunland Group Limited
(ASX:SDG) has lost an appeal to claim $14 million in damages from two Australian businessmen involved in a $63 million waterfront property transaction in Dubai. The property developer had sought to recover funds from Matt Joyce and Angus Reed but its appeal was again rejected by the Court of Appeal today and deemed groundless. Shares in Sunland Group rose 4.09 per cent today, finishing the week at $1.78.
A founding shareholder of BC Iron Limited
(ASX:BCI) has sold a 23.1 per cent stake in the iron ore junior. Ukrainian-controlled Consolidated Minerals sold the shares at $3.90 to institutional investors through a book build handled by Macquarie Group Limited
(ASX:MQG). Shares in BC Iron fell 2.44 per cent today, ending the week at $4.00.
Wesfarmers Limited
(ASX:WES) owned Coles is reportedly moving in on securing a formal banking licence. The supermarket giant is understood to have applied for a licence to the Australian Prudential Regulation Authority which would enable it to take deposits under the name Coles though the licence would be likely held by Wesfarmers.
Leighton Holdings Limited
(ASX:LEI) subsidiary Thiess has scored a $1.8 billion contract to construct gas compression facilities for the QCLNG project in the Surat Basin. The company’s chief says the enormous investments into developing Australia’s coal seam gas fields and LNG is driving a diverse range of opportunities.
Best and worst performers
The best performing sector was financials excluding real estate investment trusts, adding 18 points to close at 6,616.
The worst performing sector was health care, losing 57 points to close at 13,832 points.
The best performing stock in the S&PASX 200 was Discovery Metals Limited
(ASX:DML), rising 4 per cent to close at $0.13. Shares in GWA Group Limited
(ASX:GWA) and Pacific Brands Limited
(ASX:PBG) also closed higher.
The worst performing stock was Kingsgate Consolidated Limited
(ASX:KCN), dropping 7.58 per cent to close at $1.95. Shares in Transfield Services Limited
(ASX:TSE) and Northern Star Resources Limited
(ASX:NST) also closed lower.
Commodities
Gold is trading at $US1,370 an ounce, down $25 over the week.
Light crude is $1.14 higher at $US108 a barrel.
The Australian dollar
The Australian dollar is buying 91.32 US cents, up $0.02 over the week.
