The Australian share market came off the days highs however still finished 0.4 per cent up, buoyed by an apparent bottoming of the slowdown in China to trade up around its highest levels of the year. Materials and financials stocks led the markets gains today, while the healthcare sector finished at the bottom.
The S&P/ASX 200 index closed 20 points up to finish at 5,201. The value of trades was $3.9 billion on volume of 703 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 Westpac Banking Corporation
(ASX:WBC).
On the futures market the SPI is 15 points up.
Economic news
Business confidence surged to its highest level in more than two years in August in anticipation of a coalition election win, according to National Australia Bank's (NAB) monthly business survey. The survey showed business confidence rose 9 points to 6, up from -3 in July.
NAB chief economist Alan Oster said while an August rate cut and lower dollar may have helped sentiment, “it political factors – including an expectation of political change and more certainty about the future policy framework- were more important.
Company news
Drillsearch Energy Limited
(ASX:DLS) and Santos Limited
(ASX:STO) have formalised their joint venture in the Western Cooper Wet Gas project. Drillsearch says mutual due diligence conditions for the transaction have been satisfied and the group expects the partnership will deliver a material result. Santos has acquired a 60 per cent interest in the project and committed to fund a program to accelerate wet gas commercialisation. Shares in Drillsearch closed 0.72 per cent down at $1.37.
Tabcorp Holdings Limited
(ASX:TAH) has extended the exclusivity period of its NSW retail wagering license for 20 years. Tabcorp will pay $75 million to the NSW government for the extension, which enables its TAB subsidiary to continue operating as the sole provider of fixed odds betting in a retail environment in the state until 2033. Shares in Tabcorp closed 1.27 per cent up at $3.20.
BHP Billiton Limited
(ASX:BHP) has opened a corporate office in New York as part of its growing profile in North America.
Wesfarmers Limited
(ASX:WES) requires a minimum of $50 million in Tier 1 capital for key subsidiary Coles to obtain a banking licence.
Elders Limitd
(ASX:ELD) has reached a deal to extend its loan facilities and has also flagged job cuts as the group pushes forward with its plans to become an agricultural business alone.
IRESS Limited
(ASX:IRE) says its purchase of financial services software provider Avelo FS Holdings is now complete, after getting the go-ahead from the UK Financial Conduct Authority.
Best and worst performers
The best performing sector was Materials adding 61 points to close at 9,821.
The worst performing sector was Healthcare, losing 61 points to close at 13,779.
The best performing stock in the S&PASX 200 was Fleetwood Corporation Limited
(ASX:FWD), rising 11.68 per cent to close at $3.92. Shares in Billabong International Limited
(ASX:BBG) and Emeco Holdings Limited
(ASX:EHL) also closed higher.
The worst performing stock was Automotive Group Holdings Limited
(ASX:AHE), dropping 7 per cent to close at $3.72. Shares in Silver Lake Resources Limited
(ASX:SLR) and Perseus Mining Limited
(ASX:PRU) also closed lower.
Commodities
Gold is trading at $US1379.50 an ounce. Light crude is $1.01 down at $US109.52 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9272.
