The Australian share market has closed very close to its 2013 high, buoyed by strong Chinese economic data and the further easing of tensions in Syria. Local stocks finished 0.6 per cent up, led by the materials sector, with consumer sentiment also hitting its highest level since December 2010.
The S&P/ASX 200 index closed 33 points up to finish at 5,234. The value of trades was $4.8 billion on volume of 858 million 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 Rio Tinto Limited
(ASX:RIO).
On the futures market the SPI is 25 points up.
Economic news
The Westpac-Melbourne Institute’s Index of Consumer Sentiment has hit a three year high in September, increasing 4.7 per cent to 110.6. Westpac’s chief economist Bill Evans says the outcome of the federal election and record low interest rates played big parts in the strong result.
Company news
Charter Hall Retail REIT
(ASX:CQR) has agreed to buy Westfield’s Innaloo Shopping Centre and the adjoining Innaloo Mega Centre shopping centres in Perth's north-west for $255 million. The acquisition is conditional on the Westfield Group
(ASX:WDC) and Westfield Retail Trust
(ASX:WRT) changing its ownership of the Karrinyup shopping centre, also in Perth, before Christmas. Shares in Charter Hall closed 1.62 per cent down at $3.64.
The most recent offer for residential lender RHG Limited
(ASX:RHG) has been described as inferior, highly conditional and not in shareholders best interests by competing bidder Resimac. Pepper Australia and Cadence Capital this week raised their offer for RHG to 36 cents per share plus a Cadence share offering, however Resimac says RHG shareholders are being pushed into accepting shares in Cadence, which is not well traded. Shares in RHG closed flat at $0.48.
McMillan Shakespeare Limited
(ASX:MMS) shares rose 4.29 per cent despite the salary packaging company saying investors will have to wait until its AGM in October to be given profit guidance.
Qantas Airways Limited
(ASX:QAN) shares firmed 2.18 per cent after it and the Western Australian government inked a $7.7 million agreement to market the state at home and internationally.
The Australian Competition and Consumer Commission has filed proceedings in the Federal Court against Australian Power and Gas Company Limited
(ASX:APK) in relation to its door-to-door selling.
Aluminium producer Alcoa Inc
(ASX:AAI) shares fell 3.66 per cent after news its is one of three companies losing its official blue-chip status after being dropped from the Dow Jones Industrial Average.
Best and worst performers
The best performing sector was Materials adding 134 points to close at 9,955.
The worst performing sector was Energy, losing 57 points to close at 14,061.
The best performing stock in the S&PASX 200 was CuDeco Limited
(ASX:CDU), rising 12.99 per cent to close at $2.00. Shares in Discovery Metals Limited
(ASX:DML) and Fortescue Metals Group Limited
(ASX:FMG) also closed higher.
The worst performing stock was Fleetwood Corporation Limited
(ASX:FWD), dropping 5.61 per cent to close at $3.70. Shares in Billabong International Limited
(ASX:BBG) and OceanaGold Corporation
(ASX:OGC) also closed lower.
Commodities
Gold is trading at $US1,366 an ounce. Light crude is $2.13 down at $US107.39 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9294.
