The Australian share market snapped three days of losses to end its first session of the week 0.8 per cent stronger, with telco services the only major sector to finish in negative territory. Energy stocks led the gains, while the consumer staples and consumer discretionary sectors also performed strongly.
The S&P/ASX 200 index closed 42 points up to finish at 5,276. The value of trades was $4.2 billion on volume of 650 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), National Australia Bank Limited
(ASX:NAB) and BHP Billiton Limited
(ASX:BHP).
On the futures market the SPI is 34 points up.
Economic news
The Reserve Bank of Australia has encouraged the nation’s lenders to maintain loan standards as record-low interest rates spur households’ investment appetite. The Central bank said in its financial stability review that-
"There are some signs that households are taking on more risk in their investment decisions, and it is important that banks do not respond to pressures to boost revenue by imprudently loosening their lending standards, or by making ill-considered moves into new markets or products.’’
Company news
Telstra Corporation Limited
(ASX:TLS) will shed 1,100 jobs as part of a ‘streamlining’ restructure that was flagged earlier this year. The telco will reduce approximately 6 per cent of its operations workforce, aiming to remove complexities and duplication while focusing on growth opportunities in the network applications and services division. Shares in Telstra closed flat at $4.93.
The Queensland government has extended Tabcorp Holdings Limited
(ASX:TAH) keno licence until 2047, following an announcement in April.
The extension was granted for a $20 million fee, and provides what Managing Director David Attenborough describes as long term certainty for the wagering firms operations in Queensland. Shares in Tabcorp closed 1.87 per cent up at $3.27.
Nufarm Limited
(ASX:NUF) says challenging seasonal conditions and a tough Australian market have affected its full year net profit, despite it lifting by 11.6 per cent to $81 million.
David Jones Limited
(ASX:DJS) shares rose 4.91 per cent after it reported a 5.9 per cent dip in its full year net profit of $95.2 million and said it is well positioned to capitalise on any rebounding consumer confidence.
Skilled Group Limited
(ASX:SKE) shares firmed 2.2 per cent after wholly owned subsidiary Skilled Offshore was awarded a contract for works on the Icthys LNG Project offshore Western Australia, valued at approximately $200 million.
Qantas Airways Limited
(ASX:QAN) shares gained 1.66 per cent after budget carrier Jetstar moved closer to realising its Asian expansion plans after Singapore’s competition regulator cleared the way for the airline’s offshoots to coordinate passenger and cargo services.
Best and worst performers
The best performing sector was Energy adding 167 points to close at 14,218.
The worst performing sector was Telco services, losing 0.9 points to close at 1,708.
The best performing stock in the S&PASX 200 was Linc Energy Limited
(ASX:LNC), rising 9.15 per cent to close at $1.55. Shares in Evolution Mining Limited
(ASX:EVN) and Ten Network Holdings Limited
(ASX:TEN) also closed higher.
The worst performing stock was TPG Telecom Limited
(ASX:TPM), dropping 2.92 per cent to close at $4.32. Shares in Mount Gibson Iron Limited
(ASX:MGX) and BlueScope Steel Limited
(ASX:BSL) also closed lower.
Commodities
Gold is trading at $US1,328.57 an ounce. Light crude is $0.46 down at $US103.13 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9365.
