The Australian share market has rocketed up to finish the day of trade close to a per cent higher on investor confidence of a US political breakthrough in the debt ceiling debate. Energy stocks led the gains locally, as most of the major sectors settled in positive territory. The Australian dollar lifted more than half a US cent to a four-month high on signs of that potential US resolution.
Figures
The S&P/ASX 200 index is 51 points up at 5,259. On the futures market the SPI is 43 points higher.
The value of trades was $3.8 billion on volume of 648 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)
Economic news
The Australian Bureau of Statistics says that business finance commitments rose 7 per cent to $34.4 million in August, from $32.2 million in July. Meanwhile, personal lending commitments slipped 2.6 per cent to $7.8 million, from $8 million in June.
The RBA released the minutes from its October board meeting, repeating that it retains the option of further rate reductions as policy makers assess the impact of the already substantial policy stimulus on the Australian economy. The central bank said “The effect of low interest rates was evident across a range of indicators and had further to run,’’
Company news
Fairfax Media Limited
(ASX:FXJ) has poached Tourism Australia boss Andrew McEvoy, who will head up its events division from the start of next year. CEO Greg Hywood says Mr McEvoy’s appointment will drive new revenue and greatly enhance Fairfax’s performance in the events sector. Fairfax shares closed 0.95 per cent higher at 53 cents.
Rio Tinto Limited
(ASX:RIO) has reaffirmed full-year production guidance for its Oyu Tolgoi mine but is still in discussions with Chinese customs officials to allow customers to collect their copper concentrate. Rio subsidiary Turquoise Hill Resources, which owns 66 per cent of the Mongolian mine, said it produced over 30,000 tonnes of copper in concentrates in the third quarter of 2013. Shares in Rio lifted 2.5 per cent at the close to $63.20.
Gaming company Crown Limited
(ASX:CWN) shares hit a record high in early trade after Macquarie analysts upgraded their growth outlook for its Macau operations.
RHG Limited
(ASX:RHG) entered a trading halt ahead of an announcement regarding a further takeover proposal from the Resimac and Australian Mortgage Acquisition Company syndicate.
Cochlear Limited
(ASX:COH) chairman Rick Holliday-Smith says the company expects fiscal 2014 net profit after tax to be in line with the previous year, with a heavy bias to the second half.
Telstra Corporation Limited
(ASX:TLS) chief executive officer David Thodey says the telco will be aggressively pursuing opportunities to capitalise on increasing demand for services amid the rise of Asia’s middle class.
Best and worst performers
The best performing sector was Energy adding 256 points to close at 14,016.The worst performing sector was Health Care, losing 46 points to close at 13,688 points.
The best performing stock in the S&PASX 200 was Linc Energy Limited
(ASX:LNC), rising 15.7 per cent to close at $1.40. Shares in Fortescue Metals Group Limited
(ASX:FMG) and Lynas Corporation Limited
(ASX:LYC) also closed higher.
The worst performing stock was Whitehaven Coal Limited
(ASX:WHC), dropping 5.6 per cent to close at $1.69. Shares in Echo Entertainment Group Limited
(ASX:EGP) and Paladin Energy Limited
(ASX:PDN) also closed lower.
Commodities
Gold is trading at $US1,273 an ounce. Light crude is $0.39 up at $US102.41 a barrel. The Australian dollar is buying 95.37 US cents.
