The Australian share market has closed slightly higher, defying widely held expectations of a tumble amid the seemingly interminable US debt imbroglio. Healthcare lead the gains for the local majors, with CSL firming notably on a $950 million buy back announcement. Materials also performed strongly, particularly iron ore players, with Rio Tinto, BHP, Fortescue and Atlas Iron all strong.
The S&P/ASX 200 index closed 4 points up to finish at 5,263. The value of trades was $4 billion on volume of 680 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Rio Tinto Limited
(ASX:RIO) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 4 points up.
Economic news
The Westpac-Melbourne Institute leading index of economic activity fell slightly in August however remained above trend. The index, indicating the likely pace of economic activity three to nine months into the future, was 3.2 per cent in August, compared with 4.1 per cent in July, managing to remain above its long term trend of 2.9 per cent. Westpac chief economist Bill Evans said the economy has experienced a significant loss of momentum since the start of the year.
Company news
Sunland Group Limited
(ASX:SDG) says it has decided not to pursue its applications for special leave to appeal to the High Court about a Victorian Court of Appeal decision to make it pay special costs relating to a controversial waterfront property deal in Dubai. The property group says legal costs from the proceedings have been and will continue to be expensed as incurred. Shares in Sunland Group closed 0.29 per cent down at $1.74.
The Aluminium Corporation of China has reportedly valued the transfer of its stake in Rio Tinto’s Limited
(ASX:RIO) Guinean iron ore project at $US2.07 billion. Rio Tinto Limited
(ASX:RIO) has reaffirmed its 2013 iron ore production guidance after increasing global iron ore shipments in the third quarter. Shares in Rio Tinto closed 1.44 per cent up at $64.11.
Brambles Limited
(ASX:BXB) shares lifted 0.97 per cent after it lifted first-quarter sales performance of its pooling solutions operations on the back of new contract wins and the acquisition of Pallecon at the end of last year.
Blood products giant CSL Limited
(ASX:CSL) shares rose 1.35 per cent despite announcing a one-off US settlement charge of $US39 million will cut growth in its net profit from 10 to 7 per cent.
Warrnambool Cheese & Butter Factory Co.
(ASX:WCB) encouraged shareholders to reject a takeover proposal from rival Bega Cheese, stating it is inferior to that received from Canadian dairy giant Saputo.
Mount Gibson Iron Limited
(ASX:MGX) shares jumped 6.49 per cent after announcing it is on track to meet its fiscal 2014 iron ore sales guidance after lifting ore sales in the September quarter.
Best and worst performers
The best performing sector was Healthcare adding 87 points to close at 13,775.
The worst performing sector was Energy, losing 49 points to close at 13,967.
The best performing stock in the S&PASX 200 was Sundance Resources Limited
(ASX:SDL), rising 12.35 per cent to close at $0.09. Shares in Mount Gibson Iron Limited
(ASX:MGX) and Atlas Iron Limited
(ASX:AGO) also closed higher.
The worst performing stock was Lynas Corporation Limited
(ASX:LYC), dropping 5.19 per cent to close at $0.36. Shares in Pacific Brands Limited
(ASX:PBG) and Iluka Resources Limited
(ASX:ILU) also closed lower.
IPO's Sealink Travel Group Limited
(ASX:SLK) started trading today. The tourism and transport provider floated with an issue price of $1.10, opened at $1.51 and a closed at $1.50.
Commodities
Gold is trading at $US1,281 an ounce. Light crude is $1.20 down at $US101.21 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9522.
