The Australian share market ended the day and week stronger following better than expected China growth figures released today and a US debt deal struck earlier in the week. Buoyed by a new wave of optimism strength in all sectors lifted the local market to its highest point in more than five years.
The gold sub-index soared 5 per cent following a strong week for the precious metal amid speculation the US government will hold off tapering its economic stimulus program even longer than first expected.
Elsewhere the financials sector added 0.8 per cent and the miners gained 0.3 per cent after upbeat Chinese growth figures defused fears of a slowdown in the world’s second largest economy.
Figures
The S&P/ASX 200 index rallied 38 points today, extending the weekly gain of 94 points to end the week at 5,321.5.
The value of trades was $4.3 billion on volume of 769 million shares at the close of trade.
The top three stocks by value were BHP Billiton Limited
(ASX:BHP), National Australia Bank Limited
(ASX:NAB) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 41 points higher.
Wall Street
US indices have advanced over the four trading days this week: The Dow Jones Industrial Average has gained 246 points, the S&P 500 Index has gained 41 points, the Nasdaq has gained 102 points and the 100 Index has gained 90 points.
Economic news
China’s economy rebounded in the third quarter of this year and grew at the quickest quarterly pace in 2013. The National Bureau of Statistics reports China’s economy expanded 7.8 per cent in the third quarter from 7.5 per cent over the prior three months. The result was aided by strength in China’s factory production, property market and trade performance.
Company news
A bidding war has erupted for Warrnambool Cheese & Butter Factory Co
(ASX:WCB) with a third bidder today emerging for the Victorian dairy exporter. Australia’s largest dairy group Murray Goulburn Co-operative has launched a rival $420 million bid of $7.50 cash per share.
The offer trumps a $7 cash per share bid from Canadian dairy giant Saputo and a 13 per cent premium to the implied value of a scrip-based offer from Bega Cheese Limited (ASX:BGA). Shares in Warrnambool Cheese & Butter Factory jumped 6.33 per cent today, ending the week at $7.89.
Qantas Airways Limited
(ASX:QAN) has issued a bleak outlook at its annual general meeting in Brisbane today and declined to provide earnings guidance. Australia’s largest airline does however expect first half yields to ease 2 per cent to 3 per cent due to soft underlying demand and competitive pressures. CEO Alan Joyce says the company is yet to see improving business confidence translate to higher demand for travel. Shares in Qantas Airways fell 3.38 per cent today, ending the week at $1.43.
Shares in Crown Limited
(ASX:CWN) rose 1.39 per cent after confirming it is in talks to develop a $400 million resort in Sri Lanka. The casino owner and operator says it is in detailed discussions with the Sri Lankan Government and potential joint venture partners about the development of a 5-star resort in Colombo.
Shares in Santos Limited
(ASX:STO) dropped 0.94 per cent after warning its annual oil and gas production is likely to fall to the lower end of guidance due to technical disruptions. The energy giant has also today posted record quarterly sales revenue of more than $1 billion and confirmed its large LNG projects remain on schedule.
Best and worst performers
All sectors advanced and ended on positive territory: The best performing sector was health care lifting 154 points to close at 14,060.
The sector with the smallest gains was real estate investment trusts, adding 9 points to close at 1,047 points.
The best performing stock in the S&PASX 200 was CuDeco Limited
(ASX:CDU) after securing funding through a $105 million credit facility. Shares in CuDeco climbed 10.77 per cent to close at $2.16. Shares in Paladin Energy Limited
(ASX:PDN) and Medusa Mining Limited
(ASX:MML) also closed stronger.
The worst performing stock was Atlas Iron Limited
(ASX:AGO), dropping 4.35 per cent to close at $0.99. Shares in Qantas Airways Limited
(ASX:QAN) and Ansell Limited
(ASX:ANN) also closed lower.
Commodities
Gold is trading at $US1,317 an ounce, up $22.20 over the week.
Light crude is $1.62 lower at $US100.67 a barrel.
The Australian dollar
The Australian dollar is buying 96.18 US cents, up $0.0149 over the week.
