Market Wrap: ASX higher, yet pensive

Market Reports

The Australian share market has pegged back some of yesterday’s losses to close 0.3 per cent higher, however investors have largely kept their powder dry ahead of the US Federal Reserve’s monetary policy meeting, expected early tomorrow morning.Energy stocks led the gains for the local market, while the miners dragged.
 
The S&P/ASX 200 index closed 15 points up to finish at 5,431. The value of trades was $4.5 billion on volume of 739 million shares at the close of trade. The top three stocks by value were ANZ Banking Group (ASX:ANZ), National Australia Bank Limited (ASX:NAB) and Westpac Banking Corporation (ASX:WBC).
 
On the futures market the SPI is 8 points up.
 
Economic news

Total new home sales hit a two-year high in September, according to the Housing Industry Association. The HIA new home sales report recorded a 6.4 per cent lift in new home sales in September, the fastest monthly growth since April last year. The increase was underpinned by a 4.5 per cent rise in detached house sales and a 19.9 per cent jump in multi-unit sales, with low mortgage rates and an outlook for rising prices wooing more buyers.
 
Company news 
 
Leighton Holdings Limited (ASX:LEI) says it intends to ''vigorously defend'' a class action claim lodged against it in the Federal Court by law firm Maurice Blackburn. Leighton says the claim relates to the 11 April 2011 disclosure by Leighton of a revision of its profit forecast for the 2011 financial year. Shares in Leighton Holdings closed 0.91 per cent up at $17.80. 
 
Telstra Corporation Limited (ASX:TLS) is set to take NBN Co to the New South Wales Supreme Court over a $100 million payment dispute relating to the $11.2 billion agreement between the pair. A Telstra spokesperson says the impact of any outcome, while significant, will not be material from a market perspective. Shares in Telstra closed 0.19 per cent up at $5.17. 
 
Crown Limited (ASX:CWN) shares firmed after chairman James Packer told investors that Crown’s initial $600 million investment in a Macau casino is now worth in excess of $6 billion. Also today, Crown has officially changed its name to Crown Resorts Limited (ASX:CWN)
 
Macmahon Holdings Limited (ASX:MAH) has sold its 25 per cent share of the Express Rail Link project in Hong Kong to Leighton Asia.
 
Transpacific Industries Group Limited (ASX:TPI) shares gained 4.81 per cent after announcing it will put its New Zealand waste management business on the market so it can focus on growth opportunities in Australia. 
 
Insurance Australia Group Limited (ASX:IAG) shares gained 2.86 per cent after it confirmed it is on track to meet its full-year 2014 guidance, set to deliver an insurance margin of between 12.5 and 14.5 per cent, as well as gross written premium growth of five to seven per cent.
 
Best and worst performers

The best performing sector was Energy adding 129 points to close at 14,023.
The worst performing sector was Materials, closing flat at 10,030 points.
 
The best performing stock in the S&PASX 200 was Transpacific Industries Group Limited (ASX:TPI), rising 4.81 per cent to close at $1.09. Shares in Sundance Resources Limited (ASX:SDL) and Beach Energy Limited (ASX:BPT) also closed higher.
 
The worst performing stock was Perseus Mining Limited (ASX:PRU), dropping 12.26 per cent to close at $0.47. Shares in Paladin Energy Limited (ASX:PDN) and Evolution Mining Limited (ASX:EVN) also closed lower. 
 
Commodities

Gold is trading at $US1,343.50 an ounce. Light crude is $0.48 down at $US98.20 a barrel. The Australian dollar is buying $US0.9483. 

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?