The Australian share market continued to climb today, ending 0.6 per cent stronger and extending a 15 per cent gain over 2013. As the last day of the year approaches the benchmark index looks to end the year above 5,300 for the first time since 2007.
Today’s gains were fuelled by the mining sector as firmer commodity prices helped to offset concerns over an approaching cyclone in Western Australia. A healthier gold price lifted the sub index more than 2 per cent and aided some recovery among the gold stocks.
Trading volumes remain subdued in light of the holiday period, fewer economic and company releases and ahead of a shortened trading day tomorrow and the New Years public holiday on Wednesday.
Figures
The S&P/ASX 200 index rose 33 points to close at 5,357.
The value of trades was $1.9 billion on volume of 380 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).
On the futures market the SPI is 19 points higher.
Surging stocks
Shares in Forge Group Limited
(ASX:FGE) rocketed after the engineer received official confirmation to start working on its $830 million contract for Gina Rinehart's Roy Hill iron ore project in Western Australia. The company’s shares plunged 90 per cent after issuing a profit warning in November, advanced more than 40 per cent last week after scoring $40 million worth of contract awards and today shares in Forge Group continued to rally, rising 54.63 per cent to end the session at $1.58.
Shares in Venturex Resources Limited
(ASX:VXR) climbed after the gold and base metals explorer inked a deal to sell the historic Whim Creek Hotel and accommodation village complex for $1.7 million. The assets are located southwest of Port Hedland in the Pilbara region of Western Australia and the deal is expected to be finalised in the first quarter of 2014.
Shares in Venturex Resources climbed 25 per cent to end the session at $0.01.
Mining news
Western Australia’s major minors including BHP Billiton Limited
(ASX:BHP) have had to halt loading ships as the approaching Tropical Cyclone Christine forced Port Hedland into lockdown mode over the weekend.
Pilbara focussed iron ore miner Fortescue Metals Group Limited
(ASX:FMG) has reported a fatality at its Christmas Creek site after a 23-year old male contractor employee died from an accident overnight.
Asset stake purchases
Construction giant Leighton Holdings Limited
(ASX:LEI) will take full ownership of its Indian-based joint venture with Welspun Group after buying its partner’s stake for $US99 million.
Asia Pacific focussed Donaco International Limited
(ASX:DNA) will boost its stake in the Lao Cai International Hotel Joint Venture in Vietnam to 95 per cent with the Government of Vietnam retaining a 5 per cent interest.
Best and worst performers
Across the sectors all were buoyant and finished on positive territory: On top was materials, gaining 113 points to close at 10,215.
The sector with the smallest gains was consumer staples, adding 26 points to close at 10,021 points.
The best performing stock in the S&PASX 200 was Forge Group Limited
(ASX:FGE), surging 54.63 per cent to close at $1.58. Shares in Silver Lake Resources Limited
(ASX:SLR) and Beadell Resources Limited
(ASX:BDR) also closed higher.
The worst performing stock was Orora Limited
(ASX:ORA), dropping 4.17 per cent to close at $1.15. Shares in Energy World Corporation Limited
(ASX:EWC) and Domino's Pizza Enterprises Limited
(ASX:DMP) also closed lower.
Commodities
Gold has lost some strength from overnight gains and is sitting at $US1,210 an ounce.
Light crude is $0.77 higher at $US100.32 a barrel.
The Australian dollar
The Australian dollar is weaker from this morning, buying $US0.8857.
