The Australian share market climbed to session highs and ended back above the 5,300 level after being knocked down earlier in the week. Stocks soared more than 1 per cent by close to widen a two-day winning streak despite softer than expected local labour force figures released in the morning.
All sectors closed higher with financials reversing losses and resources building on gains throughout the session. A series of strong production reports from the mining and energy sectors supported the sectors as the gold sub-index jumped 3.5 per cent by close.
On the downside the local currency back-flipped under $US0.90 to hit a 3.5 year low following the disappointing jobs data.
Figures
The S&P/ASX 200 index gained 63.7 points by close to finish at 5,309.
The value of trades was $4.4 billion on volume of 723 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 Westpac Banking Corporation
(ASX:WBC).
On the futures market the SPI is 67 points stronger.
Economic news
Australia’s jobless rate remained steady at the end of 29013 while the economy lost more jobs than expected. The Australian Bureau of Statistics reports the official unemployment rate remained at 5.8 per cent in the month of December. Over the same period the economy lost 22,600 jobs with the number of people employed now at 11.63 million. The participation rate also dipped from the month before to 64.6 per cent of the population in December.
Company news
Bega Cheese Limited
(ASX:BGA) has flagged plans to sell its stake in Warrnambool Cheese & Butter Factory Co.
(ASX:WCB) to the takeover target’s suitor, Canadian dairy giant Saputo. The sale comes after Bega pulled out of the race for Warrnambool last month and ends their strategic relationship which began in 2010. Suputo is now poised to gain a 45 per cent stake in Warrnambool. Suputo is vying for control of Warrnambool against rival suitor Murray Goulburn.
Shares in Warrnambool Cheese & Butter Factory ended the session 1.29 per cent higher at $9.40.
Iron ore miner Fortescue Metals Group Limited
(ASX:FMG) has inked a long-term gas pipeline deal aimed at cutting costs at its mining operations in the Pilbara region of Western Australia. Infrastructure provider Duet Group
(ASX:DUE) will build, own and operate the pipeline. Mining services provider Monadelphous Group Limited
(ASX:MND) has scored a $100 million contract to help construct the gas pipeline. Shares in Fortescue Metals Group ended the session 3.75 per cent higher at $5.53.
Production reports
Shares in Rio Tinto Limited
(ASX:RIO) rose after beating its annual cost-cutting targets and forecasts for copper and iron ore output. The global miner also achieved record iron ore and coal production in 2013.
Shares in Woodside Petroleum Limited
(ASX:WPL) lifted after reporting record annual production and a slight fall in revenue over 2013. The oil and gas giant also flagged $US400 million in write-downs.
Shares in Newcrest Mining Limited
(ASX:NCM) jumped after Australia's largest listed gold miner boosted its quarterly gold and copper production and predicted annual gold production will reach the higher end of its forecast range.
Shares in Iluka Resources Limited
(ASX:ILU) soared after the mineral sands miner reported lower production but higher sales volumes in its quarterly report and said its revenue was impacted by lower prices.
Best and worst performers
All sectors climbed onto positive ground by close: The best performing sector was materials, advancing 252 points to close at 10,078. The sector with the smallest losses was financials excluding real estate investment trusts, adding 27 points to close at 6,848 points.
The best performing stock in the S&P/ASX 200 was Iluka Resources Limited
(ASX:ILU), soaring 7.63 per cent to close at $8.89. Shares in Newcrest Mining Limited
(ASX:NCM) and Atlas Iron Limited
(ASX:AGO) also closed higher.
The worst performing stock was Evolution
(ASX:EVN), dropping 4.17 per cent to close at $0.58. Shares in Resolute Mining Limited
(ASX:RSG) and Silver Lake Resources Limited
(ASX:SLR) also closed lower.
Commodities
The price of gold has gained over today, buying $US1,242 an ounce.
Light crude is $1.58 higher at $US94.17 a barrel.
Currencies
The Australian dollar fell following disappointing labour force figures and is buying $US0.8815.
