Market Wrap: ASX up before US Fed decision

Market Reports

Rebounding from yesterday’s falls the Australian share market climbed to session highs ahead of the US Federal Reserve’s monetary policy announcement. America’s central bank is widely expected to reveal further tapering of its stimulus package when Ben Bernanke’s final meeting concludes tomorrow morning local time. Across the local board all but the telco sector ended higher, led by a 1.6 per cent gain from the resources sector. The local currency got a boost above $US0.88 after Turkey’s surprise rate hike soothed rising fears about emerging markets.  
 
Figures
 
The S&P/ASX 200 index gained 53.9 points to finish the session at 5,229. 
 
The value of trades was $4.3 billion on volume of 713 million shares at the close of trade. 
 
The top three stocks by value were Telstra Corporation Limited (ASX:TLS), BHP Billiton Limited (ASX:BHP) and Commonwealth Bank of Australia (ASX:CBA)
 
On the futures market the SPI is 44 points higher.
 
Economic news
 
An index which indicates the likely pace of economic activity three to nine months in the future has slipped slightly. Westpac Banking Corporation (ASX:WBC) and the Melbourne Institute’s leading index of economic activity eased to 1.06 per cent in December from 1.12 per cent the month before. Westpac chief economist Bill Evans says the read is inline with the bank’s view Australian economic growth will remain below trend for the year ahead. 
 
Online job advertisements fell at the end of 2013 according to official figures. The Department of Employment's internet vacancy index dropped 1.2 per cent in December to extend the annual decline of 11.1 per cent. Demand for professional positions fell 3.3 per cent and demand for labourers fell 2.7 per cent while demand for sales workers increased 2.3 per cent in the month. 
 
Company news
 
Shares in Atlas Iron Limited (ASX:AGO) jumped to today’s best performer after lifting its annual production guidance. The iron ore miner says record shipments and strong prices helped its first half result as it continues to reach milestones at its projects in the North Pilbara region of Western Australia. Shares in Atlas Iron gained 9.95 per cent today to end the session at $1.05.
 
Shares in Forge Group Limited (ASX:FGE) fell to today’s worst performer after warning it expects to book a loss of up to $25 million in the current 2014 financial year. Forge Group has also revealed it has appointed Euroz Securities to manage a number of approaches from third-parties interested in the company. Shares in Forge Group fell 8.89 per cent today to end the session at $0.82. 
 
Virgin Australia Holdings Limited (ASX:VAH) has announced eight new codeshare destinations which will span across the United States, Europe and the Middle East. 
 
Oil and gas explorer Drillsearch Energy Limited (ASX:DLS) says it is on track to triple its annual output after boosting its guidance on the back of performance from its Cooper Basin assets. 
 
Engineering group Ausenco Limited (ASX:AAX) has scored a contract to work on Bandanna Energy’s Limited (ASX:BND) Springsure Creek Coal project in Queensland.
 
Warrnambool Cheese & Butter Factory Co. (ASX:WCB) has told the market its last remaining suitor, Canadian dairy giant Saputo, has increased its stake in the dairy producer to beyond 75 per cent. 
 
Best and worst performers
 
The best performing sector was materials, adding 154 points to close at 10,058.
The worst performing sector was telco services, losing 5 points to close at 1,774 points.
 
The best performing stock in the S&P/ASX 200 was Atlas Iron Limited (ASX:AGO), jumping 9.95 per cent to close at $1.05. Shares in Ten Network Holdings Limited (ASX:TEN) and Drillsearch Energy Limited (ASX:DLS) also closed higher.
 
The worst performing stock was Forge Group Limited (ASX:FGE), falling 8.89 per cent to close at $0.82. Shares in JB Hi-Fi Limited (ASX:JBH) and Silver Lake Resources Limited (ASX:SLR) also closed lower. 
 
Commodities

Gold is buying $US1,254 an ounce. 
Light crude is $1.69 higher at $US97.41 a barrel. 
 
The Australian dollar
 
The Australian dollar is buying $US0.8805. 

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