A positive opening and a late rally have seen Australian shares close 1.08 per cent higher. Banks and bluechips like Woolworths all helped push the ASX up. The S&P/ASX 200 index closed 56 points up to finish at 5,222.
The value of trades was $3.9 billion on volume of 613 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Telstra Corporation Limited
(ASX:TLS) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 48 points up.
Economic news
Mixed signals continue to emerge from Europe as Germany announced its industrial production fell during December. The news reduced forecasts for German economic growth. Meanwhile in Britain, the trade deficit narrowed from $6.61 billion in November to $1.84 billion in December. Analyst believed the result was due to stronger demand within the EU as well better export performance in markets outside of the EU.
Closer to home, Japan has posted its smallest current account surplus on record. Sluggish exports, despite a low Yen, against higher energy costs fed the result and fears now exists for Japan’s ability to service its large foreign debt.
Company news
National Australia Bank Ltd.
(ASX:NAB) has been reported in Australian and British News Corp publications as weighing up a float of its troublesome British banking assets. NAB is the parent company of Clydesdale and Yorkshire banks, both of which have faced challenging conditions in the recession economy of the UK. Improving economic conditions has increased the chance NAB will offload Clydesdale as part of an exit plan in the UK. Shares in National Australia Bank Ltd.
(ASX:NAB) closed 1.92 per cent up at $33.41.
The market also seemed to like news that Westpac Banking Corp
(ASX:WBC) Deputy Chairman John Curtis will retire in April. The bank said in a statement that Mr Curtis drove key strategic initiative such as the merger of Westpac Banking Corp
(ASX:WBC) with St George Bank which Mr Curtis describes as an ‘outstanding success.’
Shares in Westpac Banking Corp
(ASX:WBC) closed 1.66 per cent up at $31.77.
BHP Billiton Limited
(ASX:BHP) will axe 230 jobs at its Saraji Mine in Queensland. The Big Australian told the market it was part of its ‘relentless focus on productivity.’ The joint venture with Mitsubishi produces coking coal, a market that has suffered a downturn in recent years.
Despite the news, shares in BHP Billiton Limited
(ASX:BHP) closed 1.14 per cent up.
Regional Express Holdings Ltd
(ASX:REX) suffered a large fall on today’s trade after COO Gary Filmer claimed whole industry was haemorrhaging money and on the verge of collapse. The news comes after Virgin announced last week it too expects a significant loss this year. Mr Filmer called upon the Abbott government to make immediate efforts to avoid another Brindabella. Shares in Regional Express Holdings Ltd
(ASX:REX) closed 10.56 per cent down.
To the best and worst performers, and all sectors were up. The best performing sector was Financials excluding REITs adding 100 points to close at 6,696. The smallest gains were in REITs, which was up 0.7 of a point to close at 987 points. That was followed by Utilities.
The best performing stock in the S&P/ASX 200 was EVOLUTION FPO
(ASX:EVN), rising 12.77 per cent to close at $0.80. Shares in Forge Group Limited
(ASX:FGE) and Resolute Mining Limited
(ASX:RSG) also closed higher.
The worst performing stock was Ten Network Holdings Limited
(ASX:TEN), dropping 4.23 per cent to close at $0.34. Shares in Lynas Corporation Limited
(ASX:LYC) and JB Hi-Fi Limited
(ASX:JBH) also closed lower.
Commodities
Gold is buying $US1,269 an ounce. Light crude is $2.04 up at $US99.88 a barrel. The Australian dollar is buying $US0.8938.
