The Australian share market opened and closed higher after trading in a tight range throughout the session. China’s better than expected factory data supported market gains and jolted the Australian dollar to a three-week high. Investors also absorbed a record close for the S&P 500, upbeat US earnings reports and a decision by New Zealand’s Central Bank to lift rates. Across the local board gold stocks suffered but the miners pared most losses by close and gains were led by tech stocks, telcos and retailers.
Figures
The S&P/ASX 200 index added 11 points today to close at 5,588.
The value of trades was $4.24 billion on volume of 729 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 6 points higher.
Economic news
China’s manufacturing activity has exceeded expectations and accelerated to an 18-month high this month. The HSBC flash China manufacturing purchasing managers' index rose to 52 in July, remaining above 50 which indicates expansion and beating expectations for a read of 51.
Company news
Atlas Iron Limited
(ASX:AGO) advanced to one of the best performers after the iron ore miner outlined plans to improve profitability. The company says it is on target to boost output and cut costs to offset the recent declines in the iron ore price. Managing Director Ken Brinsden says the year ahead will mark a key turning point in the company’s growth after a period of investment in project development. Shares in Atlas Iron advanced 3.51 per cent to close at $0.59.
Newcrest Mining Limited
(ASX:NCM) slumped to one of the worst performers after Australia’s largest listed gold producer warned of more massive asset impairments. The company expects to book write-downs of between $1.5 billion to $2.5 billion in fiscal 2014. The news comes about a year after revealing $6 billion in asset impairments which are the subject of a shareholder class action launched by Slater & Gordon Limited
(ASX:SGH) earlier this week. Shares in Newcrest Mining slumped 6.18 per cent to close at $10.78.
Telstra Corporation Limited
(ASX:TLS) lifted 0.55 per cent after Australia’s largest telco revealed plans to send 671 jobs to Asia as part of its increasing focus on the region.
Insurance Australia Group Limited
(ASX:IAG) rose 2.15 per cent after the insurer hiked its annual profit margin expectations for the 2014 financial year due to benign weather and fewer claims.
AGL Energy Limited
(ASX:AGK) added 0.14 per cent as the energy giant took a step closer to securing New South Wales power producer Macquarie Generation after Australia’s competition regulator said it will not block the deal.
Macquarie Group Limited
(ASX:MQG) fell 2.87 per cent after Australia’s largest listed investment bank posted a soft start to the new financial year but forecast an upbeat fiscal 2015.
Best and worst performers
The best performing sector was telco services, adding 0.5 per cent to close at 1,904.
The worst performing sector was industrials, losing 0.09 per cent to close at 4,169 points.
The best performing stock in the S&P/ASX 200 was Paladin Energy Limited
(ASX:PDN), rising 4.11 per cent to close at $0.38. Shares in Atlas Iron Limited
(ASX:AGO) and Veda Group Limited
(ASX:VED) also closed higher.
The worst performing stock was Lynas Corporation Limited
(ASX:LYC), dropping 7.5 per cent to close at $0.18. Shares in Newcrest Mining Limited
(ASX:NCM) and Resolute Mining Limited
(ASX:RSG) also closed lower.
Commodities
Gold has fallen to $US1,296 an ounce.
Light crude is $0.73 higher at $US103.12 a barrel.
Currencies
The Australian dollar is buying $US0.9439.
