Industrials rally: Aus shares close 0.21% higher

Market Reports

by Carolyn Herbert

It has been a positive end to the trading session for the Australian share market, after stronger leads from Wall Street overnight. The local bourse opened higher and managed to remain in the black for the rest of the session, closing the day 0.21 per cent higher. The industrials space did the bulk of the heavy lifting today, but we also saw gains in REITs and Materials. Financials fared the worst today, with a mixed finish from the big four banks.

At the closing bell the S&P/ASX 200 index closed 12 points up to finish at 5,851.

The value of trades was $6.2 billion on volume of 866 million shares at the close of trade. The top three stocks by value were National Australia Bank Limited (ASX:NAB), Macquarie Group (ASX:MQG) and Commonwealth Bank of Australia (ASX:CBA).

On the futures market the SPI is 29 points up.

Asian markets

Taking a look at how Asian markets are tracking in afternoon trade. The Nikkei is up 0.25 per cent, Hong Kong’s Hang Seng is down 0.2 per cent and the Shanghai Composite is 0.1 per cent higher.

Economic news

The Reserve Bank of Australia says Australia’s housing market requires careful monitoring, as outlined in the board minutes of its May policy meeting. The RBA also cited softness in the jobs market as another reason for leaving interest rates on hold at a record low of 1.5 per cent.

Company news

TerraCom Limited (ASX:TER) has announced its wholly owned subsidiary Orion Mining is now the mining title holder for the Blair Athol Coal Mine. TerraCom says it expects to assume control of the mine site this month and recommence mining and rehabilitation activities in June. Based on current coal prices, the company plans to export an estimated $1.2 billion in product from Blair Athol over the next 7 years. Shares in TerraCom Limited closed flat at $0.029.

Flight Centre Travel Group (ASX:FLT) has expanded its European corporate travel footprint, with the purchase of a travel and technology company which operates in France, Switzerland and Spain.

CIMIC Group’s (ASX:CIM) CPB Contractors have won a contract that will see them earn NZ$82 million, for the final phase of the NZ Transport Agency Project.

Charter Hall Long WALE REIT (ASX:CLW) has expanded its portfolio with the purchase of Bunnings Warehouse in South Mackay, Queensland.

Best and worst performers

The best performing sector was Industrials adding 1.2 per cent to close at 5,754. The worst performing sector was Financials, losing 0.35 per cent to close at 6,658 points.

The best performing stock in the S&P/ASX 200 was Saracen Minerals (ASX:SAR), rising 5.7 per cent to close at $1.02. Shares in Sims Metal (ASX:SGM) and Fairfax (ASX:FXJ) also closed higher.

The worst performing stock was Sirtex (ASX:SRX), dropping 4.2 per cent to close at $14.84. Shares in Western Areas (ASX:WSA) and Vocus Group (ASX:VOC) also closed lower.

Commodities and the dollar

Gold is trading at $US1,236 an ounce.
Light crude is $0.97 higher at $US49.14 a barrel.
The Australian dollar is buying $US0.7426.


Carolyn Herbert

Finance News Network
Carolyn joined FNN in August 2015 as the Head of News and also presented the Market at Midday and the Market Wrap. With more than five years of broadcast journalism experience, Carolyn has worked as a finance anchor on the Sky News Business channel and as an anchor and reporter for ABC News. She is also a qualified corporate lawyer specialising in IPOs, takeovers and mergers and acquisitions.