The Australian sharemarket has staged a bit of a comeback after a brief rally in gold and oil prices with the ASX closing 1.41 per cent higher.
The S&P/ASX 200 index closed 74 points up to finish at 5,281.
The value of trades was $5.2 billion on volume of 874 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 ANZ Banking Group
(ASX:ANZ)
On the futures market the SPI is 80 points up.
Economic news
The Reserve Bank has left the cash rate on hold at 2.5 per cent for the 15th consecutive month. The RBA expressed no alarm at the softer commodity prices but again reiterated that it believes the Aussie dollar remains at levels above its fundamental value.
Third quarter balance of payments showed the current account deficit narrowed to $12.5 billion, down from $13.9 in the June quarter and below expectations of $13.5 billion.
And ABS figures show a strong bounce in new dwelling approvals for October after an 11.2 per cent fall in September. Total dwelling approvals rose by a seasonally adjusted 11.4 per cent led by a rebound in multi-unit dwellings which were up by 30 per cent for the month.
Company news
Fortescue Metals Group (ASX)FMG) is tackling a potential drug problem at its Pilbara mine sites by joining with police to crackdown on workers. Management watched on as police and sniffer dogs searched fly-in, fly-out workers to the Christmas Creek site this morning. In a statement on its website today, FMG CEO Nev Power said, “Illegal drugs do not belong in the mining industry, just as they do not belong in the community, and anyone who uses illegal drugs on a Fortescue site is putting the safety of themselves and their mates at risk, which is unacceptable’. Western Australian police confirmed they had carried out drug raids at mine sites operated by Fortescue. FMG closed 1.91 per cent lower at $2.57.
Vocation Limited
(ASX:VET) has been placed in a trading halt today. The company has requested the halt so it can complete financial reviews and expects to update its 2015 financial year guidance by Thursday December 4 if not before. Just last week, Vocation chairman John Dawkins quit on the spot saying that Vocation needed to rebuild the support of its shareholders. The education services provider recently completed a review of its Victorian business after complaints that the courses were over priced and not up to scratch. The restructure resulted in 87 redundancies. Shares in Vocation last traded at $0.50.
Sydney Airport Limited
(ASX:SYD) says it will open the first stage of road and car park upgrades at Terminal 1 this month just in time to cater for the busy Christmas holiday travel season.
Villa World Limited
(ASX:VLW) has announced the purchase of two sites in South East Queensland. The residential developer has agreed to pay a total of $13.65 million for the Joyner and Mango Hill sites which are expected to realise a total of 182 residential lots.
Qantas Airways Limited
(ASX:QAN) has today launched Qantas Golf Club as part of a continued push to lure frequent flyers with new incentives.
Alumina Limited
(ASX:AWC) has completed the divestment of its stake in the Jamalco alumina refinery in Jamaica to Noble Group for $US140 million.
Best and worst performers
The best performing sector was materials adding 3.0 per cent to close at 8,586. The only sector not to make gains today was consumer staples, losing 0.6 per cent to close at 9,038 points.
The best performing stock in the S&P/ASX 200 was Evolution Mining, rising 17.24 per cent to close at $0.51. Shares in Northern Star and Medusa Mining also closed higher.
The worst performing stock was Metcash, dropping 12.84 per cent to close at $1.90 after yesterday’s disappointing interim result. Shares in Japara Healthcare and BC Iron also closed lower.
Commodities
Gold is trading at $US1,204 an ounce. Light crude is $2.85 higher at $US69.00 a barrel. The Australian dollar is buying 85.12 US cents.
