News: Market Wrap: ASX up despite sinking iron ore price

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The Australian share market managed to shake off a 4 per cent drop in the iron ore price overnight to open strongly and finish 0.82 per cent up at the end of trade. Yield stocks such as Woollies and Telstra provided most of the gains as did the big four banks with CBA closing at a new all-time high of $87.62. Investors also took heart from comments from the OPEC Secretary- General Abdullah al-Bahdri that oil prices may have bottomed out. 

 

The S&P/ASX 200 index closed 45 points up to finish at 5,547. 

 

The value of trades was $5.26 billion on volume of 847 million shares at the close of trade. The top three stocks by value were ResMed Incorporated (ASX:RMD), Commonwealth Bank of Australia (ASX:CBA) and BHP Billiton Limited (ASX:BHP)

 

On the futures market the SPI is 51 points up.

 

Economic news

The NAB monthly survey of business conditions in December showed a flat result for business confidence whilst business conditions were down one point. The latest figures suggest the strong spike in both conditions and confidence in October were an anomaly and the current survey indicated below average employment growth. 

 

Company news
 

Healthcare equipment supplier ResMed Incorporated (ASX:RMD) is enjoying a further surge in its share price after analysts raised their price targets. Quarterly sales of the company’s sleep apnea device recently beat expectations with a 10 per cent increase in sales. Macquarie raised its price target on the share by 19 per cent to $8.00 whilst analysts at Citi placed a price target of $9.37 per share on the stock. ResMed Incorporated (ASX:RMD) closed 7.44 per cent up at $8.38. 

 

The Liquefied Natural Gas Limited(ASX:LNG) share price also took off at a gallop today after the energy company revealed it has over $53 million in cash sitting in the bank and owes no debt. LNG was the best performing stock on the index in 2014 as the share price rocketed more than 720 per cent over a year filled with acquisitions and project acceleration. Shares in Liquefied Natural Gas were up to 22 per cent up in intraday trade but closed 16.41 per cent higher at $3.05. 

 

Shares in NewSat Limited (ASX:NWT) have plunged after the satellite communications company said its Jabiru-1 satellite project financing and construction arrangements were overdue. 

 

iProperty Group Limited (ASX:IPP) confirmed it’s expecting its highest ever fourth quarter revenues. Quarterly billings of $8 million were up 57 per cent from the September quarter and up 29 per cent from a year ago.

 

Ingenia Communities Group Limited (ASX:INA) will pay $12 million for the Sydney Hills Holiday Park in the growing residential Hills district in Sydney. Surrounding land has been recently rezoned for medium density residential. 

 

iCar Asia Limited (ASX:ICQ) says it is expanding into Asia’s biggest automotive markets and gearing up for revenue growth this year after boosting quarterly cash receipts by 162 per cent at the end of last year. 

 

Best and worst performers

The best performing sector was consumer discretionary adding 2 per cent to close at 1,827. The worst performing sector was energy, losing 1 per cent to close at 10,794 points.

 

The best performing stock in the S&P/ASX 200 was the aforementioned Liquefied Natural Gas. Shares in Mount Gibson Iron and Paladin Energy also closed higher.

 

The worst performing stock was Lynas Corporation, dropping 19.35 per cent to close at $0.05 after an uninspiring quarterly report. Shares in Arrium and Northern Star also closed lower. 

 

Commodities

Gold is trading at $US1,278 an ounce. Light crude is $0.44 lower at $US45.15 a barrel. The Australian dollar is buying 79.38 US cents.