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The Australian share market closed 0.66 per cent up as investors happily gobbled up a slew of earnings reports from companies including IAG, Oil Search and Toll Holdings. BHP had not yet released its results by the close of market.
The S&P/ASX 200 index closed 37 points up to finish at 5,624.
The value of trades was $5.9 billion on volume of 853 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia (ASX:CBA), trading ex-dividend, BHP Billiton Limited (ASX:BHP) and Westpac Banking Corporation (ASX:WBC)
On the futures market the SPI is 54 points up.
Economic news
The latest RBA minutes suggest the Reserve Bank is happy to leave interest rates on hold whilst the Australian economy continues to show uncertainty. Despite the strong housing market the RBA flagged issues such as disappointing employment figures and less momentum in the GDP numbers as a good reason to keep the cash rate stable.
Company news
QBE Insurance Group Limited (ASX:QBE) says net profit fell 18 per cent to $US392 million in the first six months of the 2014 financial year. Last month QBE warned its first half result would take a profit hit because of its Latin American operations. The company has also announced a series of capital management initiatives to improve its balance sheet resilience. QBE will undertake an equity raising of $US750 million and has flagged the partial float of its mortgage insurance business, QBE LMI in 2015. A fully franked interim dividend of 15 Australian cents per share has been declared. Shares in QBE have been placed in a trading halt until Thursday and last traded at $10.71.
Transpacific Industries Group Limited (ASX:TPI) has announced a return to profit with earnings of $11.5 million after tax, up from a loss of $219 million the previous year. The result shows a strengthening balance sheet but the company is still reeling from a $189 million after tax charge relating to landfill provision increases. The company entered a trading halt last week as it crunched the numbers for the remediation of landfill assets with new CEO Bob Boucher saying they now have enough funding to take the best practice going forward. The Transpacific Board have put their support behind the efforts of Mr Boucher and returned to declaring dividends as a sign of the progress already made. Mr Boucher said growth strategy was now firmly in place and would bear fruit in the next 18-24 months despite the headwinds caused by a depressed economy. Transpacific reported earnings of 0.7 cents per share with underlying earnings up 35 per cent to 5.8 cents. Shares in Transpacific have slumped 11.21 per cent to $0.97 since the resumption of trading today.
Sonic Healthcare Limited (ASX:SHL) reported double digit revenue and earnings growth but blamed a softness in the Australian pathology business, possibly as a result of the government’s proposed $7 co-payment, for a subdued growth outlook of just 5 per cent for the 2015 financial year.
Shares in Arrium Limited (ASX:ARI) have risen after the company posted a net profit of $205 million, swinging from a loss of $701 million the year before.
Toll Holdings Limited (ASX:TOL) came in above expectations when the group recorded a 5.7 per cent increase in net profit before significant items.
And packaging company Amcor Limited (ASX:AMC) says full year profit has risen nearly 25 per cent to $737 million, up from $589 million the year before.
Best and worst performers
The best performing sector was materials adding 1.5 per cent to close at 10,542. The worst performing sector was telco services, losing 0.3 per cent to close at 1,947 points.
The best performing stock in the S&P/ASX 200 was Arrium, rising 11.92 per cent to close at $0.84. Shares in Invocare and Paladin Energy also closed higher.
The worst performing stock was Transpacific Industries, dropping 11.21 per cent to close at $0.97. Shares in Sirius Resources and JB Hi-Fi also closed lower.
Commodities
Gold is trading at $US1,299 an ounce. Light crude is $0.94 down at $US96.41 a barrel. The Australian dollar is buying 93.33 US cents.
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