News: Market Wrap: Aus shares surge 1.59%

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The Australian share market has maintained its momentum throughout the day pushing to a 1.59 per cent gain at the close of trade. Optimism flowed from strong gains in the US following the US Federal Reserve’s dovish forecasts for interest rates. 

 

Gains were also spurred by the iron ore price pushing just over the $US90 mark overnight.

 

The S&P/ASX 200 index closed 86 points up to finish at 5,468. 

 

The value of trades was $6.78 billion on volume of 1.01 billion 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 Woodside Petroleum Limited (ASX:WPL)

 

On the futures market the SPI is 52 points up.

 

Economic news

The RBA released its quarterly bulletin today. In a range of scholarly articles the bulletin looked at issues including; potential price impacts of foreign buyers on the local housing market, it pointed towards infrastructure investment in China remaining strong and it also analysed factors behind a rise in Australian household saving.

 

Company news

 

Sherwin Iron Limited (ASX:SHD) has advised the intention of the Northern Territory Department of Mines and Energy to grant the company a 40 year mining lease over a section of the Sherwin’s Roper River. The lease will cover more than 1600ha and with be granted within 30 days of the first year’s rent being paid. Shares in Sherwin Iron closed 12.5 per cent up at $0.04

 

Santos Limited (ASX:STO) and GDF Suez will review alternative development concepts for the Bonaparte LNG project. The oil and gas producer will consider a pipeline connection to Darwin in developing the natural gas fields located 250 km off the coast of the Northern Territory. While the company feels the fields have material value, the fields will not be taken into the front-end engineering and design phase at this point in time. Santos closed 1.26 per cent up at $14.49 

 

JB Hi-Fi Limited (ASX:JBH) has affirmed its fiscal 2014 profit guidance and says its CEO transition will take place at the beginning of the new financial year.  

 

Grain logistics company Graincorp Limited (ASX:GNC) has scored a regulatory win for its Newcastle bulk grain facility. 

 

Resolute Mining Limited (ASX:RSG) is poised to take control of the Bibiani gold project in Ghana. 

 

Ten Network Holdings Limited (ASX:TEN) has affirmed its commitment to reining in costs while warning it will book a fall in television revenue this financial year. 

Best performers
 

All major sectors were in the green today: The best performing sector was materials adding 257 points to close at 9,785.The sector with the smallest gains was real estate investment trusts, gaining 4 points to close at 1,079 points.

 

The best performing stock in the S&P/ASX 200 was Beadell Resources Limited (ASX:BDR), rising 7.76 per cent to close at $0.63. Shares in Regis Resources Limited (ASX:RRL) and Asciano Limited (ASX:AIO) also closed higher.

 

The worst performing stock was Ten Network Holdings Limited (ASX:TEN), dropping 6.90 per cent to close at $0.27. Shares in NRW Holdings Limited (ASX:NWH) and Singapore Telecommunications Limited (ASX:SGT) also closed lower. 

 

Commodities

Gold is trading at $US1,278 an ounce.
Light crude is $0.39 down at $US105.97 a barrel.
The Australian dollar is buying $US0.9408