The Australian share market has ended the day 0.8 per cent higher boosted by the banks and miners as expectations grow for cheap loans to be offered by the European Central Bank.
Today, the S&P/ASX 200 index gained 36 points to finish at 4,299. On the futures market, the SPI is currently 27 points higher.
Economic news
Retail sales rose 0.3 per cent in January, seasonally adjusted to almost $21 billion, in line with analysts’ expectations.
Construction work for the December quarter fell 4.6 per cent to $45 billion, seasonally adjusted.
And new home sales fell 7.3 per cent in January, seasonally adjusted, with Victoria dragging national numbers down.
Company news
Fortescue Metals Group Limited (ASX:FMG) chairman Andrew Forrest has begun his High Court appeal against the Australian Securities and Investments Commission (ASIC). The case has lasted six years and relates to agreements with Chinese companies. ASIC claims Fortescue over-stated binding agreements with Chinese investors in announcements to the market. Mr Forrest faces removal from his chairman post if he loses the long running legal battle. Fortescue shares rose 2.77 per cent today, closing at $5.57.
Harvey Norman Holdings Limited (ASX:HVN) has cut its interim dividend, the retailer reporting a half year net profit of just under $129 million, a 2 per cent fall. Chairman Gerry Harvey says profit was down because of intense competition and price deflation, reassuring investors the company’s balance sheet is robust because of a property portfolio valued at more than $2 billion. The interim dividend has been reduced by 1 cent to 5 cents a share. Harvey Norman shares lost 4.17 per cent today, closing at $2.07.
Seven Group Holdings Limited (ASX:SVW) announces first half net profit fell sharply, as it wrote down the value of its media investments.
Orica Limited (ASX:ORI) resumes production at Kooragang Island but says plant closures will cost around $90 million this financial year.
QBE Insurance Group Limited (ASX:QBE) raises $450 million from institutional investors – the insurer says the placement was well oversubscribed.
And Commonwealth Bank of Australia (ASX:CBA) lets its customers know its ATM and EFTPOS services have been restored – via Twitter.
Best and worst performers
The best performing sector was Telco Services adding 13 points to close at 1,129. The worst performing sector was Consumer Discretionary, losing 3 points to close at 1,289 points.
The best performing stock in the S&PASX 200 was White Energy Company Limited (ASX:WEC), rising 7.14 per cent to close at $0.45. Shares in Resolute Mining Limited (ASX:RSG) and Navitas Limited (ASX:NVT) also added value.
The worst performing stock was Tatts Group Limited (ASX:TTS), dropping 5.93 per cent to close at $2.38. Aristocrat Leisure Limited (ASX:ALL) and Harvey Norman Holdings Limited (ASX:HVN) shares also lost value.
Commodities
Gold is trading at $US1,789 an ounce. Light crude is $0.55 higher at $US107.10 a barrel.
