The Australian sharemarket ended the day almost 1 per cent higher following a rally on Wall Street, and it would have been an even stronger finish if China hadn’t been the bearer of bad news, reporting economic growth fell to its lowest level in almost three years.
Today, the S&P/ASX 200 index gained 42 points to finish at 4,323, and gained 3 points over the shortened trading week. On the futures market, the SPI is currently 34 points stronger.
Looking at Wall Street, over its four trading days this week: The Dow Jones Industrial Average fell 74 points. The S&P 500 Index fell 11 points, the Nasdaq lost 25 points, and the 100 Index fell 22 points.
China economic news
The economy expanded at a lower than expected pace in the first quarter – 8.1 per cent.
Company news
Qantas Airways Limited (ASX:QAN) chief executive Alan Joyce and the federal Tourism Minister say urgent action is needed for a second Sydney airport. Mr Joyce says there’s been a lot of talk but now “we just need to get on and do it”. The NSW Premier Barry O’Farrell has suggested expanding Canberra’s airport and building a high-speed rail service to Sydney. Mr Joyce maintains that Sydney should be the site for a second airport. Qantas shares gained 0.91 per cent today, closing at $1.67.
Centro Retail Australia Limited (ASX:CRF) is seeking to sell up to a 50 per cent ownership stake in three of its higher value shopping centres, Galleria in Perth, The Glen in Melbourne and Colonnades in Adelaide. Media reports have described these assets as the jewel in Centro’s crown. The decision follows a strategic review. The capital from these alliances will be used to reduce gearing and strengthen the group’s balance sheet. Centro Retail Australia shares gained 1.1 per cent, closing at $1.84.
Lynas Corporation Limited (ASX:LYC) scores a victory in Malaysia with the High Court knocking back an attempt to delay the rare earths developer’s processing plant.
And Insurance Australia Group Limited (ASX:IAG) will expand its Malaysian operations with a $235 million investment.
Best and worst performers
The best performing sector was Materials adding 202 points to close at 10,959. The only sector in the red was Telco Services, falling 3 points to close at 1,155 points.
The best performing stock in the S&P/ASX 200 was Intrepid Mines Limited (ASX:IAU) adding 11.76 per cent to close at $0.76, Lynas Corporation Limited (ASX:LYC) and Mirabela Nickel Limited (ASX:MBN) also made gains.
The worst performing stock was Kagara Limited (ASX:KZL) shedding 4.17 per cent to close at $0.115, Energy World Corporation Limited (ASX:EWC) and Virgin Australia Holdings Limited (ASX:VAH) also fell.
Commodities
Gold is trading at $US1,675 an ounce and gained $42.97 over the week. Light crude is $0.47 lower, sitting at $US103.17 a barrel.
The Australian dollar
The Australian dollar is buying $US1.0393 and is almost a cent lower over the week.
