The Australian share market has lifted over the last day of the week and month after the Reserve Bank of Australia (RBA) cut rates to a new record low at its first board meeting of the year. Today the benchmark index opened lower but rebounded out of the red to finish 0.3 per cent stronger, widening a weekly gain of 0.8 per cent. The day and month was also defined by reporting season while the week ahead will see attention turn to the RBA’s second policy meeting of the year.
Figures
The S&P/ASX 200 index rose 20 points today, extending the weekly gain of 47 points to close at 5,929.
The value of trades was $8.9 billion on volume of 1.2 billion shares at the close of trade.
The top three stocks by value were Woolworths Limited
(ASX:WOW), Commonwealth Bank of Australia
(ASX:CBA) and BHP Billiton Limited
(ASX:BHP).
On the futures market the SPI is 34 points higher.
Wall Street
America’s equity markets have advanced over the trading week: The Dow Jones Industrial Average has risen 0.4 per cent. The S&P 500 Index has risen 0.02 per cent. The NASDAQ has risen 0.6 per cent. The 100 Index has risen 0.4 per cent.
Reporting season
Shares in Woolworths Limited
(ASX:WOW) and its rival Wesfarmers Limited
(ASX:WES) were sold off after Woolies released its interim results, cut its annual profit outlook and announced senior executive changes. The supermarket giant’s underlying net profit rose 4.7 per cent but its net profit fell 3.1 per cent in the first half of the 2015 financial year. The company has downgraded its full year profit growth guidance to about 1.8 per cent from an original forecast of between 4 - 7 per cent. Shares in Woolworths sank 9.54 per cent to end the week at $30.71.
Shares in Harvey Norman Holdings Limited
(ASX:HVN) gained after boosting its interim profit. The retailer’s net profit rose 27.4 per cent to $142 million while sales improved 3.2 per cent to more than $3 billion. Chairman Gerry Harvey attributed the rise to upbeat consumer confidence on the back of strong equity and housing markets. Shares in Harvey Norman Holdings gained 1.61 per cent to end the week at $4.42.
Shares in Graincorp Limited
(ASX:GNC) dropped after flagging lower annual earnings and warning its profit could halve from the year before. The grain handler expects the result to be impacted by smaller crops and stalled exports.
Shares in Treasury Wine Estates limited
(ASX:TWE) ended steady after revealing its first half net profit declined 60 per cent to $42.6 million. The wine maker says steps taken over the period will position the company well for the second half.
Best and worst performers
The best performing sector was healthcare, adding 1.2 per cent to close at 19,127.
The only sector to close in the red was consumer staples, losing 5.4 per cent to close at 9,496 points.
The best performing stock in the S&P/ASX 200 was Spotless Group Holdings Limited
(ASX:SPO), rising 3.98 per cent to close at $2.09. Shares in Technology One Limited
(ASX:TNE) and DEXUS Property Group
(ASX:DXS) also closed higher.
The worst performing stock was Evolution Mining Limited
(ASX:EVN), dropping 9.63 per cent to close at $0.84. Shares in Woolworths Limited
(ASX:WOW) and Beadell Resources Limited
(ASX:BDR) also closed lower.
Commodities
The price of gold is buying $US1,209 an ounce, up $0.98 over the week.
Light crude is $2.82 lower at $US48.17 a barrel.
Currencies
The Australian dollar is buying $0.7796, down $0.0012 over the week.
