Despite renewed talk of a potential interest rate cut by the RBA after softer than expected inflation figures, it wasn’t enough to push the local market into positive territory; it closed the session 0.21 per cent lower. The biggest drag on the market today was electronics retailer Dick Smith, whose shares at one point were smashed more than 30 per cent on the back of a profit downgrade. Generally speaking, shares struggled for direction and the materials and energy sectors offered no support on renewed talks of a commodity price slump.
The S&P/ASX 200 index closed down 11 points to finish at 5,335.
The value of trades was $4.8 billion on volume of 693 million shares at the close of trade. The top three stocks by value were National Australia Bank Limited
(ASX:NAB), Westpac Banking Corporation
(ASX:WBC) and ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is down 34 points.
Economic news
Figures from the Australian Bureau of Statistics have shown that inflation has risen 0.5 per cent in the September quarter, missing economist’s forecasts. The read has prompted renewed speculation this may increase the chance of an interest rate cut by the RBA next Tuesday.
Company news
Dexus Property Group
(ASX:DXS) has announced it has entered into an agreement to sell 57-65 Templar road in Erskine Park, NSW. Settlement is expected to occur in July 2016, with gross sale proceeds of $50 million expected to contribute around $12 million pre-tax to FY17 trading profits. Shares in Dexus Property Group closed 0.64 per cent higher at $7.84.
Origin Energy Limited
(ASX:ORG) has announced the successful completion of the retail component of its renounceable entitlement offer, marking the second stage of Origin’s $2.5 billion equity raising.
National Australia Bank Limited
(ASX:NAB) reported a 19.7 percent rise in net profit to $6.34 billion for the year to 30 September.
SCA Property Group
(ASX:SCP) has upgraded its FY16 earnings guidance following the acquisition of three more neighbourhood shopping centres.
Transfield Services Limited
(ASX:TSE) has entered a short-term extension to its contract with the Department of Immigration and Border Protection.
Best and worst performers
The best performing sector was Healthcare adding 1.3 per cent to close at 18,609. The worst performing sector was Energy, losing 1.3 per cent to close at 8,796 points.
The best performing stock in the S&P/ASX 200 was Sirtex, rising 9.65 per cent to close at $37.94. Shares in Altium and Blackmores also closed higher.
The worst performing stock was Dick Smith, dropping 33.86 per cent to close at 84 cents. Shares in Liquefied Natural Gas and GUD Holdings also closed lower.
Commodities and dollar
Gold is trading at $US1,168 an ounce.
Light crude is down 78 cents at $US43.20 a barrel.
The Australian dollar is buying 71.19 US cents.
