After a dismal start to the session the local share market managed to recoup some of its losses closing the day 0.7 per cent lower. Some positive inflation data seemed to spur the market on, as well as bargain hunters setting in, in late afternoon trade.
The materials and energy sectors continued to be the biggest drag on the index today, along with the big four banks. The star performer was Consumer Staples, after Woolworths and Wesfarmers both made announcements that pleased investors relating to their respective home improvement businesses.
The S&P/ASX 200 index closed 34 points down to finish at 4,859.
The value of trades was $4 billion on volume of 621 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), ANZ Banking Group
(ASX:ANZ) and Wesfarmers Limited
(ASX:WES).
On the futures market the SPI is 16 points lower.
Economic news
Inflation in Australia has reached a one year high of 2 per cent, according to latest figures from TD Securities and the Melbourne Institute. This means inflation is now within the Reserve Bank of Australia’s target band of 2 to 3 per cent, which may result in interest rates being kept on hold for longer. Also released today were new car sales for the month of December. Latest data from the ABS has shown a 0.5 per cent fall in sales to 97,338. However, sales rose 2.2 per cent for the year.
Company news APN Property Group
(ASX:APD) has announced it has upgraded its full year operating earnings guidance by approximately 56 per cent to between 3.2 and 3.5 cents per share for the 6 month period ended 31 December 2015. APN’s interim financial report is scheduled to be released at the end of February. Shares in APN Property Group closed 3.53 per cent up at $0.44.
Woolworths Holdings Limited
(ASX:WOW) has announced that it will pull the plug on its Masters Home Improvement venture.
Wesfarmers Limited
(ASX:WES) has entered into an agreement to acquire Homebase from Home Retail Group (LSE:HOME) for $705 million.
Best and worst performers
The best performing sector was Staples adding 2.3 per cent to close at 8,389. The worst performing sector was Energy, losing 3.4 per cent to close at 7,038 points.
The best performing stock in the S&P/ASX 200 was Metcash, rising 7.92 per cent to close at $1.64. Shares in Northern Star and Woolworths also closed higher.
The worst performing stock was Santos, dropping 8.36 per cent to close at $2.63. Shares in Mesoblast and Magellan also closed lower.
IPOs Novatti Group Limited
(ASX:NOV) started trading today. The payment processing company listed with an issue price of $0.20, opened at $0.205 and a closed at $0.195.
Commodities and the dollar
Gold is trading at $US1,092 an ounce.
Light crude is $1.72 lower at $US30.39 a barrel.
The Australian dollar is buying $US0.6920.
