Supermarkets rule: Aus shares close 0.36% lower

Market Reports

by Carolyn Herbert

It has been another disappointing end to the session for the local share market, which remained underwater throughout the trading day before closing 0.36 per cent lower. It was the materials space, namely the big miners which were the biggest casualties followed by the telcos. Staples were the best performers, with the supermarket giants providing the bulk of the heavy lifting.

The S&P/ASX 200 index closed 20 points down to finish at 5,442.

The value of trades was $5.8 billion on volume of 803 million shares at the close of trade. The top three stocks by value were Woolworths Limited (ASX:WOW), Wesfarmers Limited (ASX:WES) and Commonwealth Bank of Australia (ASX:CBA).

On the futures market the SPI is 30 points down.

Company news

Retail Food Group (ASX:RFG) has entered into a Share Purchase Agreement to acquire the business and operations of Hudson Pacific Corporation. HPC was founded in Victoria and has become a leading procurement, warehousing, manufacturing and distribution business comprising a frozen food service and cheese processing business. The transaction will cost RFG $88 million which will comprise of both cash and scrip. Shares in Retail Food Group closed 7.54 per cent higher at $6.42.

Billabong International Ltd (ASX:BBG) has reported a net loss (after tax) of $23.7 million in FY16.

Breville Group Ltd (ASX:BRG) reported net profit rose 7.5% to $50.2 million in FY16.

Woolworths Ltd (ASX:WOW) has reported its profit fell 157.5% in FY16, resulting in a full year net loss of $1.23 billion.

Best and worst performers

The best performing sector was Staples adding 2.4 per cent to close at 9,224. The worst performing sector was Materials, losing 1.4 per cent to close at 8,898 points.

The best performing stock in the S&P/ASX 200 was Southern Cross Media, rising 11.79 per cent to close at $1.38. Shares in Altium and Retail Food Group also closed higher.

The worst performing stock was Western Areas, dropping 13.23 per cent to close at $2.69. Shares in MYOB and Village Roadshow also closed lower.

Commodities and the dollar

Gold is trading at $US1,326 an ounce.
Light crude is $1.30 lower at $US46.80 a barrel.
The Australian dollar is buying $US0.7630.


Carolyn Herbert

Finance News Network
Carolyn joined FNN in August 2015 as the Head of News and also presented the Market at Midday and the Market Wrap. With more than five years of broadcast journalism experience, Carolyn has worked as a finance anchor on the Sky News Business channel and as an anchor and reporter for ABC News. She is also a qualified corporate lawyer specialising in IPOs, takeovers and mergers and acquisitions.