The Australian share market closed flat today, after opening lower following a weak lead from Wall St on the back of lower-than-expected jobs data. Aussie stocks eked out modest gains to close 0.16 per cent up, while the incessant flooding in Queensland continues to impact the mining heavyweights and lenders.
The S&P/ASX200 Index lifted 7 points to close at 4,712. On the futures market, the SPI is 8 points higher.
Economic news: China’s trade surplus dropped 43 per cent in December to $13.1 billion, significantly under the $23.08 billion recorded the month before, and coming in much lower than economists had forecast. Close to home, the Australian Bureau of Statistics has reported that retail sales rebounded in November 2010, despite the RBA’s rate rise in the same month. The latest read was in line with expectations, adding a modest 0.3 per cent in November, after a revised fall of 0.8 per cent the month before. Also, the Australian Industry Group Australian Performance of Construction Index lifted 1.6 points to a seasonally adjusted 43.8 points in December, under a read of 50, the measure which separates contraction from expansion.
Company news: Virgin Blue Holdings Ltd (ASX:VBA) has partnered with Skywest (ASX:SXR) airlines to strengthen its domestic network, signing a 10-year strategic alliance that will see both airlines service regional Australia. The deal will see Skywest operate up to 18 new Virgin Blue-branded turbo-prop aircraft, and also allow both airlines to code-share on parts of one others networks. Virgin’s CEO John Borghetti says the alliance will help Virgin access untapped opportunities, particularly the fly-in fly-out resource sector market. Today shares in Virgin Blue Holdings rose 4.65 per cent to close at 0.45.
Plans for Santos Ltd’s (ASX:STO) 40:60 joint venture with GDF Suez Bonaparte have advanced, with Santos advising a final investment decision for the project is expected in 2014. Both companies entered the JV in August 2009 to develop a floating liquefaction project in the Bonaparte Basin, around 250 kilometres offshore Darwin. The project aims to produce 2 million tonnes of Liquefied Natural Gas per annum, with production scheduled to start in 2018. Today shares in Santos lifted 1.93 per cent to close at $13.17.
Shares in Cougar Energy Ltd (ASX:CXY) jumped over 19 per cent today, after news the energy company has raised $1 million from a share placement to fund the energy company’s projects in Australia and overseas.
Financial services company Keybridge Capital Ltd (ASX:KBC) says it expects to book a loss for the half year to 31 December, because of a shortfall in operating income and the likely decline in the carrying values of its investments.
Drug developer Biota Holdings Ltd (ASX:BTA) has told the Australian Securities Exchange that it has no information to explain the recent jump in its share price.
Bank of Queensland Ltd (ASX:BOQ) is set to unveil further diversification and expansion as the company forays into specialist lending and financing.
Best and worst performers: The best performing sector at close was Industrials, with the index firming 32 points to close at 3,774. The worst performing sector was Utilities, the index losing 8 points to close at 4,423. The best performing stock in the S&P/ASX200 was Lynas Corporation shares improved 9.14% to close at $2.09. Shares in OM Holdings and Envestra also gained today. The worst performing stock was Murchison Metals shares dropped 3.87% to close at $1.365. Shares in Intrepid Mines and Sandfire Resources also closed weaker today.
In commodities, gold is trading at $1,373 US an ounce. And light crude is up $0.99 to $89.02 US a barrel.
