The Australian share market recovered from the day’s lows to close flat after receiving a boost from Telstra and retail stocks. Investors still remain cautious as Queensland’s flood crisis continues to impact the economy. Weighing on investor sentiment were also worries about European fiscal problems and a possible bailout of Portugal.
The S&P/ASX200 Index lost 2 points to close at 4,711. On the futures market, the SPI is 1 point higher.
Economic news: According to the latest ANZ Job Advertisement Series, the number of jobs advertised in December rose 2 per cent , marking the eighth consecutive month of increases and suggesting that the labour market continues to remains strong.
According to the Australian Bureau of Statistics (ABS), the Australian trade surplus narrowed in November to come in less than economists had forecast. The balance of goods and services was a surplus of $1.93 billion in November compared to a $2.56 billion surplus in October. Economists’ had forecast a surplus of $2.1 billion for the month.
Company news: Coal producer New Hope Corporation Ltd (ASX:NHC) has suspended all operations at its coal mines in Queensland, dealing another blow to the state’s coal industry which has been paralysed by the incessant flooding. New Hope says as the rain continues to fall in the region, with further rains forecasted, the company is unable to provide an estimate of the full impact of the weather. Shares in New Hope closed 2.57 per cent lower at $4.92.
Qantas Airways Ltd (ASX:QAN) says it is set to resume flights to Los Angeles from January 16 using its Airbus A380 superjumbos. The airline said its first US-bound A380 will be departing from Melbourne to Los Angeles. In November, Qantas suspended all its A380 services after an engine exploded on of its superjumbos on a flight out of Singapore. The company has progressively returned the fleet into service following a number of engine checks. Shares in Qantas closed 1.56 per cent lower at $2.52.
Shares in Suncorp Group Ltd (ASX:SUN) have started to retreat as the company continues to receive an ongoing number of flood claims. The insurance giant has received around 2,500 claims from customers impacted by the Queensland floods.
Newly-listed rail freight operator QR National Ltd (ASX:QRN) has closed its West Moreton rail line that services coal mines northwest of Brisbane due to severe flooding at Toowoomba. The rail line closure has impacted two New Hope mines and one Peabody mine.
Fund manager Perpetual Ltd (ASX:PPT) has appointed Chris Ryan as its new managing director and chief executive. Mr Ryan replaces outgoing chief David Deverall.
Parent of Australia’s Alcoa Inc (ASX:AAI) Alcoa Incorporated, has recorded a fourth-quarter profit beating Wall Street forecasts on higher aluminium prices.
In the best and worst performers: The best performing sector at close was Telco Services, with the index firming 20 points to close at 978. The worst performing sector was Industrials, the index losing 17 points to close at 3,757. The best performing stock in the S&P/ASX200 was Medusa Mining shares improved 4.35 per cent to close at $6.95. Shares in Mirvac Group and Oceana Gold also gained today. The worst performing stock was Sundance Resources shares dropped 10 per cent to close at $0.54. Shares in Energy World and Lynas Corporation also closed weaker today. In commodities, gold is trading at $US1,376 an ounce and light crude is down by $0.05 to $US89.20 a barrel.
