The Australian share market closed flat today, with the major miners offsetting losses by the Big Four banks. BHP Billiton, Rio Tinto and Newcrest all closed higher on the back of brokers lifting their commodity price forecasts. Investors are mostly remaining cautious as companies assess the impact of the devastating floods in Queensland.
The S&P/ASX200 Index gained 14 points to close at 4,724. On the futures market, the SPI is 11 points higher.
Economic news: According to the Australian Bureau of Statistics, new home loans increased in November by 2.5 per cent despite the interest rate hike. The unexpected growth in new home loans beat economist forecasts which had centered on a 1.0 per cent fall in home loans for the month.
Also from the Australian Bureau of Statistics, job vacancies in Australia increased by 5.3 per cent in the three months to November. Vacancies were a staggering 26.3 per cent higher compared to the same period in 2009, a promising sign of further solid employment growth.
Company news: Caltex Australia Ltd (ASX:CTX) heavy rains have resulted in an unscheduled shutdown of the company’s Lytton Refinery in Queensland, which will cost the firm between $5 to $10 million in profit after tax in 2011. The rains caused a steam outage on January 5 and the company has since been working on returning the refinery to normal operations, with partial production due to re-start on Thursday. Shares in Caltex Australia closed 5.67 per cent lower at $14.14.
Shares in property information provider RP Data Ltd (ASX:RPX) soared by 50 per cent after the company received a $256 million takeover offer from US financial information provider CoreLogic Inc. RP Data also issued earnings guidance and says for the 2010-11 financial year ended 30 June it expects net profit after tax to be between $10 million and $11 million, up from its $7.7 million result in the previous year. Shares in RP Data closed 51.85 per cent higher at $1.64.
Leighton Holdings Ltd (ASX:LEI) has halted work on its $4.1 billion Airport Link in Brisbane as rains and flooding in Queensland continue to impact the company’s construction and mining activities.
Telstra Corporation Ltd (ASX:TLS) has evacuated up to 2000 of its employees in Brisbane’s central business district after floodwaters spilled into the city.
Westpac Banking Corporation Ltd (ASX:WBC) has denied reports that it is planning to replace its current chief executive Gail Kelly.
The Reject Shop Ltd (ASX:TRS) has entered into a trading halt as the company assesses the impact of the flooding at its Ipswich distribution centre and across Queensland.
Best and worst performers: The best performing sector at close was Materials, with the index firming 188 points to close at 14,006. The worst performing sector was Consumer Discretionary, the index losing 9 points to close at 1,502. The best performing stock in the S&P/ASX200 was Eldorado Gold as shares improved 6.8 per cent to close at $18.38. Shares in Regis Resources and PanAust also gained today. The worst performing stock was Caltex Australia. Shares in Emeco Holdings and Elders also closed weaker today.
In commodities, gold is trading at US$1,385 an ounce and light crude is up $0.09 to $US91.20 a barrel.
