The Australian share market was poised to start on solid footing today following record leads from Wall Street, but a fall in a suite of companies, including Wesfarmers
(ASX:WES) shares, which dropped by 2.2 per cent is largely capping gains. It comes as Wesfarmers reported a drop in Coles Express sales.
A bag of Staples companies such as Coca-Cola
(ASX:CCL) Woolworths
(ASX:WOW) and Bellamy's
(ASX:BAL) have all fallen by over 1 per cent. Going the other way and charging up are the big miners, the energy sector and property.
The S&P/ASX 200 index is 5 points up or 0.07 per cent higher at 5,902.
On the futures market the SPI is 7 points higher.
Local economic news The ABS released the highly awaited inflation data for the September quarter, which unexpected only increased by 0.6 per cent, less than 0.7 per cent expected by the market. The biggest change came from growth in electricity power prices, followed by tobacco and travel and accommodation. That was largely offset by falls in vegetable prices and fuel costs. The yearly figures also gained 1.8 per cent through the year to the September quarter just 0.1 per cent less than the prior quarter.
Company newsRetail centre and property manager, Stockland Group
(ASX:SGP) says its residential profit margin is forecast to be over 17 per cent, on the back of strong Sydney settlements. Stockland is also expects to pay 26.5 cents per share in distributions in FY18, which is 4 per cent more in distributions than FY17. Shares in Stockland Group
(ASX:SGP) are trading 1.61 per cent at $4.41
Ethical fund manager, Australian Ethical Investments
(ASX:AEF) has seen its underlying profit after tax fall 14.5 per cent in the first half of the 2018 financial year. Despite the fall it’s on par with its guidance. Meantime its funds under management increased by about 13 per cent to $2.4 billion. Shares in Australian Ethical Investments
(ASX:AEF) are trading 4.24 per cent lower at $124
Best and worst performersThe best performing sector is Materials, gaining 1.1 per cent to 10,792. Shares in Sims Metal Management
(ASX:SGM) have risen 4.96 per cent and trading at $14.39. Shares in South32
(ASX:S32) and Western Areas
(ASX:WSA) are also stronger.
The worst performing sector is Staples, falling 1.2 per cent to 9,566. Shares in Wesfarmers
(ASX:WES) have fallen 2.27 per cent, trading at $41.76. Shares in Australian Agricultural Company
(ASX:AAC) and Woolworths (ASX:WIOW) are also lower.
Commodities and the dollarGold is trading at $US1,276 an ounce and one Australian dollar is buying 77.31 US cents.
