The Australian share market saw a day of two halves, trading higher in the morning on the back of a commodity rush, and lower in the afternoon, with NAB
(ASX:NAB) and Seven West Media
(ASX:SWM) coping a hit.
Our big miners mustered up strength with the likes of with Fortescue Metals
(ASX:FMG), Rio
(ASX:RIO) and South32
(ASX:S32) gaining over 3 per cent, while BHP
(ASX:BHP) added about 1.5 per cent after the iron ore price improved. The energy space also boded well after US crude prices continue to trade near one-year highs. Whitehaven Coal added 3.6 per cent and Redflow
(ASX:RFX) gained 2 per cent.
But it was ultimately a suite of staff cut announcements that largely put a cap on gains today, with National Australia Bank’s shares taking a hit, and financials trading lower, while Seven West Media also announced its job cuts budget.
At the closing bell the S&P/ASX 200 index closed 6 points down or 0.10 per cent lower to finish at 5,932.
The value of trades was $5.6 billion on volume of 685 million shares at the close of trade. The top three stocks by value were National Australia Bank
(ASX:NAB), BHP Billiton Limited
(ASX:BHP) and Rio Tinto Limited
(ASX:RIO).
On the futures market the SPI is 14 points lower.
Asian markets Japan’s Nikkei has added 0.1 per cent, Hong Kong’s Hang Seng has lost 0.2 per cent and the Shanghai Composite has shed 0.6 per cent.
Local economic newsAustralia’s surplus jumped to $1.745 billion in September, in seasonally adjusted terms. Exports or credits rose 3 per cent from $873 million in August. The better than expected balance of trade comes as non-monetary gold exports rose 17 per cent, while exports in goods and services and non-rural goods rose 3 per cent each.
The ABS also reported dwelling or building approvals rose 1.8 per cent in September, in trend terms, marking eight months of straight gains.
Company news Seven West Media
(ASX:SWM) has announced it will make $25 million of annualised headcount reductions starting in the 2018 financial year on the back of seeing a soft first quarter, thanks to its ratings and the ad market. The media company says it will make a total of $105 million in savings over the next two years, partially offsetting the $30 million AFL step up in costs in FY18. Shares in Seven West Media
(ASX:SWM) closed 2.93 per cent lower at $13.23.
Automotive aftermarket part provider, Bapcor
(ASX:BAP) says the purchase of Hellaby Automotive, which is now known as Bapcor New Zealand, should deliver $8 million to $11 million of annual EBIT by 2020. Bapcor
(ASX:BAP) closed 2.19 per cent higher to $5.60.
National Australia Bank's
(ASX:NAB) reported a surge ahead in its yearly profit to $5.3 billion, up from $352 million in the prior corresponding period to September 2016. But it also announced it will cut 6,000 jobs, but will create up to 2,000 new roles.
Fairfax
(ASX:FXJ) shareholders have voted in support of the group separating with its real estate media arm, Domain. The leading media group says subject to court approval Domain should start trading on the ASX on 16 November. Fairfax will hold 60 per cent of Domain’s capital.
And Credit Corp Group
(ASX:CCP) has acquired Thorn Group’s
(ASX:TGA) Cashfirst branded consumer loan book and associated assets for $13.3 million.
The best and worst performers of the dayThe best performing sector was materials adding 1.4 per cent to close at 10,944.
The worst performing sector was telcos, shedding 1.4 per cent to close at 1,252. points.
The best performing stock in the S&P/ASX 200 was Orocobre
(ASX:ORE), rising 10.0 per cent to close at $5.50. Shares in The A2 Milk Company (ASX\A2M) and Credit Corp Group
(ASX:CCP) also closed higher.
The worst performing stock in the S&P/ASX 200 was Seven West Media
(ASX:SWM), dropping 6.11 per cent to close at $0.61. Shares in Bank Of Queensland
(ASX:BOQ) and Harvey Norman Holdings
(ASX:HVN) also closed lower.
To commodities and the dollar Gold is trading at $US1,280 an ounce.
Light crude is $0.11 lower at $US54.27 barrel.
One Australian dollar is buying 77.15 US cents.
