The Australian share market closed 0.1 per cent higher today. Telstra rose with reports the telco is close to finalising an $11 billion deal with the National Broadband Network. The retailers however, slumped. After Myer Holdings Ltd’s
(ASX:MYR) full year profit downgrade, the department store fell to the worst performer of the day, followed by rival retailers David Jones Ltd
(ASX:DJS) and Harvey Norman Holdings Ltd
(ASX:HVN).
The S&P/ASX200 Index firmed 6 points to close at 4,869. On the futures market, the SPI is up 2 points.
Economic news: The Australian Bureau of Statistics has reported that retail sales growth eased in December, underpinning weakness in the broader economy.
In the all important Christmas trading period month retail sales firmed 0.2 per cent, under the 0.4 per cent revised lift in November, and coming in under economists’ expectations. Retail turnover was $20.36 billion in December, seasonally adjusted.
Company news: Whitehaven Coal Ltd (ASX:WHC) says it has shortlisted several non binding proposals to complete due diligence on the miner before submitting binding takeover offers. The company says the formal process is expected to continue for a number of months and may or may not result in a final proposal being made and recommended by the board. Shares in Whitehaven Coal closed 0.14 lower at $7.14.
Sonic Healthcare Ltd (ASX:SHL) has acquired a second laboratory business in America called Central Coast Pathology consultants. The business generates over $US20 million in revenue per annum and will become part of Sonic Healthcare USA’s California division. The acquisition was funded from Sonics existing debt facilities and is immediately earnings per share positive. Shares in Sonic Healthcare slipped 0.59 per cent to close at $11.83.
Shares in Aragon Resources Ltd (ASX:AAG) closed over 16 per cent higher today, after the explorer’s former owner Westgold Resources said it was launching a takeover that values Aragon at $76 million. Focus Minerals Ltd (ASX:FML) has advised that it expects to report a 27.7 per cent rise in pre-tax profit to $6.2 million for the six months to 31 December 2010.
Myer Holdings Ltd (ASX:MYR) has forecast a five per cent profit fall for the 2011 financial year and, bought a 65 per cent stake in the sass & bide fashion label for $42.25 million.
JB Hi-Fi Ltd (ASX:JBH) has booked a record half-year net profit, rising 15.6 per cent over the year before to $87.9 million, and, boosted its full-year net profit guidance to a range of between $134 million to $139 million.
In the best and worst performers: The best performing sector at close was Industrials with the index rising 18 to close at 3,822. The worst performing sector was Consumer Discretionary falling 13 points to close at 1,541. The best performing stock in the S&P/ ASX200 was Alesco Corporation shares gained 5.15 per cent to close at $3.47. Shares in Aurora Oil and Gas and Resolute Mining also closed stronger today. The worst performing stock was Myer Holdings shares slid 11.47% to close at $3.32. Shares David Jones and Harvey Norman Holdings also dropped today.
In commodities, gold is trading at $US1,347 an ounce. Light crude is 9 cents up at $US89.12 a barrel.
