Australian stocks are weaker, investors worried about rising oil prices and instability in the Middle East. New Zealand’s devastating earthquake continued to have a negative effect on the market.
The S&P/ASX200 Index closed 37 points lower today to 4,809. On the futures market, the SPI is down 37 points.
Economic news: The Australian Bureau of Statistics’ quarterly survey of private capital expenditure showed plans for 2010/11 totalled $128.9 billion. That’s 16 per cent higher than the prior year at the same stage of the survey cycle. Also from the ABS, full-time adult total earnings for the twelve months to November 2010 rose by 3.8% for males and 4.8% for females.
Company news: Shares in Pacific Brands Ltd (ASX:PBG) fell as much as 15 per cent today, on the news of a first-half $166 million loss. The owner of clothing labels such as Berlei, King Gee and Bonds warned of challenging retail conditions and volatile import costs, making it difficult to predict performance in the second half. The bottom line was affected by more than $9 million in restructuring costs and $215 million in write-downs against Sleepmaker and the footwear, outwear and sports business. Shares in Pacific Brands closed 10.91 per cent lower today at $0.98.
Goodman Group (ASX:GMG) returned to net profit, rising to $226 million for the six months to December 31, 2010. A year earlier the real estate investment company had reported a loss of more than $500 million. The CEO Greg Goodman said the result was due to the strong platform for growth that it had already established. The property investor expects full year operating profit to rise 23 per cent thanks to the strength of its Asian and European businesses. The company will pay a dividend of 1.5 cents per security, unfranked. Shares in Goodman Group firmed 0.75 per cent today to close at $0.675.
Shares in IOOF Holdings Ltd (ASX:IFL) reported a 25 per cent jump in first half net profit after tax of $46.2 million for the six months to December 31, 2010. The improved profit was attributed to higher revenue from a larger base of funds under management, administration, advice and supervision. IOOF declared an interim dividend of 21 cents a share, fully franked.
Centro Properties Group (ASX:CNP) reported first-half net profit of $533.4 million, compared to a $63.2m loss in the same period a year prior. The lift thanks to property revaluations and foreign exchange gains. Centro Properties’ underlying profit – a better indicator of actual performance fell 42 per cent to $48.2 million.
Fairfax Media Ltd (ASX:FXJ) posted a 15 per cent lift in first-half profit, in the six months to 31 December the media company says net profit rose to $165.4 million.
Origin Energy Ltd (ASX:ORG) announced a first half loss of $136 million and downgraded its full year earnings guidance.
Best and worst performers: The sector with the smallest losses was Utilities with the index falling 3 points to close at 4,261. The worst performing sector was Energy easing 191 points to close at 16,095. The best performing stock in the S&P/ ASX200 was Macmahon Holdings Ltd, shares gained 5.56 per cent to close at $0.57. Shares in White Energy Company Ltd and Goodman Fielder Ltd also closed stronger today. The worst performing stock was Pacific Brands Ltd (ASX:PBG) shares plunged 10.91 per cent to close at $0.98. Shares in Transpacific Industries Group Ltd and Gindalbie Metals Ltd also dropped today.
In commodities, gold is trading at $US1,411 an ounce. Light crude is 56 cents higher at $US98.66 a barrel.
