Following strong leads the Australian share market was up 0.8 per cent at noon, but pulled back after some disappointing economic data to close 0.4 per cent higher. Most sectors finished in the black led by gains in the industrial and resource sectors, with the Telco’s the only sector to slip into the red.
The S&P/ASX200 Index finished 20 points higher at 4,611. On the futures market, the SPI is currently up 9 points.
Economic news
Weak retail trade data and building approvals has lessened the risk of any imminent rate hikes. The Australian Bureau of Statistics today reported retail sales unexpectedly fell 0.6 per cent to $20.6 billion in May from $20.7 billion the month before. The ABS also showed building approvals dropped more than expected, down 7.9 per cent in the month of May and 14 per cent down compared to the year before. From ANZ, the bank reported job ads in Australian newspapers and online were up 3.7 per cent in June after a fall of 6.5 per cent the month before.
Company news
Shares in Ten Network Holdings Ltd (ASX:TEN) advanced today amid news the network is slashing 100 jobs across Australia as it attempts to curb costs. Interim CEO Lachlan Murdoch described the measures as "an inevitably painful restructure" that will see Ten cut jobs and programs. Shares in Ten gained 5.91 per cent today, ending at $1.165.
In an update to shareholders, Westpac Banking Corporation (ASX:WBC) says the Australian economy is in “good shape”, supported by robust growth in Asia and sound fundamentals. However the bank also warned a recovery in lending growth is likely to be moderate in the short term, particularly as the timing of an upturn in business credit remains uncertain. Shares in Westpac today slipped 0.05 per cent to close at $22.02.
Shares in Cougar Energy Ltd (ASX:CXY) plunged 15 per cent after the miner issued a statement defending charges from the Queensland Government that it has allegedly contaminated groundwater.
Shares in recently spun-off Treasury Wine Estates Ltd (ASX:TWE) jumped almost 9 per cent after rumours China’s Bright Food Group is planning to swoop on the winemaker.
Amid takeover speculation, the head of Foster’s Group Ltd’s (ASX:FGL) has told the ABC that the brewer can "make it on its own".
Shares Murchison Metals Ltd (ASX:MMX) fell today, after the miner flagged $5.9 billion in cost blow outs for its Oakajee port and rail project.
Sectors
The best performing sector was Industrials, rising 35 points to close at 3,568. The only sector to finish in the red was Telco Services, easing 3 points to close at 1,000. The best performing stock in the S&P/ASX200 was Virgin Blue Holdings shares gained 10.53 per cent to close at $0.315. Shares in Treasury Wine Estates and Bathurst Resources also closed in higher today. The worst performing stock was Eastern Star Gas, falling 5.47 per cent to close at $0.605. Shares in Goodman Fielder and Boart Longyear also closed lower today.
Commodities
Gold is trading at $US1,494 an ounce and Light crude is up $0.31 cents at $US95.25 a barrel.
