Defying positive offshore leads the Australian share market has dipped 0.3 per cent at noon. Following a surprise profit downgrade from David Jones fears have spread throughout the retail sector, sending retail stocks tumbling ahead of the reporting season.
The S&P/ASX200 index is 16 points lower at 4,499. On the futures market the SPI is 13 points weaker.
Company news
Investors have run out of department store David Jones Limited (ASX:DJS) after the company issued a shock full year profit warning yesterday evening. DJs says an unprecedented deterioration in trading conditions is to blame for an expected 11 per cent fall in fourth quarter total sales. Full year net profit is expected to fall by up to 2 per cent, compared with 9 per cent growth the year before. Shares in David Jones have plunged 16.37 per cent at noon and are trading at $3.27.
Rival department store Myer Holdings Limited (ASX:MYR) has not escaped the carnage. Despite this morning reconfirming its full year earnings guidance, Myer’s shares have slumped to an all time low. Myer has confirmed it expects to deliver an annual net profit after tax, up to five per cent under the $169 million recorded last year. The company did note however, that this guidance is subject to no further deterioration in otherwise challenging trading conditions. Shares in Myer have sunk 4.91 per cent and are trading at $2.52.
Sectors
The best performing sector is Energy, gaining 50 points to 14,796. Shares in Roc Oil Company have added 3.23 per cent and trading at $0.32. Shares in Whitehaven Coal and Worley Parsons are also higher. The worst performing sector is Consumer Discretionary shedding 19 points to 1,305. Shares in David Jones have plunged 16.37 per cent and trading at $3.27. Shares in Noni B and Pacific Brands have also fallen heavily.
New Zealand
The NZSX50 is 13 points lower. Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock down 0.61 per cent at $2.45 followed by Fletcher Building, Contact Energy and Sky City Entertainment Group.
Gold and the dollar
Gold is trading at $US1,588 an ounce. The Australian dollar is buying $US1.0783 cents.
