The Australian share market has defied a slump on Wall Street to finish the day flat. Weaker than expected jobs data, and a better than expected profit result from Telstra added to the speculation that the Reserve Bank may soon cut rates.
The S&P/ASX200 Index closed flat at 4,141. On the futures market, the SPI is 2 points lower.
Economic news
Unemployment increased from 4.9 to 5.1 per cent, its highest level in eight months.
Company news
Telstra Corporation Limited (ASX:TLS) shares have risen, after posting a better than expected fall in profit. The telco posted a net profit for the year to June 30 of $3.23 billion. That’s almost a 17 per cent fall on the previous corresponding period, analysts had expected a fall of 19 per cent. Telstra will pay a final dividend of 14 cents, taking the total dividend for the full year to 28 cents. Telstra shares ended the day 5.65 per cent higher at $2.99.
David Jones Limited (ASX:DJS) hasn’t downgraded its profit guidance even though sales for the fourth quarter dropped by more than ten percent. The retailer reaffirmed guidance for a decline in net profit of between 0.5 per cent and 2.0 percent when it reports annual results in September. David Jones shares closed 6.43 per cent lower today at $2.62
Foxtel, owned by Consolidated Media Holdings Limited (ASX:CMJ), News Corporation (ASX:NWS) and Telstra Corporation Limited (ASX:TLS), reported that earnings rose by 15.5 per cent to June 30.
Singapore Telecommunications Ltd’s (ASX:SGT) Australian arm Optus added 113,000 postpaid customers this quarter.
Woodside Petroleum Limited (ASX:WPL) chief executive Peter Coleman says that despite protests at the James Price Point site near Broome, the $30 billion gas hub project is still on track.
News Corporation (ASX:NWS) reported lower quarterly profit, reporting net income of $US683 million down from $US875 million.
Best and worst performers
The best performing sector was Telco Services, the index rising 52 points to close at 1,025. The worst performing sector was Real Estate Investment Trusts, easing 13 points to close at 709.
The best performing stock in the S&P/ASX200 was Kingsgate Consolidated Limited, shares lifted 7.28 per cent to close at $8.40. Shares in Aurora Oil & Gas Limited and Alacer Gold also gained today.
The worst performing stock was Infigen Energy shedding 8.2 per cent to close at $0.28. Shares in FKP Property Group and David Jones Limited also fell today.
IPOs
Strategic Elements Limited (ASX:SOR) started trading at $0.115, $0.085 lower than its issue price of $0.20. Strategic Elements closed at $0.16.
Commodities
Gold is trading at $US1,788 an ounce and Light crude is down $0.05 cents to $US82.84 a barrel.
