Market Wrap: ASX down after choppy trade

Market Reports

It was a choppy day of trade for the Australian share market today. Equities zigzagged between negative and positive territory to end 0.2 per cent down. Health and telco sectors ended higher. The miners and retailers ended lower.  

The S&P/ASX 200 Index lost 7 points to finish at 4,053. On the futures market, the SPI is 14 points lower.

Economic news

The Reserve Bank of Australia today released its December meeting minutes from its latest board meeting that saw a 25 basis point rate cut. Explaining the move the central bank says, "Overall, members concluded that growth in the world economy was likely to weaken over the coming year".

Retail spending increased last month, according to the Commonwealth Bank of Australia (ASX:CBA). The business sales indicator added 0.3 per cent in November after a similar increase the month before.


Company news

Shares in Billabong International Limited (ASX:BBG) continued to extend this week’s steep decline, today falling to the top 200’s worst performer. The surfwear retailer fell 44 per cent yesterday after downgrading its half year sales and profit outlook. Billabong expects its earnings to reach up to $75 million in the second half of this year, falling $20 million short from last year. Shares in Billabong International lost 12.81 per cent today, closing at $1.77.

Today’s best performer was Cochlear Limited (ASX:COH), gaining after the hearing implant manufacturer released an update on its Nucleus 5 implant. Cochlear says it has now identified the reason its Nucleaus 5 experienced failures, opening up the path for the product to return to the market. Cochlear voluntarily recalled the complete Nucleus line in September. Shares in Cochlear gained 16.43 per cent today, closing at $64.33.

Shares in Macmahon Holdings Limited (ASX:MAH) closed higher after the mining focussed engineering company forecast its annual net profit to top $55 million, $10 million more than last month’s forecast.

Shares in Elders Limited (ASX:ELD) also got a boost on news the agribusiness is expecting to deliver a “much improved” profit result in the 2012 financial year.

Shares in Newcrest Mining Limited (ASX:NCM) retreated after the gold miner trimmed its production guidance by 6 per cent for the current fiscal year.

Shares in Insurance Australia Group Limited (ASX:IAG) finished flat. The insurer today detailed its Malaysian associate’s plans to grow in Asia just days after IAG announced its own new acquisition in New Zealand. 

Best and worst performers

Most sectors finished in the red: The best performing sector was Health Care rising 155 points to close at 8,050. The worst performing sector was Materials, dropping 69 points to close at 10,489 points.

The best performing stock in the S&P/ASX 200 was Cochlear, jumping 16.43 per cent to close at $64.33. Shares in Macmahon Holdings and Integra Mining also finished stronger.

The worst performing stock was Billabong International, falling 12.81 per cent to close at $1.77. Shares in Dart Energy and Linc Energy also lost value.

IPOs

Alliance Aviation Services Ltd (ASX:AQZ) started trading today. The fly-in, fly-out operator listed at $1.60, started trading at $1.70 and closed 2.94 per cent lower at $1.65.

Commodities

The price of gold is $US1,599 an ounce.
Light crude is up $0.61 at $94.49 US cents a barrel.


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