Despite better than expected US jobs figures the Australian share market was today weighed down by European concerns and domestic economic data. Equities open higher but dipped before noon and hovered in the red to close almost where they started.
The S&P/ASX 200 Index lost 3 points to finish at 4,105. On the futures market the SPI is 6 points lower.
Economic news
The latest retail sales figures have come in flat and below expectations. According to the Bureau of Statistics retail sales rose to a seasonally adjusted $20.933 billion in November, compared to $20.927 billion the month before. Analysts were expecting a rise of up to 0.4 per cent.
Activity in Australia’s construction sector improved at the end of last year but still remained weak. The Australian Industry Group and Housing Industry Association’s Performance of Construction Index added 1.4 points to 41 in December. It was the index’s nineteenth straight month below 50, indicating contraction.
New home sales were given a boost at the end of last year following the Reserve Bank’s November interest rate cut. The Housing Industry Association and Jeld Wen new homes sales report has shown sales of new homes in Australia jumped 6.8 per cent in November after a downwardly revised increase of 2.8 per cent the month before.
Company news
Shares in Spotless Group Limited (ASX:SPT) gained today after its directors told its suitor, private equity fund Pacific Equity Partners, it would be prepared to back a bid if it increased to $2.80 per share. The cleaning services company received a sweetened takeover offer from Pacific Equity in November, valued at an indicative price of $2.68 per Spotless share. Shares in Spotless Group gained 1.72 per cent today, closing at $2.37.
Mirrabooka Investments Limited (ASX:MIR) has reported a 9.5 per cent fall in its interim net profit and warned that market volatility is set to continue in the short term. The investment company’s net profit came in at $6.9 million for the last six months of 2011. Mirrabooka says it expects volatility to settle into a period of more normalised returns in the second half of this year. Shares in Mirrabooka Investments firmed 0.58 per cent today, closing at $1.74.
Global miner Rio Tinto Limited (ASX:RIO) has now acquired more than 90 per cent of Hathor Exploration as part of its $623 million compulsory acquisition of the Canadian uranium explorer.
Shares in Duet Group (ASX:DUE) rose after announcing a favourable outcome from an appeal that is expected to boost revenue from its 66 per cent owned United Energy by about $80 million between 2013-15.
Shares in Ironbark Zinc Limited (ASX:IBG) gained after announcing resource upgrade. The gold and zinc explorer has posted a 53 per cent increase in the measured and indicated base metal resource at its wholly owned project in Greenland.
Shares in Northern Star Resources Limited (ASX:NST) closed higher after the gold miner announced it had beaten its key targets with $46 million cash flow last year and is on track to meet first quarter production guidance.
Best and worst performers
Most sectors ended lower: The best performing sector was Telco Services rising 13 points to close at 1,148. The worst performing sector was Health Care, dropping 41 points to close at 7,929 points.
The best performing stock in the S&P/ASX 200 was IOOF Holdings, lifting 3.23 per cent to close at $5.43. Shares in Newcrest Mining and Charter Hall Retail REIT also finished stronger.
The worst performing stock was Mesoblast, falling 4.36 per cent to close at $6.36. Shares in Southern Cross Media Group and Mineral Deposits also lost value.
Commodities
The price of gold is $US1,610 an ounce.
Light crude is up $0.60 at $US100.96 cents a barrel.
