The Australian share market dropped at the open and is more than 1 per cent down at noon following news the credit ratings of nine eurozone nations have been downgraded by Standard & Poor’s. All sectors are trading lower with the steepest losses among the miners, retailers and financials.
The S&P/ASX 200 index has fallen 48 points and is 4,148. On the futures market the SPI is 61 points lower.
Economic news
Jobs advertisements on the internet and in major newspapers dropped at the end of last year. ANZ Bank has reported there were 0.9 per cent less job ads in December compared to the month before and 2.6 per cent fewer ads in December 2011 than December 2010.
Consumer prices in Australia increased at the end of last year. TD Securities and the Melbourne Institute’s inflation gauge added 0.5 per cent in December after a fall of 0.1 per cent the month before. Over the 2011 calendar year the inflation gauge increased 2.4 per cent, within the Reserve Bank’s target range of between 2-3 per cent.
Home loans and housing finance rose in November. The Australian Bureau of Statistics reported the number of home loans approved increased 1.4 per cent and housing finance by value rose 2.1 per cent in November.
Company news
Shares in Dart Energy Limited (ASX:DTE) have risen following news the company has created a new wholly owned subsidiary and business unit. Dart Energy International Shale Pte Ltd has been created to manage, grow and monetise Dart’s growing shale gas resources. Dart says its aim is to grow its shale portfolio in a low cost fashion and bring in funding partners at the appropriate time. Shares in Dart Energy have risen 5.75 per cent to $0.46.
Stockland (ASX:SGP) has secured a residential site in one of its key target growth corridors in Sydney’s North West for $165 million. The property developer says the 163-hectare site in Marsden Park has the potential for about 2,300 new homes. Stockland says the North West is a thriving area which is undersupplied and the company anticipates solid demand for new homes. First home settlements are expected in the 2014 financial year. Shares in Stockland have dropped 1.91 per cent and are trading at $3.345.
Best and worst performers
All sectors are in the red: The sector with the smallest losses is Telco Services easing 3 points to 1,119. Shares in iiNet have lifted 2.01 per cent and trading at $3.05. Shares in BigAir Group and Telecom Corporation of New Zealand are also higher.
The worst performing sector is Materials, losing 162 points to 11,030. Shares in Gunns are 4.55 per cent lower, trading at $0.105. Shares in Kingsgate Consolidated and Cape Lambert Resources have also lost value.
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 up 0.25 per cent to $1.985, followed by Westpac, Fletcher Building and ANZ.
Gold and the dollar
Gold is trading at $US1,634 an ounce.
The Australian dollar is buying $US1.0269.
