The Aussie sharemarket closed only slightly higher, up 0.05 per cent with materials and industrials leading the local gains.
Meanwhile the World Bank today slashed its global economic growth forecasts and warned that rich nations' debt problems may yet cause a crisis eclipsing the GFC. It’s projected global growth of 2.5 per cent in 2012 and 3.1 per cent in 2013, which is sharply lower than previous estimates of 3.6 per cent for both years.
The S&P/ASX 200 Index gained two points to finish at 4,218. On the futures market, the SPI is six points higher.
Economic news
The Westpac Melbourne Institute index of consumer sentiment shows a 2.4 per cent lift to 97.1 in January, from 94.7 in December 2011.
The ABS says sales of new motor vehicles in Australia fell 2.9 per cent in December, to 84,403, compared with 86,948 units in November.
Also from the ABS, Australian international merchandise imports rose a seasonally adjusted one per cent to $206 million in December.
Company news
BHP Billiton Limited
(ASX:BHP) says it’s ramping up its iron ore production faster than fellow global miner Rio Tinto Limited
(ASX:RIO). BHP today said its iron ore output will exceed guidance at more than 159 million tonnes in fiscal 2012, after quarterly output jumped by a fifth. Shares in BHP closed 0.82 per cent higher at $37.
Analysts say Telstra Corporation
(ASX:TLS) is unlikely repeat its strong 2011 performance this year. They’ve told Fairfax the telco may take a "conservative approach" to any capital management initiatives. It was above two-year highs yesterday, but analysts from the banks today downgraded its buy recommendation to a hold. Telstra closed the day flat, at $3.36.
Wesfarmers Limited
(ASX:WES) has joined the list of companies hit by natural disasters – it’s expecting a 74 per cent drop in first-half earnings from its insurance division. The company says estimated net claims from bushfires, earthquakes and storms in Australia and New Zealand will be $28 million over its allowances.
Sims Metal Management Limited
(ASX:SGM) has outlaid $US137 million, or $132 million, for a 20 per cent stake in Chiho-Tiande Group. The Hong Kong and China based company is a mixed metal scrap importer and processor.
Job cuts at the big banks are continuing – media reports out today say Westpac Banking Corporation
(ASX:WBC) has slashed 28 senior technology executives from across its business divisions, mostly employed in the BT Financial Group and Westpac Institutional Banking. A spokeswoman told Fairfax duplication roles needed to be reduced to create the new technology group services.
Lynas Corporation Limited
(ASX:LYC) shares jumped today on news it significantly increased the estimated resources by 37 per cent from its previous estimate, at its major Mount Weld project, in Western Australia.
Best and worst performers
Materials was up 124 points to 11,360. The worst performing sector was real estate investment trusts, down 12 points, closing at 824.
The best performing stock in the S&P/ASX200 was Linc, up 9.23 per cent to $1.42. Shares in Onesteel and Fortescue followed in strength.
The worst performing stock was Ramelius, it closed 5.47 per cent lower at 95 cents, followed by Energy Resources of Australia and Perseus.
Commodities
The price of gold is $US1,656.30 an ounce and Light crude is up 69 cents to US$101.40 a barrel.
