The Australian share market slipped throughout the day to shed 0.9 per cent by session’s end. Equities came under pressure from domestic and offshore data, including the Reserve Bank of Australia’s soft economic outlook, China’s weaker than expected trade data and uncertainty over ongoing Greek debt negotiations. Losses were accelerated in the mining sector, with major miners BHP Billiton Limited (ASX:BHP) and Rio Tinto Limited (ASX:RIO) both dragging after this week reporting lower than expected financial results.
Figures
The S&P/ASX200 Index shed 38 points to finish at 4,245. For the week, the index lost 6 points. On the futures market the SPI is 42 points lower.
Wall Street, over its four trading days this week: The Dow Jones Industrial Average added 185 points lower. The S&P 500 Index added 26 points, the Nasdaq added 68 points, and the 100 Index added 68 points.
Economic news
Chinese’s exports and imports dropped more than expected at the beginning of 2012. According to the customs bureau China posted a 0.5 per cent fall in January exports and a 15.3 per cent drop in imports. The falls resulted in a bigger than expected trade surplus of $27.3 billion in January, in the same period the nation celebrated its weeklong New Year holiday.
Days after deciding to keep rates on hold at 4.25 per cent the Reserve Bank of Australia has lowered its inflation and growth forecasts. The RBA’s statement of monetary policy forecasts underlying inflation of about 2.25 per cent in the 2012 financial year, 0.25 basis points down from the last forecast. Gross Domestic Product (GDP) growth is expected to fall 0.5 per cent from the last forecast to 3.5 per cent in fiscal 2012. The RBA says, "Growth outside the mining sector is expected to remain below trend over the forecast period."
Company news
Australia and New Zealand Banking Group (ASX:ANZ) has become the first of Australia’s Big Four banks to increase its home loan and small business rates, blaming higher funding costs for the move, following the RBA’s surprise decision to keep rates steady at 4.25 per cent on Tuesday, ANZ has today lifted its standard variable interest rate by 6 basis points to 7.36 per cent per annum. The rates will become effective from November 17, 2012. Shares in ANZ dropped 0.93 per cent today, closing at $21.42.
Newcrest Mining Limited (ASX:NCM) today posted a record first half net profit and maintained its production guidance. The gold miner’s interim result beat expectations, surging 50 per cent to $659 million on the back of a 19 per cent lift in sales revenue. Newcrest’s chief Greg Robinson remains bullish on precious metals prices, predicting the price of gold will lift to $US2,500 an ounce. Shares in Newcrest Mining rose 1.7 per cent today, closing at $34.01.
Shares in Transfield Services Limited (ASX:TSE) jumped to today’s best performer after confirming its 2012 financial year guidance and recommencing its share buy-back today.
Ten Network Holdings Limited (ASX:TEN) today appointed Lachlan Murdoch as non-executive chairman of its board, replacing Brian Long who will become deputy chairman. CEO James Warburton has been appointed as Ten's managing director and joined the board.
Best and worst performers
Most sectors ended in the red: The best performing sector was Telco Services lifting 10 points to close at 1,160. The worst performing sector was Materials, retreating 174 points to close at 11,497 points.
The best performing stock in the S&PASX 200, was Transfield Services Limited (ASX:TSE) rising 11.96 per cent to close at $2.20. Shares in Mesoblast Limited (ASX:MSB) and Beadell Resources Limited (ASX:BDR) also finished higher.
The worst performing stock was Kagara Limited (ASX:KZL) dropping 5.71 per cent to close at $0.33. Shares in White Energy Company Limited (ASX:WEC) and Alumina Limited (ASX:AWC) also closed lower.
Commodities
Gold is trading at $US1,731 an ounce and gained $6.25 over the week.
Light crude is $0.37 lower at $US99.47 a barrel.
Australian dollar
The Australian dollar is buying $1.0717 US cents and is slightly higher over the week.
