Market Wrap: Aus shares fall on retail woes

Market Reports

The Australian sharemarket has ended the day half a per cent lower, with retailers posting some poor results today in what they describe as the worst retail environment in more than twenty years.

The S&P/ASX 200 index lost 21 points to finish at 4,254. On the futures market, the SPI is currently 20 points lower.

Economic news

ABS data shows imports dropped $949 million in February, or 5 per cent, to $19.8 billion, seasonally adjusted.

The Westpac-Melbourne Institute leading index of economic activity posted an annualised growth rate of 2.6 per cent in January. That’s below its long term trend of 3 per cent.

In February job advertisements on the internet fell by 0.1 per cent compared with a month before, according to figures from the Department of Education, Employment and Workplace Relations.

Company news

David Jones Limited (ASX:DJS) shares have been sold-off in response to the retailer flagging a 35 to 40 per cent fall in full year profit. For the half year, David Jones posted a net profit of $85 million, almost a 20 per cent fall on the previous corresponding period. DJs says it’s the worst retail sales growth environment in more than twenty years. David Jones shares closed 10.99 per cent lower at $2.43, the worst performing stock in the ASX top 200.

Kathmandu Holdings Limited (ASX:KMD) shares took a tumble after announcing interim net profit fell more than 40 per cent to $NZ6 million. The lower result has been due to higher costs and spending on new products. The group did lift sales in the period by more than 15 per cent. The company doesn’t expect to see an improvement in retail conditions for the second half. Kathmandu shares dropped 16.11 per cent today, closing at $1.25.

OrotonGroup Limited (ASX:ORL) posts a half year net profit of $16.1 million, a lift of 4 per cent.

Hutchison Telecommunications Limited (ASX:HTA) announces Bill Morrow will be the chief executive of Vodafone Hutchison Australia.

Air New Zealand Limited (ASX:AIZ) carried almost 3 per cent less passengers in February this year compared to last year.

And finally, Glencore International will officially acquire dual-listed grain handler Viterra (ASX:VTA, TSE:VT), today announcing an agreement has been signed.

Best and worst performers

The best performing sector was Utilities adding 14 points to close at 4,783.

The worst performing sector was Materials, losing 105 points to close at 10,955 points.

The best performing stock in the S&PASX 200 was Beach Energy Limited (ASX:BPT), rising 5.18 per cent to close at $1.625. Shares in Sigma Pharmaceuticals Limited (ASX:SIP) and Gryphon Minerals Limited (ASX:GRY) also closed higher.

The worst performing stock was David Jones Limited (ASX:DJS), dropping 10.99 per cent to close at $2.43. Shares in Medusa Mining Limited (ASX:MML) and Intrepid Mines Limited (ASX:IAU) also closed lower.

Commodities

Gold is trading at $US1,653 an ounce. Light crude is $0.50 higher at $US106.57 a barrel

The Australian dollar

The Australian dollar is buying $US1.049.


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