Market Wrap: ASX snaps winning streak

Market Reports

The Australian share market slightly pulled back from last month’s gains, closing the first day of August in the red. Investors absorbed a series of economic reports but remained hesitant ahead of this week’s central bank meetings. 
 
The S&P/ASX 200 index eased 6 points to finish at 4,263. On the futures market the SPI is now 4 points lower.
 
Economic news

Manufacturing activity from the world’s second largest economy has dropped for the fourth straight month. China’s official purchasing managers’ index fell to 50.1 in July from 50.2 the month before, now only slightly above 50 which indicates expansion.  
 
Australian capital city house prices rose between April and June: The Australian Bureau of Statistics has reported prices gained 0.5 per cent in the June quarter, recovering from a fall of 0.1 per cent in the March quarter.
 
House prices rose at a slower pace last month, according to  RP Data-Rismark, its capital city home price index lifted 0.6 per cent in July after increasing 1 per cent rise the month before. 
 
Manufacturing activity fell to a three year low last month: The Australian Industry Group and PriceWaterhouseCoopers Performance of Manufacturing Index dropped 6.9 index points to 40.3 in July. Under 50 indicates contraction. 
 
Online sales rose last month: National Australia Bank Limited’s (ASX:NAB) Online Retail Sales Index has shown online spending increased 14 per cent in June from the month before and 19 per cent from June 2011. 
 
Company news

Casino operator Crown Limited (ASX:CWN) has announced it will spend $568 million to develop a new luxury six star hotel in Perth from next year which will be called the Crown Towers Perth.  
 
Shares in Intrepid Mines Limited (ASX:IAU) surged to the top 200’s best performer after placing around 5 per cent of its shares with a prominent Indonesian political and business figure. 
 
Fashion retailer Country Road Limited (ASX:CTY) is raising $92 million to purchase Witchery Australia Holdings for $172 million from Gresham Private Equity. 
 
Shares in Paperlinx Limited (ASX:PPX) soared 34 per cent by close after the struggling paper manufacturer appointed Andrew Price as a non-executive director, effective from September 2012. 
 
Best and worst performers

The best performing sector was Telco Services adding 13 points to close at 1,382.
The worst performing sector was Materials, losing 52 points to close at 9,336 points.
 
The best performing stock in the S&PASX 200 was Intrepid Mines Limited (ASX:IAU), rising 31.82 per cent to close at $0.29. Shares in Coalspur Mines Limited (ASX:CPL) and Arrium Limited (ASX:ARI) also closed higher.
 
The worst performing stock was Integra Mining Limited (ASX:IGR), dropping 9.52 per cent to close at $0.29. Shares in Saracen Mineral Holdings Limited (ASX:SAR) and Energy World Corporation Limited (ASX:EWC) also closed lower. 
 
Commodities

Gold is trading at $US1,1614 an ounce.
Light crude is $0.03 down at $US88.03 a barrel.

The Australian dollar

The Australian dollar is buying $US1.051. 

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