After weak leads the Australian share market opened lower and remained in the red in tepid trade to end 0.2 per cent down. As the local reporting season continues to dominate headlines shares in global miner BHP Billiton Limited
(ASX:BHP) and energy major Woodside Petroleum Limited
(ASX:WPL) pulled back after revealing disappointing results.
The S&P/ASX 200 index ended 7 points down at 4,376. On the futures market the SPI is 15 points lower.
Economic news A read on the likely pace of economic activity three to nine months into the future has forecast conditions should remain subdued. According to Westpac Banking Corporation
(ASX:WBC) and the Melbourne Institute the annualised growth rate of the index was 2.4 per cent in June, under its long term trend of 2.7 per cent.
Profit results BHP Billiton Limited
(ASX:BHP) has revealed a bigger than expected full year profit drop and confirmed it will not meet the deadline for deciding on its Olympic Dam copper and uranium mine expansion. The global miner’s full year net profit has fallen 35 per cent to $US15.4 billion from a record Australian corporate profit of $US22.5 billion achieved in 2011. BHP has increased its final dividend by 2 cents to 57 cents per share. Shares in BHP Billiton retreated from today’s highs after the result was revealed, closing 0.33 per cent down at $33.16.
Shares in The Reject Shop Limited
(ASX:TRS) jumped to the ASX200’s best performer after posting a 36 per cent increase in its annual net profit. The discount retailer says the improved result reflects the reopening of its Ipswich distribution centre and insurance recoveries following the Queensland floods early 2011. A final dividend of 18 cents per share has been declared in addition to a special dividend of 8.5 cents per share. Shares in The Reject Shop jumped 8.06 per cent today, finishing at $10.59.
Shares in Woodside Petroleum Limited
(ASX:WPL) dragged the energy sector lower after the oil and gas producer revealed its first half profit has fallen 1.9 per cent to $US812 million. Woodside’s CEO Peter Coleman revealed the company’s drilling campaign for its $15 billion Pluto LNG project has produced disappointing exploration results, putting a question mark over future expansion. A fully-franked final dividend of 65 US cents per share has been declared. Shares in Woodside Petroleum retreated 3.06 per cent today, ending at $34.90.
Shares in SEEK Limited
(ASX:SEK) rose to a top performer in the S&P/ASX200 as the online job advertiser posted a 35 per cent increase in its full year profit.
Shares in Suncorp Group Limited
(ASX:SUN) closed higher after the general insurance provider revealed a 60 per cent annual profit lift and declared a special dividend.
Shares in Pacific Brands Limited
(ASX:PBG) dropped after the clothing manufacturer revealed it has widened its full year loss and its CEO Sue Morphett will be replaced by John Pollaers.
Shares in ports and rail operator Asciano Limited
(ASX:AIO) closed steady after reporting a 19 per cent increase in its annual profit and provided no specific financial guidance.
Best and worst performers
The best performing sector was real estate investment trusts adding 9 points to close at 924.The worst performing sector was Energy, losing 195 points to close at 12,946 points.
The best performing stock in the S&PASX 200 was The Reject Shop Limited
(ASX:TRS), rising 8.06 per cent to close at $10.59. Shares in SEEK Limited
(ASX:SEK) and Alacer Gold Corporation
(ASX:AQG) also closed higher.
The worst performing stock was Bathurst Resources Limited
(ASX:BTU), dropping 10.42 per cent to close at $0.43. Shares in Arrium Limited
(ASX:ARI) and Monadelphous Group Limited
(ASX:MND) also closed lower.
Commodities
Gold is trading at $US1,642 an ounce.
Light crude is $0.60 up at $US96.68 a barrel.
The Australian dollar
The Australian dollar is buying $US1.044.
