Market Wrap: Aus shares close flat

Market Reports

Following mixed offshore leads the Australian share market opened lower this morning and slipped early on the back of falling commodity prices. It has recovered steadily throughout the afternoon to close flat. 

The S&P/ASX 200 index closed 3 points down to finish at 4,356. On the futures market, the SPI is currently 2 points up.

Economic news

The Australian Bureau of statistics today released its figures on construction activity for the June quarter, showing a 2.5 per cent decline in construction activity for the June quarter. This follows a 7.8 per cent rise in the previous quarter and analyst predictions of a 0.5 percent climb. Detached housing also fell by 3.5 per cent. All states excluding Queensland softened over the quarter.

Company news

Roc Oil Company Limited (ASX:ROC) has swung to a $28.6 million half year net profit, up from the $6.5 million loss reported for the same period last year. The oil and gas explorer says that competitive operating costs are behind the swing. CEO Alan Linn said extensive exploration and offshore production plans in the second half of the year will help maintain positive profit results. Shares in Roc Oil closed 1.59 per cent up at $0.32.

BHP Billiton Limited (ASX:BHP) today confirmed that it will cut up to 140 jobs at the Olympic Dam after announcing a hold on a $20 billion expansion to the copper and uranium project. The global miner called the halt on the back of falling commodity prices and doubts over its profitability, and will investigate more capital friendly alternatives with a vastly reduced project team. BHP announced this morning that Norways Norges bank has acquired a three per cent stake in the company after purchasing over 63 million shares last week. Shares in BHP closed 1.03 per cent down at $32.76.

Diversified mining services company Ausdrill Limited (ASX:ASL) boosted its full year net profit by 53 per cent to $112.2 million on the back of expanded services to Australian and African resources sectors.

Transfield Services Limited (ASX:TSE) says focusing on improving capital management systems and business efficiencies aided its results after swinging to a full year net profit of $84.8 million, compared to a net loss of $19.7 million last year.
 
Southern Cross Media Group (ASX:SXL) lifted its full year net profit by 48 per cent to $95 million. The result reflects the group’s first full 12-month period since the acquisition of the Austereo Group last May.

Newcrest Mining Limited (ASX:NCM) has resumed production at its Lihir mine in Papua New Guinea after resolving a dispute with land owners and government representatives.

Best and worst performers 

The best performing sector was Telco Services adding 19 points to close at 1,310.The worst performing sector was Materials, losing 121 points to close at 9,574.

The best performing stock in the S&PASX 200 was Lynas Corporation Limited (ASX:LYC), rising 7.58 per cent to close at $00.71. Shares in Acrux Limited (ASX:ACR) and Seven Group Holdings Limited (ASX:SVW) also finished higher.

The worst performing stock was Sundance Resources Limited (ASX:SDL), dropping 9.72 per cent to close at $00.33. Shares in Ramelius Resources Limited (ASX:RMS) and Bathurst Resources Limited (ASX:BTU) were also lower at close.

Commodities

Gold is trading at $US1,670 an ounce. Light crude is $0.38 down at $US95.95 a barrel.

The Australian dollar

The Australian dollar is buying $US1.037.


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