Upbeat monthly jobs data failed to lift the Australian share market out of the red today. Soft leads dampened sentiment from the start as energy and financial stocks weighed throughout the session.
Figures
The S&P/ASX 200 index dropped 11 points to finish at 4,509.
The value of trades was $3.9 billion on volume of 728 million shares at the close of trade. The top three stocks by value were Graincorp Limited
(ASX:GNC) BHP Billiton Limited
(ASX:BHP) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 11 points lower.
Economic news
The latest Australian jobs figures have revealed a surprise drop in the nation’s unemployment rate. The Bureau of Statistics has shown the jobless rate dropped to 5.2 per cent in November from 5.4 per cent the month before. The domestic economy added 13,900 jobs in Novemberafter adding 10,200 jobs the month before.
Company news
Moody’s has predicted profit growth in the banking sector will stagnate and forecast bad debt will rise next year. The rating’s agency expects bank earnings growth to slow as a result of low credit growth, lower interest rates and ongoing funding cost pressures. However Moody’s has still affirmed profitability metrics are likely to stay strong by international comparison. National Australia Bank finished 0.25 per cent lower today at $24.25.
BHP Billiton Limited
(ASX:BHP) will pass on responsibility for its Olympic Dam copper and uranium mine in South Australia to its base metals group. The move is widely viewed as a re-shuffling of priorities and comes after BHP ditched plans for a $US30 billion expansion of the mine in August. The global mining company says the decision is in line with its cost control strategy. Shares in BHP Billiton lifted 0.35 per cent today, closing at $34.41.
Media company Ten Network Holdings Limited
(ASX:TEN) has confirmed days of speculation and revealed a $230 million capital raising to pay down debt and fund restructuring costs.
Agricultural chemicals maker Nufarm Limited
(ASX:NUF) expects first half earnings to lift 15 per cent on the back of improvements in its South American and European divisions.
Global miner Rio Tinto Limited
(ASX:RIO) has inked a new accommodation services contract with Fleetwood Corporation Limited
(ASX:FWD) for a village upgrade which will house Rio Tinto workers.
Virgin Australia Holdings Limited
(ASX:VAH) has moved in on its takeover target, regional airline Skywest Airlines Limited
(ASX:SXR), with the $99 million proposed tie up today receiving approval from Singapore’s corporate regulator.
Best and worst performers
The best performing sector was utilities adding 40 points to close at 5,084.
The worst performing sector was energy, losing 127 points to close at 12,125 points.
The best performing stock in the S&PASX 200 was Fleetwood Corporation Limited
(ASX:FWD), rising 3.95 per cent to close at $8.95. Shares in Linc Energy Limited
(ASX:LNC) and Beadell Resources Limited
(ASX:BDR) also closed higher.
The worst performing stock was Intrepid Mines Limited
(ASX:IAU), dropping 10.17 per cent to close at $0.27. Shares in Northern Star Resources Limited
(ASX:NST) and Coalspur Mines Limited
(ASX:CPL) also closed lower.
Commodities
Gold is trading at $US1,691 an ounce.
Light crude is $0.16 lower at $US87.72 a barrel.
The Australian dollar
The Australian dollar is buying $US1.046.
