The Australian share market opened lower this morning following Wall Street easing on the back of US Federal Reserve meeting minutes causing concern that stimulus measures could be scaled back sooner rather than later. The ASX traded in a reasonably narrow range throughout a relatively low volume day, closing 0.4 per cent down.
The ASX hit fresh 19 month highs in its shortened trading week to begin the New Year, following the end of months of speculation surrounding the US fiscal cliff, as global markets responded positively to the negotiations that steered the world’s biggest economy away from a potential recession.
The S&P/ASX 200 index closed 17 points down to finish at 4,724. Over the week the index gained 53 points. The value of trades was $2.5 billion on volume of 515 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited (ASX:BHP), Rio Tinto Limited (ASX:RIO) and Commonwealth Bank of Australia (ASX:CBA).
On the futures market, the SPI is 12 points down.
Figures
Wall Street, over its trading days this week: The Dow Jones Industrial Average added 295 points. The S&P 500 Index added 41, the Nasdaq gained 115 and the 100 Index went up by 99 points.
Economic news
Australians bought a record number of new cars last year according to the Federal Chamber of Automotive Industries (FCAI) reported.
There were 1.1 million new cars purchased in 2012, a 10.3 per cent increase from 2011. Passenger vehicles were the highest selling segment of the market, up 3.1 per cent on the previous year.
The Australian Industry Group-Commonwealth Bank Performance of Services Index dropped 3.9 points to 43.2 in December, remaining below 50 which indicates contraction in the services sector.
Company news
Ten Network Holdings Limited (ASX:TEN) officially launched the retail component of its $230 million capital raising today, with the retail entitlement expected to contribute $63 million. Funds from the capital raising will be directed towards an existing $US125 million debt, with the remainder to be allocated toward restructuring costs, while Ten remains committed to a $35 million annual cost cutting program. Shares in Ten Network closed steady at $0.29.
Commonwealth Bank of Australia (ASX:CBA) shares surged beyond their all time high point this afternoon, reaching $63.35 at their peak.
Economist Shane Oliver told Fairfax media the rally would continue along with growth in global shares on the back of the US fiscal cliff deal. Shares in CBA closed 0.02 per cent higher at $63.25.
Lend Lease Group (ASX:LLC) has secured a construction contract with London based firm Land Securities valued at approximately $264 million.
Atlas Iron Limited (ASX:AGO) has commenced production at its third Pilbara iron ore mine, Mt Dove, in Western Australia.
Best and worst performers
The best performing sector was Utilities adding 19 points to close at 5,254.
The worst performing sector was Materials, losing 129 points to close at 10,878 points.
The best performing stock in the S&PASX 200 was Gindalbie Metals Limited (ASX:GBG), rising 10.71 per cent to close at $0.31. Shares in Senex Energy Limited (ASX:SXY) and Carsales.com Limited (ASX:CRZ) also closed higher.
The worst performing stock was Northern Star Resources Limited (ASX:NST), dropping 6.96 per cent to close at $1.27. Shares in Energy World Corporation Limited (ASX:EWC) and Saracen Mineral Holdings Limited (ASX:SAR) also closed lower.
Commodities
Gold is trading at $US1,649 an ounce, and is down $13.30 over the week.
Light crude is $0.72 lower at $US92.20 a barrel.
The Australian dollar
The Australian dollar is buying $1.043 and is $0.005 higher over the week.
