Weak leads weighed on the Australia share market, steadily declining throughout the session to end 0.6 per cent down. As investors worried about the US debt ceiling the miners and banks retreated while energy stocks bucked the trend and lifted to the best performing sector by close.
Figures
The S&P/ASX 200 index dropped 27 points to finish at 4,690.
The value of trades was $4.3 billion on volume of 715 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), BHP Billiton Limited
(ASX:BHP) and Westpac Banking Corporation
(ASX:WBC).
On the futures market the SPI is 30 points down.
Economic news
Australia has recorded its largest trade deficit in almost five years. The Australian Bureau of Statistics has reported the deficit widened more than expected to $2.64 billion in November, with exports up 1 per cent and imports up 2 per cent.
Australia’s construction sector remained in contraction mode for the 31st straight month. The Australian Industry Group and Housing Industry Association’s Performance of Construction Index lifted 1.8 points to 38.8 in December but remained below 50, indicating contraction.
Company news Shares in Whitehaven Coal Limited
(ASX:WHC) continued to ease one day after it was hit by a hoax alleging ANZ Banking Group
(ASX:ANZ) had pulled a loan to fund its flagship Maules Creek Coal Project. Australia’s corporate regulator is understood to have now contacted environmental activist Jonathan Moylan who has taken responsibility for the hoax press release. Mr Moylan told Fairfax Media he did not stand to profit from the company’s stock movements yesterday and Whitehaven’s project has greater consequences for the community than any he has to bear. Shares in Whitehaven Coal closed 0.29 per cent lower at $3.49.
Macmahon Holdings Limited
(ASX:MAH) has denied an Indian based company called Sembawang bid for its construction arm in November last year. Sembawang says Macmahon failed to inform the market of the offer ahead of inking a deal to sell the construction assets to Leighton Holdings Limited
(ASX:LEI) in December 2012. Shares in Macmahon Holdings fell 3.39 per cent today, ending at $0.29.
Australia’s largest gold miner Newcrest Mining Limited
(ASX:NCM) has awarded Ausenco Limited
(ASX:AAX) a three year contract to manage a portfolio of projects at its Papua New Guinea gold operations.
Mineral explorer CuDeco Limited
(ASX:CDU) says it has started a diamond drilling programme at its flagship Rocklands South orebody in Queensland.
Iron ore and manganese explorer Jupiter Mines Limited
(ASX:JMS) jumped following a resource upgrade to its Mount Ida Magnetite Project in Western Australia.
Food manufacturer Buderim Ginger Limited
(ASX:BUG) has started to search for a new chief after announcing current CEO Murray Richardson will step down within the next three months.
Best and worst performers
The best performing sector was energy adding 70 points to close at 12,702.
The worst performing sector was financials excluding real estate investment trusts, losing 47 points to close at 5,486 points.
The best performing stock in the S&PASX 200 was Ten Network Holdings Limited
(ASX:TEN), rising 6.78 per cent to close at $0.32. Shares in The Reject Shop Limited
(ASX:TRS) and JB Hi-Fi Limited
(ASX:JBH) also closed higher.
The worst performing stock was Energy World Corporation Limited
(ASX:EWC), dropping 5.71 per cent to close at $0.33. Shares in Senex Energy Limited
(ASX:SXY) and Decmil Group Limited
(ASX:DCG) also closed lower.
Commodities
Gold is trading at $US1,647 an ounce.
Light crude is $0.02 higher at $US93.21 a barrel.
The Australian dollar
The Australian dollar is buying $US1.048.
