After posting a strong start to 2013 the Australian share market ended the second week of the New Year in the red. Stocks shrugged off a positive US lead and news Japan has launched its biggest stimulus package since the GFC [Global Financial Crisis]. Locally major miners Rio Tinto Limited
(ASX:RIO) and BHP Billiton Limited
(ASX:BHP) pushed the resources sector to the worst by close amid reports some operations could be threatened due to an approaching cyclone off Australia's northwest coast.
Figures
The S&P/ASX 200 index dropped 13.5 points today and 14 points over the week to end at 4,710.
The value of trades was $3.3 billion on volume of 591 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), National Australia Bank Limited
(ASX:NAB) and Westpac Banking Corporation Limited
(ASX:WBC).
On the futures market the SPI is 11 points lower.
US markets all rose over the four trading days week: The Dow Jones Industrial Average gained 80 points, The S&P 500 Index gained 13 points, the Nasdaq gained 21 points and the 100 Index gained 12 points.
Economic news
China’s consumer price index has risen more than expected while the producer price index has fallen more than expected. The National Bureau of Statistics reports China’s consumer price index rose 2.5 per cent while the producer price index fell 1.9 per cent in December 2012 from the year before.
Company news National Australia Bank Limited
(ASX:NAB) has cut its forecasts for Australian growth, increased its expectations for unemployment and predicted the Central Bank will cut rates by more than previously anticipated this year. Chief Economist Alan Oster told clients NAB see’s domestic GDP dipping to 2 per cent and unemployment rising to around 5.75 per cent. As a result Mr Oster expects the RBA [Reserve Bank of Australia] will start to cut rates in March and shave about 75 basis points off the key cash rate over 2013. Shares in National Australia Bank firmed 0.55 per cent today, ending the week at $25.57.
Online job ad company SEEK Limited
(ASX:SEK) has stepped up its Asian expansion through lifting its stake in a Chinese employment website called Zhaopin Limited. Zhaopin is 15 per cent owned by James Packer’s Consolidated Press Holdings and SEEK plans increase its interest to 72.3 per cent. Shares in SEEK gained 5.37 per cent today, ending the week at $7.65.
Mesoblast Limited
(ASX:MSB) jumped to the best performer after the pharmaceutical company said it is moving closer to a final testing program for its stem cell treatment to ease back pain after early trials produced positive results.
Transurban Group
(ASX:TCL) eased despite the toll road operator posting a 3.1 per cent jump in first half revenue on the back of increased traffic on its CityLink and M7 roadways.
Best and worst performers
The best performing sector was consumer staples adding 42 points to close at 9,088.
The worst performing sector was materials, losing 151 points to close at 10,584 points.
The best performing stock in the S&PASX 200 was Mesoblast Limited
(ASX:MSB), rising 9.54 per cent to close at $5.74. Shares in SEEK Limited
(ASX:SEK) and M2 Telecommunications Group Limited
(ASX:MTU) also closed higher.
The worst performing stock was Sydney Airport Holdings Limited
(ASX:SYD), dropping 5.52 per cent to close at $3.08. Shares in Discovery Metals Limited
(ASX:DML) and Mount Gibson Iron Limited
(ASX:MGX) also closed lower.
Commodities
Gold is trading at $US1,673 an ounce, up $24.20 over the week
Light crude is $0.02 lower at $US93.84 a barrel
The Australian dollar
The Australian dollar is buying $1.058, up $0.014 over the week.
