The Australian share market has slipped from 21-month highs and is trading in the red following negative leads. Despite opening higher local stocks have snapped 10 days of gains and are trending lower - dragged down by energy, mining and healthcare stocks.
The S&P/ASX 200 index has dipped 14 points and is sitting at 4,883. On the futures market the SPI is 12 points lower.
Economic news
New home sales rose for the third straight month at the end of last year. The Housing Industry Association has reported sales of new homes in Australia increased 6.2 per cent in December, after lifting 4.7 per cent the month before.
Company news Supermarket giant Woolworths Limited
(ASX:WOW) has boosted its first half sales by 3.2 per cent to $30.7 billion, but fallen short of the growth rate of its rival Coles.
Woolies posted its strongest quarterly food and liquor sales growth in more than a year, with both same-store and total sales increasing in the last three months of 2012. Wesfarmers Limited (ASX:WES) owned Coles posted 4.7 per cent first half sales growth yesterday. Shares in Woolworths have dropped 1.55 per cent and are trading at $31.16. Australia’s competition regulator has given Virgin Australia Holdings Limited
(ASX:VAH) the green light to buy Skywest Airlines Limited
(ASX:SXR). Virgin inked a $95 million deal to buy the regional airline in October 2012. The ACCC is also currently considering Virgin’s plans to take a 60 per cent stake in Tiger Airways Australia for $35 million.
Shares in Virgin Australia Holdings are trading steady at $0.42.
Best and worst performers The best performing sector is consumer discretionary gaining 6 points to 1,461. Shares in Navitas Limited
(ASX:NVT) have risen 2.72 per cent and trading at $4.91. Shares in Ten Network Holdings Limited
(ASX:TEN) and News Corp
(ASX:NWS) are also stronger.
The worst performing sector is energy, falling 123 points to 13,064. Shares in Maverick Drilling and Exploration Limited
(ASX:MAD) have fallen 11.97 per cent, trading at $0.63. Shares in Whitehaven Coal Limited
(ASX:WHC) and Woodside Petroleum Limited
(ASX:WPL) are also lower.
Gold and the dollar
Gold is trading at $US1,677 an ounce.
The Australian dollar is buying $US1.042.
