Market Wrap: Retreats from 10-day run

Market Reports

The Australian sharemarket retreated from its 10-day run early in the day, before closing 0.4 per cent lower with the health care and consumer staples sectors weighing on the market.   
 
Today, the S&P/ASX 200 index closed 18 points down to finish at 4,879.
 
The value of trades was $4.7 billion on volume of 840 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited (ASX:BHP), Commonwealth Bank of Australia (ASX:CBA), National Australia Bank Limited (ASX:NAB).
 
On the futures market the SPI is 17 points lower.
 
Economic news

Private sector credit for December has risen following two months of stagnation and beating forecatsts of a 0.2 per cent lift. According to the Reserve Bank of Australia, the value of credit jumped 0.4 per cent largely aided by a recovery in business credit which jumped by 0.7 per cent for the month. Housing credit on an annualised basis eased to 4.5 per cent compared to 4.6 per cent the year before.
 
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 
 
Shares in Whitehaven Coal Limited (ASX:WHC) have dropped as the coal producer issued a new profit warning, as it released its December quarter production figures this morning. Whitehaven cut its earning forecast to as low as $20 mililon for the financial year, based on weak market conditions. EBITDA for the first half would be as low as $10 million with the second half expected to be similar if coal markets and the high Australian dollar remain unchanged.  Shares in Whitehaven Coal closed 5.48 per cent down at $3.28.
 
Supermarket giant Woolworths Limited (ASX:WOW) has boosted its first half sales by 3.2 per cent to $30.7 billion, but has fallen short of the growth rate of its rival Wesfarmers Limited (ASX:WES) owned Coles who posted 4.7 per cent first half sales growth yesterday. Shares in Woolworths closed 1.3 per cent down at $31.24.

Australia’s competition regulator has given Virgin Australia Holdings Limited (ASX:VAH) the green light to buy regional airline Skywest Airlines Limited (ASX:SXR). The ACCC is also considering Virgin’s plans to take a 60 per cent stake in Tiger Airways Australia for $35 million. 
 
Shares in Pharmaxis Limited’s (ASX:PXS) have plunged more than 45 per cent after the pharmaceutical company received a negative recommendation for its cystic fibrosis treatment.
 
Mothercare Australia Limited (ASX:MLC) has appointed voluntary administrators after its suitor walked away from a deal to acquire the company.
 
Evolution (ASX:EVN) has maintained its annual production and cost targets despite the recent disruption at the Mt Rawdon open-cut gold mine in Queensland due to ex-tropical cyclone Oswald.
 
Best and worst performers 

The best performing sector was real estate investments trusts adding 4 points to close at 1,016.The worst performing sector was health care, losing 135 points to close at 12,047 points. The best performing stock in the S&PASX 200 was Perseus Mining Limited (ASX:PRU), rising 5.41 per cent to close at $1.95. Shares in Karoon Gas Australia and Aurora Oil and Gas also closed higher.

The worst performing stock was Maverick Drilling and Exploration Limited (ASX:MAD), dropping 13.38 per cent to close at $0.61. Shares in ResMed and Emeco Holdings also closed lower. 
 
Commodities

Gold is trading at $US1,679 an ounce. Light crude is $0.09 down at $US97.85 a barrel.

The Australian dollar

The Australian dollar is buying $US1.039.

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