The Australian share market has slipped 0.3 per cent at the close following weaker than expected building data and ahead of the RBA’s interest rate decision tomorrow. Local stocks opened higher on the back of solid gains in US markets before the financials sector weighed on the market in afternoon trade.
Today, the S&P/ASX 200 index closed 14 points down to finish at 4,908.
The value of trades was $3.7 billion on volume of 621 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) and National Australia Bank Limited
(ASX:NAB).
On the futures market the SPI is 11 points lower.
Economic news
Building approvals dropped 4.4 per cent in December according to the ABS. Economists had forecast a 1 per cent rise. Private sector housing approvals also fell, dropping 3.3 per cent for the month.
ANZ has reported monthly job advertisements have fallen by 0.9 per cent in January, a slight improvement to the previous two months.
The TD Securities/Melbourne Institute Monthly Inflation Gauge rose by 0.3 per cent in January, pushing the annual rate up to 2.5 per cent. A rise in utilities, urban transport fares and education were the main contributing factors.
Company news
The West Australian government has backed Rio Tinto Limited’s
(ASX:RIO) plans to expand its iron ore operations in the Pilbara region that will see its Nammuldi mine triple its production from 8 to 23 million metric tonnes of iron ore. The expansion will also see a 130 megawatt power plant built at Cape Lambert. Shares in Rio Tinto closed 1.18 per cent up at $67.99.
Qantas Airways Limited
(ASX:QAN) has announced a phased approach in rolling out its Asia focused strategy that is aimed at expanding its presence in the region and comes ahead of the launch of its proposed alliance with Emirates. The four stage roll out includes, stronger links to key hubs of Singapore and Hong Kong and expanding its Asia network through local partners such as Japan Airlines and China Eastern. The airline’s alliance with Emirates, is subject to final regulatory approval. Shares in Qantas closed steady at $1.54.
Fortescue Metals Group Limited
(ASX:FMG) has reached an agreement with Iron Ore Holdings Limited
(ASX:IOH) to cease the development of the Iron Valley deposit in Western Australia.
Aquila Resources Limited
(ASX:AQA) says it has resolved its budget dispute with joint venture partner AMCI regarding the West Pilbara Iron Ore Project.
Sedgman Limited
(ASX:SDM) expects to post an interim net profit of $12.3 million dollars, down from $19.4 million in the first half of last year yet in line with market expectations.
Nufarm Limited
(ASX:NUF) subsidiary Nuseed do Brasil SA has acquired a 51 per cent controlling stake in Brazil based seed company Atlantica Sementes for $11.5 million.
Best and worst performers The best performing sector was telco services adding 2 points to close at 1,594.The worst performing sector was financials excluding REITs, losing 36 points to close at 5,864 points. The best performing stock in the S&PASX 200 was Mirabela Nickel Limited
(ASX:MBN), rising 7.78 per cent to close at $0.48. Shares in Buru Energy and Maverick Drilling and Exploration also closed higher.
The worst performing stock was Discovery Metals Limited
(ASX:DML) dropping 8.17 per cent to close at $0.96. Shares in Silver Lake Resources and Beadell Resources also closed lower.
Commodities
Gold is trading at $US1,671 an ounce. Light crude is $0.32 down at $US97.45 a barrel.
The Australian dollar
The Australian dollar is buying $US1.043.
