The Australian share market has pulled back from last week’s 22-month high and started the week in the red. As many Asian markets closed to celebrate the Lunar New Year local stocks drifted throughout the session, failing to find conviction from earnings results and ending the day at the low point.
Figures
The S&P/ASX 200 index dipped 12 points to finish at 4,960.
The value of trades was $3.2 billion on volume of 579 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 ANZ Banking Group
(ASX:ANZ)
On the futures market the SPI is 17 points lower.
Economic news
Home loan demand dropped at the end of last year despite expectations for no change. The Australian Bureau of Statistics reports home loans granted fell for the third straight month in December, down 1.5 per cent to 45,335. Total housing finance by value eased 2.6 per to $20.836 billion.
Company news Shares in JB Hi-Fi Limited
(ASX:JBH) jumped after the electrical retailer reported a 3 per cent improvement in its first half net profit and forecast 7 per cent annual profit growth.
CEO Terry Smart says the company has seen a positive start to the New Year with comparable store sales growing 4.2 per cent in January. Shares in JB Hi-Fi jumped 17.08 per cent, closing at $12.89.
Alacer Gold Corporation (ASX:AQG, TSX:ASR) gained after inking a $US171 million deal to sell its 49 per cent stake in the Frog's Leg gold mine in Western Australia. The gold producer’s announcement came following the completion of a strategic review and will result in Alacer shareholders receiving a special dividend of about $70 million. Shares in Alacer Gold Corporation gained 7.49 per cent, closing at $4.59.
ASX Limited
(ASX:ASX) has applauded a Federal Government decision which will continue the current market structure for clearing and settlement of cash equities, effectively allowing the operator of the Australian Securities Exchange to maintain its monopoly for the next two years.
Rio Tinto Limited
(ASX:RIO) has welcomed a decision which will ensure its Hamersley and Robe rail lines in Western Australia should not be opened up to other users such as iron ore miner Fortescue Metals Group Limited
(ASX:FMG).
Insurance Australia Group Limited
(ASX:IAG) has received up to $170 million in claims relating to the impact of last month’s ex-tropical cyclone Oswald which struck Queensland and bushfires in New South Wales, Victoria and Tasmania.
Shares in Coffey International Limited
(ASX:COF) gained after the international project manager forecast an improved second half performance, despite posting a 20 per cent fall in its first half profit.
Best and worst performers
The best performing sector was consumer discretionary adding 23 points to close at 1,512.
The worst performing sector was healthcare, losing 99 points to close at 12,257 points.
The best performing stock in the S&PASX 200 was JB Hi-Fi Limited
(ASX:JBH), rising 17.08 per cent to close at $12.89. Shares in Maverick Drilling and Exploration Limited
(ASX:MAD) and Alacer Gold Corp
(ASX:AQG) also closed higher.
The worst performing stock was Mirabela Nickel Limited
(ASX:MBN), dropping 3.92 per cent to close at $0.49. Shares in Buru Energy Limited
(ASX:BRU) and Charter Hall Group
(ASX:CHC) also closed lower.
Commodities
Gold is trading at $US1,668 an ounce.
Light crude is $0.05 down at $US95.67 a barrel.
The Australian dollar
The Australian dollar is buying $US1.029.
