The Australian share market has trimmed its weekly gain, losing 0.3 per cent to end the first day of the month and the last day of the week in the red. Following Wall Street lower local stocks spent the day in negative territory, weighed down by a 1.4 per cent fall in the mining sector after lower than expected Chinese manufacturing figures. As the earnings season wraps up attention now turns to the Reserve Bank of Australia’s March interest rate decision next week.
Figures
The S&P/ASX 200 index fell 18 points today, trimming the weekly gain of 68 points to end at 5,086.
The value of trades was $5.5 billion on volume of 1 billion shares at the close of trade.
The top three stocks by value were Westfield Retail Trust
(ASX:WRT), BHP Billiton Limited
(ASX:BHP) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 12 points lower.
Wall Street
US stocks have traded mixed over the four trading days this week: The Dow Jones Industrial Average has gained 174 points. The S&P 500 Index has added 12 points, the Nasdaq has dropped 393 points and the 100 Index has rallied 449 points.
Economic news
Reigniting fears of a slowdown in the world’s second largest economy, China's official Purchasing Manager’s Index (PMI) fell in February. The China Federation of Logistics and Purchasing showed the read came in at 50.1, down from 50.4 in January and defying expectations for a rise to 50.5 though remaining above 50 which indicates expansion.
Australia’s manufacturing activity continued to contract but at a slower pace last month. The Australian Industry Group’s performance of manufacturing index lifted to 45.6 in February, up 5.4 points from the month before but remaining below 50 which indicates contraction.
Australian house prices have improved on the back of gains in Melbourne. According to RP Data Rismark national home values rose 0.3 per cent in February. Melbourne values gained 1.5 per cent, Canberra was up 1.9 per cent, Darwin grew 2.3 per cent while Sydney added 0.1 per cent.
Company news Whitehaven Coal Limited’s
(ASX:WHC) major shareholder former billionaire Nathan Tinkler has reportedly had his jet and helicopter put up for sale by receivers.
Mr Tinkler is understood to owe up to $700 million to a variety of lenders against his main asset which is his 19.4 per cent stake in the coal producing company. Shares in Whitehaven Coal dropped 4.29 per cent today, finishing the week at $2.68.
Westfield Retail Trust’s
(ASX:WRT) stock moved down today after its founder’s company the Lowy Family Group divested their interest in Australia’s second-biggest property trust.
The Lowy Family Group sold its 7.1 per cent stake for about $664 million, claiming the sale was made as part of a strategy to diversify its investments. Shares in Westfield Retail Trust fell 4.09 per cent today, finishing the week at $3.05.
Incoming CEO of Metcash Limited
(ASX:MTS) Ian Morrice has stepped down from his position on the board of department store retailer Myer Holdings Limited
(ASX:MYR).
Property developer Leighton Holdings Limited
(ASX:LEI) has sold a major office tower development in Melbourne for $462 million to Investa Office Fund
(ASX:IOF) and Investa Commercial Property Fund.
Best and worst performers
The best performing sector was consumer staples adding 61 points to close at 10,193.
The worst performing sector was real estate investment trusts, losing 17 points to close at 1,025 points.
The best performing stock in the S&PASX 200 was Discovery Metals Limited
(ASX:DML), rising 14.4 per cent to close at $0.71. Shares in Ten Network Holdings Limited
(ASX:TEN) and Challenger Limited
(ASX:CGF) also closed higher.
The worst performing stock was Medusa Mining Limited
(ASX:MML), dropping 9.35 per cent to close at $3.88. Shares in St. Barbara Limited
(ASX:SBM) and Perseus Mining Limited
(ASX:PRU) also closed lower.
Commodities
Gold is trading at $US1,578 an ounce, down $4.70 over the week.
Light crude is $0.12 lower at $US91.93 a barrel.
The Australian dollar
The Australian dollar is buying $1.023, down $0.008 over the week.
