The Australian share market today paused from 54 month high, ending almost where it started, despite US markets extending their record breaking run overnight. Disappointing trade figures cut into sentiment and stocks traded in the red for most of the session, weighed down by weakness in the health, mining and banking sectors.
Figures
The S&P/ASX 200 index pulled back 8 points to close at 5,109.
The value of trades was $4.8 billion on volume of 847 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), BHP Billiton Limited
(ASX:BHP) and Rio Tinto Limited
(ASX:RIO)
On the futures market the SPI is 9 points lower.
Economic news
Australia’s trade deficit expanded more than expected at the beginning of 2013. The Australian Bureau of Statistics reports the nation’s trade deficit has widened to $1.06 billion in January as exports fell 1 per cent and imports rose 1 per cent.
Australia's construction sector has improved to a 2.5 year high, though remains in contraction mode. The Australian Industry Group and Housing Industry Association's performance of construction index gained 9.4 points to 45.6 in February, but remained below 50 which indicates contraction.
Company news Aurizon Holdings Limited
(ASX:AZJ), formerly QR National Limited has secured a coal haulage contract in Queensland, the biggest deal of its type in a decade.
The rail freight operator will transport 65 million tonnes of coal each year over the next 12 years coal, representing about a quarter of the Queensland coal haulage market. Shares in Aurizon Holdings gained 0.5 per cent today, ending at $4.06. Oil and gas producer Santos Limited
(ASX:STO) has dismissed speculation it will write down the value of its coal seam gas assets in New South Wales.
The speculation comes one week after AGL Energy Limited (ASX:AGK) warned it may need to write down the value of its $325 million coal seam gas assets due to new state government legislation. Shares in Santos eased 0.6 per cent today, ending at $13.21.
Shares in BHP Billiton Limited
(ASX:BHP) ended steady after its petroleum chief suggested the global miner is preparing to expand its presence in Australia’s growing shale gas industry.
Shares in Qantas Airways Limited
(ASX:QAN) rose amid reports Australia’s largest airline is considering buying up to four second hand Boeing 747-400 freighters, with just one freighter having a $US60 million price tag.
Shares in Telstra Corporation Limited
(ASX:TLS) lost ground after Australia’s biggest telco revealed it is raising €
1 billion or about $AUD1.28 billion through a bond issue.
Shares in ANZ Banking Group
(ASX:ANZ) dipped as reports emerged the bank is planning to cut about 50 positions in institutional and international banking in order to tackle soft credit demand.
Best and worst performers
The best performing sector was consumer staples adding 24 points to close at 10,353.
The worst performing sector was health care, losing 122 points to close at 12,583 points.
The best performing stock in the S&PASX 200 was OceanaGold Corporation
(ASX:OGC), rising 5.04 per cent to close at $2.50. Shares in Perseus Mining Limited
(ASX:PRU) and UGL Limited
(ASX:UGL) also closed higher.
The worst performing stock was Bathurst Resources Limited
(ASX:BTU), dropping 7.58 per cent to close at $0.30. Shares in Boart Longyear Limited
(ASX:BLY) and Coalspur Mines Limited
(ASX:CPL) also closed lower.
Commodities
Gold is trading at $US1,582 an ounce.
Light crude is $0.17 down at $US90.26 a barrel.
The Australian dollar
The Australian dollar is buying $US1.025.
