The Australian share market pulled back from the days lows yet still closed 0.9 per cent down, failing to recover from a materials led plunge on the back of some falling commodity prices. The local market wasn’t aided by Chinese GDP data which had been expected to accelerate, however found itself in reverse.
The S&P/ASX 200 index closed 46 points down to finish at 4,968. The value of trades was $4.1 billion on volume of 746 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Rio Tinto Limited
(ASX:RIO) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 54 points down.
Economic news
The Australian Bureau of Statistics says home loan demand saw its first increase in five months in February, lifting 2 two per cent to 45,423, up from 44,547 in January. Total housing finance by value climbed 1.4 per cent to $21.8 billion.
Also today, Chinese growth slowed in the first quarter of 2013, with the economy growing by 7.7 per cent and again fuelling concerns about the strength of its recovery and possible fiscal stimulus measures. Analysts had expected the worlds second largest economy to accelerate slightly to 8 per cent after tipping 7.9 per cent in the previous quarter.
Company news
Recently acquired Commonwealth Bank of Australia
(ASX:CBA) mortgage broker Aussie Home Loans lost its CEO today, with Stephen Porges resigning to pursue other interests. Speculation is rife that Mr Porges’ departure will prompt CBA to flex its majority ownership muscle and fill the top job, with Aussie saying simply it will appoint a new chief in due course. Shares in CBA closed 0.66 per cent up at $68.51.
Qantas Airways Limited
(ASX:QAN) recently formed alliance partner Emirates has made known its opposition to the competition regulator easing conditions on a trans-Tasman tie up between Virgin Australia Holdings Limited
(ASX:VAH) and Air New Zealand. According to various media reports Virgin has asked the Australian Competition and Consumer Commission to ease flight quota regulations in a five year extension to their alliance, however Emirates believes the same conditions are necessary to avoid creating regulatory distortions. Shares in Qantas closed 2.52 per cent down at $1.74.
Investment technology company Computershare Limited
(ASX:CPU) will spend approximately $US10 million to acquire a 25 per cent stake in American based shareholder communications provider INVeSHARE.
Rio Tinto Limited
(ASX:RIO) has shut one of the world's largest copper mines in the US after a massive landslide at the Bingham Canyon Mine. The shutdown comes ahead of its first quarter production report this week.
Leighton Holdings Limited
(ASX:LEI) wholly owned subsidiary Thiess has been awarded a $125 million contract for work on the electrical distribution network throughout metropolitan Perth.
Oil and gas producer Senex Energy Limited
(ASX:SXY) says it expects to deliver record net oil production of 1.2 million barrels for the 2012/13 financial year, having already reached its annual target of one million barrels of oil
Best and worst performers
The best performing sector was Telco services adding 13 points to close at 1,602.
The worst performing sector was Materials, bleeding 376 points to close at 9,246.
The best performing stock in the S&PASX 200 was Federation Centres Limited
(ASX:FDC), rising 2.04 per cent to close at $2.50. Shares in Harvey Norman Holdings Limited
(ASX:HVN) and APA Group
(ASX:APA) also closed higher.
The worst performing stock was Medusa Mining Limited
(ASX:MML), dropping 16.04 per cent to close at $3.35. Shares in Kingsgate Consolidated Limited
(ASX:KCN) and Resolute Mining Limited
(ASX:RSG) also closed lower.
Commodities
Gold is trading at $US1,449 an ounce. Light crude is $2.34 down at $US88.95 a barrel.
The Australian dollar
The Australian dollar is buying $US1.044.
