The Australian share market closed 0.5 per cent down, shedding some of yesterday’s strong gains with all the major sectors finishing in the red bar Telco services, which was bolstered by 1 per cent on the back of another strong performance from Telstra.
The S&P/ASX 200 index closed 25 points down to finish at 5,166. The value of trades was $3.4 billion on volume of 537 million shares at the close of trade. The top three stocks by value were Bank of Queensland Limited
(ASX:BOQ), Westpac Banking Corporation
(ASX:WBC) and ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is 7 points down.
Economic news
Australia’s manufacturing sector declined at its fastest rate in four years in April, according to the Australian Industry Group’s performance of manufacturing index (PMI). The index dropped 7.7 points to read 36.7.
The Housing Industry association says new home sales continue to recover modestly after lifting by 4.2 per cent in March.
Meanwhile, the RP Data-Rismark Home Value Index reversed its first quarter growth and dropped 0.5 per cent to a median price of $485 thousand in April, the first monthly decline since last December.
Chinese Manufacturing slowed above expectations in April, according to the official purchasing manger’s index. The reading fell to 50.6, coming down from the previous months read of 50.9 and a further sign of weakness for the world’s second biggest economy.
Company news
Origin Energy Limited
(ASX:ORG) Managing Director Grant King is confident a bout of bad weather will not cause delays to its $24.7 billion Asia Pacific LNG joint venture in Queensland. Mr King says the project remains on budget, with first gas production slated for June 2015. Shares in Origin closed 0.97 per cent down at $12.20.
Myer Holdings Limited
(ASX:MYR) CEO Bernie Brooks is concerned the federal governments proposed increase to the Medicare levy will hurt sales due to impact on its direct customer base. Mr Brooks told a Macquarie Investment seminar the $350 annual increase, designed to part-fund the national disability insurance scheme, represents an amount customers would have potentially spent with the retailer. Shares in Myer closed 4.05 per cent down at $3.08.
Alacer Gold Corp
(ASX:AQG) reaffirmed its full year gold production guidance of between 330 and 365 thousand ounces however says it is reviewing its production goals.
Virgin Australia Holdings Limited
(ASX:VAH) and Tiger Airways Australia have extended the date to meet certain conditions of their deal, including Foreign Investment Board approval. It is expected that the deal will complete by mid-July 2013.
Kathmandu Holdings Limited
(ASX:KMD) shares advanced after the retailer announced a 13 per cent lift in third quarter sales, retaining momentum in revenue growth from the first half of the financial year.
ASX Limited
(ASX:ASX) says a lift in group earnings and a solid revenue performance helped boost its net profit by 1.7 per cent over the first three quarters.
Best and worst performers
The best performing sector was Telco services adding 17 points to close at 1,733.
The worst performing sector was Materials, losing 132 points to close at 9,101.
The best performing stock in the S&PASX 200 was SAI Global Limited
(ASX:SAI), rising 11.05 per cent to close at $3.92. Shares in Northern Star Resources Limited
(ASX:NST) and Horizon Oil Limited
(ASX:HZN) also closed higher.
The worst performing stock was Medusa Mining Limited
(ASX:MML), dropping 6.42 per cent to close at $3.06. Shares in Resolute Mining Limited
(ASX:RSG) and Buru Energy Limited
(ASX:BRU) also closed lower.
Commodities
Gold is trading at $US1,473 an ounce. Light crude is $0.33 down at $US93.13 a barrel.
The Australian dollar
The Australian dollar is buying $US1.036.
