Local stocks have plunged 0.8 per cent in early trade - widening the monthly loss after Wall Street investors heeded to the popular saying, "Sell in May and go away". US stocks pulled back on the first day of the month as weak economic indicators offset the Federal Reserve's pledge to maintain economic stimulus. Across the local bourse most major sectors have slumped with only telco and real estate sectors trading above the red.
The S&P/ASX 200 index has sunk 40 points and is sitting at 5,126. On the futures market the SPI is 46 points down.
Economic news
Building approvals dropped more than expected last month. The Australian Bureau of Statistics has reported buildings approvals fell 5.5 per cent to 12,599 in March, defying expectations for a 1 per cent rise from the month before. Over the year building approvals are up 3.9 per cent from March 2012.
Company news AGL Energy Limited
(ASX:AGK) has flagged its full year underlying net profit will fall to the lower end of its guidance. The energy giant has blammed intensified retail competition in the second half for pushing its expected profit down to the lower end of its $590 million and $640 million forecast range. Shares in AGL Energy have dropped 3.51 per cent and are trading at $15.13.
Super Retail Group Limited
(ASX:SUL) [formerly Super Cheap Auto Group Limited] has posted sales growth in each of its three divisions. The retailer says sales from its auto and sports divisions came in ahead of expectations while its lesisure division saw strong growth but was negatively impacted by weather conditions in northern Australia. Despite lifting in early trade shares in Super Retail Group have reversed gains and are trading steady at $13.10.
Best and worst performers The best performing sector is telco services adding 3 points to 1,736. Shares in TPG Telecom Limited
(ASX:TPM) have risen 1.1 per cent and trading at $3.69. Shares in Singapore Telecommunications Limited
(ASX:SGT) and Telstra Corporation Limited
(ASX:TLS) are also higher.
The worst performing sector is energy, falling 263 points to 12,599. Shares in Whitehaven Coal Limited
(ASX:WHC) have fallen 5.53 per cent, trading at $1.79. Shares in Karoon Gas Australia Limited
(ASX:KAR) and Senex Energy Limited
(ASX:SXY) are also lower.
Gold and the dollar
Gold is trading at $US1,451 an ounce.
The Australian dollar is buying $US1.025.
