After yesterday hitting a five-year closing level high the Australian share market took a breather today and ended almost where it opened the session. Better than expected local jobs figures and subdued Chinese inflation failed to boost the local bourse out of the red. While mining and energy sectors rose, financials were weighed down by National Australia Bank Limted's
(ASX:NAB) profit result and ANZ Banking Group (ASX:ANZ) trading ex-dividend.
Figures
The S&P/ASX 200 index lost 1 point to finish at 5,198.
The value of trades was $5.8 billion on volume of 854 million shares at the close of trade.
The top three stocks by value were ANZ Banking Group
(ASX:ANZ), National Australia Bank Limted
(ASX:NAB) and BHP Billiton Limited
(ASX:BHP).
On the futures market the SPI is currently steady.
Economic news
Australia’s official labour force data has surprised with the nation’s jobless rate has dropped against expectations in the same period the economy added more than 50,000 jobs. The Australian Bureau of Statistics has reported the unemployment rate fell 0.1 per cent to 5.5 per cent as total employment expanded to 11.663 million in April 2013. Analysts had forecast the jobless rate would remain steady at 5.6 per cent and the economy would add 11,000 jobs.
China’s inflation rate rose more than expected but remained below government forecasts last month. Official data from the National Bureau of Statistics shows China’s inflation increased to 2.4 per cent in April from 2.1 per cent the month before and below the Chinese government’s forecast annual rate of 3.5 per cent.
Company news
Santos Limited’s (ASX: STO) incoming chairman Ken Borda has vowed to review the oil and gas producer’s dividend policy as it approaches production at its PNG LNG Project. The $US19 billion project in Papua New Guinea is expected to start shipments to Asia in 2014. Mr Borda says Santos wants to reward shareholders as earnings increase and will aim to strike a balance between dividends and investment for growth. Shares in Santos gained 1.42 per cent today, closing at $12.83.
Miclyn Express Offshore Limited
(ASX:MIO) has scored $US40 million worth of contracts for the Chevron-operated Wheatstone Project in Western Australia and Ichthys Project in the North of Australia. The provider of service vessels has been awarded two contracts: The two year Wheatstone Project contract will start this month and the one year Ichthys Project will start in 2014. Shares in Miclyn Express Offshore rose 1.53 per cent today, closing at $1.99.
Shares in National Australia Bank Limited
(ASX:NAB) fell despite the bank boosting its first half net profit by 23 per cent to $2.52 billion and improving its interim payout by 3 per cent to 93 cents.
Shares in Rupert Murdock’s News Corp
(ASX:NWS) gained after the media company lifted its third quarter net profit by more than expected to $2.8 billion and advised its businesses are on track to formally split.
Shares in Rio Tinto Limited’s
(ASX:RIO) fell following its annual general meeting where new chief Sam Walsh affirmed the global miner’s Pilbara expansion plans remain on track and flagged the company will pursue up to $US5 billion of savings in the next two years.
Shares in Mirvac Group
(ASX:MGR) rose after the property developer confirmed its annual earnings per security guidance and predicted the residential property market will continue to improve on the back of low borrowing costs, rising incomes and weak property prices.
Best and worst performers
The best performing sector was health care adding 154 points to close at 12,925.
The worst performing sector was telco services, losing 12 points to close at 1,738 points.
The best performing stock in the S&PASX 200 was St. Barbara Limited
(ASX:SBM), surging 25.44 per cent to close at $0.71. Shares in Silver Lake Resources Limited
(ASX:SLR) and Kingsgate Consolidated Limited
(ASX:KCN) also closed higher.
The worst performing stock was Sundance Resources Limited
(ASX:SDL), dropping 4.76 per cent to close at $0.10. Shares in Downer EDI Limited
(ASX:DOW) and Mesoblast Limited
(ASX:MSB) also closed lower.
Commodities
Gold is trading at $US1,471 an ounce.
Light crude is $0.28 lower at $US96.34 a barrel.
The Australian dollar
The Australian dollar is buying $US1.023.
