The Australian share market lost 0.9 per cent today, at one stage sinking below 4,900 and hitting an eight week low. Local stocks spent the day in negative territory, accelerating looses after disappointing capital expenditure data.
Gold stocks were supported after the precious metal price rose while iron ore developers were knocked about after the steel making commodity fell in value overnight.
The financials dragged as banking-major National Australia Bank Limited
(ASX:NAB) traded ex-dividend. The energy sector was the only sector to escape a sea of red.
Figures
The S&P/ASX 200 index dropped 44 points to end the session at 4,931.
The value of trades was $6.3 billion on volume of 905 million shares at the close of trade.
The top three stocks by value were National Australia Bank Limited
(ASX:NAB), Commonwealth Bank of Australia
(ASX:CBA) and BHP Billiton Limited
(ASX:BHP).
On the futures market the SPI is 38 points lower.
Economic news
A fall in mining investment trimmed spending by Australian businesses last quarter, but anticipated spending in the next financial year has grown. The Australian Bureau of Statistics (ABS) reports private capital expenditure dropped 4.7 per cent in the March quarter, against expectations of a 0.5 per cent lift. Expected spending on major projects and equipment in fiscal 2014 rose 3.4 per cent to $153 billion, coming in line with expectations.
Building approvals rose by more than expected last month. The ABS has shown building approvals gained 9.1 per cent in April after rising 5.5 per cent in March 2013.
Housing affordability also picked up in the first three months of 2013. The Housing Industry Association and Commonwealth Bank of Australia
(ASX:CBA) have reported affordability improved 1.2 per cent in the March quarter, taking the full year gain to 12.8 per cent. The figures were compiled before the Reserve Bank of Australia cut interest rates to a record low this year.
The growth of online sales shows no sign of abating. National Australia Bank Limited's
(ASX:NAB) online retail sales index has shown Australians spent $13.5 billion online in the year to April, about 6 per cent of traditional retail spending and up 23 per cent year-on-year.
Company news AGL Energy Limited
(ASX:AGK) has paid $52.9 million in stamp duty to the Victorian government for its acquisition of the Loy Yang power station, about $30 million less than originally expected.
The energy provider secured Australia’s third largest coal fired power station mid 2012. Earnings from the power plant helped to boost AGL’s first half profit to $365 million. Shares in AGL Energy dropped 1.67 per cent to end the session at $14.13.
FKP Property Group
(ASX:FKP) has backed its 86 per cent owned Forest Place Group Limited’s
(ASX:FPG) proposal to rebrand.
Forest Place Group is a pure play retirement group who will seek shareholder approval in July to rebrand and trade as Aveo Healthcare Limited. The company advises Aveo is derived from Latin, meaning ‘live well’ and reflects its strategy of providing retirement and ages care facilities. Shares in FKP Property Group fell 3.45 per cent to end the session at $1.40.
Ruralco Holdings Limited’s
(ASX:RHL) has scored the green light from Australia’s competition watchdog to buy rival agribusiness Elders Limited
(ASX:ELD), should it decide to finalise a takeover proposal.
Iron ore miner Atlas Iron Limited
(ASX:AGO) says it plans to decide on building a new mine by the end of next month after affirming it is on track to boost its annual production.
Executive appointments Investment company Seven Group Holdings Limited
(ASX:SVW) has announced Don Voelte will take the reins as Managing Director and CEO from July, replacing Peter Gammell.
Mining and materials company Arrium Limited
(ASX:ARI) has announced Andrew Roberts will take charge as Managing Director and CEO from July, replacing Geoff Plummer.
Best and worst performers
All the major sectors closed in the red except for the energy sector, adding 29 points to close at 13,258.
The worst performing sector was telco services, losing 48 points to close at 1,643 points.
The best performing stock in the S&PASX 200 was St. Barbara Limited
(ASX:SBM), rising 14.78 per cent to close at $0.66. Shares in Maverick Drilling and Exploration Limited
(ASX:MAD) and Ausdrill Limited
(ASX:ASL) also closed higher.
The worst performing stock was Atlas Iron Limited
(ASX:AGO), dropping 6.1 per cent to close at $0.77. Shares in Arrium Limited
(ASX:ARI) and Fortescue Metals Group Limited
(ASX:FMG) also closed lower.
Commodities
Gold is trading at $US1,402 an ounce.
Light crude is $0.09 lower at $US93.04 a barrel.
The Australian dollar
The Australian dollar is buying 96.81 US cents.
