Market Wrap: Aus shares touch 2013 low

Market Reports

A better than expected jobs report was not enough to haul the Australian share market out of the red today. Fears over the length of America’s economic stimulus program pushed the local bourse more than 1 per cent down at open but the surprising employment numbers offered support and lifted stocks from one of the lowest points this year to end 0.6 per cent down for the day. The mining sector locked in the steepest losses while the Big Four Banks gave the financials a boost with Westpac Banking Corporation (ASX:WBC) rising after buying back $US3.75 billion in government guaranteed debt to cut its refinancing requirements.
 
Figures

The S&P/ASX 200 index shed 29 points by session’s end to finish at 4,696. 

The value of trades was $5.2 billion on volume of 940 million shares at the close of trade.

The top three stocks by value were BHP Billiton Limited (ASX:BHP), Westpac Banking Corporation (ASX:WBC) and Commonwealth Bank of Australia (ASX:CBA)

On the futures market the SPI is 46 points lower.

Economic news

Australia’s monthly jobs report has come in better than expected, defusing hopes of another interest rate cut next month. The Australian Bureau of Statistics (ABS) reports the economy added 1,100 jobs in May, a turnaround from expectations the economy would shed 10,000 jobs. The unemployment rate remained at 5.5 per cent last month, defying predictions it would tick up to 5.6 per cent.
 
Company news

Investors piled out of Lynas Corporation Limited (ASX:LYC) after the rare earths producer revealed it will set a new minimum price schedule for its products from Jule 1, 2013. Lynas says it wants sustainable prices for producers and customers so the rare earths market can grow to its full potential over the long term. The news comes less than one week after Lynas cut costs in response to a fall in demand for its products and a decline in commodities prices. Shares in Lynas Corporation sank 9.09 per cent today, finishing the session at $0.45. 

Alacer Gold Corporation CDI (ASX:AQG) leapt to the best performer after flagging the potential sale of its Australian assets following expressions of interest received from several parties. The Colorado-based gold producing company says divesting its local holdings would enable it to focus on its operations in Turkey. Shares in Alacer Gold Corporation jumped 7.59 per cent today, ending the day at $2.55. 
 
Shares in Rio Tinto Limited (ASX:RIO) ended 2.4 per cent down after the global miner said it will sell an underground nickel-copper mine and mill in the US called the Eagle Project for $US325 million.
 
Shares in Suncorp Group Limited (ASX:SUN) fell 1.8 per cent following news the insurer will has sold a non-performing $1.6 billion loan portfolio of troubled property and corporate loans to Goldman Sachs for 60 cents in the dollar.

Shares in Clough Limited (ASX:CLO) spent most of the day higher but ended steady after the engineering and project services provider boosted its annual earnings guidance on the back of its contract performance and cost cutting measures. 

Shares in Avanco Resources Limited (ASX:AVB) soared more than 20 per cent after exiting a trading halt. The mineral explorer has agreed to a $US58 million debt facility to fund up to 80 per cent of the capital requirements to develop its first copper mine. 

Best and worst performers

One of the only major sectors to close in positive territory was financials excluding real estate investment trusts, adding 58 points to close at 5,981.
The worst performing sector was materials, losing 214 points to close at 8,677 points.

The best performing stock in the S&PASX 200 was Alacer Gold Corporation CDI (ASX:AQG), rising 7.59 per cent to close at $2.55. Shares in Macquarie Atlas Roads Limited (ASX:MQA) and Boart Longyear Limited (ASX:BLY) also closed higher.
 
The worst performing stock was Skilled Group Limited (ASX:SKE), dropping 10.26 per cent to close at $2.10. Shares in Lynas Corporation Limited (ASX:LYC) and Senex Energy Limited (ASX:SXY) also closed lower. 
 
IPOs

Arena REIT (ASX:ARF) started trading today: The property fund floated with an issue price of $1.01, and, opened and closed at $1.05.
 
Commodities

Gold is trading at $US1,390 an ounce.
Light crude is $0.62 down at $US95.48 a barrel.

The Australian dollar

The Australian dollar is buying 94.77 US cents. 

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