The Australian share market pulled back from a strong start to end just 0.2 per cent higher. The top 200 stocks index was initially propelled back above the 5,000 mark following reassurances America’s economic stimulus program will continue.
The enthusiasm defused throughout the day with the sectors putting in a mixed performance amid lukewarm trading volumes. Gains were fuelled by energy and telco stocks and supported by the banks. The health care sector dragged and the miners dropped on lower metals prices.
Figures
The S&P/ASX 200 index finished the session 12 points higher at 4,993.
The value of trades was $4 billion on volume of 741 million shares at the close of trade.
The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Wesfarmers Limited
(ASX:WES) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 12 points higher.
Economic news
Australian business conditions and confidence fell in the second quarter of 2013. National Australia Bank Limited's
(ASX:NAB) business survey has shown the business conditions index dropped to -4 in the June quarter from -3 in the prior three months. The business confidence index dropped to -1 in the June quarter from +2 in the prior three months. NAB says, "Conditions weakened across all states in the quarter with the exception of New South Wales. Weakness was particularly evident in Western Australia where the mining slowdown is gaining traction."
Company news
Woolworths Limited’s
(ASX:WOW) home improvement division will take a bigger than expected hit of $139 million this year.
The retail giant has conceded its sales forecasts for its hardware business Masters were over-optimistic. Wage costs, gross margins and softer building sector activity have also impacted the Masters chain, whose biggest rival is Wesfarmers Limited (ASX:WES) owned Bunnings. Shares in Woolworths fell 1.1 per cent today, ending the session at $33.32.
Shares in oil and gas producer Santos Limited
(ASX:STO) and explorer Octanex NL
(ASX:OXX) have been buoyed by a gas discovery in the Carnarvon Basin offshore Western Australia.
The Winchester-1 exploration well will now be deepened after excellent reservoir quality was confirmed. Santos is the operator of the permit area with a 75 per cent stake with Octanex holding the remaining interest. Shares in Octanex surged 90.48 per cent today, ending the session at $0.40.
Shares in Woodside Petroleum Limited
(ASX:WPL) firmed 0.03 per cent despite the energy giant reporting a drop in June quarter revenues, impacted by the temporary closure of one of its facilities.
Shares in Aurizon Holdings Limited
(ASX:AZJ) rose 3.64 per cent on news Australia’s largest listed rail operator plans to slash up to $230 million in costs over the next two years as it strives to increase productivity.
Shares in Austal Limited
(ASX:ASB) gained 5.45 per cent after the ship builder boosted its annual earnings guidance on the back of tax credits and operational improvements.
Shares in Newcrest Mining Limited
(ASX:NCM) fell another 4.53 per cent despite the gold producer confirming its annual gold and copper guidance, but conceding metal prices have experienced a sharp decline since peaking in September 2011.
Best and worst performers
The best performing sector was telco services adding 14 points to close at 1,679.
The worst performing sector was health care, losing 113 points to close at 13,417 points.
The best performing stock in the S&PASX 200 was Discovery Metals Limited
(ASX:DML), rising 12.9 per cent to close at $0.18. Shares in Billabong International Limited
(ASX:BBG) and Boart Longyear Limited
(ASX:BLY) also closed higher.
The worst performing stock was Acrux Limited
(ASX:ACR), dropping 8.47 per cent to close at $3.46. Shares in Ardent Leisure Group
(ASX:AAD) and Newcrest Mining Limited
(ASX:NCM) also closed lower.
IPOs
Watermark Market Neutral Fund Limited
(ASX:WMK) started trading today. The investment company predominantly invests in Australian securities and floated with an issue price of $1.00, opened at $0.98 and closed at $0.99.
Commodities
Gold is trading at $US1,275 an ounce.
Light crude is $0.08 down at $US106.40 a barrel.
The Australian dollar
The Australian dollar is buying 91.75 US cents.
