The Australian share market has ended a lackluster week in the red. Despite upbeat offshore leads stocks sank in the first hour of trade and closed near the day’s low. Record highs on Wall Street and positive US economic data failed to boost the local bourse back above the 5,000 mark. Instead, losses were accelerated in the mining sector following a week of poorly received production reports.
Figures
The S&P/ASX 200 index lost 21 points today, erasing the weekly gain to end 2 points down over the week at 4,972.
The value of trades was $4.3 billion on volume of 777 million shares at the close of trade.
The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Wesfarmers Limited
(ASX:WES) and Telstra Corporaton Limited
(ASX:TLS).
On the futures market the SPI is 15 points lower.
Wall Street
US stocks rose to new heights this week: The Dow Jones Industrial Average has put on 88 points, the S&P 500 Index has put on 14 points, the Nasdaq has put on 33 points and the 100 Index has put on 18 points.
Economic news
Consumer spending across in Australia has lifted with the annual rate hitting a five-and-a-half year high last month. Commonwealth Bank of Australia’s
(ASX:CBA) Business Sales Indicator (BSI) shows economy-wide spending grew 1 per cent in June while annual growth came in at 8.7 per cent. CommSec chief economist Craig James says the Reserve Bank of Australia will be comforted by the numbers which show consumers are responding to lower interest rates.
Company news
Billabong International Limited
(ASX:BBG) re-financing lifeline is under threat with two US hedge funds challenging the deal. The troubled surfwear retailer struck a $359 million refinancing agreement with Altamont Capital Partners earlier this week after which Oaktree Capital Management and Centerbridge Partners launched a rival bid, which was rejected by Billabong. The two US hedge funds are not giving up and have now called on Australia’s Takeover Panel to intervene. Investors appear to be enjoying the tussle - Billabong’s stock has gained more than 60 per cent this week and today rose 9.59 per cent to end the week at $0.40.
Shares in Orica Limited
(ASX:ORI) slumped after slashing its annual net profit guidance by 10 per cent. The explosives and chemicals maker has blamed the move on weaker than expected economic conditions and higher than expected costs of integrating its tunnelling business. Potential job cuts may also be on the way with Orica advising it has already started a review of productivity and cost reduction initiatives. Shares in Orica slumped 13.38 per cent today, ending the week at $18.19.
Shares in CFS Retail Property Trust
(ASX:CFX) rose 1.04 per cent on news the property investor has inked a deal to sell four shopping centres in Victoria, valued at $446.5 million, to a new fund planning to list on the Australian Securities Exchange (ASX) called Pacific Retail REIT.
Shares in Sydney Airport Holdings Limited
(ASX:SYD) lifted 2.25 per cent following the airport operator posting higher passenger numbers in June on the back of a boost of incoming UK rugby fans.
Shares in Santos Limited
(ASX:STO) dropped 3.65 per cent after the oil and gas producer cut its annual production guidance, blaming issues stemming from supply, weather and infrastructure.
Shares in Whitehaven Coal Limited
(ASX:WHC) ended steady after affirming its construction timeline for the Maules Creek mine in New South Wales in the face of an environmental group launching legal action to block construction.
Best and worst performers
The best performing sector was utilities adding 52 points to close at 5,531.
The worst performing sector was materials, losing 114 points to close at 9,083 points.
The best performing stock in the S&P/ASX 200 was Perseus Mining Limited
(ASX:PRU), rising 13.27 per cent to close at $0.56. Shares in Billabong International Limited
(ASX:BBG) and Lynas Corporation Limited
(ASX:LYC) also closed higher.
The worst performing stock was Orica Limited (ASX:ORI, dropping 13.38 per cent to close at $18.19. Shares in Boart Longyear Limited
(ASX:BLY) and Sandfire Resources NL
(ASX:SFR) also closed lower.
Commodities
Gold is trading at $US1,289 an ounce, up $9.90 over the week.
Light crude is $0.02 lower at $US107.79 a barrel.
The Australian dollar
The Australian dollar is buying 91.76 US cents, slightly down over the week.
