The Australian share market has finished just above the red, boosted by strong gains in financials, while energy and materials stocks provided the drag on a day where more miners came out with or received disheartening news, namely OZ Minerals with an expected earnings hit, Newcrest with a rating and outlook downgrade and further divestment from Rio Tinto.
The S&P/ASX 200 index closed 4 points up to finish at 5,046.
The value of trades was $2.8 billion on volume of 522 million shares at the close of trade. The top three stocks by value were Telstra Corporation Limited
(ASX:TLS), Westpac Banking Corporation
(ASX:WBC) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 2 points higher.
Company news
Newcrest Mining Limited
(ASX:NCM) has had its credit rating cut and outlook declared negative by ratings agency Moody’s. The agency says the downgrade reflects an expectation for weaker operating and financial metrics over the next 2 to 3 years, and comes on the back of production disappointments, guidance reductions and rising costs. Shares in Newcrest closed 2.1 per cent down at $12.15.
Woolworths Limited
(ASX:WOW) and Wesfarmers Limited
(ASX:WES) owned Coles supermarkets have been warned against their escalating petrol discounts by the competition regulator. ACCC Chairman Rod Sims says the fear is the activity is likely to have a negative effect on competition in the petrol industry which may eventually result in higher petrol prices. Shares in Woolworths closed 0.48 per cent up at $33.77.
OZ Minerals Limited
(ASX:OZL) shares fell just under 2 per cent after it announced it expects to take a hit of up to $240 million in its half year earnings, largely due to lower copper and gold prices.
Whitehaven Coal Limited
(ASX:WHC) reported a jump in its full year coal production as the ongoing ramp up of its Narrabri longwall operation in New South Wales bears fruit.
Ruralco Holdings Limited
(ASX:RHL) has announced a 50/50 joint venture with Nasdaq listed global agribusiness CHS. The JV will operate 100 per cent of grain marketing business Agfarm, which has been part of the Ruralco group since 2009.
Rio Tinto Limited
(ASX:RIO) has inked a deal to divest its stake in the Northparkes copper and gold mine in Central West New South Wales.
Best and worst performers
The best performing sector was Financials excluding real estate investment trusts adding 34 points to close at 6,547.
The worst performing sector was Energy, losing 153 points to close at 13,193.
The best performing stock in the S&PASX 200 was Energy World Corporation Limited
(ASX:EWC), rising 13.04 per cent to close at $0.65. Shares in Transpacific Industries Group Limited
(ASX:TPI) and REA Group Limited
(ASX:REA) also closed higher.
The worst performing stock was Paladin Energy Limited
(ASX:PDN), dropping 10.14 per cent to close at $0.93. Shares in Discovery Metals Limited
(ASX:DML) and Sundance Resources Limited
(ASX:SDL) also closed lower.
Commodities
Gold is trading at $US1,327 an ounce. Light crude is $0.56 down at $US104.14 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9256.
