The Australian share market recovered from session lows in afternoon trade to finish the day flat, given a kick by RBA Governor Glenn Stevens dangling the carrot of another rate cut in August. Telco services was the best performer among the major sectors while consumer staples dragged the market after investors jettisoned Woolworths stocks. The dollar took a series of dives today, firstly after weak building approvals data from the ABS, and again following Governor Stevens speech, with the local currency falling 1.25 cents between the time he took the podium and the close of trade.
The S&P/ASX 200 index closed 1 points up to finish at 5,047. The value of trades was $4.3 billion on volume of 775 million shares at the close of trade. The top three stocks by value were Transurban Group
(ASX:TCL), BHP Billiton Limited
(ASX:BHP) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 8 points down.
Economic news
Approvals for the construction of new homes fell 6.9 per cent across Australia in June, according to the latest Australian Bureau of Statistics building approvals data. Economists had forecast a rise of two per cent. A total of 12,778 new homes were approved in the month, down slightly from 13,727 approvals in May. Over the year to June, building approvals were down 13.0 per cent.
Company news
Drillsearch Energy Limited
(ASX:DLS) has forecast ongoing growth this year following posting record revenue of $99 million in fiscal 2013, highlighted by production of 600 thousand barrels in the June quarter. The revenue boost comes on the back of the company’s new operating pipeline in the Cooper Basin which was producing 10 thousand barrels a day by the end of the financial year. Shares in Drillsearch closed steady at $1.26.
Bank of Queensland Limited
(ASX:BOQ) former chairman Neil Summerson retired from the bank’s board after 16 years at his post. BOQ has appointed former CEO of Virgin Media in the UK, Neil Berkett to the board after he was nominated by the Virgin Group following the banks acquisition of Virgin Money Australia. Shares in BOQ closed 0.43 per cent up at $9.44.
Beach Energy Limited
(ASX:BPT) lifted its full year oil and gas revenue to $698.2 million and flagged increased production in the coming year.
Woolworths Limited
(ASX:WOW) says strength in its Australian food and liquor businesses is behind a strong lift in its full year sales.
Emeco Holdings Limited
(ASX:EHL) managing director and chief executive officer Keith Gordon has announced he will step down from his role.
Leighton Holdings Limited
(ASX:LEI) Asia, India and Offshore group has secured a $2.8 billion contract to build a luxury hotel resort in Macau, the world’s biggest gaming hub.
Best and worst performers
The best performing sector was Telco services adding 27 points to close at 1,724.
The worst performing sector was Consumer staples, losing 122 points to close at 9,688.
The best performing stock in the S&PASX 200 was Billabong International Limited
(ASX:BBG), rising 7.79 per cent to close at $0.42. Shares in Fleetwood Corporation Limited
(ASX:FWD) and Resolute Mining Limited
(ASX:RSG) also closed higher.
The worst performing stock was McMillan Shakespeare Limited
(ASX:MMS), dropping 6.72 per cent to close at $8.75. Shares in Whitehaven Coal Limited
(ASX:WHC) and St. Barbara Limited
(ASX:SBM) also closed lower.
Commodities
Gold is trading at $US1,328 an ounce. Light crude is $0.25 down at $US104 a barrel.
The Australian dollar
The Australian dollar is buying $US0.908.
