The Australian share market has finished 0.7 per cent lower, dragged down by Consumer Staples and Materials in a busy reporting day that got off to a poor start on negative offshore leads and never really recovered, despite a slew of positive earnings from the likes of NAB, Sonic Healthcare and Oil search. After the close of the market the days most significant results were released, with BHP reporting a weaker than expected full year profit result and a decision on its Potash investment in Canada.
The S&P/ASX 200 index closed 34 points down to finish at 5,078. The value of trades was $4.4 billion on volume of 737 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), QBE Insurance Group Limited
(ASX:QBE) and Wesfarmers Limited
(ASX:WES)
On the futures market the SPI is 29 points down.
Economic news
The Reserve Bank of Australia has released its August board meeting minutes today, refusing to close the door on further rate cuts. According to the minutes;
“The RBA should neither close off the possibility of reducing rates further, nor signal an imminent intention to reduce rates further, and the course of the exchange rate would be important in setting policy.”
Company news
BHP Billiton Limited
(ASX:BHP) has posted a 29.5 per cent fall in its full year net profit of $12.03 billion, including an 8.7 per cent drop in revenue, and will pay a fully franked final dividend of $US1.16. BHP blamed the miss on a temporary increase in the group's effective tax rate as well as financing charges related to some recently issued debt securities. The global miner has also announced a $2.6 billion investment to complete the excavation and lining of the Jansen Potash project in Canada, which it expects to be complete by 2016. Shares in BHP closed pre-results, 1.35 per cent down at $36.54.
Leighton Holdings Limited
(ASX:LEI) will develop a $400 million high rise commercial building in North Sydney, the area’s first new commercial building in six years. Completion for the 30 storey structure is slated for the first half of 2016, and Leighton says it will meet demand in a market experiencing record low vacancy rates. Shares in Leighton closed 0.94 per cent down at $16.82.
Sonic Healthcare Limited
(ASX:SHL) shares jumped after it delivered a record full year net profit of $335 million, up 7 per cent compared to last year on a constant currency basis.
National Australia Bank’s Limited
(ASX:NAB) shares rose as its third-quarter cash earnings rose to $1.5 billion, about two per cent above the quarterly average of the lender’s half year result.
Ansell Limited
(ASX:ANN) shares gained just over 3.5 per cent after the condom maker delivered a full year net profit of $136.8 million, a 5.2 per cent increase on year. The condom maker says it’s confident of earnings growth in the year ahead, despite a continually challenging environment.
Construction contractor Macmahon Holdings Limited
(ASX:MAH) shares took a 20 per cent dive after it swung to a $29.5 million full year loss and tipped a steep revenue fall in the year ahead.
Best and worst performers
The best performing sector was Healthcare adding 218 points to close at 13,631.
The worst performing sector was Consumer staples, losing 219 points to close at 9,612.
The best performing stock in the S&PASX 200 was Arrium Limited
(ASX:ARI), rising 16.75 per cent on a positive earnings outlook and despite a full year loss to close at $1.15. Shares in Breville Group Limited
(ASX:BRG) and Fleetwood Corporation Limited
(ASX:FWD) also closed higher.
The worst performing stock was Perseus Mining Limited
(ASX:PRU), dropping 10.23 per cent to close at $0.79. Shares in Billabong International Limited
(ASX:BBG) and Energy World Corporation Limited
(ASX:EWC) also closed lower.
Commodities
Gold is trading at $US1,355 an ounce. Light crude is $0.36 down at $US107.10 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9056.
