The Australian share market finished the session flat after an unremarkable afternoon of trade, having earlier clawed back its opening losses headed by gains in the Utilities sector. For the main, investors remain cautious ahead of a US Fed meeting set to offer direction on central bank stimulus. Closer to home our own central bank released its September minutes, which were exceptionally neutral, invoking little traction aside from a brief spike in the Aussie dollar upon their release.
The S&P/ASX 200 index closed 3 points up to finish at 5,251. The value of trades was $4.2 billion on volume of 685 million shares at the close of trade. The top three stocks by value were National Australia Bank Limited
(ASX:NAB), Commonwealth Bank of Australia
(ASX:CBA) and Westpac Banking Corporation
(ASX:WBC).
On the futures market the SPI is 1 point down.
Economic news
Sales of new motor vehicles in Australia were higher in August according the Australian Bureau of Statistics. According to the figures, new cars sales rose 0.8 per cent in the month to 94,396.
The Reserve Bank of Australia said in its September board meeting minutes it will continue to examine data over the months ahead to assess whether monetary policy is appropriately configured. Members agreed that the Bank should again neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them.
Company news
Fortescue Metals Group Limited
(ASX:FMG) will pay down $140 million of the high interest emergency funding it borrowed in 2008’s Global Financial Crisis. CFO Stephen Pearch says the miners strong financial position, together with a sharp reduction in capital expenditure, has enabled it to begin debt repayments this year, the touted first step in its wider debt reduction strategy. Shares in Fortescue closed 0.87 per cent up at $4.62.
TPG Telecom Limited
(ASX:TPM) will rollout fibre-optic cables to half a million apartments in Australia as the company seeks to take advantage of the change in broadband policy under new Coalition government. The fibre optic dalliance comes after the telco announced a 64 per cent increase in its full year net profit of $149.2 million, forecasting continued organic growth in 2014 with EBITDA expected to be in the range of $290 to $300 million. Shares in TPG closed as the days best performing stock, gaining 14.32 per cent to close at $4.23.
Regis Resources Limited
(ASX:RRL) shares fell 7.5 per cent despite the gold producer generating a full year net profit of $145.7 million for the 2013 financial year, in the face of higher production cash costs.
Middle eastern carrier Etihad airways has again lifted its stake in Virgin Australia Holdings Limited
(ASX:VAH), spending just over $12 million at 44.99 cents per share. Etihad now owns a 14.45 slice of Virgin, on its way to a planned 19.9 per cent holding.
Challenger Energy Limited
(ASX:CEL) says the sudden hike in its share price is linked to favourable media reports suggesting the South African government supports its exploration plans in the Karoo Basin. Investors remain cautious though, sending its stock down 15.38 per cent.
Premier Investments’ Limited
(ASX:PMV) net profit has lifted to $174.5 million, but the group has warned of a challenging retail environment.
Best and worst performers
The best performing sector was Utilities adding 53 points to close at 5,401.
The worst performing sector was Materials, losing 69 points to close at 9,851.
The best performing stock in the S&PASX 200 was TPG Telecom Limited
(ASX:TPM), rising 14.32 per cent to close at $4.23. Shares in CuDeco Limited
(ASX:CDU) and FKP Property Group
(ASX:FKP) also closed higher.
The worst performing stock was St. Barbara Limited
(ASX:SBM), dropping 9.02 per cent to close at $0.56. Shares in Sirius Resources N.L.
(ASX:SIR) and Regis Resources Limited
(ASX:RRL) also closed lower.
Commodities
Gold is trading at $US1,315 an ounce. Light crude is $1.62 down at $US106.59 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9321.
