The Australian share market has plunged in afternoon trade, snapping a 6 day losing streak on the back of a baffling late sell off to close 0.3 per cent lower. Some analysts are pointing to a strengthening of the Japanese yen against the US dollar which sparked sell offs on the Nikkei, while others believe investors were spooked by a report about a tripling of bad loans from Chinese banks. The Aussie dollar plunged almost a cent in late trade, crashing from a four and a half month high on today’s better than expected local inflation data.
The S&P/ASX 200 index closed 17 points down to finish at 5,356. The value of trades was $4.8 billion on volume of 899 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), National Australia Bank Limited
(ASX:NAB) and Rio Tinto Limited
(ASX:RIO).
On the futures market the SPI is 6 points down.
Economic news
The Australian Bureau of Statistics has released the latest read on inflation with the third-quarter consumer price index. Inflation has strengthened in the September quarter, beating analyst expectations with a headline rise of 1.2 per cent. Underlying inflation- more closely watched by the Reserve Bank- rose 0.65 per cent in the quarter. Year on year, the headline read fell 2.2 per cent, while underlying inflation lifted 2.3 per cent.
Company news
Super Retail Group Limited
(ASX:SUL) CEO Peter Birtles has announced plans to open 25 new stores in the year ahead, amid improving sales so far in fiscal 2014. Mr Birtles said the company- which owns Rebel Sports and Supercheap Auto- is aiming to open five new stores in the current financial year, with 10 new leisure and 10 new sports stores planned for the year ahead. Shares in Super Retail closed 2.74 per cent down at $13.49.
Commonwealth Property Office Fund
(ASX:CPA) has increased its distribution guidance for the current financial year by 1.5 per cent to 6.65 cents per share after securing several new leases with existing tenants over the first quarter. An increase in CPA’s net tangible assets over the first quarter of fiscal 2014 has justified the funds decision to spurn a takeover bid from DEXUS Property Group
(ASX:DXS) and the Canadian Pension Plan investment board. Shares in CPA closed 0.83 per cent down at $1.19.
Treasury Wine Estates Limited
(ASX:TWE) shares fell 2.33 per cent despite the company maintaining its full year earnings guidance, albeit remaining cautious of a challenging year ahead as well as the volatile Australian dollar.
Legal services firm Shine Corporate Limited
(ASX:SHJ) shares jumped 5.39 per cent after it reaffirmed its forecast for strong earnings growth in the current financial year, tipping a $21.5 per cent increase in its net profit.
Rural services company Ruralco Holdings Limited
(ASX:RHL) shares gained 3.48 per cent despite announcing it expects lower livestock prices and lower sales of agricultural chemicals due to drought to bring its annual profit between a breakeven result to a $1 million loss.
Telstra Corporation Limited
(ASX:TLS) shares firmed after the telco said it will change its organisational structure as it moves forward with a strategic push into Asia.
Best and worst performers
The best performing sector was Materials adding 78 points to close at 10,051.
The worst performing sector was Healthcare, losing 176 points to close at 13,868.
The best performing stock in the S&PASX 200 was Sirius Resources N.L.
(ASX:SIR), rising 12.89 per cent to close at $2.54. Shares in Silver Lake Resources Limited
(ASX:SLR) and Perseus Mining Limited
(ASX:PRU) also closed higher.
The worst performing stock was Linc Energy Limited
(ASX:LNC), dropping 7.67 per cent to close at $1.56. Shares in G8 Education Limited
(ASX:GEM) and Breville Group Limited
(ASX:BRG) also closed lower.
Commodities
Gold is trading at $US1,337 an ounce. Light crude is $1.43 down at $US97.80 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9652.
