The Australian share market has ended a strong month of gains slightly lower after recovering from the morning’s steeper losses. Local stocks initially stumbled on the back of Wall Street’s weakness after the US Federal Reserve gave no indication of when its economic stimulus program will end.
National Australia Bank Limited’s
(ASX:NAB) disappointing annual result hit financial stocks with the sector dropping 0.7 per cent by close. Consumer staples rose 1 per cent thanks to Woolworths Limited
(ASX:WOW) result and the miners firmed 0.2 per cent.
Figures
The S&P/ASX 200 index dipped 5 points to end the session at 5,426.
The value of trades was $4.9 billion on volume of 815 million shares at the close of trade.
The top three stocks by value were National Australia Bank Limited
(ASX:NAB), Westpac Banking Corporation
(ASX:WBC) and ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is 4 points lower.
Economic news
Building approvals rose sharply last month, jumping more than expected on the back of record low interest rates. The Australian Bureau of Statistics reports building approvals for the construction of new homes climbed 14.4 per cent in September from expectations of a 2.8 per cent rise. Building approvals are now 18.6 per cent higher over the year to September.
Company results
Shares in National Australia Bank Limited
(ASX:NAB) led the Big Four Banks lower despite revealing a record profit and increasing its dividend. The bank improved its full-year cash earnings by 9 per cent to a record a record $5.94 billion, profiting from lower charges for bad debts in the year to September. A final dividend of 97 cents per share has been declared, an increase of 7 cents from the year before, and bringing the full year payout to $1.90. Shares in National Australia Bank dropped 2.54 per cent today, ending the session at $35.31.
Woolworths Limited
(ASX:WOW) has posted 3 per cent total quarterly sales growth – generating $15.7 billion in the three months to October 6, 2013. The supermarket giant’s result was boosted by 28 per cent growth in its home improvement division while supermarkets and petrol outlets recorded 6.4 per cent growth. CEO Grant O’Brian says the result is a good one given trading conditions continue to be impacted by consumer uncertainty. Shares in Woolworths rose 0.14 per cent today, ending the session at $35.90.
Guidance
Shares in Flight Centre Limited
(ASX:FLT) fell 0.65 per cent despite the travel company labelling its trading results promising and confirming it is on track to reach its target of 8-12 per cent growth in underlying profit before tax.
Shares in Charter Hall Retail REIT
(ASX:CQR) firmed 0.25 per cent after the supermarket and shopping centre investor maintained distribution guidance for the current financial year, which has already seen 2.8 per cent rent growth over the September quarter.
Gainers
Shares in OceanaGold Corporation
(ASX:OGC) surged 16.39 per cent after the gold producer rebounded to a $43.7 million profit in the September quarter, affirmed annual gold production guidance and boosted copper production guidance.
Shares in Prana Biotechnology Limited
(ASX:PBT) soared 43.42 per cent after the drug developer’s treatment for Alzheimer’s disease was cited in a science journal for its ability to reverse memory and learning losses associated with aging.
Best and worst performers
Health care scored the top spot and was the session’s best performer, putting on 104 points to close at 14,262.
The worst performing sector was financials excluding real estate investment trusts, losing 68 points to close at 7,146 points.
The best performing stock in the S&PASX 200 was OceanaGold Corporation
(ASX:OGC), surging 16.39 per cent to close at $1.74. Shares in Mesoblast Limited
(ASX:MSB) and Paladin Energy Limited
(ASX:PDN) also closed higher.
The worst performing stock was GUD Holdings Limited
(ASX:GUD), dropping 6.91 per cent to close at $5.93. Shares in Perseus Mining Limited
(ASX:PRU) and Sundance Resources Limited
(ASX:SDL) also closed lower.
Commodities
Gold is trading at $US1,341 an ounce.
Light crude is $1.61 lower at $US96.59 a barrel.
The Australian dollar
The Australian dollar is buying $US94.96 cents.
