The Australian share market has started the month of November 0.3 per cent lower but gained 0.5 per cent over the week. Wall Street’s weak lead put pressure on the local bourse at open and better than expected Chinese manufacturing figures failed to lift stocks out of the red by close.
Across the sectors resources weighed with gold miners bearing the brunt of the selling while financials firmed after yesterday’s sell-off. Among the stocks David Jones Limited
(ASX:DJS) and Macquarie Group Limited
(ASX:MQG) got a boost from their earnings results. Bega Cheese Limited
(ASX:BGA) surged to record highs after New Zealand dairy giant Fonterra Shareholders’ Fund
(ASX:FSF) acquired a 6 per cent stake in the company.
Looking ahead the Reserve Bank of Australia (RBA) is tipped to leave interest rates steady this Tuesday and will be in focus amid a series of local economic reports on retail sales, house prices, jobs and trades data.
Figures
The S&P/ASX 200 index dipped 14 points today, trimming the weekly gain of 25 points to end the week at 5,411.
The value of trades was $3.3 billion on volume of 571 million shares at the close of trade.
The top three stocks by value were National Australia Bank Limited
(ASX:NAB), Warrnambool Cheese & Butter Factory Co.
(ASX:WCB) and BHP Billiton Limited
(ASX:BHP).
On the futures market the SPI is 23 points lower.
Wall Street
US capped a solid month of gains yesterday. Over this week the Dow Jones Industrial Average has added 172 points, the S&P 500 Index has added 4 points, the Nasdaq has lost 9 points and the 100 Index has added 15 points.
Chinese economic news
The official read on Chinese manufacturing shows the sector expanded at its strongest pace in 18 months. The National Bureau of Statistics reports China's purchasing managers' index rose 0.3 points to 51.4 points last month, with a read above 50 indicating expansion.
A separate report on Chinese manufacturing hit a seven-month high. The HSBC China Manufacturing Purchasing managers' index came in at 50.9 in October, in line with the prior flash reading and rising from 50.2 the month before.
Australian economic news
Australia’s manufacturing activity expanded to a three-year high last month. The Australian Industry Group's Performance of Manufacturing Index gained 1.5 points to 53.2 in October.
The producer price index (PPI) for final goods and services increased in the September quarter. The Australian Bureau of Statistics reports the PPI rose 1.3 per cent over the three month period as the domestic part added 0.8 per cent and the imported part jumped 5.9 per cent.
The value of homes remained on the rise last month in Australia's eight capital cities. RP Data-Rismark’s home value index shows home values gained 1.3 per cent in October and are now 12.6 per cent higher from the year before.
Company news
Investors piled back into David Jones Limited
(ASX:DJS) after the department store retailer posted its first sales growth in nine months. DJ’s first quarter sales rose 2.1 per cent to $424.2 million with growth in its fashion and beauty divisions offsetting soft electronic sales. Shares in David Jones climbed 6.62 per cent today, ending the week at $2.90.
Macquarie Group Limited
(ASX:MQG) has boosted its first half net profit, lifted its interim dividend and predicted the improved performance will continue into the second half. Australia’s largest investment bank increased its net profit by 39 per cent to $501 million, aided by its annuity and capital markets businesses. Shares in Macquarie Group gained 4.22 per cent today, ending the week at $53.10.
Shares in Downer EDI Limited
(ASX:DOW) ended steady after scoring a $400 million contract for the Chevron-operated Wheatstone Project in Western Australia. The engineering company will work on two electrical and instrumentation packages for the downstream portion of the project from late 2014.
Shares in Whitehaven Coal Limited
(ASX:WHC) eased 0.93 per cent despite revealing it set new records in October. The coal producer moved more than 1 million tonnes from its mines to the port of Newcastle last month and achieved monthly export sales of 1.24 million tonnes.
Best and worst performers
The best performing sector was financials excluding real estate investment trusts adding 13 points to close at 7,159.
The worst performing sector was health care, easing 107 points to close at 14,155 points.
The best performing stock in the S&PASX 200 was Drillsearch Energy Limited
(ASX:DLS), rising 7.34 per cent to close at $1.39. Shares in David Jones Limited
(ASX:DJS) and Macquarie Group Limited
(ASX:MQG) also closed higher.
The worst performing stock was Northern Star Resources Limited
(ASX:NST), dropping 8.43 per cent to close at $0.82. Shares in Southern Cross Media Group Limited
(ASX:SXL) and PanAust Limited
(ASX:PNA) also closed lower.
Commodities
Gold is buying $US1,326 an ounce, down $24.97 over the week.
Light crude is $0.39 lower at $US96.38 a barrel.
The Australian dollar
The Australian dollar is buying $US94.8 cents, down $0.0104 over the week.
