The Australian share market took a mid afternoon dive to finish today’s session 0.4 per cent lower, with all major sectors finishing down. Consumer discretionary and financials stocks reversed earlier gains to drag the market, while health stocks were the worst performers. Better than expected retail data from the ABS gave some of the big retailers a boost, in particular David Jones, which finished the day just under 4.5 per cent stronger. The Aussie dollar also got a kick from the retail figures, as well as some positive service sector data from China yesterday, and has held onto its gains ahead of tomorrow’s RBA rate call.
The S&P/ASX 200 index closed 21 points down to finish at 5,391. The value of trades was $3.6 billion on volume of 1.1 billion shares at the close of trade. The top three stocks by value were Westpac Banking Corporation
(ASX:WBC), BHP Billiton Limited
(ASX:BHP) and ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is 10 points down.
Economic news
Australian capital city house prices rose 1.9 per cent in the September quarter, according to the Australian Bureau of Statistics. The result follows a rise of 2.7 per cent in the June quarter. In the year to September, the house price index rose 7.6 per cent. Economists had expected a rise of 2.2 per cent for the September quarter.
The TD Securities-Melbourne Institute’s monthly inflation gauge has remained benign in October, edging up 0.1 per cent. The inflation gauge increased by 2.1 per cent in the 12 months to October, near the bottom of the RBA’s 2-3 per cent target band. With inflation expected to remain benign to the end of the year, the private survey says the door remains open for a further rate cut.
The Australian Bureau of Statistics has released retail spending figures for September and they’ve beaten expectations. Australian retail spending increased by 0.8 per cent in the month and 0.7 per cent in the September quarter. Economists had tipped a 0.4 per cent monthly and 0.2 per cent quarterly rise.
Company news
Leighton Holdings Limited
(ASX:LEI) construction segment Leighton Contractors has won a seven year road asset management program in New South Wales, valued at approximately $100 million a year. The contract is a joint venture between Leighton, Boral Limited
(ASX:BLD) and UK construction giant Amey, and is one of the largest of its kind in the southern hemisphere. Shares in Leighton Holdings closed 0.4 per cent up at $17.55.
Harvey Norman Holdings Limited
(ASX:HVN) says global sales rose 2.7 per cent to $1.37 billion in the September quarter, however the retailer says it has not seen a boost to consumer spending following the federal election in September. Global sales have been aided by significant appreciations in foreign currencies, including the euro, UK pound and New Zealand dollar. Shares in Harvey Norman closed 1.24 per cent up at $3.27.
Coca-Cola Amatil Limited
(ASX:CCL) shares fell 4.73 per cent after downgrading its full-year earnings guidance amid lower than expected consumer demand, increased competition and weakened Indonesian and Papua New Guinean currencies.
Warburg Pincus has sold its 33.9 per cent stake in Transpacific Industries Group Limited
(ASX:TPI) through a placement to domestic and international institutions, sending TPI shares down 2.67 per cent.
Whitehaven Coal Limited
(ASX:WHC) shares dropped 3.74 per cent after the coal miner flagged further cost-cutting in 2014 as the high Australian dollar and falling coal prices continue to impact the sector.
Westpac Banking Corp
(ASX:WBC) shares fell 1.21 per cent despite posting a strong lift in its full-year cash profit of $7.097 billion and announcing a special dividend.
Best and worst performers
All major sectors finished lower. The sector with the fewest losses was Material, dropping 1 point to close at 9,973.
The worst performing sector was Healthcare, losing 129 points to close at 14,026.
The best performing stock in the S&PASX 200 was Atlas Iron Limited
(ASX:AGO), rising 5.42 per cent to close at $1.07. Shares in Mount Gibson Iron Limited
(ASX:MGX) and David Jones Limited
(ASX:DJS) also closed higher.
The worst performing stock was Perseus Mining Limited
(ASX:PRU), dropping 7.23 per cent to close at $0.39. Shares in GUD Holdings Limited
(ASX:GUD) and Wotif.com Holdings Limited
(ASX:WTF) also closed lower.
Commodities
Gold is trading at $US1,313.50 an ounce. Light crude is $1.77 down at $US94.61 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9481.
