The Australian share market has ended 0.5 per cent lower today, weighed by losses among the miners on the back of declining commodity prices which saw the materials sector fall by 1.4 per cent and the gold sector shed 4 per cent. Financials kept things in check with some gains, closing as the best performer of the majors.
The S&P/ASX 200 index closed 24 points down to finish at 5,333. The value of trades was $3.9 billion on volume of 732 million shares at the close of trade. The top three stocks by value were Westpac Banking Corporation
(ASX:WBC), BHP Billiton Limited
(ASX:BHP) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 35 points down.
Economic news
The Australian Bureau of Statistics says the total amount of construction work done in the country rose by 2.7 per cent in the September quarter. Over the year to September, the volume of construction work done was up 1.3 per cent. Economists had tipped a 0.3 per cent fall.
Company news
Graincorp Limited
(ASX:GNC) shares surged after US suitor Archer Daniels Midland sweetened its bid with a package of additional commitments, including an additional $200 million to strengthen Australia’s agricultural infrastructure. The suitor also flagged price caps on grain handling charges at silos and ports, commitment to grain infrastructure access for growers and third parties and a commitment to an "open access" regime for port services. Amid the goodwill, Queensland Premier Campbell Newman called on ADM to be forced to divest two port terminals as a condition of the $3 billion takeover bid being approved. Shares in Graincorp eased in late trade, closing 1.34 per cent up at $11.33.
Qantas Airways Limited
(ASX:QAN) boss Alan Joyce says he has absolutely no doubt the government will see sense and ensure that rival Virgin Australia Holdings Limited
(ASX:VAH) is forced to operate on a level playing field as the national carrier. Mr Joyce said Qantas will not be able to compete on the same terms as the competition if they have access to this foreign capital, and don’t care about losing money. Shares in Qantas closed 1.67 per cent down at $1.18.
Alumina Limited
(ASX:AWC) shares fell 1.49 per cent, with the company today announcing chief executive officer John Bevan will retire at the end of the year, to be succeeded by director Peter Wasow.
Elders Limited
(ASX:ELD) shares gained 4.35 per cent after news chief executive officer Malcolm Jackman will step down from the company, effective immediately, with Chairman, Mark Allison to chair an executive committee, pending a formal executive search for a replacement.
Programmed Maintenance Services Limited
(ASX:PRG) delivered a net profit of $12.4 million in the first half of fiscal 2014, on par with the same period last year due to the impact of a slowdown in investment in the resources sector.
Bank of Queensland Limited
(ASX:BOQ) chairman Roger Davis has warned the lender faces macroeconomic challenges in the year ahead, including slowing economic growth and frustratingly high foreign exchange levels.
Best and worst performers
The best performing sector was Financials excluding real estate investment trusts adding 5 points to close at 7,049.
The worst performing sector was Energy, losing 146 points to close at 13,413.
The best performing stock in the S&PASX 200 was Sundance Resources Limited
(ASX:SDL), rising 4.55 per cent to close at $0.12. Shares in Boart Longyear Limited
(ASX:BLY) and James Hardie Industries plc
(ASX:JHX) also closed higher.
The worst performing stock was Silver Lake Resources Limited
(ASX:SLR), dropping 14.02 per cent to close at $0.46. Shares in Resolute Mining Limited
(ASX:RSG) and Kingsgate Consolidated Limited
(ASX:KCN) also closed lower.
Commodities
Gold is trading at $US1,246 an ounce. Light crude is $0.41 down at $US93.68 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9129.
