The Australian share market backtracked from the session’s high to finish almost where it started ahead of the US Thanksgiving holiday. Local stocks surged up to 0.6 per cent in morning trade on the back of better than expected CAPEX figures but the rally ran out of steam as the session wore on.
While the banks and miners had a solid day gold stocks continued to underperform as the price of the precious metal continues to weaken. Mining services also struggled with Forge Group Limited’s
(ASX:FGE) profit warning spooking the sector.
Figures
The S&P/ASX 200 index added 1.4 points by session’s end to finish at 5,334.
The value of trades was $4.1 billion on volume of 727 million shares at the close of trade.
The top three stocks by value were Wesfarmers Limited
(ASX:WES), Westpac Banking Corporation
(ASX:WBC) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 2 points lower.
Economic news
New private capital expenditure lifted against expectations of a fall in the September quarter. The Australian Bureau of Statistics (ABS) reports CAPEX rose 3.6 per cent to $40.87 billion in the three months to the end of September 2013.
Sales of new homes fell last month from a two-year high hit in September. The Housing Industry Association reports new home sales dropped 3.8 per cent in October after jumping 6.4 per cent the month before.
Company news
Shares in SEEK Limited
(ASX:SEK) soared after affirming overall guidance for the current 2014 financial year and boosting guidance for its domestic online job advertising division. The online job advertising and education company today held its annual general meeting where management also revealed it is considering an initial public offering of international student recruiter and English exam provider IDP Education. SEEK holds a 50 per cent interest in IDP and says the float could possibly occur next year. Shares in SEEK soared 5.89 per cent today, ending the session at $13.13.
Shares in Forge Group Limited
(ASX:FGE) crashed after exiting a lengthy trading halt to reveal a $127 million write-down and flag a full year loss of up to $90 million. The troubled engineering company has been impacted by losses on two power station contracts. Forge will now require assistance from its principal lender ANZ Banking Group
(ASX:ANZ) to meet the outlay needed to finish the projects. Shares in Forge Group plunged 83.61 per cent today, ending the session at $0.69.
Shares in Qantas Airways Limited
(ASX:QAN) lifted 3.81 per cent after Treasurer Joe Hockey raised the prospect of ditching rules which restrict foreign investment in Australia’s largest airline amid calls from its CEO Alan Joyce to “to level the playing field and support the national carrier”.
Shares in Specialty Fashion Group Limited
(ASX:SFH) climbed 5.06 per cent after the fashion retailer announced it will spend $5 million to buy the business and assets of apparel brand Rivers Australia.
Shares in McMillan Shakespeare Limited
(ASX:MMS) jumped to the session’s best performer after the provider of salary packaging and vehicle leasing administration said trading conditions have normalized following the repeal of proposed tax changes by the new Federal Government.
Shares in Leighton Holdings Limited
(ASX:LEI) fell 2.13 per cent after hitting back at reports alleging the construction company is unlikely to recover the $1.1 billion it says its Middle East joint venture is owed.
Best and worst performers
The best performing sector was health care adding 130 points to close at 14,281.
The worst performing sector was consumer staples, losing 77 points to close at 9,969 points.
The best performing stock in the S&PASX 200 was McMillan Shakespeare Limited
(ASX:MMS), rising 9.27 per cent to close at $13.20. Shares in SEEK Limited
(ASX:SEK) and Energy World Corporation Limited
(ASX:EWC) also closed higher.
The worst performing stock was Forge Group Limited
(ASX:FGE), plunging 83.61 per cent to close at $0.69. Shares in Ausdrill Limited
(ASX:ASL) and Monadelphous Group Limited
(ASX:MND) also closed lower.
IPOs
McAleese Limited
(ASX:MCS) started trading today. The Australian provider of specialised transport and logistics solutions floated with an issue price of $1.58, opened at $1.50 and a closed at $1.57.
Commodities
Gold is buying $US1,241 an ounce.
Light crude is $1.38 lower at $US92.30 a barrel.
The Australian dollar
The Australian dollar was given a lift by today’s CAPEX figures and is currently buying $US0.9131.
