The Australian share market ended a three day losing streak to finish 0.3 per cent stronger, with Energy stocks, the big banks and the big miners all recording gains. The strong finish came despite September quarter GDP figures coming in soft. Dick Smith started trading on the ASX today and FNN was there to witness the listing ceremony for the iconic electronics retailer. The stock saw some strong early gains before pulling back to close at its issue price, we’ll take a closer look at its debut session performance later in the bulletin.
The S&P/ASX 200 index closed 18 points up to finish at 5,274. The value of trades was $4.5 billion on volume of 883 million shares at the close of trade. The top three stocks by value were Westfield Group
(ASX:WDC), BHP Billiton Limited
(ASX:BHP) and Westpac Banking Corporation
(ASX:WBC).
On the futures market the SPI is 29 points up.
Economic news
The services sector contracted in November but not as sharply as in the prior month. The Australian Industry Group’s performance of services index printed at 48.9 for November, an increase of one point compared with October.
The Australian Bureau of Statistics says the economy continued to expand at a below-trend pace in the September quarter, with the annual growth rate at 2.3 per cent, well below its long term growth trend of around 3.25 per cent. The economy grew a seasonally adjusted 0.6 per cent in the three months to September, unchanged from the second-quarter.
Company news
Virgin Australia Holdings Limited
(ASX:VAH) controlled Tigerair will launch four new routes over the next four months and make Brisbane its third Australian base, part of a push to address an under-served budget market. Meanwhile, Virgin founder Sir Richard Branson today hit out at the prospect of government assistance for Qantas Airways Limited
(ASX:QAN). Branson said that if Qantas was better managed and offered the public a decent service; it would not be in the financial mess it is currently claiming it is in. He went on to day that government should be there to encourage competition, not to prop up the weak when the going gets tough. Shares in Virgin Australia closed 1.27 per cent down at $0.39.
Sandfire Resources NL
(ASX:SFR) has formalised its JV with Ventnor Resources Limited
(ASX:VRX) for work on the Thaduna/Green Dragon Copper Project in Western Australia. Sandfire has acquired an immediate 35 per cent interest in the project for an upfront payment of $3 million, and has the right to sole fund the project over the next four years to earn up to 80 per cent interest. Shares in Sandfire Resources closed 0.17 per cent up at $5.75.
Westfield Group
(ASX:WDC) shares rose 4.05 per cent after it announced it will move to merge its Australian and New Zealand businesses with Westfield Retail Trust
(ASX:WRT), forming a new venture to be known as Scentre Group.
Crown Resorts Limited
(ASX:CWN) planned $400 million Sri Lankan resort and casino complex is facing additional delays and is unlikely to receive approval before year’s end, as members of Sri Lanka’s opposition party allege Crown Chairman James Packer has received concessions not offered to local entrepreneurs, while Buddhist leaders have said the casino could be morally detrimental to Sri Lankan culture.
Mesoblast limited
(ASX:MSB) edged 0.48 per cent lower despite announcing top line results from Phase 2 trials of its proprietary Mesenchymal Precursor Cells targeting type 2 diabetes.
Santos Limited
(ASX:STO) shares firmed 0.77 per cent after announcing it is set to increase production in 2014 due to its liquefied natural gas start-up in Papua New Guinea, and expects 2014 production to be between 52 and 57 million barrels of oil equivalent.
Best and worst performers
The best performing sector was Energy adding 138 points to close at 13,370.
The worst performing sector was Healthcare, losing 58 points to close at 14,121.
The best performing stock in the S&PASX 200 was Forge Group Limited
(ASX:FGE), rising 14.16 per cent to close at $0.65. Shares in Paladin Energy Limited
(ASX:PDN) and Atlas Iron Limited
(ASX:AGO) also closed higher.
The worst performing stock was Perseus Mining Limited
(ASX:PRU), dropping 9.43 per cent to close at $0.24. Shares in Resolute Mining Limited
(ASX:RSG) and Kingsgate Consolidated Limited
(ASX:KCN) also closed lower.
IPOs Dick Smith Holdings Limited
(ASX:DSH) started trading today. The electronics retailer floated with an issue price of $2.20, opened at $2.28 and a closed at $2.20.
Commodities
Gold is trading at $US1,221.50 an ounce. Light crude is $2.22 up at $US96.04 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9071.
