The Australian share market gave up its early gains in afternoon trade to finish flat, dragged by losses in the Energy sector, while insurance giant QBE continued its rapid share price descent, having given up over 30 per cent over the past two sessions. Embattled national carrier Qantas also hit a record low today, continuing its tailspin from last weeks shock profit warning.
The S&P/ASX 200 index closed 0.8 points down to finish at 5,144. The value of trades was $5 billion on volume of 890 million shares at the close of trade. The top three stocks by value were QBE Insurance Group Limited
(ASX:QBE), BHP Billiton Limited
(ASX:BHP) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is currently flat.
Economic news
The Australian Bureau of Statistics says demand for home loans rose in line with expectations in October. The number of home loans granted in October rose one per cent to 52,305. Economists had tipped a one per cent rise. Total housing finance by value rose 4.1 per cent to $26.48 billion.
National Australia Bank’s November survey of business confidence and conditions says business conditions lifted slightly in the month, from minus 4 to minus 3, with interest sensitive sectors gaining some ground. Business confidence edged back to positive five points in November, from positive six points in October and positive 12 points in September.
Company news
Billabong International Limited
(ASX:BBG) major shareholder Coastal Capital sought to remove chairman Ian Pollard and directors Howards Mowlem and Sally Pitkin at todays AGM, and failed. Other shareholders baulked at the move as well as other proposals from Coastal Capital to restrict Billabong’s ability to enter into new debt arrangements and sell its assets and brands. Shares in Billabong closed 18.46 per cent up at $0.39.
Echo Entertainment Group Limited
(ASX:EGP) has announced the restructuring of its lending arrangements on the back of a more than 30 per cent slump in its share price this year. The casino operator will spend $22 million on changes involving the closing out of some interest rate swap positions and lending restructuring. Shares in Echo closed 2.08 per cent down at $2.35.
Senex Energy Limited
(ASX:SXY) shares gained 0.65 per cent after it generated more than 450 oil and gas leads after a year-long prospectively work across its majority held permits in South Australia’s Cooper-Eromanga Basin.
QBE Insurance Group Limited
(ASX:QBE) is in the throes of a two day plunge, falling 9.83 per cent today on top of yesterday’s 22 per cent crash. The stock is now worth just $13 billion, from around $18.5 billion on Friday.
Woodside Petroleum Limited
(ASX:WPL) shares firmed 0.45 per cent despite cutting its production target for 2013 and reduced its estimated investment expenditure after deferring spending on its Leviathan project in Israel.
BHP Billiton Limited
(ASX:BHP) chief Andrew Mackenzie has reaffirmed production guidance and told shareholders the miner is set to build on the reduction in cash costs it delivered in fiscal 2013, as well as reducing capex.
Best and worst performers
The best performing sector was Healthcare adding 61 points to close at 13,866.
The worst performing sector was Energy, losing 42 points to close at 13,142 points.
The best performing stock in the S&PASX 200 was Medusa Mining Limited
(ASX:MML), rising 7.60 per cent to close at $1.77. Shares in REA Group Limited
(ASX:REA) and Mesoblast Limited
(ASX:MSB) also closed higher.
The worst performing stock was Forge Group Limited
(ASX:FGE), dropping 11.11 per cent to close at $0.48. Shares in QBE Insurance Group Limited
(ASX:QBE) and Paladin Energy Limited
(ASX:PDN) also closed lower.
IPOs
Hotel Property Investments INV NPV
(ASX:HPI) started trading today. The Real estate company floated with an issue price of $2.10, opened at $2.08 and a closed at $2.07.
Recall Holdings Limited
(ASX:REC) also started trading today. The logistics company opened at $4.15 and closed at $4.50.
Commodities
Gold is trading at $US1,242 an ounce. Light crude is $0.31 down at $US97.34 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9105.
