The Australian share market widened losses throughout the day to end 0.8 per cent down. Stocks got off to a sluggish start following weak leads but headed further south after a disappointing read on sentiment. News iconic car maker Holden will stop manufacturing in Australian from 2017 also stung, casting more doubt over the health of the local manufacturing industry.
It was the fifth consecutive day of losses for the local bourse which has already shed more than 3 per cent this month. While utilities was the only major sector to defy the negative trend today gold stocks were a bright spot on the back of a slight price rebound for the precious metal.
Figures
The S&P/ASX 200 index fell 39 points to finish at 5,104.
The value of trades was $4 billion on volume of 727 million shares at the close of trade.
The top three stocks by value were BHP Billiton Limited
(ASX:BHP), QBE Insurance Group Limited
(ASX:QBE) and Westpac Banking Corporation
(ASX:WBC).
On the futures market the SPI is 41 points lower.
Economic news
A read on Australian consumer confidence has dropped to its lowest level in five months. Westpac Banking Corporation’s
(ASX:WBC) chief economist Bill Evans says an initial boost in confidence faded as the year came to an end. The Westpac and Melbourne Institute Index of Consumer Sentiment fell 4.8 per cent to 105 in December.
Stock movers
Investors piled out of OZ Minerals Limited
(ASX:OZL) after the copper focused miner issued a gloomy update about its flagship Prominent Hill mine in South Australia. While Oz Minerals affirmed its on track to meet its annual production guidance the company suggested the copper and gold resource at Prominent Hill has fallen about 26 per cent from last year’s estimate. OZ Minerals stock was the session’s worst performer but closed off its low, down 14.24 per cent at $2.65.
Yancoal Australia Limited
(ASX:YAL) has announced Treasurer Joe Hockey has relaxed certain foreign investment conditions that restricted ownership from Chinese state-owned Yanzhou Coal Mining Company. The Australia focused coal miner plans to engage with Yanzhou to determine how the Treasurer’s decision impacts upon Yanzhou’s privatisation proposal of Yancoal. Shares in Yancoal Australia surged 9.92 per cent to end the session at $0.72.
Guidance
Shares in APA Group
(ASX:APA) ended flat despite the pipeline operator upgraded its earnings guidance by 2 per cent on the back of a strong first half performance from its assets and investments.
Shares in Fonterra Shareholders’ Fund
(ASX:FSF) sank after the New Zealand dairy giant cut its 2014 dividend forecast as it battles against surging prices for milk powder.
Takeovers
Dexus Property Group
(ASX:DXS) and the Canada Pension Plan Investment Board have again sweetened their takeover bid for the Commonwealth Property Office Fund
(ASX:CPA), challenging a rival bid from GPT Group
(ASX:GPT).
The tussle for Warrnambool Cheese & Butter Factory Co.
(ASX:WCB) continues. Bega Cheese Limited
(ASX:BGA) today extended its takeover bid, while rival bidder Saputo boosted its stake to almost 15 per cent.
Best and worst performers
The only sector to end of positive territory was utilities adding 42 points to close at 5,255.
The worst performing sector was health care, losing 157 points to close at 13,709 points.
The best performing stock in the S&PASX 200 was Resolute Mining Limited
(ASX:RSG), rising 22.35 per cent to close at $0.52. Shares in St. Barbara Limited
(ASX:SBM) and Silver Lake Resources Limited
(ASX:SLR) also closed higher.
The worst performing stock was OZ Minerals Limited
(ASX:OZL), dropping 14.24 per cent to close at $2.65. Shares in Whitehaven Coal Limited
(ASX:WHC) and SAI Global Limited
(ASX:SAI) also closed lower.
IPOs
DorsaVi Pty Limited
(ASX:DVL) started trading today. The biotechnology company is focused on developing motion analysis device technologies, and, floated with an issue price of $0.40, opened at $0.43 and a closed at $0.40.
Commodities
Gold is trading at $US1,260 an ounce.
Light crude is $1.17 higher at $US98.51 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9134.
