Back flipping from a 15.1 per cent advance over 2013 the Australian share market has posted a lackluster start to the new year amid light holiday trading volumes. Following last month’s Santa-rally run the new year’s spark faded fast and the local benchmark ended the week in the red.
Strong global gains came to a standstill after soft manufacturing figures from China, the US and France yesterday and another round of weak data from China today. As investors moved out of equities the price of gold was positioned for its biggest weekly rise since October 2013 and silver also moved higher after a horror year of falls. Across the sectors most ended lower weighed down by energy and mining but lifted by telco’s who defied the trend.
Figures
The S&P/ASX 200 index lost 17.8 points today, chipping in to the weekly gain of 26 points to finish at 5,350.
The value of trades was $2.8 billion on volume of 392 million shares at the close of trade.
The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Commonwealth Bank of Australia
(ASX:CBA) and Woodside Petroleum Limited
(ASX:WPL).
On the futures market the SPI is 43 points lower.
Wall Street
After hitting record highs in 2013 US stocks sank into the new year for the first time since 2008. Over the shortened trading week the Dow Jones Industrial Average has dropped 38.5 points. The S&P 500 Index has fallen 10 points. The Nasdaq has lost 24 points. The 100 Index has declined 21 points.
Economic news
Chinese service sector activity pulled back at the end of 2013. China's official non-manufacturing Purchasing Managers' Index [From the China Federation of Logistics and Purchasing] fell to 54.6 in December, from 56 the month before, but still remained above the 50 level which indicates the sector is in expansion territory.
Company news
Last year’s best performing stock Twenty-First Century Fox Inc
(ASX:FOX) has announced it will sell its 47 per cent stake in Star China TV. Rupert Murdoch’s film and television business will divest its interest to the TV channel operator’s management and private equity fund China Media Capital. While the terms of the deal have not been disclosed Fox’s chief says the decision to sell Star China TV was part of streamlining the company’s affiliate ownership structures. Shares in Twenty-First Century Fox rose 0.7 per cent to end the week at $38.97.
Village Roadshow Limited’s
(ASX:VRL) recently opened Wet'n'Wild water theme park in Sydney has blamed external promoters after an event was cancelled on New Years Eve. Though the promoters have vowed to refund all tickets sold Wet'n'Wild has not escaped the bad publicity as angry ticket holders vent their frustration on social media. Questions have now been raised over why Wet'n'Wild chose to hire out its venue to organisers with limited experience arranging an event on such a large scale. Shares in Village Roadshow fell 0.93 per cent to end the week at $7.49.
Aurora Oil & Gas Limited
(ASX:AUT) has predicted production will jump about 47 per cent over this year. The Perth based oil and gas producer’s chief says Aurora expects strong growth to continue into 2015 and beyond. Shares in Aurora Oil & Gas ended the week flat at $2.98.
BlackRock has emerged as a new substantial shareholder in Forge Group Limited
(ASX:FGE), shedding light on why the engineer’s stock has risen so sharply. The world's biggest fund manager by assets is understood to have bought up a 5.3 per cent stake in Forge Group to become its 15th biggest shareholder. Shares in Forge Group ended the week 6.58 per cent lower at $1.42.
Best and worst performers
One of the few sectors to end higher was telco services, adding 2 points to close at 1,827.
The worst performing sector was materials, losing 86 points to close at 10,232 points.
The best performing stock in the S&PASX 200 was last year’s worst performing stock, Silver Lake Resources Limited
(ASX:SLR), rising 8.66 per cent to close at $0.69. Shares in Ten Network Holdings Limited
(ASX:TEN) and Alacer Gold Corp
(ASX:AQG) also closed higher.
The worst performing stock was Skilled Group Limited
(ASX:SKE), dropping 6.96 per cent to close at $3.21. Shares in Forge Group Limited
(ASX:FGE) and Aquila Resources Limited
(ASX:AQA) also closed lower.
Commodities
Gold has gained $19.74 over the week and is buying $US1,230.80 an ounce.
Light crude has tumbled $2.98 lower amid expectations of higher global supplies and is now buying $US95.44 a barrel.
Currencies
The Australian dollar is buying $US0.8984 which is less than 1 cent firmer over the week.
