The Australian share market opened flat but ended 0.5 per cent down. Stocks dragged to session lows following the release of disappointing Chinese data. All major sectors slipped into the red by close with early strength in financial stocks back-flipping by sessions end. Losses were accelerated in the energy sector as the price of oil continues to weaken. Industrials and materials sectors also showed weakness as commodity prices pulled back from a positive start to 2014.
Figures
The S&P/ASX 200 index fell 25 points to end the session at 5,325.
The value of trades was $2.1 billion on volume of 418 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 Rio Tinto Limited
(ASX:RIO).
On the futures market the SPI is 17 points lower.
Economic news
Australia's services sector saw a soft finish to the end of 2013 with activity shrinking at a quicker pace. The Australian Industry Group’s Performance of Services Index fell 2.8 points to 46.1 in December with a read below 50 indicating the sector is in contraction territory.
China's services sector growth hit a two year low at the end of 2013. The HSBC/Markit Purchasing Managers' Index fell to 50.9 in December which is the lowest read since August 2011 but still remained above 50 which indicates the sector is expanding.
Takeover talk
GPT Group
(ASX:GPT) has boosted its stake in its takeover target Commonwealth Property Office Fund
(ASX:CPA) to 11.44 per cent. The news comes after Commonwealth Property Office Fund rejected GPT Group’s $4 billion cash and scrip offer in favour of a rival bid from DEXUS Property Group
(ASX:DXS) and Canada Pension Plan Investment Board at the end of last month. Shares in GPT Group ended the session flat at $3.49.
The battle for Warrnambool Cheese & Butter Factory Co
(ASX:WCB) continues with reports today speculating if the Canadian suitor Saputo will close its $520 million takeover bid at the end of this week or extend it for another fortnight. Rival bidder Murray Goulburn Co-operative’s offer is still reliant on approval from the Australian Competition Tribunal who are expected to meet tomorrow and announce their decision at the end of January. Shares in Warrnambool Cheese & Butter Factory dipped 0.32 per cent today to end the session at $9.23.
Executive board appointments
Infrastructure service provider Cardno Limited
(ASX:CDD) says Michael Renshaw will step into the top job after current CEO Andrew Buckley retires in March.
Mining services provider Bradken Limited
(ASX:BKN) has appointed Dr David Smith as a non-executive director of the company who will take on the role from February.
Gold miner St Barbara Limited
(ASX:SBM) has advised past Gindalbie Metals Limited
(ASX:GBG) chief Tim Netscher will become the company’s latest independent non-executive director from February 27.
Stocks on the move
Shares in Altona Mining Limited
(ASX:AOH) spiked after the copper producer announced it has cut its debt in half on the back of a strong performance from its flagship project.
Best and worst performers
All sectors ended in the red: The sector with the smallest losses was telco services, easing 0.2 points to close at 1,827.
The worst performing sector was energy, sinking 127 points to close at 13,371 points.
The best performing stock in the S&P/ASX 200 was Northern Star Resources Limited
(ASX:NST), rising 5.95 per cent to close at $0.89. Shares in Ten Network Holdings Limited
(ASX:TEN) and Pacific Brands Limited
(ASX:PBG) also closed higher.
The worst performing stock was Independence Group NL
(ASX:IGO), dropping 5.44 per cent to close at $3.13. Shares in Karoon Gas Australia Limited
(ASX:KAR) and STW Communications Group Limited
(ASX:SGN) also closed lower.
IPOs
Valence Industries Limited
(ASX:VXL) started trading today. The company is focussed on the exploration, production, processing and sale of graphite and floated with an issue price of $0.20, opened at $0.20 and closed at $0.20.
Commodities
Gold is trading at $US1,238.90 an ounce.
Light crude is $1.48 lower at $US93.96 a barrel.
Currencies
The Australian dollar is buying $US0.8954.
