The Australian share market gained early but fizzled before noon to end flat. Strong offshore leads were not enough to sustain momentum as the benchmark hovered near the opening mark for most of the session. Trade remained muted ahead of the US Federal Reserve's December meeting minutes which investors hope will hint at the central bank’s economic stimulus plans.
Across the local board weaker commodity prices again pushed the mining sector to the worst performer. Precious metal miners continued to suffer with lower metals prices while the energy sector rebounded after the price of oil moved higher. The health care sector put in a strong performance led by Sirtex Medical Limited’s
(ASX:SRX) upbeat sales outlook and buoyed by majors ResMed Inc
(ASX:RMD) and Ramsay Health Care Limited
(ASX:RHC).
Figures
The S&P/ASX 200 index closed 1 point lower at 5,316.
The value of trades was $3.1 billion on volume of 615 million shares at the close of trade.
The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Rio Tinto Limited
(ASX:RIO) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 12 points lower.
Economic news
The total number of job vacancies in Australia dropped in the November quarter from the prior quarter and prior year. The Australian Bureau of Statistics has shown private and public sector job vacancies were 0.3 per cent down in the three months to November 2013 from the prior quarter and 14.9 per cent down from 2012.
Residential construction is recovering from years in contraction territory, though the pace of recovery has slowed. The Australian Industry Group and Housing Industry Association Performance of Construction Index slipped 4.2 points to 50.8 in December 2013 with read above 50 indicating the sector is in expansion territory.
Company news
ANZ Banking Group’s
(ASX:ANZ) internet broking arm E*trade has rebounded from a loss to deliver a net profit of almost $34 million in the year to the end of September 2013. E*trade holds a market share of about 17 per cent, second to Commonwealth Bank of Australia’s
(ASX:CBA) Commsec who boast a 51 per cent share and booked a profit of $86 million last year. Shares in ANZ Banking Group dipped 0.47 per cent today to end the session at $31.71.
Sirtex Medical Limited
(ASX:SRX) saw the top 200’s biggest stock advance after the drug developer posted almost 19 per cent sales growth from its SIR-Spheres liver cancer treatment in the December quarter 2013. CEO Gilman Wong has described the result as pleasing and says he is confident the company’s regional strategies will continue to deliver growth. Shares in Sirtex Medical surged 16.14 per cent today to end the session at $13.24.
Perth-based junior miner Continental Coal Limited
(ASX:CCC) has warned the market it may be forced to appoint a voluntary administrator if it cannot successfully recapitalise the company.
Staffing provider Skilled Group Limited
(ASX:SKE) is one step closer to acquiring Thomas and Coffey Limited’s
(ASX:THO) maintenance subsidiary for $33.5 million after the company’s shareholders voted in favor of Skilled Group’s proposal.
Breads and spreads producer Goodman Fielder Limited
(ASX:GFF) is set to gain more than $14 million after deciding to divest its New Zealand meat and pizza businesses.
Australia’s second largest carrier Virgin Australia Holdings Limited
(ASX:VAH) says it is generating higher returns from airfares despite today posting lower domestic and international passenger numbers in November 2013.
Best and worst performers
The best performing sector was health care, adding 88 points to close at 14,359.
The worst performing sector was materials, losing 57 points to close at 9,998 points.
The best performing stock in the S&P/ASX 200 was Sirtex Medical Limited
(ASX:SRX), surging 16.14 per cent to close at $13.24. Shares in Magellan Financial Group Limited
(ASX:MFG) and Mount Gibson Iron Limited
(ASX:MGX) also closed higher.
The worst performing stock was Forge Group Limited
(ASX:FGE), dropping 15.65 per cent to close at $1.10. Shares in Silver Lake Resources Limited
(ASX:SLR) and Ausdrill Limited
(ASX:ASL) also closed lower.
Commodities
The price of gold has slipped further today and is buying $US1,227.90 an ounce.
Light crude $0.24 higher at $US93.67 a barrel.
Currencies
The Australian dollar is buying $US0.8930.
