The Australian share market spent the session in negative territory but firmed by close to end just slightly higher. The session got off to a soft start after the US Federal Reserve’s meeting minutes thrust the threat of tapering back into the spotlight.
Local retail sales and building approval data did little to lift the bourse but stocks regained some ground after the release of China’s consumer price index. Across the sectors most managed to claw onto positive territory by close but the miners again weakened and joined telco and utilites sectors in the red.
Figures The S&P/ASX 200 index ended the session 8.4 points higher at 5,324.
The value of trades was $2.7 billion on volume of 572 million shares at the close of trade.
The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), BHP Billiton Limited
(ASX:BHP) and ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is 4 points higher.
Economic news China’s inflation rate has come in below expectations in 2013 but in-line with 2012. The National Bureau of Statistics reports China’s inflation rate came in at 2.6 per cent in 2013, falling under the official target of 3.5 per cent.
Retail sales rose for the seventh straight month in the lead up to the Christmas season. The Australian Bureau of Statistics (ABS) reports retail sales increased 0.7 per cent in November 2013 against expectations of a 0.4 per cent rise.
Building approvals fell for the second straight month. The ABS reports building approvals dropped 1.5 per cent to 16,396 in November, against expectations of a 1 per cent fall.
Company news Shares in HFA Holdings Limited
(ASX:HFA) surged after predicting higher half year earnings and addressing speculation a possible transaction could be on the horizon. The holding company for global funds management expects to boost its first half earnings to $US6.4 million. HFA has also revealed it is currently undertaking a review on how to enhance shareholder value but stressed this process does not indicate a deal is near or certain. Shares in HFA Holdings surged 22.58 per cent today to end the session at $0.95.
Qantas Airways Limited
(ASX:QAN) says it is not surprised ratings agency Moody downgraded the company’s rating to junk and called its outlook negative. In response Australia’s largest airline has flagged plans to cut costs and CAPEX to return to positive free cash flow in fiscal 2015 and beyond. Shares in Qantas Airways rose 1.82 per cent today to end the session at $1.12.
Shares in Fonterra Co-operative Group Limited
(ASX:FSF) fell after the New-Zealand based dairy exporter said it will vigorously defend a claim by France’s Danone concerning a recall of whey protein concentrate last year.
Shares in Warrnambool Cheese & Butter Factory Co.
(ASX:WCB) gained after the takeover target revealed one of its two suitors, Canadian diary giant Supoto, has boosted its stake to 20.14 per cent.
Shares in QBE Insurance Group Limited
(ASX:QBE) ended higher following reports law firm Slater & Gordon Limited
(ASX:SGH) will walk away from a potential lawsuit against the insurer concerning its last profit downgrade.
Shares in Kimberley Diamonds Limited
(ASX:KDL) rose amid reports the diamond producer may be preparing to make another acquisition following its purchase of a project in Botswana last year.
Best and worst performers The best performing sector was consumer staples, adding 60 points to close at 10,057.
The worst performing sector was telco services, losing 7 points to close at 1,825 points.
The best performing stock in the S&PASX 200 was Forge Group Limited
(ASX:FGE), rising 13.12 per cent to close at $1.25. Shares in Orora Limited
(ASX:ORA) and Sirtex Medical Limited
(ASX:SRX) also closed higher.
The worst performing stock was Decmil Group Limited
(ASX:DCG), dropping 3.93 per cent to close at $2.20. Shares in BC Iron Limited
(ASX:BCI) and Ausdrill Limited
(ASX:ASL) also closed lower.
Commodities Gold has risen from this morning and is buying $US1,227.40 an ounce.
Light crude is $1.34 lower at $US92.33 a barrel.
The Australian dollar The Australian dollar has fallen from this morning and is buying $US0.8878.
