The Australian share fell up to 0.8 per cent at open but recovered to close 0.2 lower after better than expected Chinese growth figures. As China is Australia’s biggest trading partner the miners were in focus and ended on the top of the ladder. Energy and industrial sectors also ended on positive territory while the gold sub-index spiked more than 5 per cent by close. Elsewhere softness prevailed ahead of the Martin Luther King Jr public holiday in America on Monday which will see Wall Street pause and resume trade on Tuesday.
Figures
The S&P/ASX 200 index lost 10.9 points today to end at 5,295.
The value of trades was $3.2 billion on volume of 591 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 Telstra Corporation Limited
(ASX:TLS).
On the futures market the SPI is 15 points lower.
Chinese economic news
China's latest economic growth figures have beaten market expectations and the government’s 7.5 per cent growth target, despite falling to a 14 year low at the end of 2013. China’s National Bureau of Statistics reports the economy grew at an annual pace of 7.7 per cent in the December quarter from an annual pace of 7.8 per cent in the prior quarter. Over the December quarter the economy grew 1.8 per cent, down from 2.2 per cent in the September quarter.
China’s National Bureau of Statistics has also reported retail sales rose at an annual rate of 13.6 per cent in December, meeting expectations although falling short from the month prior. Chinese industrial production rose at an annual rate of 9.7 per cent, falling short of expectations and below the month prior.
Australian economic news
A private gauge on inflation jumped at the end of 2013. TD Securities and the Melbourne Institute’s Monthly Inflation Gauge gained 0.7 per cent in December to hit an annual pace of 2.7 per cent, in line with the Reserve Bank of Australia's long-term target of between 2 to 3 per cent.
Tasmania has again been named the nation's worst economic performer while Western Australia has claimed the top spot. Commsec’s quarterly State of the State report investigates how Australian states and territories are performing and has shown Western Australia is still on top, the Northern Territory has edged up to the second place with the ACT and Queensland both equal third.
Company news
Telstra Corporation Limited
(ASX:TLS) has acquired a Melbourne-based provider of network and security consulting and integration services called O2 Networks. Australia’s biggest telco says O2 has more than 100 staff who design, implement and manage networks for clients including financial institutions and government owned enterprises. Shares in Telstra Corporation dipped 0.19 per cent today to end the session at $5.23.
Wesfarmers Limited
(ASX:WES) has boosted its coal production by in the December quarter on the back of an improved plant performance. The conglomerate has also inked a $70 million deal to buy a mineral development licence near its Curragh mining lease from Peabody Energy. Shares in Wesfarmers slipped 0.53 per cent today to end the session at $43.47.
Airport operator Sydney Airport Holdings Limited
(ASX:SYD) achieved a series of records over last year - reporting a record amount of passengers over last month and last year and its busiest ever day on December 21, 2013.
Iron ore miner Atlas Iron Limited
(ASX:AGO) has awarded services provider Decmil Group Limited
(ASX:DCG) a $34 million contract to design and construct a major road project in the Pilbara region of Western Australia.
Gaming services provider Tatts Group Limited
(ASX:TTS) has advised it is in talks with Racing Queensland to extend the exclusivity of its race wagering operations in Queensland into the new financial year.
Food manufacturer Goodman Fielder Limited
(ASX:GFF) has advised its Managing Director of Australian operations, Andrew Hipperson died in a motorcycle accident over the weekend.
Best and worst performers
The best performing sector was materials, adding 38 points to close at 10,309.
The worst performing sector was health care, losing 84 points to close at 14,431 points.
The best performing stock in the S&P/ASX 200 was Silver Lake Resources Limited
(ASX:SLR). After reporting record quarterly production the gold miner advanced 18.97 per cent to close at $0.69. Shares in Resolute Mining Limited
(ASX:RSG) and Evolution
(ASX:EVN) also closed higher.
The worst performing stock was Energy World Corporation Limited
(ASX:EWC), dropping 5.06 per cent to close at $0.38. Shares in Forge Group Limited
(ASX:FGE) and Domino's Pizza Enterprises Limited
(ASX:DMP) also closed lower.
Commodities
The price of gold has continued to climb today, now buying $US1,256 an ounce.
Light crude is $0.41 higher at $US94.37 a barrel.
Currencies
The Australian dollar remains at a 3.5 year low below $US0.88, but firmed this afternoon and is buying $US0.8779.
