The Australian share market returned from a long weekend to sink 1.3 per cent after being knocked about by negative leads amid fears about the strength of emerging markets. All sectors retreated in response to a global sell-off sparked while local investors took a break for the Australia Day long weekend. While the benchmark index lifted from the lows of the day the mining sector remained weak to finish at the bottom of the pack. A few bright-spots of company news were overwhelmed by stock losses as investors also weighed up the threat of more tapering announcements from the US mid-week.
Figures
The S&P/ASX 200 index retreated 65.8 points to finish at 5,175.
The value of trades was $5.3 billion on volume of 820 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 ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is 25 points lower.
Economic news
Australian business conditions neared three-year highs at the end of 2013. National Australia Bank Limited’s
(ASX:NAB) monthly business survey shows business conditions rose to +4 points in December, recovering from -3 in November. Business confidence remained unchanged at +6 points.
Company news
Downer EDI Limited
(ASX:DOW) has scored two new contracts in Western Australia from global mining company BHP Billiton Limited
(ASX:BHP). The engineer says the $40 million Rail Package contract will be completed in the second half of this year and the $60 million Shiploaders 1 and 2 contract will be completed in the first half of 2015. Shares in Downer EDI gained 2.47 per cent today to finish the session at $4.97.
In the wake of The Reject Shop Limited’s
(ASX:TRS) shock profit warning last week fellow retailer JB Hi-Fi Limited
(ASX:JBH) has pleased the market with its half year trading update. The electronics retailer has reported first half sales grew almost 7 per cent while profit grew 10 per cent ahead releasing its official interim result next week. Shares in JB Hi-Fi jumped 4.92 per cent today to finish the session at $19.19.
Shares in WAM Capital Limited
(ASX:WAM) gained 2.8 per cent after the investment company boosted its first half profit by more than 100 per cent to a record $69.5 million.
Shares in Oil Search Limited
(ASX:OSH) rose 1.47 per cent after the oil and gas explorer increased its annual oil production and revenue by 6 per cent and affirmed its Papua New Guinea LNG project remains on budget and on target.
Shares in Boral Limited
(ASX:BLD) fell 0.42 per cent after the building materials manufacturer flagged a first half net profit of $90 million but warned its full year earnings will be skewed to the first half.
Shares in Perseus Mining Limited
(ASX:PRU) dropped 7.23 per cent after the gold producer improved its December quarter output by 6 per cent and confirmed its full-year production guidance.
Best and worst performers
All sectors finished in the red: The sector with the smallest losses was industrials, losing 19 points to close at 3,895.
The worst performing sector was materials, dropping 158 points to close at 9,904 points.
The best performing stock in the S&P/ASX 200 was JB Hi-Fi Limited
(ASX:JBH), advancing 4.92 per cent to close at $19.19. Shares in Arrium Limited
(ASX:ARI) and Downer EDI Limited
(ASX:DOW) also closed higher.
The worst performing stock was Lynas Corporation Limited
(ASX:LYC), dropping 6.25 per cent to close at $0.30. Shares in Resolute Mining Limited
(ASX:RSG) and The Reject Shop Limited
(ASX:TRS) also closed lower.
Commodities
Gold is buying $US1,258 an ounce.
Light crude is $0.92 lower at $US95.72 a barrel.
Currencies
The Australian dollar is buying $US0.8783.
