The Australian benchmark index flirted either side of the opening mark today to end steady but posted a weekly and monthly loss. Retreating from a gain of more than 15 per cent last year the local bourse backtracked over January. This week’s losses across global equity markets come after the US Federal Reserve yesterday announced it will again cut its economic stimulus program.
In the week ahead Australia’s Reserve Bank is being tipped to keep the key interest rate steady at a record low when it meets on Tuesday. Local headlines will also continue to be dominated by earnings and production reports as February kicks into gear. The first week of a new month will see the US jobs report released next Friday which is expected to rebound from a soft read at the end of last year.
Figures
The S&P/ASX 200 index added 1.9 points today but booked a weekly loss of 50.9 points to finish at 5,190.
The value of trades was $5.1 billion on volume of 697 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 Rio Tinto Limited
(ASX:RIO).
On the futures market the SPI is 2 points lower.
Wall Street
US stocks have tumbled over the four trading days this week: The Dow Jones Industrial Average has plunged 349 points. The S&P 500 Index has retreated 34 points. The NASDAQ has dropped 96 points. The 100 Index has fallen 81 points.
Company news
Shares in David Jones Limited
(ASX:DJS) jumped after revealing it rejected a possible $900 million merger proposal from rival retailer Myer Holdings Limited
(ASX:MYR) last year. DJ’s made the revelation last night while Myer defended its proposed plans today, claiming both companies could have together generated sales of more than $5 billion annually. Shares in David Jones jumped 4.18 per cent today to end the week at $2.99.
Origin Energy Limited
(ASX:ORG) has boosted its quarterly sales revenue by 39 per cent on the back of stronger output, volumes and commodity prices. The energy giant generated sales of $281 million over the December quarter as its production grew 28 per cent, aided by higher volumes from the Otway Basin. Shares in Origin Energy gained 0.29 per cent today to end the week at $13.98.
Lynas Corporation Limited
(ASX:LYC) has forecast its March quarter output will lift at its Malaysian refinery. The rare earths developer produced 741 tonnes in the December quarter of last year, rising almost three-fold from the prior quarter. Shares in Lynas Corporation sank 6.56 per cent today to end the week at $0.29.
Nufarm’s Limited
(ASX:NUF) chief has sold most of his stake in the agricultural chemical company. Managing Director and CEO, Doug Rathbone is understood to have made the sale to help refinance personal interests including his family's wine holdings. Shares in Nufarm dropped 3 per cent today to end the week at $3.88.
Best and worst performers
Across the sectors most ended lower: The best performing sector was utilities, adding 71 points to close at 5,428.
The worst performing sector was health care, losing 67 points to close at 14,407 points.
The best performing stock in the S&P/ASX 200 was Qube Holdings Limited
(ASX:QUB), rising 5.32 per cent to close at $2.08. Shares in Sirius Resources N.L
(ASX:SIR) and Forge Group Limited
(ASX:FGE) also closed higher.
The worst performing stock was Medusa Mining Limited
(ASX:MML), dropping 10.14 per cent to close at $1.95. Shares in Karoon Gas Australia Limited
(ASX:KAR) and Lynas Corporation Limited
(ASX:LYC) also closed lower.
Commodities
The price of gold has posted its first weekly fall in six weeks, down $US16 over the week to $US1,244.30 an ounce. Light crude is $0.87 higher at $US98.23 a barrel.
Currencies
The Australian dollar is buying $0.8761, up $0.01 over the week.
