The Australian share market closed 0.3 per cent higher, falling away in the afternoon session after a strong start. A sell off in materials in the afternoon kept a cap on gains. The S&P/ASX 200 index closed 15 points up to finish at 5,408.
The value of trades was $4.9 billion on volume of 808 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Fortescue Metals Group Limited
(ASX:FMG) and Westpac Banking Corporation
(ASX:WBC). On the futures market the SPI is 18 points up.
Economic news
The December Wage Price Index figures from the ABS show the seasonally adjusted Wage Price Index rose 0.7 per cent in the December quarter 2013 and 2.6 per cent over the last year, the smallest year to year rise since the index began in 1997. Workers in the electricity, gas, water and waste services sectors recorded the largest year on year wages growth of 3.3 per cent and professional, scientific and technical services the smallest at 1.6 per cent. South Australia had the largest wage rises while Tasmania had the smallest.
Company news Fortescue Metals Group Limited
(ASX:FMG) has joined the list of companies awarding increased dividends this reporting season as it announced a 10 cent interim dividend today. The group reported a net profit of $1.7 billion for H1 of Fiscal 2014, up a massive 270 per cent on the previous corresponding period. FMG also reported record ore shipments and their lowest costs to date. The company also retired of $3.44 billion debt during H1. They say the outlook is good for H2 and beyond as the Chinese economy continues strong growth.
Shares in Fortescue Metals Group closed 2.34 per cent down at $5.84.
Southern Cross Media Group Limited
(ASX:SXL) has experienced some top line growth to report a first half profit of $45.9 million for Fiscal 2014, a 1.1 per cent increase on the same half last year. Underlying revenue grew by 1.8% in the half delivering a 0.5 of a per cent increase in underlying EBITDA. CEO Rhys Holleran said the results were encouraging, especially growth in television revenue. Southern Cross Media’s previous CFO died suddenly last month and the group took today’s report as a chance to announce an interim replacement. Shares in Southern Cross Media Group closed 7.76 per cent down at $1.49.
Wesfarmers Limited
(ASX:WES) has boosted its first half profit by 11.2 per cent to $1.4 billion on the back of strong sales across its retail portfolio. Coles, Bunnings and Officeworks helped offset weakness from Target and its coal and industrial and safety divisions. Shares in Wesfarmers closed 0.51 per cent down.
Woodside Petroleum Limited
(ASX:WPL) has reported a 41.4 per cent fall in its full year profit but also lifted its payout to shareholders. The oil and gas giant says its annual net profit of $1.94 billion is in line with consensus forecasts and the second highest result in the company’s history. Shares in Woodside Petroleum closed 0.34 per cent down.
Dick Smith Holdings Limited
(ASX:DSH) has reported a net profit of $25 million for the first half of Fiscal 2014, only 63 per cent of that forecasted by the company. EBITDA was slightly above prospectus forecasts and sales were also in line with expectations. The company declined to pay an interim dividend. Shares in Dick Smith Holdings closed 8.88 per cent down.
The best and worst performers The best performing sector was Utilities adding 63 points to close at 5,708.The worst performing sector was Materials, losing 53 points to close at 10,647 points. The best performing stock in the S&P/ASX 200 was SEEK Limited
(ASX:SEK), rising 17.78 per cent to close at $15.70. Shares in Northern Star Resources Limited
(ASX:NST) and NRW Holdings Limited
(ASX:NWH) also closed higher.
The worst performing stock was Mount Gibson Iron Limited
(ASX:MGX), dropping 15.42 per cent to close at $1.02. Shares in Southern Cross Media Group Ltd
(ASX:SXL) and Resolute Mining Limited
(ASX:RSG) also closed lower.
Commodities
Gold ended a three and a half month surge to drop to $US1,315 an ounce. Light crude is $2.13 up at $US102.43 a barrel. The Australian dollar is buying $US0.9020.
