The SPI is pointing to a subdued start for the Australian share market after the benchmark extended February’s 4.8 per cent gain over last week. While European and Asian markets rose on Friday US indexes came under pressure following weaker than expected housing figures amid a series of corporate earnings.
Closer to home housing data and more earnings reports will also be in focus for the Australian share market as well as blue-chip stocks trading ex-dividend today. Over the weekend Australian Property Monitors auction results showed clearance rates have risen to the highest level this year. In the week ahead we can expect local construction work done figures and an outlook from the Housing Industry Association, Chinese property prices and American house prices and new home sales numbers.
US economic news
Home sales in America fell more than expected and to an 18-month low at the beginning of 2014. The National Association of Realtors reports home sales fell 5.1 per cent to an annual rate of 4.62 million units in January.
Figures
Wall Street posted a soft end to last week. The Dow and S&P 500 also ended lower over the whole week as the NASDAQ bucked the trend to clock a weekly gain: On Friday, The Dow Jones Industrial Average lost 30 points to close at 16,103, the S&P 500 lost 4 points to close at 1,836 and the NASDAQ lost 4 points to close at 4,263.
European markets ended Friday stronger, led by France’s benchmark hitting a 5.5 year high: London's FTSE 100 Index gained 25 points, France's CAC 40 gained 26 points and Germany's DAX gained 38 points.
Asian markets finished the week mixed: Japan’s Nikkei added 416 points, Hong Kong’s Hang Seng added 174 points, and China’s Shanghai Composite lost 25 points.
The Australian share market extended a weekly gain of 1.5 per cent on Friday: The S&P/ASX 200 Index gained 26.4 points on Friday, widening the weekly gain of 82.4 points to finish at 5,438.7. On the futures market the SPI is 1 point lower.
Currencies
The Australian Dollar at 8:00AM was buying $0.8988, 54.07 Pence Sterling, 92.09 Yen and 65.47 Euro cents.
Company news
Shares in Silver Chef Limited
(ASX:SIV) gained after posting positive first half results and leaving its interim dividend unchanged at 14 cents per share. The equipment financier’s interim net profit improved 9.5 per cent to $6.5 million as revenue increased 26 per cent to $67 million. Silver Chef is focussed on rentals of commercial equipment across Australia, New Zealand and Canada under the Silver Chef and GoGetta brands. Shares in Silver Chef gained 13.21 per cent on Friday to end the week at $6.00.
Shares in Infomedia Limited
(ASX:IFM) surged after reporting net profit and sales revenue growth over the last six months of 2013 and boosting its interim dividend. The automotive software developer’s first half net profit gained 12 per cent to $5.7 million as sales revenue jumped 19 per cent to $28 million. Infomedia expects sales revenue to continue to grow in the second half, supporting an anticipated lift in its full year profit to between $11 million and $12 million. Shares in Infomedia surged 17.42 per cent on Friday to end the week at $0.775.
Ex-dividends
Colorpak Limited
(ASX:CKL) paying a 1.75 cent fully franked dividend
Navitas Limited
(ASX:NVT) paying a 9.4 cent fully franked dividend
Oakton Limited
(ASX:OKN) paying a 4 cent fully franked dividend
SAI Global Limited
(ASX:SAI) paying a 7 cent fully franked dividend
Suncorp Group Limited
(ASX:SUN) paying a 35 cent fully franked dividend
Telstra Corporation
(ASX:TLS) paying a 14.5 cent fully franked dividend
Wesfarmers Limited
(ASX:WES) paying a 85 cent fully franked dividend
Woodside Petroleum
(ASX:WPL) paying a 113.72 cent fully franked dividend
Commodities
Gold has gained $8.60 to $US1,323.60 an ounce for the April contract on Comex.
Silver has lifted $0.10 to $21.78 for March.
Copper has added $0.01 to $3.29 a pound.
Oil has dipped $0.55 to $US102.20 a barrel for March light crude in New York.
