The Australian share market closed 0.05 per cent up as strength in the big four banks and QBE was countered by softness in materials. The S&P/ASX 200 index closed 3 points up to finish at 5,437.
The value of trades was $5 billion on volume of 866 million shares at the close of trade. The top three stocks by value were Rio Tinto Limited
(ASX:RIO), BHP Billiton Limited
(ASX:BHP) and Fortescue Metals Group Limited
(ASX:FMG).
On the futures market the SPI is 18 points up.
Economic news
Prime Minister Tony Abbott has announced a $320 million package of income support and concessional loans for drought affected farmers and left the way open to give farmers more assistance if the drought worsens.
Farmers, particularly in Queensland and western New South Wales, are in the midst of a two-year dry spell that has seen income plummet.
The package will also include an extra $10.7 million for psychological crisis support programs, $10 million for feral animal control and $12 million for emergency water infrastructure schemes.
Company news
Packaging manufacturer, Pact Group Holdings Limited
(ASX:PGH) has delivered its first results since listing in December. Sales revenue for 1H 2014 was $567.6 million, 0.2% higher than the same period a year ago with EBIT of $75M for the period, also marginally higher.
The company recorded a statutory net loss of $2 million for the six months to December 2013 however expects second-half earnings will be boosted by the consolidation of four acquisitions and by its continued efficiency programs. Pact has forecasts a dividend of 9.5c in the 2nd half of 2014. Shares in Pact Group closed 4.5 per cent down at $3.40.
Regional Express Holdings Limited
(ASX:REX) has again called upon the federal government to provide assistance to the regional aviation sector to save it from collapse. CEO Garry Filmer warned of an irreversible collapse of regional aviation if such measures are not forthcoming.
Rex reported a net profit of $3.6 million for the six months to December 31, down 60 per cent on its $9 million result for the same time last year. The company blamed the fall on the continuing weak Australian economy.
Earlier in February Rex flagged that 1H profit would be only 40 per cent of its profit for the same period last year due to plummeting business related travel.
Regional Express did not declare an interim dividend. Shares in Rex closed 3.8 per cent up at $0.82.
AGL Energy Limited
(ASX:AGK) net profit dropped 27.1 per cent to $261 million with underlying profit down 11.4 per cent to $242 million. Revenue also dipped 2.6 per cent to $4.84 billion. The group has forecast an improvement in the second half and reaffirmed its full year underlying profit guidance.
AGL said record warm weather conditions during the winter months, and, a further drop in customer demand for energy impacted the result. AGL expects its second half performance to improve following a full six month contribution from its Australian Power and Gas acquisition as well as a step up in its Queensland gas sales.
A fully-franked interim dividend of 30 cents per share has been declared, flat with the same period last year. Shares in AGL closed 0.19 per cent down.
Lend Lease Group
(ASX:LLC) has reported a first half profit fall but says its outlook is positive and its strategy is on track. The property developer’s net profit declined 16.4 per cent to $251.6 million in the last six months of 2013. Revenues for the period revenue dipped 3.7 per cent to $6.5 billion.
CEO Steve McCann said the company’s global development pipeline, estimated to be worth $38.4 billion, puts the company in a strong position to leverage positive trends in the residential sector. He says its construction business has proven resilient and embedded returns in Lend Lease’s pipeline of opportunities underpin its earnings visibility over the next three years.
An unfranked interim dividend of 22 cents per share has been declared, in line with a year before. Shares in Lend Lease closed 3.72 per cent down.
Flight Centre Travel Group Limited
(ASX:FLT) has lifted its net profit by 20.7 per cent to almost $111 million in the last six months of 2013 on the back of network expansion and global sales growth. In the same period revenue rose 15 per cent to more than $1 billion.
Looking ahead, the company has confirmed an annual profit before tax target of between $370 million and $385 million, which would represent between 8-12 per cent growth on last year’s underlying result.
A fully franked interim dividend of 55 cents per share, up on the 46c per share for the same period last year has been declared. Shares in Flight Centre closed 3.19 per cent up.
The best and worst performers
The best performing sector was Energy adding 193 points to close at 13,733.The worst performing sector was Materials, losing 130 points to close at 10,548 points.
The best performing stock in the S&P/ASX 200 was Paladin Energy Limited
(ASX:PDN), rising 21.35 per cent to close at $0.54. Shares in Worleyparsons Limited
(ASX:WOR) and Ausdrill Limited
(ASX:ASL) also closed higher.
The worst performing stock was Virtus Health Limited
(ASX:VRT), dropping 8.4 per cent to close at $7.74. Shares in Regis Resources Limited
(ASX:RRL) and BC Iron Limited
(ASX:BCI) also closed lower.
Commodities Gold is buying $US1,341 an ounce. Light crude is $0.99 down at $US101.83 a barrel.
The Australian dollar is buying $US0.9011.
