Buoyed by positive leads the Australian share market opened higher and drifted in a narrow range to end up just 0.2 per cent.
Regional markets also rose after Wall Street gained on the back of upbeat US manufacturing figures helping to stoke optimism for the world’s largest economy. While most local sectors traded higher the broader bourse was impacted by some profit shocks from Goodman Fielder Limited (ASX:GFF) and Noni B Limited (ASX:NBL). The mining sector was the session’s standout performer with the gold sub-sector gaining almost 2 per cent by close.
Figures
The S&P/ASX 200 index gained 14 points to finish at 5,403.
The value of trades was $3.64 billion on volume of 719 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 Twenty-First Century Fox Inc
(ASX:FOX).
On the futures market the SPI is 13 points higher.
Economic news
Building approvals dropped more than expected last month and by the largest amount in eight months. The Australian Bureau of Statistics reports building approvals fell 5 per cent to 16,669 in February against expectations for a fall of 2 per cent. Despite the fall building approvals are still 23 per cent stronger from the year before.
Company news
Shares in Goodman Fielder Limited
(ASX:GFF) plunged after warning it will not meet its annual earnings expectations and affirming its cost cutting drive. The breads and spreads manufacturer says annual earnings are likely to fall between 10 per cent to 15 per cent from current analysts’ expectations this financial year. Goodman Fielder blamed the downgrade on weaker and challenging market conditions locally and in and New Zealand. Shares in Goodman Fielder plunged 22.13 per cent today to end the session at $0.48.
Shares in Noni B Limited
(ASX:NBL) sank after the women's fashion retailer posted a 14 per cent drop in third quarter sales. The company blamed customer expectations for big discounts when buying clothes which it has tried to resist to maintain higher margins.
Noni B plans to stimulate demand by launching extra promotions in the fourth quarter. Shares in Noni B sank 10.91 per cent today to end the session at $0.49.
Shares in BHP Billiton Limited
(ASX:BHP) rose 0.86 per cent after the miner’s outlook for coal blamed increasing supply for price falls over the year but flagged increasing demand for coal despite a focus on lowering carbon emissions.
Shares in Westpac Banking Corporation
(ASX:WBC) closed 0.09 per cent higher after the bank launched a $100 million education scholarship program called the Westpac Bicentennial Foundation aimed at Australians who have the potential to shape the nation’s future.
Shares in Leighton Holdings Limited
(ASX:LEI) ended 0.24 per cent down after the construction company appointed Javier Loizaga as its new Chief Financial Officer just weeks after its former CFO Peter Gregg resigned following Hochtief’s takeover bid.
Shares in CSR Limited
(ASX:CSR) firmed 2.8 per cent after the manufacturer and supplier of building products said it will enter the structural walling systems market through its acquisition of AFS Products Limited.
Best and worst performers
The best performing sector was consumer discretionary, adding 15 points to close at 1,826.
The worst performing sector was utilities, losing 20 points to close at 5,511 points.
The best performing stock in the S&P/ASX 200 was PanAust Limited
(ASX:PNA), rising 8.06 per cent to close at $1.68. Shares in Evolution
(ASX:EVN) and OZ Minerals Limited
(ASX:OZL) also closed higher.
The worst performing stock was Goodman Fielder Limited
(ASX:GFF), plunging 22.13 per cent to close at $0.48. Shares in Bega Cheese Limited
(ASX:BGA) and Skilled Group Limited
(ASX:SKE) also closed lower.
Commodities
Gold is buying $US1,282 an ounce.
Light crude is $1.84 lower at $US99.74 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9237.
