The Australian share market clawed back some early losses today but still only managed to climb 0.08 per cent higher at close.
The shockwaves of an iron ore price below one hundred dollars continues to rumble through mining stocks while gains in the telco sector held prices higher with Telstra announcing plans to roll out a nationwide wifi network.
And ABS wage figures came in positive, but growth was a meager 0.7 per cent for the quarter which has led some to speculate consumer sentiment will only get worse as people begin to tighten their belts.
The S&P/ASX 200 index closed 4 points up to finish at 5,425.
The value of trades was $4.44 billion on volume of 745 million shares at the close of trade. The top three stocks by value were: BHP Billiton Limited
(ASX:BHP), Rio Tinto Limited
(ASX:RIO)and ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is 7 points up.
In economic news
The ABS today released its Wage price index for the March quarter and although the figure was a positive 0.7% it represents the slowest wage growth in 16 years. Private sector wages were weaker at 0.6 per cent while in the public sector growth was 0.8 per cent.
Company news
In a cost-cutting drive the television station Ten Network Holdings Limited
(ASX:TEN) will cut 150 jobs and axe the breakfast TV program Wake Up.
The news was announced to staff today and included the cutting of the early, morning and late news shows at the station. Shares in Ten closed 1.79 per cent down at $0.28
Qantas Airways Limited (ASX:QAN) will not be expanding capacity on domestic routes next year. Australia’s biggest airline has revised planned capacity additions and total domestic growth will be zero for the first three months of 2015. Shares in Qantas fell 1.21 per cent on the news to $1.23
Shares in Genworth Mortgage Insurance Australia Limited
(ASX:GMA) rose on their first day of trade on the Australian Securities Exchange. The mortgage lender insurance firm protects lenders against loss should borrowers default on their home loans and counts the major banks as some of its customers.
Shares in Telstra Corporation Limited
(ASX:TLS) closed at a nine-year high after announcing plans to create one of the world’s largest Wi-Fi networks. Australia’s biggest telco says the plans forms part of a $100 million-plus strategy to boost connectivity across Australia.
Woodside Petroleum Limited
(ASX:WPL) has terminated its plans to buy into the Leviathon joint venture in Israel.
Macquarie Group Limited
(ASX:MQG) has dismissed media reports regarding the investment bank’s tax issues and potential share price impacts.
Best and worst performers
The best performing sector was telcos adding 20 points to close at 1,865.The worst performing sector was materials, losing 67 points to close at 9,878 points.
The best performing stock in the S&P/ASX 200 was Treasury Wine Estates Limited
(ASX:TWE), rising 5.63 per cent to close at $5.07. Shares in Coca-Cola Amatil Limited
(ASX:CCL) and Acrux Limited
(ASX:ACR) also closed higher.
The worst performing stock was Adelaide Brighton Limited
(ASX:ABC), dropping 5.87 per cent to close at $3.53. Shares in Spark Infrastructure Group
(ASX:SKI) and UGL Limited
(ASX:UGL) also closed lower.
IPO Fifth Element Resources
(ASX:FTH) started trading today. The copper and gold miner listed with an issue price of $0.20, opened at $0.22 and a closed at $0.22.
Commodities
Gold is buying $US1,295 an ounce.
Light crude is $0.17 down at $US102.44 a barrel.
The Australian dollar is buying $US0.9234
