The Australian share market has retreated from early gains to end basically flat after insurance giant Suncorp announced a $500 million write down and the IPO darling OzForex disapointed with it maiden full year results.
The S&P/ASX 200 index closed 1.1points lower to finish at 5,512.
The value of trades was $3.2 billion on volume of 599 million shares at the close oftrade. The top three stocks by value were National Australia Bank Limited
(ASX:NAB), Westpac Banking Corporation
(ASX:WBC) and BHP Billiton Limited
(ASX:BHP)
On the futures market the SPI is 5 points down.
Company News
Retirement home operator Ingenia Stapled
(ASX:INA) today announced that changes to the aged pension made in the federal budget could impact on revenue growth in the short term. Ingenia says that upping the pension age from 67 to 70 and the indexing of the age pension to CPI rather than wages growth could impact their ability to raise rental prices in their Garden Villages. The seniors housing owner also said it was experiencing short term bottlenecks in the supply of new homes that could push earnings into the 2015 financial year. However occupancy in its homes continues to trend upwards and demand remains strong.
Shares in Ingenia closed 10.58 per cent softer at $0.47
The see-sawing fortunes of leisure and entertainment operator Donaco International Limited
(ASX:DNA) continues after the share price took another nasty tumble today. Increased tensions between China and Vietnam are perceived to be the reason for the fall in fortunes. Donaco has recently opened a flag ship five-star resort and casino in Vietnam. The number of tourists entering Vietnam has declined significantly in the wake of anti-China riots sparked by territorial tensions in the South China Sea and a military coup in neighbouring Thailand. Relations between Vietnam and China have soured further after a Vietnamese fishing boat was rammed and sunk by a Chinese vessel in a territorial confrontation.
Shares in Donaco ended 10 per cent lower at $1.03.
Shares in OzForex Group Limited
(ASX:OFX) have drifted lower after the company released its full year results. One-off costs from an aborted takeover bid weighed heavily on investor sentiment.
Suncorp Group Limited
(ASX:SUN) today announced a $500 million write down of its life insurance business. CEO Patrick Snowball is again calling for fundamental reform of the life insurance industry in ‘recognition of industry headwinds and a deteriorating situation’.
Software company Technology One Limited
(ASX:TNE) has reported a 17 per cent increase in half year earnings before tax and says it’s on track to deliver 10 to 15 per cent growth in its full year result.
And shares in SAI Global Limited
(ASX:SAI) lifted a further 2.2 per cent today after yesterday’s $1.1b unsolicited takeover offer.
Best and worst performers
The best performing sector was real estate investment trustsadding 2.3 points to close at 1,075. The worst performing sector was utilities, losing 19 points to close at 5,939 points.
The best performing stock in the S&P/ASX 200 was Lynas Corporation, rising 13.33 per cent to close at $0.17 as investors decided it had probably been oversold and jumped back in. Shares in mining services provider ALS Limited closed higher after full year profit came in at guidance during difficult operating conditions. AWE Limited also ticked higher.
The worst performing stock was OzForex, dropping 18.96 per cent to close at $2.65 after a disappointing maiden full year result. Shares in Buru Energy and Mermaid Marine also closed lower.
Commodities
Gold is buying $US1,287 an ounce. Light crude is $0.17 down at $US104.18 a barrel. The Australian dollar is buying 92.68 US cents.
