The Australian share market closed 0.4 per cent down after spending the entire session trading in the red. Negative global leads pushed the benchmark down at open and stocks continued to stay low after domestic jobs data showed a surprise drop in jobs creation. The Aussie dollar was largely unchanged following local jobs numbers but earlier climbed above $US0.94 after New Zealand’s rate hike. Across the sectors the Big Banks weighed and the mining sector ended as the session’s worst performer with iron ore stocks bearing the brunt of the selling.
Figures
The S&P/ASX 200 index fell 25 points today to finish at 5,429.
The value of trades was $3.9 billion on volume of 670 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 Westpac Banking Corporation
(ASX:WBC).
On the futures market the SPI is 29 points lower.
Economic news
Australia’s unemployment rate stayed steady last month while jobs growth snapped four months of strong growth. The Bureau of Statistics reports Australia’s jobless rate stayed at 5.8 per cent in May for the third month in a row against expectations for a rise. Job creation fell by 4,800 from April against expectations for a gain of 10,000 jobs. The participation rate dropped to 64.6 per cent in May.
Contract awards
Engineering company Worleyparsons Limited
(ASX:WOR) has won a contract from Brazil based global diversified mining company Vale SA. The construction and management support contract is for work on Vale’s multi-billion dollar S11D iron ore mining project in Brazil. Worleyparsons has been working on the project since 2010 and the latest contract will see the company continue its involvement into the construction phase. Shares in Worleyparsons dropped 1.93 per cent today to close at $15.79.
Service Stream Limited
(ASX:SSM) says scoring the renewal of another NBN Co Contract will contribute about $140 million in revenue across the initial two year term. The provider of network services will perform the physical cable connections between the street network and the outside of buildings. Service Stream will also perform the installation of the NBN connection box and power supply units within the premises as the roll out of the National Broadband Network gains momentum. Shares in Service Stream jumped 15.63 per cent today to close at $0.18.
Construction giant Leighton Holdings Limited
(ASX:LEI) has flagged plans to create four core businesses focussed on construction, mining, public private partnerships and engineering and says it may potentially sell its property and services business John Holland.
Australia’s fifth largest iron ore producer Mineral Resources Limited
(ASX:MIN) has bought a 12.78 per cent stake in takeover target Aquila Resources Limited
(ASX:AQA) with view to advancing the development of the West Pilbara Iron Ore Project.
Wesfarmers Limited
(ASX:WES) expects to book a pre-tax profit up of to $335 million after scoring the last approvals to sell its insurance broking and premium funding operations to Arthur J Gallagher & Co (NYSE:AJG).
Takeover target Goodman Fielder Limited
(ASX:GFF) will a pour about $24.8 million into a New Zealand milk plant to meet the growing demand for dairy products from the Asia Pacific.
Best and worst performers
The best performing sector was health care, adding 18 points to close at 14,426.
The worst performing sector was materials, retreating 89 points to close at 9,614 points.
The best performing stock in the S&P/ASX 200 was Ten Network Holdings Limited
(ASX:TEN), rising 5.26 per cent to close at $0.30. Shares in Southern Cross Media Group Limited
(ASX:SXL) and Treasury Wine Estates Limited
(ASX:TWE) also closed higher.
The worst performing stock was Arrium Limited
(ASX:ARI), dropping 7.26 per cent to close at $0.83. Shares in BC Iron Limited
(ASX:BCI) and Mount Gibson Iron Limited
(ASX:MGX) also closed lower.
Commodities
Gold is trading at $US1,261 an ounce.
Light crude is $0.05 higher at $US104.40 a barrel.
Australian dollar
The Australian dollar is buying $US0.9391.
