The Australian share market has fallen 0.5 per cent amid a flood of earnings results. Despite more records on Wall Street the major indexes ended a lacklustre session mixed. Most major local sectors have now moved into the red with only telco services defying the trend.
Shares in Qantas Airways Limited
(ASX:QAN) have jumped to the benchmark's best performer after the airline extended its annual net loss to $2.8 billion but stated its commitment to return to profitability.
Shares in Nine Entertainment Co Holdings Limited ( ASX:NEC) have tumbled to one of the benchmark’s worst performers after revealing its first full year financial result since having listed on the ASX last year.
Figures
The S&P/ASX 200 index has fallen 26 points to 5,626. On the futures market the SPI is 32 points lower.
Economic news
Business investment rose more than expected in the second quarter. The Australian Bureau of Statistics reports total new capital expenditure gained 1.1 per cent over the June quarter from the prior quarter but is 4 per cent lower year on year.
New home sales have posted a soft start to the new financial year. The Housing Industry Association says new home sales took a step back last month, easing 5.7 per cent in July after gaining 1.2 per cent in June. Chief economist Harley Dale says the last financial year saw the recovery in new home sales gather strong momentum and the latest data shows new home sales and building approvals may have peaked for the cycle.
Reporting season results
Shares in Perpetual Limited
(ASX:PPT) have retreated despite improving its annual profit. The wealth manager’s net profit rose 34 per cent to $81.6 million in the 2014 financial year. CEO and Managing Director Geoff Lloyd says the company’s strategy is now firmly in the growth phase and has good momentum. A fully-franked final dividend of 95 cents per share has been declared, taking the full year payout to $1.75 per share. Shares in Perpetual have retreated 4.67 per cent to $46.09 at noon.
Atlas Iron Limited
(ASX:AGO) has rebounded to an annual profit from a loss of $242 million the year before. The iron ore miner generated a net profit of $17 million while revenue jumped 58 per cent over the 2014 financial year. CEO Ken Brinsden says the combination of record production and a tight focus on cost control has underpinned a substantial increase in cash generation. An unfranked final dividend of 2 cents per share has been declared. Shares in Atlas Iron have dropped 2.44 per cent to $0.60 at noon.
Best and worst performers
The only major sector on positive territory is telco services, firming 0.2 per cent to 1,937. Shares in Singapore Telecommunications Limited
(ASX:SGT) have risen 0.45 per cent and trading at $3.37. Shares in Telstra Corporation Limited
(ASX:TLS) are higher while shares in TPG Telecom Limited
(ASX:TPM) are lower at noon.
The worst performing sector is materials, dropping 0.8 per cent to 10,107. Shares in Northern Star Resources Limited
(ASX:NST) have fallen 2.72 per cent, trading at $1.70. Shares in Fortescue Metals Group Limited ( ASX:FMG) Atlas Iron Limited
(ASX:AGO) are also lower.
Gold and the dollar
Gold is trading at $US1,286 an ounce.
The Australian dollar is buying $US0.936.
