Defying Wall Street’s record highs the Australian share market fell into the new trading month and closed 0.4 per cent down. The benchmark declined to session lows and the Aussie dollar hit two-week lows against the greenback amid some disappointing data. Sentiment was hit by weak local building approvals and concerns about Asian economies following Japan’s stimulus and China’s soft data.
Across the board gold miners struggled after the price of the precious metal sank more than $US30 overnight. The retailers were rattled by Woolworths Limited
(ASX:WOW) quarterly sales result missing expectations.
Figures
The S&P/ASX 200 index fell 20 points to close at 5,507.
The value of trades was $3.93 billion on volume of 645 million shares at the close of trade.
The top three stocks by value were Woolworths Limited
(ASX:WOW), BHP Billiton Limited
(ASX:BHP) and Westpac Banking Corporation
(ASX:WBC).
On the futures market the SPI is 31 points lower.
China economic news
China’s manufacturing sector strengthened to a three-month high last month. HSBC’s final read of the manufacturing sector came in at 50.4 in October, representing expansion.
Australian economic news
The Australian Industry Group's (AiG) performance of manufacturing index rose in October but remained in contraction territory.
TD Securities and the Melbourne Institute’s monthly inflation gauge firmed 0.2 per cent in October.
ANZ Banking Group
(ASX:ANZ) showed job ads rose for the fifth straight month in October.
Property news
Building approvals sank more than expected in September to hit a thirteen-month low. The Australian Bureau of Statistics reports buildings approvals fell 11 per cent to 15,004 compared to expectations of a 1 per cent fall.
Australian dwelling values rose in October but with mixed results across the states. RP Data reports dwelling values rose 1 per cent in October but were still 2.2 per cent stronger over the three months to October.
Company news
Westpac Banking Corporation’s
(ASX:WBC) annual cash profit rose 8 per cent to $7.63 billion while its net profit gained 12 per cent to $7.56 billion. CEO Gail Kelly has described the result as ‘high quality’ and the bank’s fully franked final dividend of 92 cents takes the full year payout to $1.82. Shares in Westpac Banking Corporation fell 0.66 per cent to close at $34.55.
Woolworths Limited
(ASX:WOW) has reported softer than expected first quarter sales but expects improved momentum in the second quarter. The retailing giant increased total sales by 3 per cent to $16.15 billion in the 14 weeks to October 5. Shares in Woolworths dropped 4.89 per cent to close at $34.24.
LNG developer Liquefied Natural Gas Limited
(ASX:LNG) has doubled the initial facility production capacity of its Bear Head LNG Project in Nova Scotia, Canada.
Online job classifieds site SEEK Limited
(ASX:SEK) expects to tie up its purchase of Jobstreet this month after it was conditionally cleared by Singapore’s competition regulator.
Property company Mirvac Group
(ASX:MGR) has inked a $224.1 million deal to buy a portfolio of five industrial assets across Sydney and Adelaide.
Gaming company Crown Resorts Limited
(ASX:CWN) it set to pay the Victorian government $250 million as part of a deal to extend the licence on its Melbourne casino.
Best and worst performers
The best performing sector was telco services, adding 0.8 per cent to close at 1,992.
The worst performing sector was consumer staples, losing 1.9 per cent to close at 9,896 points.
The best performing stock in the S&P/ASX 200 was Liquefied Natural Gas Limited
(ASX:LNG), rising 5.38 per cent to close at $3.92. Shares in Henderson Group
(ASX:HGG) and Horizon Oil Limited
(ASX:HZN) also closed higher.
The worst performing stock was Evolution Mining
(ASX:EVN), dropping 11.67 per cent to close at $0.53. Shares in Beadell Resources Limited
(ASX:BDR) and Resolute Mining Limited
(ASX:RSG) also closed lower.
Commodities
Gold is buying $US1,169 an ounce.
Light crude is $0.58 lower at $US80.54 a barrel.
Currencies
The Australian dollar is buying $US0.8736
