The Australian share market spent most of the session on positive territory and ended just slightly higher. Soft global leads set the scene for a lackluster start and a series of local economic reports did not provide much support. The Australian Bureau of Statistics painted a mixed picture with revised jobs market estimates, better than expected retails sales and a weaker than expected trade deficit. The highs of the day came near the RBA’s widely expected decision to keep rates on hold and the Melbourne Cup ‘race that stops a nation’.
Figures
The S&P/ASX 200 index ended 13 points higher at 5,520.
The value of trades was $3.97 billion on volume of 563 million shares at the close of trade.
The top three stocks by value were Woolworths Limited
(ASX:WOW), National Australia Bank Limited
(ASX:NAB) and Wesfarmers Limited
(ASX:WES).
On the futures market the SPI is 13 points higher.
Economic news
Australia’s key interest rate has stayed on hold for the 15th straight month and third straight Melbourne Cup day. The Reserve Bank of Australia (RBA) today kept the official cash rate at record low of 2.5 per cent at its November meeting and confirmed its neutral policy bias.
Retail sale rose more than expected on the back of demand for the iPhone 6 release. The Australian Bureau of Statistics (ABS) reports sales rose 1.2 per cent in September to $23.63 billion, the best monthly gain since November 2009.
Australia’s trade deficit has been shown to have widened sharply. The ABS shows the trade deficit grew to $2.3 billion as exports lifted 1 per cent while imports rose 6 per cent in September.
Company news
Shares in Australia’s biggest wagering provider Tabcorp Holdings Limited
(ASX:TAH) gained on Melbourne Cup day, Australia’s single largest betting day of the year. The company had earlier forecast it would take in bets of about $180 million today from Victorian and New South Wales clients. Tabcorp’s stock has been on the rise since James Packer’s investment vehicle Ellerston Capital boosted its stake in the company last week and shares in the company closed 0.74 per cent stronger today at $4.11.
WorleyParsons Limited
(ASX:WOR) has scored a $167 million engineering, procurement, construction and instillation contract from ConocoPhillips. The engineering firm says the contract will focus on the expansion of ConocoPhillips North Sea oil field project off the coast of Norway. Shares in WorleyParsons lifted 0.6 per cent to close at $13.39.
Energy company AGL Energy Limited
(ASX:AGK) will advance its Broken Hill Solar Plant after receiving the green light to start construction.
Oil and gas company AWE Limited
(ASX:AWE) has tied up the sale of 11.25 per cent of BassGas, reducing its equity in the project to 35 per cent.
Gold producer AngloGold Ashanti Limited
(ASX:AGG) has beaten quarterly cost and production guidance and says its operations are firing on all cylinders.
AJ Lucas Group Limited
(ASX:AJL) has been awarded a contract for APA Group’s
(ASX:APA) Eastern Goldfields Gas Pipeline in Western Australia.
Best and worst performers
The best performing sector was materials, adding 0.8 per cent to close at 9,254.
The worst performing sector was consumer staples, losing 1.2 per cent to close at 9,782 points.
The best performing stock in the S&P/ASX 200 was Evolution Mining Limited
(ASX:EVN), rising 7.55 per cent to close at $0.57. Shares in Beadell Resources Limited
(ASX:BDR) and Retail Food Group Limited
(ASX:RFG) also closed higher.
The worst performing stock was Atlas Iron Limited
(ASX:AGO), dropping 4.84 per cent to close at $0.29. Shares in Drillsearch Energy Limited
(ASX:DLS) and Woolworths Limited
(ASX:WOW) also closed lower.
Commodities
Gold is buying $US1,167 an ounce.
Light crude is $1.76 lower at $US78.78 a barrel.
Currencies
The Australian dollar is buying $US0.8717.
