The Australian share market closed 0.65 per cent lower today. BHP was one of the biggest drags driving today’s losses with the resource sector feeling the pressure of tanking oil prices. The market had started to make some leeway after falling sharply on open until news that activity in China’s factory sector shrank for the first time in 7 months. New orders declined in December with the flash PMI dipping to 49.5 points. A number below 50 indicates contraction.
The S&P/ASX 200 index closed 34 points down to finish at 5,152.
The value of trades was $4.2 billion on volume of 678 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 Telstra Corporation Limited
(ASX:TLS)
On the futures market the SPI is 21 points down.
Company news
Woodside Petroleum Limited
(ASX:WPL) will spend $US2.75 billion to buy stakes in two liquefied natural gas projects from US-based Apache Corporation. The oil and gas producer will purchase Apache’s Wheatstone LNG project as well as some oil interests in Australia and the Kitimat LNG venture in Canada. Woodside says the purchase is a contrarian growth opportunity which will be immediately accretive to cash flow and net profit. The company also flagged it will delay a final investment decision on its Browse FLNG project by approximately 12 months to mid-2016 due to the failing oil price. Shares in Woodside closed 2.63 per cent lower at $34.46.
Treasury Wine Estates Limited
(ASX:TWE) says it is on track to turn the business around and FY2015 is a ‘re-set’ year. At its AGM today, the embattled wine producer stood by its decision to reject a takeover offer in favour of a strategic refocus on transforming the company. The company has reduced overhead costs by around $35 million and identified ‘priority’ brands to invest in moving forward. TWE says it will also focus on growth in North Asia and the Americas whilst increasing value growth in Australia. Shares in Treasury Wine Estates closed 4.56 per cent down at $4.40.
Ten Network Holdings Limited
(ASX:TEN) said it has secured new and returning sponsors for its exclusive coverage of the KFC T20 Big Bash League.
MesoBlast Limited
(ASX:MSB) announced its disputed European patent covering the use of stem cell technology has been upheld by the European Patent Office.
Qantas Airways Limited
(ASX:QAN) says while it saw a drop in passenger numbers for November it lifted revenue yield per seat for the seasonally weak month by reducing capacity on international routes.
And Crown Resorts Limited
(ASX:CWN) has announced a joint venture with corporate bookmaker BetEasy that will allow Crown to take control of the online betting firm.
Best and worst performers
The best performing sector was real estate investment trusts adding 1.2 per cent to close at 1,189. The worst performing sector was energy, losing 2.1 per cent to close at 10,455 points.
The best performing stock in the S&P/ASX 200 was Atlas Iron, rising 7.41 per cent to close at $0.14. Shares in Medusa Mining and Ten Network also closed higher.
The worst performing stock was Liquefied Natural Gas, dropping 8.33 per cent to close at $1.98. Shares in Pacific Brands and Sundance Energy also closed lower.
IPOs SurfStitch Group Limited
(ASX:SRF) started trading today. The retailer listed with an issue price of $1.00, opened at $0.98 and a closed at $1.00.
Commodities
Gold is trading at $US1,198 an ounce. Light crude is $1.82 down at $US56.26 a barrel. The Australian dollar is buying 82.25 US cents.
