The Australian share market closed 0.2 per cent down after spending the session in negative territory. Stocks sagged at open after Wall Street returned from a public holiday to post a soft start to its trading week. The local bourse extended falls below 5,300 after surprisingly high inflation figures but returned back above the 5,300 level by close. Most sectors ended weaker with miners leading the declines while financials defied the trend to claw onto positive territory by close.
Figures
The S&P/ASX 200 index ended the session 11.7 points lower at 5,320.
The value of trades was $3.6 billion on volume of 604 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 Fortescue Metals Group Limited
(ASX:FMG).
On the futures market the SPI is 8 points lower.
Economic news
Australian inflation jumped more than expected in the last three months of 2013. The Australian Bureau of Statistics reports the key measure of inflation, the Consumer Price Index (CPI) gained 0.8 per cent in the December quarter 2013, for an annual rate of 2.7 per cent.
Confidence has taken a dip in the new year and slipped to a six month low. Westpac Banking Corporation
(ASX:WBC) and the Melbourne Institute’s Index of Consumer Sentiment dropped 1.7 per cent to 103.3 in January, but remained above 100 which indicated the number of optimists outweigh the number of pessimists.
Company news
BHP Billiton Limited
(ASX:BHP) has hit new production records but the global miner’s interim results have fallen short of expectations. CEO Andrew Mackenzie says the company delivered a 10 per cent increase in production in its first half and volumes are expected to grow by 16 per cent until the end of fiscal 2015. Shares in BHP Billiton dropped 0.84 per cent today to end the session at $37.63.
Qantas Airways Limited
(ASX:QAN) has told the media it will send the maintenance of its Boeing 747 aircraft offshore when it closes its Avalon base in March. Australia’s largest airline is understood to be preparing to launch a tender process for the maintenance of its fleet of 15 aircraft. Shares in Qantas Airways fell 1.34 per cent today to end the session at $1.10.
Shares in Telecom Corporation of New Zealand
(ASX:TEL) have firmed 0.45 per cent after the telco was named the successful bidder for highly sought after mobile phone radio spectrum in New Zealand.
Shares in Mount Gibson Iron Limited
(ASX:MGX) have risen 3.55 per cent after the iron ore miner reported record half-year sales and affirmed it is on track to achieve annual guidance.
Shares in Warrnambool Cheese & Butter Factory Co
(ASX:WCB) lifted 1.18 per cent after the takeover target announced its suitor, Canadian dairy giant Saputo, has reached a relevant interest of more than 50 per cent in the company.
Shares in OceanaGold Corporation
(ASX:OGC) jumped 8.45 per cent after the gold miner posted record full year production exceeding its guidance.
Best and worst performers
The best performing sector was financials excluding real estate investment trusts, adding 23 points to close at 6,876.
The worst performing sector was materials, losing 99 points to close at 10,175 points.
The best performing stock in the S&P/ASX 200 was GUD Holdings Limited
(ASX:GUD), rising 3.83 per cent to close at $5.96. Shares in Mount Gibson Iron Limited
(ASX:MGX) and Macquarie Atlas Roads Limited
(ASX:MQA) also closed higher.
The worst performing stock was Sandfire Resources NL
(ASX:SFR), dropping 8.8 per cent to close at $5.91. Shares in Transfield Services Limited
(ASX:TSE) and Sirius Resources NL
(ASX:SIR) also closed lower.
Commodities
The price of gold sank more than $US10 overnight amid US tapering talk and has firmed slightly to $US1,243 an ounce. Light crude is $0.62 higher at $US94.99 a barrel.
Currencies
The Australian dollar lifted following this morning’s inflation figures and is now buying $US0.8864.
