Australian Stock Market Report – Afternoon 11/13/13

EVENING REPORT
(4.45pm AEDT)

Despite only a modest pullback in the early part of the session, local equities started to deteriorate in the final three hours of trade. The All Ordinaries Index (XAO) slumped by 1.3 per cent, making it the worst day for local equities in 1.5 months. The major banks were the biggest culprits for today's selloff.

The so called Plenum meeting of the Chinese leadership ended up being somewhat of a disappointment this morning. The purpose of the get together was to set the agenda for China over the next decade. No detailed plans were announced; however a further policy document is expected over the coming days. Shares in China are currently down by close to 1 per cent. A new 7 per cent growth target is likely to be announced, with a shift of focus from investment to domestic spending.

Commonwealth Bank (CBA), National Australia Bank (NAB), Westpac (WBC) and ANZ ended in the red by as much as 2.5 per cent.

While most sectors lost ground, Fortescue Metals (FMG) maintained its gains for most of the session. FMG said it will pay US$1 billion (around 8 per cent) of its US$12 billion debt, to take advantage of the firm iron ore price. Essentially the rest of the mining sector struggled today, with gold miner, Newcrest Mining (NCM) slumping by 3.76 per cent (down 57.3 per cent this calendar year).

Department store owner, Myer (MYR) was up by 5.9 per cent at one point; however gave back most of its gains to finish 1.12 per cent firmer at the close. Its competitor, David Jones (DJS) struggled; slumping by 2.68 per cent. Both MYR and DJS are both around 25 per cent firmer this calendar year.

Construction firm, Leighton Holdings (LEI) slumped by 3.23 per cent after an uneventful start to the session. LEI said it is on track to record a $600 million profit this year while its debt levels are still higher than desired.

Building products business, CSR shot 8.3 per cent higher after recording a 92 per cent rise in half year profit. Share registry, Computershare (CPU) finished 1.7 per cent firmer.

Tonight, UK's jobless rate will be issued while the head of Germany's central bank will be speaking. In the US, the fed budget details will be out for October.

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