Australian Stock Market Report –Afternoon 2/6/14

EVENING REPORT
(5pm AEDT)

After spending most of the week in the red, the Australian share market rebounded today, lifting by 1.2 per cent and reducing the weekly loss so far to 1.1 per cent.

Strong retail sales data and a healthy trade data helped sentiment.

Retail trade rose for the eighth straight month, up by 0.5 per cent in December. Annual spending growth lifted from 4.6 per cent to 5.7 per cent - a four year high.

Meanwhile, Australia's trade accounts improved from a trade surplus of $83 million to a surplus of $468 million in December, the biggest surplus in two years.

In company news, gaming firm Tabcorp Holdings (TAH) reported a modest increase in first half profit to $74.6 million, slightly above market consensus. Strong gains in its gaming and media divisions managed to offset flat revenue from its wagering business and a fall in revenue from its Keno business. Shareholders will receive an eight cent interim dividend to be paid on the 24th March. TAH shares lost a little ground today after rising yesterday to finish at $3.35.

Australia's second largest airline group Virgin Australia Holdings Limited (VAH) today responded to an ASX query about the fall in the airline´s share price earlier this week. VAH warned the market it expects to post a $49 million Pre-tax loss for the first half of the 2014 financial year compared to last year where the firm posted a $61 million profit. The company result was hit by a fall in its load factors - the number of people carried over the period - and a lift in operating costs. VAH shares rebounded today and gained 8 per cent to 34c.

On the market overall, a total of 1.6 billion shares changed hands, worth $4.8 billion. 542 were up, 383 were down and 327 were unchanged.

At 4.45pm AEDT the Australian dollar was buying US89.58c.

Ahead tonight, trade data is issued in the US.

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