Australian Stock Market Report – Afternoon 3-26-13

AFTERNOON REPORT
(5pm AEDT)

Local stocks fell back into the red today, after the Dutch Finance Minister spooked investor sentiment claiming the Eurozone bailout for Cyprus could establish a template for other EU nations needing financial rescue. He then tried to backtrack, saying each case would be dealt with on a merit basis, but the damage was done with US markets closing lower.

Locally, the All Ords fell by 0.7% after rising by 0.4% yesterday.

Financial stocks bore the brunt of the selling, with the sector lower by 0.9%.

Outdoor wear retailer Kathmandu (KMD) today posted its 1H result and appears to have defied difficult retail conditions, posting double digit sales growth and a 73pct rise in net profit to NZ$10.3 million New Zealand dollars, or $8.3M. The company opened nine new stores in the half and grew its online sales by 50%. KMD will pay an interim dividend of 3c per share and has not provided any guidance ahead of the all-important second half. KMD shares rose by 0.8% to $1.98 today.

Meanwhile, the takeover bid for Sundance Resources (SDL) appears to be dead in the water, with SDL saying its Chinese suitor Hanlong Mining is unable to meet a key financial deadline for the $1.3B takeover, which expires at 8pm AEDT. SDL shares remain in a trading halt at 21c.

The Australian dollar ended the day's trade at US104.61c, £0.6889 and €81.27c.

On the market overall, a total of 2.14 billion shares were traded, worth $4.6 billion. 390 were up, 529 were down and 365 were unchanged.

Ahead tonight, durable goods orders, new home sales, consumer confidence and the Case-Shiller home price series are released in the US, along with regional surveys such as the Richmond Fed index.

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