Australian Stock Market Report – Afternoon 5-1-13

MARKET CLOSE REPORT
(4.30pm AEST)

The Aussie market failed to make it three straight days of gains, with a slightly worse than expected Chinese manufacturing report together with profit taking slamming the breaks on the improvements. The All Ordinaries Index (XAO) slipped by 0.5 per cent, wiping out close to half of yesterday's gains.

The mining sector remains out of favour with investors, as the S&P/ASX 200 Materials Index (a measure of mining company performances) slipped by 1.43 per cent, taking the losses for this calendar year to a staggering 14.1 per cent.

Telstra (TLS) was one of the few winners today, with its share price cracking through $5.00 a share and sitting at its highest level since mid-2005.

A number of public holidays across the region kept investors at bay today, with markets in China, India, Hong Kong, Malaysia, the Philippines, Singapore, South Korea and Taiwan all closed for Labour Day/May Day. A number of European markets will also be closed tonight, including the German and French markets.

1.6bn shares exchanged hands today, worth $3.7bn. 399 stocks ended higher, 562 lost ground and 355 finished flat.

It is likely to be a quiet session in Europe tonight, with no major economic news scheduled for release.

In the US, the Federal Reserve will be meeting for day two of its two day monthly meeting. The Fed is currently watching and waiting and is unlikely to announce changes in rates or bonds purchases. A recent recovery in the housing sector could see more upbeat language from the central bank however. The monthly ADP employment report which measures the change in private sector jobs in March will also be issued tonight. An additional 145,000 jobs are expected by the market. Car sales, manufacturing data and weekly crude oil inventories will also be released.

Tomorrow, import and export prices for the March quarter along with monthly building approvals for March will both be issued in Australia. The HSBC Final Manufacturing PMI survey results along with Annual General Meetings by APN News & Media along with IRESS will also be on investors' radars.

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