Australian Stock Market Report – Afternoon 6/12/13

AFTERNOON REPORT
(5pm AEST)

The Australian share market fell to a five month low today, with selling virtually across the board. The only sector to finish firmer was the telecom service sector, support by defensive buying in Telstra (TLS).

The All Ordinaries Index (XAO) closed down 32.8pts or 0.7 per cent to 4716, its lowest closing level since mid-January.

There was also widespread selling in the region, with Japan's Nikkei Index extending recent losses. The bourse is now down 16 per cent on its year to date high, as strength in the Yen weighed on equities.

Locally, Newcrest Mining (NCM) shares fell a further 0.8 per cent to $11.93, as the gold miner was forced to reply to a series of questions from the ASX in response to a 15 per cent fall in its share price which preceded Friday's announcement to a restructure. NCM shares remain at levels not seen since August 2004.

Discount retailer Target has confirmed 260 workers at its Geelong headquarters have been made redundant. Wesfarmers (WES), the parent company of Target, fell 1.7 per cent today to $37.23.

In economic data, the Westpac/Melbourne Institute Index of consumer confidence rose by 4.7 per cent in June. All five components of the index rose in June. The index is up 6.9 per cent over the year to June.

Total lending finance rose by 2.3 per cent in April after rising by 2.3 per cent in March. Lending is down 1.9 per cent on a year ago.

On the market overall, a total of 1.9 billion shares changed hands, worth $5.5 billion. 324 were up, 653 were down and 346 were unchanged.

The SFE 200 Futures Index was at 4730pts, down 35ots at 5pm AEST.

No major data is scheduled for release in the US tonight.

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