Australian Stock Market Report – Afternoon 6/13/13

AFTERNOON REPORT

(5pm AEST)

The Australian share market touched 2013 lows today, with the All Ordinaries Index (XAO) closing at its lowest level since 28th December 2012. Because of a sharp gain on the market on the first trading day of this year (2nd January), the market remains in positive territory year to date, up 0.4 per cent. The ASX 200 Index (XJO) is up 1 per cent year to date.

There was widespread selling once again across the Asian region, with Japan's Nikkei Index down 6 per cent today. The Nikkei is now technically in "bear" territory, down 20 per cent from its peak this year.

Financial stocks managed a rebound today, however every other sector finished in the red. Westpac (WBC) was up 2.6 per cent to $28.18 while the ANZ (ANZ) was firmer by 1.7 per cent to $27.01.

Suncorp Group (SUN) eased 1.8 per cent to $11.65 after selling $1.6 billion worth of "bad bank" assets to Goldman Sachs for 60 cents in the dollar. The sale includes loans related to corporate and property assets.

In economic news today, employment rose by 1,100 in May after rising by a revised 45,000 jobs in April (previously reported as a 50,100 rise in jobs). Economists had expected a 10,000 fall in jobs in May. Full-time jobs fell by 5,400 after rising by 29,800 in May. Part-time jobs rose by 6,400 in May after rising by 15,200 in April. The unemployment rate eased from 5.6 per cent to 5.5 per cent in May. The participation rate fell from 65.3 per cent to 65.2 per cent.

On the market overall, a total of 1.8 billion shares were traded, worth $5.5 billion. 310 shares were up, 658 were down and 353 were unchanged.

The Australian dollar ended the day's trade at US94.88c, €70.89c and £0.6054.

At 4.45pm AEST the SFE 200 Futures Market was at 4684, down 46pts.

Ahead tonight, retail sales, import & export prices, weekly jobless claims and business inventories data are released in the US.

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