Australian Stock Market Report – Afternoon December 17, 2014

The stock board at the Australian Securities Exchange (ASX) is seen in central Sydney November 6, 2008. Australian shares fell 3.8 percent on Thursday, driven down by miners such as BHP Billiton Ltd, after U.S. economic data stoked fears of a prolonged slowdown in global economy. REUTERS/Daniel Munoz (AUSTRALIA)

 The Australian share market has ended a 6 session losing streak on Thursday with a gain of 9.6 points. The ASX 200 trade through a range of 41 points from low to high. The market was down 2 points at its worst levels and up 39 points at its best.

 Most sectors ended higher although Consumer Discretionary stocks were the noted underperformers in a rising market with Tabcorp (TAH) one of the bigger losers in the sector. The gaming and wagering agency is appealing to the High Court in a final attempt to recoup $686 million it claims it is owed by the Victorian government. The decision comes after Tabcorp lost a Victorian Supreme Court battle over the compensation it says it is owed after the expiry of poker machine licences. TAH shares ended at $4.14 a loss of 11 cents or 2.5%

 Gold prices fell overnight and remained depressed over the course of the Asian session. Prices declined on views that the Federal Reserve is closer to lifting interest rates and that Russia may sell its gold reserves in response to the economic crisis overtaking the country. As a result miners of the yellow metal were well in the red on Wednesday. Medusa Mining (MML) which has projects in the Philippines fell to 65 cents a loss of 6.5 cents or 9%.

 Ten Network shares (TEN) closed at 21 cents for a loss of 1 cents of 4.5% to 21 cents after the Chairman and CEO Hamish McLennan told the broadcasters annual general meeting that there was nothing to add to the earlier announcement this month that it had received non-binding proposals from a several parties including a consortium of Foxtel and US cable giant Discovery Communications. He said that a committee of the board of Ten is considering those proposals in conjunction with its advisor Citibank. Mr McLennan highlighted that the proposals are confidential, non-binding and conditional and could potentially deliver no result or a transaction which is acceptable. TEN closed at 21 cents a loss of 1 cent or 4.5%

 Leighton (LEI) remained in a trading halt on Wednesday afternoon. Speculation about its operations and maintenance services business being sold led the contractor to request the halt from the ASX. LEI's services business includes facilities management, waste disposal, telecommunications maintenance and land remediation. The group announced its intentions in June to cut costs and streamline its operations and management with any divestment deals to be completed by March 2015. In line with the strategy Leighton last week agreed to sell its John Holland contracting and engineering business to China's CCCC International Holding Limited for $1.15 billion. LEI last traded at $20.95.

 The AUD/USD fell below 0.8200 in Asian trading as iron ore prices remain under pressure and Australian 3-year bond futures fell to 2.17% the lowest rate since July 2012. Market participants are signalling rate cuts as imminent and near-certain despite the lack of fresh direction from the RBA. The undershoot in AUD/USD may gather more momentum if as we expect the Fed adjusts its forward guidance in a more hawkish direction at tonight's FOMC meeting

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