Australian Stock Market Report – Afternoon January 7, 2015

n office worker walks past an Australian Securities Exchange (ASX) window showing the main losses for the day in central Sydney July 23, 2012. Australian shares slumped 1.7 percent on Monday, the biggest one-day fall in seven weeks, as investors fled from riskier assets such as equities on renewed fears that Spain may be unable to dodge a costly bailout. Reuters

Shares slip for a second session

 The local sharemarket finished the session slightly weaker, after a choppy final hour of trade. The All Ords (XAO) regained some early losses to close down 0.2 percent to 5,334, while the ASX 200 (XJO) lost 0.2 percent to 5,353.

 The Energy sector was again the worst performer, falling 1.5 percent, adding to yesterday's 5.4 percent tumble. Overnight, the price of oil retreated for a fourth straightsession, with US Nymex crude dropping 4.2 percent to a fresh five-and-a-half year low of US$47.93 a barrel. Woodside Petroleum (WPL) lost 0.9 percent to $36.14, while Santos (STO) closed down 1.3 percent to $7.45.

 The Property Trusts sector was the best performer, gaining 1.3 percent. Westfield Corp (WFD) climbed 1.2 percent to $9.46, while Goodman Group (GMG) improved by 0.9 percent to $5.78.

 Gold stocks climbed higher again today as investors searched for safety amid the global jitters. OceanaGold

(OGC) surged 4.8 percent to $2.41.

 Shares in Cape Lambert (CFE) tanked 16.6 percent to 7.5 cents, after the iron ore producer said it would slash costs, cut 117 jobs and postpone its second dividend payment in response to the plunging iron ore price.

 Qantas (QAN) shares finished the session off 1.9 percent to $2.56. The airline - which has a fatality-free record - was voted the safest in the world. It was also praised by AirlineRatings.com for its real-time engine monitoring system.

 In economic news, according to the Australian Industry Group, the Australian Performance of Services index rose by 3.7 points to 47.5 in December after rising by 0.2 points in November. A reading below 50 points still indicates contraction of the services sector.

 The CommSec Luxury Car index (of 16 luxury marques) posted record sales of 78,676 vehicles in 2014, up 12.1 per cent over the year.

 The Australian dollar has dipped back below the 81 cent mark, trading at 80.73 US cents.

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