Australian Stock Market Report - Closing
Local stocks closed flat today, with earlier wins being erased as the Dow Futures suggested a weak session on Wall Street. The All Ordinaries Index (XAO) rose 3.9pts or 0.1pct by the day's close to 4727.3.
Mining stocks closed generally weaker, with BHP Billiton (BHP) falling a further 0.1pct to $41.16 and Rio Tinto (RIO) down 0.5pct to $82.60. Shares in iron ore miner Fortescue Metals Group (FMG) rose 0.8pct to $6.36 with the company expected to be the main beneficiary of BHP and RIO's decision to scrap their joint iron ore venture in the Pilbara. Elsewhere in the sector, Oz Minerals (OZL) fell 0.3pct to $1.59 despite announcing it is on track to meet FY guidance.
The energy sector rose 0.5pct on the back of a firmer oil price. At 4pm AEDT the Nymex contract was holding just under US$83 a barrel, after rising more than 2pct in New York trade. Shares in Woodside Petroleum (WPL) gained 0.9pct to $44.35 while Santos (STO) shed 0.8pct to $12.74. Caltex (CTX) fell 1.6pct to $12.25.
The financial sector closed flat. Shares in the Commonwealth Bank (CBA) were unchanged at $50.65 while Westpac (WBC) rose 0.4pct to $22.73 and the ANZ (ANZ) rose 0.6pct to $23.73. Shares in the NAB (NAB) fell 0.1pct to $25.29 while Macquarie Group (MQG) was lower by 0.6pct to $33.77.
Telstra (TLS) shares closed down 1.5pct to $2.65.
Retailers were mixed. Shares in Woolworths (WOW) rose 1.1pct to $28.97 while Wesfarmers (WES) increased by 0.8pct to $32.97. David Jones (DJS) closed down 1pct to $4.80 while Harvey Norman (HVN) was steady at $3.41.
Hearing implant maker Cochlear (COH) today forecast a positive 2011 at its Annual General Meeting. COH shares added 1.4pct to $69.35.
Engineering firm Macmahon Holdings (MAH) fell 21pct to $0.545 on a profit warning.
The minutes of the last Reserve Bank Board meeting were released today. Members "concluded that it would be appropriate to hold the cash rate steady for the time being, pending evaluation of further information at the next meeting"
While Board members believe that interest rates will rise over the medium term, the case for rates to remain on hold at the October meeting came down to stable economic conditions, softer credit growth and the rise in the exchange rate.
Board members said that the "appreciation of the exchange rate represented a tightening of domestic financial conditions". Interestingly since the Board meeting on October 5, the Australian dollar has risen from around US97c to US99.3c.
Today the Australian dollar rose to highs of US99.42c immediately after the Board minutes were released. At 4.30pm AEDT the Aussie was weaker at US98.68c, £0.6217 and €70.9c.
On the market overall, a total of 3.03 billion shares were traded, worth $5.6 billion. 591 were up, 540 were down and 382 were unchanged.
At 4.15pm AEDT on the Sydney Futures Exchange, the Share Price Index (SPI) was at 4671, up 16pts.
Ahead tonight, Coca-Cola, Johnson & Johnson, Goldman Sachs and the Bank of America are scheduled to release results. Yahoo reports after the bell.
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