Australian Stock Market Report - Closing
Falls in banking and healthcare stocks impacted on the local stock market today, capping gains made elsewhere and contributing to a flat finish. The All Ordinaries Index (XAO) fell 0.7pt to 4779.4 while the S&P/ASX 200 Index (XJO) lost 5.6pts or 0.1pct to 4688.5.
The major banks were all sold off, with Westpac (WBC) down 1/1pct to $21.68 and the NAB (NAB) weaker by 0.9pct to $23.72. Shares in the Commonwealth Bank (CBA) fell 0.3pct to $49.29 while the ANZ (ANZ) eased by 0.2pct to $23.27. Shares in Macquarie Group (MQG) lost 0.5pct to $35.62.
The big miners were impacted by weaker metals trade in London on Friday night. Shares in BHP Billiton (BHP) eased by 0.1pct to $44.53 while Rio Tinto (RIO) closed down 0.5pct to $86. However news RIO has held takeover talks with coking coal miner Riversdale (RIV) saw the African based company’s share price skyrocket 15.7pct to $16.31. Fellow coal miner Macarthur Coal (MCC) added 3.3pct to $12.53. Gold miner Newcrest (NCM) firmed by 0.9pct to $41.09 after suspending operations at its Cote D’Ivoire mine following contested elections in the West African mine.
Energy stocks were generally stronger, after the price of crude oil rose to a two year high. At 4pm AEDT the Nymex contract was trading at US$89.29 a barrel. Shares in Woodside Petroleum (WPL) gained 1.1pct to $42.68 While Oilsearch (OSH) was firmer by 0.9pct to $7.06 and Caltex (CTX) rose 1.7pct to $14.12.
Healthcare stocks were under pressure, after US drug giant Pfizer announced it was changing the way it distributes its products in Australia. This will impact wholesalers, with Sigma Pharmaceuticals (SIP) indicating it could cut 10-15pct off its bottom line. SIP shares fell 17.4pct to $0.405 while Australian Pharmaceutical Industries (API) lost 9.9pct to $0.455.
The CEO of Fairfax (FXJ) Brian McCarthy resigned from the media company effective immediately today, and will be replaced in the interim by non-executive director Greg Hywood while a global executive search is conducted. FXJ shares fell 2.1pct today to $1.41.
Telstra (TLS) shares closed down 0.7pct to $2.80.
Economic data released today revealed the terminal gate or wholesale price of petrol leapt by over three cents a litre last week to five month highs. In addition the Singapore gasoline price soared seven pct last week to 25-month highs. CommSec expects petrol prices to rise five cents a litre by Christmas.
The TD Securities-Melbourne Institute monthly inflation gauge rose by 0.4pct in November, but boosted by volatile elements like fruit and vegetable prices. Excluding volatile items, prices rose just 0.1pct, the fourth straight month of negligible growth.
The Advantage internet job index rose by 3.4pct in November but the number of job ads declined week by week in the month. The ANZ index of job ads rose by 2.9pct.
The Australian dollar ended the day’s trade weaker against the major currencies. At 4pm AEDT the Aussie was worth US98.83c, £0.6279 and €73.99c.
On the market overall, a total of 2.43 billion shares were traded, worth $3.89 billion. 607 were up, 507 were down and 371 were unchanged.
At 4.15pm AEDT on the ASX24, the futures contract was at 4683, down 18pts.
Ahead tonight, the employment trends index is released in the US.