Australian Stock Market Report

The Australian share market managed a small win today, after trading in the red for most of the session. Strong buying from retail and airline stocks, coupled with a turnaround from the banks helped drive the gains. The All Ordinaries Index (XAO) rose 6.7pts or 0.1pct to 4818.7 while the S&P/ASX 200 Index (XJO) firmed by 7.3pts or 0.2pct to 4712.3.

Data released today showed retail sales rose by 0.3pct in November, following the 0.8pct slide in October. Shares in upmarket retailer David Jones (DJS) rose 2.7pct to $4.62 while Myer Limited (MYR) was up 3.3pct to $3.49 and Harvey Norman (HVN) added 0.7pct to $2.90. Shares in JB Hi-FI (JBH) firmed by 2.7pct to $18.07.

Virgin Blue Australia (VBA) rose 4.7pct to $0.45 after announcing a ten year strategic alliance with Singapore based regional airline Skywest (SXR) to fly to remote mining sites. Shares in SXR rose 4.7pct to $0.45 after earlier hitting a high of $0.505. Qantas (QAN) shares rose 4.1pct to $2.56.

Among financial stocks, shares in Westpac (WBC) fell 0.4pct to $22.07 while the NAB (NAB) gained 0.4pct to $23.79 and the ANZ (ANZ) was off 0.2pct to $22.96. Shares in the Commonwealth Bank (CBA) bucked the trend, up 0.3pct to $50.05. Macquarie Group (MQG) finished slightly higher, up 0.1pct to $37.92.

Mining stocks finished lower, in response to weaker metals trade across the board. Shares in BHP Billiton (BHP) lost 0.4pct to $44.45 while Rio Tinto (RIO) was down 0.1pct to $84.36 and Fortescue Metals Group (FMG) lost 0.3pct to $6.55.

Energy stocks were generally firmer. Shares in Woodside Petroleum (WPL) added 0.5pct to $42.99 while Santos (STO) firmed by 1.9pct to $13.17.

Retail spending rose by just 0.3pct in November after the 0.8pct slide in October. However non-food retailing rose by 0.5pct. Over the past year retail spending has risen by just 1.3pct, marking the second weakest reading in five years (surpassed only by the 1pct annualised growth rate in the year to May 2010).

In annual terms, sales at chain stores were up 0.6pct on a year ago – the weakest annual growth in records going back 16 years. Sales at smaller retailers were up 2.4pct on a year ago.
The job market is losing steam. The Advantage internet job index fell by 2.3pct in December – marking the biggest fall in job advertisements since July 2009.

The national average terminal gate or wholesale price of petrol eased modestly from 26-month highs over the past week and stands at 123.4 cents a litre. However the weaker Australian dollar and rise in global oil prices is likely to see pump prices track higher in coming weeks.

The Australian dollar ended the day’s trade at US99.57c, £0.6406 and €77.14c.

On the market overall, a total of 2.16 billion shares were traded, worth $2.9 billion. 576 were up, 549 were down and 401 were unchanged.

At 4.15pm AEDT on the ASX24, the futures contract was at 4702, up 9pts.

There is no market moving economic data scheduled for release in the US. Economic bell-weather Alcoa reports fourth quarter earnings after the bell.

More from IBT Markets:

Subscribe to get this delivered to your inbox daily