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After snapping five weeks of losses on Friday the Australian share market has started the week by dipping 0.5 per cent into the red. Trade was light as New South Wales, Queensland, the ACT and South Australia took a break for the Labour Day public holiday.
Weaker commodity prices saw sentiment turn sour despite Wall St offering a strong lead on the back of a better than expected jobs report. While the local benchmark index lifted off the session low it still closed below the 5,300 mark, dragged down by losses in the mining sector. The Australian dollar also remained under $US0.87 ahead of tomorrow’s interest rate decision expected to keep rates at a record low of 2.5 per cent.
Figures
The S&P/ASX 200 index started the week 25 points lower at 5,293.
The value of trades was $2.08 billion on volume of 390 million shares at the close of trade.
The top three stocks by value were BHP Billiton Limited (ASX:BHP), Telstra Corporation Limited (ASX:TLS) and Commonwealth Bank of Australia (ASX:CBA).
On the futures market the SPI is 37 points lower.
Economic news
Ahead of Australia’s official jobs report on Thursday ANZ Banking Group (ASX:ANZ) has shown job ads have lifted for the fourth straight month. ANZ has reported total job advertisements gained 0.9 per cent to 137,087 in September.
TD Securities-Melbourne Institute’s monthly inflation gauge rose 0.1 per cent in September following two months of broadly unchanged prices.
Company news
Shares in BHP Billiton Limited (ASX:BHP) declined after announcing it is putting a knife to iron ore costs. The mining giant has outlined plans to cut unit costs at its West Australian operations by at least 25 per cent and increase capacity by 65 million tonnes per annum. The price of iron ore hit recently hit five-year lows and dropped more than 40 per cent over this year. Shares in BHP Billiton declined 2.24 per cent to end the session at $32.70.
Shares in Telstra Corporation Limited (ASX:TLS) rose after tying up its planned $1 billion off-market share buy-back. The telco bought back about 1.75 per cent of its issued shares at $4.60 per share and noted very strong demand for the buy-back which was oversubscribed by near 70 per cent. Shares in Telstra rose 0.19 per cent to end the session at $5.40.
Shares in Transurban Group (ASX:TCL) gained 0.13 per cent after the toll road owner and operator inked an $850 million deal to deliver the CityLink Tulla Widening project in Melbourne.
Shares in National Australia Bank Limited (ASX:NAB) fell 0.79 per cent after unveiling the launch of its US-based subsidiary Great Western Bank’s initial public offering.
Shares in Austal Limited (ASX:ASB) lifted 4.84 per cent after the ship builder advised the US Navy has extended the charter of its high speed vessel, WestPac Express.
Shares in Dart Mining NL (ASX:DTM) rocketed 45.16 per cent after scoring a takeover bid from a mystery bidder valuing the explorer at more than double its market capitalisation.
Best and worst performers
The best performing sector was health care, adding 0.6 per cent to close at 15,360.
The worst performing sector was materials, declining 1.8 per cent to close at 9,034 points.
The best performing stock in the S&P/ASX 200 was Alumina Limited (ASX:AWC), rising 5.5 per cent to close at $1.73. Shares in Paladin Energy Limited (ASX:PDN) and Magellan Financial Group Limited (ASX:MFG) also closed higher.
The worst performing stocks were gold miners with Beadell Resources Limited (ASX:BDR) dropping 12.5 per cent to close at $0.35. Shares in Northern Star Resources Limited (ASX:NST) and Resolute Mining Limited (ASX:RSG) also closed lower.
Commodities
America’s strong monthly payrolls data has put pressure of the price of gold, now buying $US1,189 an ounce.
Light crude is $1.27 lower at $US89.74 a barrel.
Currencies
The Australian dollar traded at a four-year low today and is now buying $US0.8695.
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