News: Market Wrap: Aus shares lose steam

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The Australian share market opened lower and staged a brief recovery before stumbling in the afternoon. The ASX was led lower by the miners before a late rally saw it close 0.05 per cent down. Also during the trading day, an early indicator of Chinese manufacturing PMI due out later this month showed a small improvement, up 0.2 to 50.4 for the October flash reading. 

 

The S&P/ASX 200 index closed 3 points down to finish at 5,383. 

 

The value of trades was $3.92 billion on volume of 699 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited (ASX:BHP), Commonwealth Bank of Australia (ASX:CBA) and ANZ Banking Group (ASX:ANZ)

 

On the futures market the SPI is 9 points down. 

 

Economic news

The NAB quarterly business confidence survey is flat for the September quarter. The reading was +6, unchanged from the June quarter. The survey further found that confidence is slowly eroding with both consumers and businesses remaining cautious about spending. NAB describes business conditions as soft with the falling dollar a positive note but not reflected in the September quarter survey. 

 

Company news

 

SAI Global Limited (ASX:SAI) has signed an exclusive agreement with Encompass Corporation for the perpetual rights to their data retrieval and analysis service. The software provides a comprehensive map of relevant and publically available records on individuals and corporations. Its currently utilised by banks for mortgage lending as well as legal and accounting solvency research and taxation services. The Encompass rights give SAI Global a market leading capacity for unique commercial information management.  The deal is seen by SAI as a ground breaking value add, allowing the company to transform into a true information solutions provider. Shares in SAI Global have lifted 6.3 per cent to $3.88. 

 

Skilled Group Limited (ASX:SKE) say the decision to invest in higher skill areas is paying off with a 10 per cent jump in first quarter earnings on the same period last year. Higher margin areas such as Engineering and Marine Services and Technical Professionals have offset difficult market conditions in Workforce Services. A revamp of systems and processes by the company is also anticipated to result in $15 million worth of savings in the 2015 financial year. Skilled Group also says the CEO succession plan is well underway and the outlook is for stronger activity levels to continue across most markets. Share in Skilled Group added 5.41 per cent to $2.34. 

 

Toll Holdings Limited (ASX:TOL) has admitted to a tough first quarter saying the next few months would be crucial for the firm’s short term earnings outlook. Managing director Paul Kruger fell short of lowering guidance saying they still expected 2015 earnings to come in ahead of 2014.  

 

Oil Search Limited (ASX:OSH) have enjoyed an 81 per cent jump in third quarter production and their highest quarterly revenue in the company’s history with the PNG LNG project now fully online. 

 

Australian Pharmaceutical Industries (ASX:API) says its Priceline business is booming announcing a 32.5 per cent jump in underlying profit despite reporting a first half loss. 

 

And Boart Longyear Limited (ASX:BLY) believes demand for its drilling services might be stabilising with third quarter results signalling a slight uplift. 

 

Best and worst performers

The best performing sector was telco services adding 0.7 per cent to close at 1,933. The worst performing sector was materials, losing 1.6 per cent to close at 9,224 points.

 

The best performing stock in the S&P/ASX 200 was Ten Network, rising 6.52 per cent to close at $0.24. Shares in SAI Global and Skilled Group rounded out the top three.

 

The worst performing stock was Lynas Corporation, dropping 7.59 per cent to close at $0.07. Shares in Cardno and Toll Holdings also closed lower. 

 

IPOs

Huon Aquaculture Group Limited (ASX:HUO) started trading today. The salmon producer listed with an issue price of $4.75, opened at $4.95 and a closed at $4.80.    

 

Commodities

Gold is trading at $US1,244 an ounce. Light crude is $1.97 lower at $US80.52 a barrel. The Australian dollar is buying 87.59 US cents.