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The Australian share market closed 0.58 per cent lower today as market movers like Rio Tinto and QBE went ex-dividend. Subdued GDP figures also took some wind out of investor sails. 

 

The S&P/ASX 200 index closed 32 points down to finish at 5,902. 

 

The value of trades was $5.1 billion on volume of 756 million shares at the close of trade. The top three stocks by value were Woolworths Limited (ASX:WOW), Rio Tinto Limited (ASX:RIO) and BHP Billiton Limited (ASX:BHP)

 

On the futures market the SPI is 40 points down.

 

Economic news

Figures from the ABS today showed a rise of 0.5 per cent for fourth quarter GDP, higher than the 0.3 per cent rise in the previous quarter. However, the figure brings the year-on-year GDP to 2.5 per cent, down from 2.7 per cent in the third quarter disappointing some analysts. 

 

Company news

Macquarie Group Limited (ASX:MQG) is buying an aircraft operating portfolio from AWAS Aviation Capital Limited and also unveiled a capital raising. The investment bank says the purchase price for the 90 aircraft is $5.1 billion and the capital requirement is expected to be $600 million. Macquarie Group says it will conduct an institutional placement to raise $500 million through a bookbuild to partially fund the purchase. A share purchase plan will also be offered to eligible shareholders. Shares in Macquarie last traded at $73.52 ahead of a trading halt. 

 

FlexiGroup Limited (ASX:FXL) has purchased New Zealand IT provider Telecom Rentals from Spark New Zealand for $102 million dollars. CEO Tarek Robbiati believes the deal will consolidate FlexiGroup’s distribution footprint in New Zealand and provide further scale for its existing high growth New Zealand business. FlexiGroup has also confirmed it expects to deliver a full year net profit of between $90 million to $91 million in cash. 

Shares in FlexiGroup jumped as much as 11 per cent on the news but have since pulled back to be 4.29 per cent up at $3.65. 

 

Australian Pharmaceutical Industries Limited (ASX:API) upgraded its first half net profit forecast to $21.1 million, 30 per cent higher than the same period last year.

 

Cloud-based recruitment company 1-Page Limited (ASX:1PG) has signed internet giant Amazon.com. The retailer employed 154,000 people and will use the 1-Page enterprise sourcing platform to find and attract talent. 

 

Insurance Australia Group Limited (ASX:IAG) has warned the of the financial impact of Tropical Cyclone Marcia hitting Queensland last month could cost the insurer up to $90 million in claims. 

 

Sedgemen Lmited (ASX:SDM) has won an $18.5 million contract to design and build a mineral sands processing plant in the US. 

 

Best and worst performers of the day

The best performing sector was health care adding 0.7 per cent to close at 19,260. The worst performing sector was materials, losing 1.1 per cent to close at 9,695 points.

 

The best performing stock in the S&P/ASX 200 was Ainsworth Gaming, rising 5.77 per cent to close at $2.75. Shares in Sundance Energy and Senex Energy also closed higher.

 

The worst performing stock was Western Areas, dropping 5.68 per cent to close at $3.82. Shares in Fortescue Metals and BC Iron also closed lower. 

 

Commodities

Gold is trading at $US1,208 an ounce. Light crude is $0.93 up at $US50.52 a barrel. The Australian dollar is buying 78.15 US cents.