After a fairly meek lead out of Wall St the local market has closed softer today with the benchmark ASX200 index down 25.7 points, or 0.48%, at 5,324.9. The wider All Ords index was down 24.1 points, or 0.45%, at 5,332.9.
Resources dragged the market lower on the back of weaker prices for primary inputs. The Materials sector was off -1.4% as BHP dropped 55 cents to $37.25, Rio Tinto fell 74 cents to $64.30 and Fortescue was down nine cents at $5.65.
Gold’s were rubbish again with the sector off another -4.0%. The gold sector has now reached its lowest point since 2006 as Newcrest Mining found a 10-year low today to close down -4.07% to $7.77.
Energy -1.1%, Utilities -1.0%, Industrials -0.8% and Health -0.5% were also weaker.
The Financial sector was unchanged as the big four did their best to offset the losses in resources. By the close Westpac lifted one cent to $32.77, ANZ added 13 cents to $32.08, CBA was up 45 cents to $77.30 and the NAB was nine cents higher at $34.49.
ABS data out today showed that total construction projects in Australia rose 2.7% in the September quarter, better than expectations of a 0.5% rise. Interestingly residential building work done was unchanged. Non-residential building rose 3.7% and engineering work grew 3.5%.
The construction data did nothing to help the AUD. The local unit dipped below 91US cents overnight and hovered above that 91US cent mark all day. Gold was at $1,246.30 and Oil $93.47. Iron Ore continues to operate in a tight range between $135 and $137.
Bank of Queensland (BOQ) was down 3 cents, or 0.24% to $12.30 as the company held its AGM in Brisbane. Shareholders were told that the bank remains confident that 2014 will produce a result similar to 2013. Levered to the local Queensland economy, the higher dollar remains a headwind for inbound tourism and thus the bank.
GrainCorp (GNC) shares were up 15 cents, or 1.3%, at $11.33 as US grains trader Archer Daniel Midlands (ADM) management fronted Canberra. ADM committed to spending a further $200 million on agriculture infrastructure as it attempts to win broader support for its $3.4bn bid. Joe Hockey is due to make a decision on the proposed takeover on December 17.
And the Victorian cheese war rolls on aplenty. The latest move is by dairy cooperative Murray Goulburn who have sought to stop Saputo acquiring shares in Warrnambool (WCB), via a Takeovers Panel application alleging a recent change in the Saputo offer means some WCB shareholders were misinformed. WCB closed down a cent at $9.25 while Bega (BGA) shares were unchanged at $4.65.
S&P/ASX 200 Gainers and Losers
Another good day for James Hardie (JHX) which has now put on +35.2% in the YTD with 26.59% of that added in the last three months. Today the stock was higher on overnight news that US building permits climbed in October to the highest level in more than five years – better times ahead for the US residential real estate market.
Top 5 Gainers;
• SDL SUNDANCE RESOURCES LIMITED +4.55%
• BLY BOART LONGYEAR LIMITED +3.28%
• JHX JAMES HARDIE INDUSTRIES PLC +2.75%
• SGT SINGAPORE TELECOMMUNICATIONS LIMITED. +2.19%
• TEL TELECOM CORPORATION OF NEW ZEALAND LIMITED +1.98%
Take your pick across the gold stable. No one seems too fussed that inflation is going to be a problem anytime soon and gold is heading for its first annual drop since 2000. The beaten up Silver Lake (SLR) was the worst off today down another -14.02%.
Top 5 Losers;
• SLR SILVER LAKE RESOURCES LIMITED -14.02%
• RSG RESOLUTE MINING LIMITED -12.00%
• KCN KINGSGATE CONSOLIDATED LIMITED. -8.87%
• PDN PALADIN ENERGY LTD -7.95%
• SIR SIRIUS RESOURCES NL -7.38%
