Market unstimulated on Fed doubt
Uncertainty about when the US Federal Reserve will start trimming its stimulus program offset a rise in metal prices and better than expected company earnings.
"The net result - pretty flat," said John Campbell, co-founder of Avoca Investment Management.
The benchmark S&P/ASX 200 Index finished five points lower at 5152.4, while the broader All Ordinaries dipped 4.2 points to 5136.7.
The biggest company to report on Thursday was Wesfarmers - owner of Coles and Bunnings - which had a $2.26 billion profit in 2012-13, up 6 per cent. That was weaker than expected, and its shares fell 67¢, or 1.6 per cent, to $41.26. Rival supermarket owner Woolworths fell 34¢ to $33.27.
The big miners kept the market from falling too far, thanks to a rise in copper and iron ore prices. But with BHP Billiton scheduled to report its earnings next week, Mr Campbell said investors were not getting ahead of themselves.
BHP advanced 1.2 per cent to $37.33, while rival Rio Tinto shed 0.9 per cent to $61.40 as it traded ex-dividend.
The goldminers enjoyed an increase, following the metal rising to a four-week high. Spot gold rose 0.4 per cent to $US1339.86 an ounce following tame US inflation pointers indicating the Fed might not scale back its commodities-friendly bond buying soon.
Newcrest firmed 1.3 per cent to $12.09, while Regis Resources rose 3.2 per cent to $3.84.
The health sector was the biggest loser, sliding 2.14 per cent. Blood products maker CSL weighed heavily on the broader market, shedding 3.4 per cent to $63.58, continuing its decline for a second day after it forecast slower profit growth.
Telstra also dented the ASX. It was 0.4 per cent weaker at $5.10.
The big banks, except Commonwealth, finished positively, up from 0.3 to 0.7 per cent. CBA was flat, dipping 0.04 per cent to $73.76, its second day of losses after it announced investors would not receive an expected special dividend.
Financial services group AMP posted a smaller than expected fall in underlying profit. Its shares gained 16¢, or 3.5 per cent, to $4.70.
With wires
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Uncertainty about when the US Federal Reserve will begin trimming its stimulus offset gains from rising metal prices and better-than-expected company results. As a result the S&P/ASX 200 finished about five points lower at 5152.4 and the All Ordinaries dipped to 5136.7.
Wesfarmers — owner of Coles and Bunnings — reported a $2.26 billion profit for 2012–13, up 6% but weaker than analysts expected. Its shares fell 67c (about 1.6%) to $41.26 after the result.
Woolworths fell following the update, dropping 34c to $33.27. The article highlights supermarket owners reacting to earnings, with Wesfarmers' weaker-than-expected result weighing on peer sentiment.
The big miners helped limit the market downturn thanks to rising copper and iron ore prices. BHP advanced 1.2% to $37.33, while Rio Tinto slipped 0.9% to $61.40 as it traded ex-dividend. Investors remained cautious ahead of BHP’s upcoming earnings.
Spot gold climbed 0.4% to about US$1,339.86 an ounce after tame US inflation signals suggested the Fed might delay scaling back its bond buying, which is supportive for commodities. Goldminers like Newcrest rose 1.3% to $12.09 and Regis Resources gained 3.2% to $3.84.
The health sector was the biggest sector loser, sliding about 2.14%. CSL weighed heavily on the market, dropping 3.4% to $63.58 after it forecast slower profit growth, marking a second consecutive day of declines.
Most major banks finished positively, up roughly 0.3%–0.7%. Commonwealth Bank (CBA) was effectively flat, dipping 0.04% to $73.76 — its second day of losses after announcing investors would not receive an expected special dividend.
Telstra was slightly weaker, down about 0.4% at $5.10. Financial services group AMP reported a smaller-than-expected fall in underlying profit and saw its shares rise 16c (3.5%) to $4.70.
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