Australian Stock Market Report

This is the Australian stock market closing report for Monday, 30 May 2016

There were few leads after a shortened trading session in the US on Friday night due to the commencement of the Memorial Day long weekend
However commentary from Federal Reserve chairman Yellen regarding the potential for a Fed Funds rate hike, saw the July Fed Fund Futures probability move up from 55% to 62% which strengthened the US dollar, resulting in commodity related sector weakness, which carried over in today Australian session.

The ASX 200 closed flat 2 points or 0. 04% to 5408

The day’s trading range was 24 points with the higher of the session at 5415 and the lower of the session at 5391

Market breadth was significantly positive with 125 advancing stocks versus 56 declining stocks and 19 stocks unchanged

The All Ords Gold Industry group was the weakest sector falling 3.05%

Resolute Mining led the components to the downside closing lower 11.35%, Perseus Mining was down 10.7% and Silver Lake Resources was down 9.8%

The Metals and Mining sector was also off in today’s trading 1.09%

Oceanagold Corporation was down 6.6%, Pilbara Minerals was down 6.4% and Northern Star Resources was lower by 5.8%

The resource bellwethers BHP Billiton and Rio Tinto both closed negative

BHP was down $.13 or 0.67% to $19.24, and Rio Tinto was down six cents or 0.13% to $44.77

The Financial sector was flat on the session with the big four banks all closing in the red

ANZ was down $.16 or 0.62% to $25.69, the Commonwealth Bank was lower by $.72 or 0.91% to $78.18. National Australia Bank was down five cents or 0.18% to $27.25 and Westpac was down $.10 or 0.32% to $30.88

The Consumer Discretionary sector was higher by 0.52% with Village Roadshow higher 4.4%, Retail Food Group up 3.2% and Trade Me Group up 2.3%

The Energy sector demonstrated relative strength to the overall benchmark index closing up 0.69%

With Liquefied Natural Gas leading the pack higher 6.5%, Worley Parsons was up 3.1% and Origin Energy closed higher 1.6%
In economic news

The Australian Bureau of Statistics today released the Business Indicators report for the month of March

The report indicated that company gross operating profits in the March Qtr came in much weaker than consensus expectations, down 4.7% and in the 12 months to March gross operating profits were down 8.4%.

With most of the weakness attributed to mining sector related exports, which have been in contraction for the past eight quarters.

Wages and salaries came in at a seasonally adjusted rate of 0.6% for the March quarter and in the 12 months to March wages and salaries had increased 3.5%

Wholesale trade expanded to 3.2% seasonally adjusted and manufacturing contracted slightly 0.3% seasonally adjusted for the March quarter

In further economic news

MasterCard released its latest spending pulse report

Indicating that retail sales fell 0.1% in April however on a year on year basis seasonally adjusted retail sales expanded by 2.8%

In the category of household consumer goods sales grew 2.4%, clothing sales were higher 0.4% and department store sales were up 1.1%

The five most active stocks were Qantas Airways with the volume of 32.67 million, Fortescue Metals with 14.66 million, Telstra Corporation with 14 million, Spotless with 11.04 million and Beach Energy with a volume of 10.65 million shares changing hands

The five best performers were Liquefied Natural Gas up 6.5%, Spotless higher by 5.5%, Select Harvests higher 5.2%, Village Roadshow up 4.4%, and National Storage Real Estate Investment Trust up 3.8%

The five worst performers were ALS down 7.1%, Northern Star Resources down 5.8%, Bellamys Australia down 4.3%, Blackmores off 4.1% and Evolution Mining down 3.85%

The Australian dollar is currently flat in the Asian session trading at 71.75 US cents

The yield on the Australian 10 year government bond is it 2.285%

Spot Gold is lower by 0.9% to $1206 USD

And Crude oil is trading relatively flat down 6c $49.27

This has been the Australian stock market closing report, for Monday 30th May 2016 and I have been your host, Aaron Furst, I’ll see you again next time

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