Not helped by weak leads from offshore the local market sunk to a five-week low today. By the close the benchmark S&P/ASX200 index was down 45.2 points, or 0.84 per cent, at 5,307.7, while the broader All Ordinaries index was down 43.2 points, or 0.81 per cent, at 5,304.6.
The market largely ignored ‘no taper soon’ commentary from Federal Reserve chairman Ben Bernanke. Speaking after the close on Wall St a dovish Bernanke said that even if the US unemployment rate falls below 6.5 per cent, the Federal Funds Rate will be kept at its current level near zero per cent. Status Quo from ‘The Bernank’ and our dollar was trading up at 93.96 US cents, up from 93.91 cents yesterday.
Looking across the sectors a 0.2% gain in the Utilities sector was the only green to be found. The Energy sector led the slide falling -2.7% however IT -2.0%, Healthcare -1%, Materials -0.9% and Financials 0.7% all gave up ground.
Doing the damage in the Energy sector was WorleyParsons (WOR). The engineering and consulting firm shares were belted down -25.89% after providing the market with a surprise trading update that flagged a steep profit decline.
Kathmandu (KMD) shares fell 2.65% to $3.31 despite posting a 0.9 per cent rise in sales for the 16 weeks to November 19 to $70.9 million.
OzForex (OFX) shares ended +1.89% stronger after the newly listed currency converter said it was on track to meet FY14 forecasts and reported a 1H net profit of $9.7 million.
Myer (MYR) shares ended unchanged at $2.84 after the company held its AGM today. Shareholders were told the company remains “cautious about the year ahead given the challenges of the economic outlook and consumer confidence". Expect an update on a replacement for Bernie Brookes before the half-year results in March 2014.
At the smaller end of the market Cape Alumina (CBX) and proposed merger partner Metrocoal (MTE) have both gone into trading halts after the QLD Government promised the Steve Irwin Reserve on Cape York will be protected forever from mining under new legislation. With their proposed Bauxite mine now little more than a pipe dream the future looks bleak for CBX. Both companies shares are scheduled to resume trading on Friday morning.
ASX 200 Gainers and Losers
On the back of a stronger gold price St Barbara clawed back some of yesterday’s losses posting a 4.84% gain. Perseus, Evolution Mining, Alacer and Regis Resources also all posted good gains thanks to the stronger gold price. Positive commentary out of the Drillsearch AGM saw the shares up 4.84%. The Cooper Basin oil and gas company said sales revenue for the three months grew 71% compared to the June quarter to $86.7m as the average oil price reached AU$121 per barrel.
Top 5 Gainers;
• SBM ST BARBARA LIMITED +4.84%
• DLS DRILLSEARCH ENERGY LIMITED +4.84%
• PRU PERSEUS MINING LIMITED +4.69%
• SXY SENEX ENERGY LIMITED +3.90%
• EVN EVOLUTION MINING LIMITED +3.52%
The WorleyParsons downgrade did nothing to help the beaten up mining services space. While Worley led the market lower Monadelphous, Boart Longyear, Decmil, NRW Holdings and Ausdrill all gave up ground. Worrying the market was the quick deterioration in Worley’s guidance. Just four weeks ago at the company’s AGM underlying net profit guidance was $322m. Today that number was reduced to between $260m and $300m.
Top 5 Losers;
• WOR WORLEYPARSONS LIMITED -25.89%
• SMX SMS MANAGEMENT & TECHNOLOGY LIMITED. -5.56%
• MND MONADELPHOUS GROUP LIMITED -5.34%
• BLY BOART LONGYEAR LIMITED -5.13%
• EWC ENERGY WORLD CORPORATION LTD -5.13%
