ASX edges lower as miners drag
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The news: The Australian sharemarket closed slightly lower today, despite six out of 11 sectors finishing in green.
The numbers: The ASX 200 finished at 7,659, down 0.08%, after a mixed session.
The best performing sector was telecommunications services, up 1.47%, followed by AREITs (0.63%) and financials (0.44%).
Large companies within communication services were all up, including Telstra (1.15%), REA Group (2.24%), CAR Group (2.52%) and TPG (0.75%).
The biggest gainer was ARB Corporation, which ended the day 9.87% higher after posting an 8.1% lift in profit to $51.3 million and an interim dividend of 34 cents a share, up from 32 cents a year ago. The car accessory supplier noted sales bounced back in January after port disruptions were resolved.
The worst performing sector was materials, down 1.1%, followed by energy (-0.92%) and utilities (-0.48%).
Large miners were down including BHP (-1.3%), Fortescue (-0.85%), and Rio Tinto (-2.21%). BHP today posted an 86% profit hit to USD900 million ($1.4 billion) and cut its dividend to US72 cents per share, down from US90 cents.
The worst performing stock was Strike Energy, which lost 25% following an update about its failed well test.
The Star Entertainment Group's shares plunged 19.64% as it responded to the announcement that the NSW Independent Casino Commission would conduct a second inquiry into the company’s suitability. Star also announced it would defer its half-year results announcement due to possible amendments related to the inquiry.
The Australian dollar is lower buying US65.29 cents.
The context: Wednesday will see the Australian Bureau of Statistics release its wage price index. It's a key measure the Reserve Bank of Australia watches to make forecasts on consumer spending and strength in the economy.
Earnings season continues with Charter Hall Group, Domino’s, NAB, Rio Tinto, Santos, Scentre Group, Stockland, Viva Energy, Wisetech, and Woolworths reporting results on Wednesday.
