ASX Market Wrap: Market ends flat after promising so much

Despite a strong start, the market just managed to avoid ending in the red

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) rose a paltry 0.04%, ending at 4,044.8, despite positive leads from US markets overnight.

The market started well, but then lost steam from around 11.30am, falling below yesterday's close, before making a final surge for the line and crossing it with a hair's breadth to spare.

The Australian dollar jumped above US$1.01, as investors bet against an RBA rate cut next week.

Company news

Metcash Limited (ASX: MTS) announced a capital raising of $325m, a plan to acquire 75% of Automotive Brands Group for $53.8m, and lowered its forecast profit to around $90m, down from previous forecast of around $136m. The stock is still in a trading halt, expected to resume trading tomorrow, the 29th June 2012.

News Corporation (ASX: NWS) was in the news with speculation over when and how the company will split itself in two, with the Wall Street Journal reporting that the board has approved the split. Shares in the company jumped 4%, its third consecutive day of rises.

TPG Telecom Limited (ASX: TPM) reported a net profit after tax of $56m for the first half of 2012, but also announced that it will cop a one-off $23m tax bill and $15m tax increase next financial year, due to changes in tax legislation. The market didn't like the news much, with TPG's shares closing down 1.7%.

Amcor Limited (ASX: AMC) announced that it had acquired packaging distributor Wayne Richardson Sales for an undisclosed sum, but expects the group to contribute sales of around $50m. Despite the positive news, Amcor shares fell 1.6% to $7.21.

Winners and losers

As ever, despite a flat market, we had some winners and some losers.

Santos Limited (ASX: STO) was down 5.3% to $10.45 on news that the company had boosted its budget for its Gladstone Liquefied Natural Gas (GLNG) project by US$2.5bn, bringing the capital expenditure forward from the post-2015 period. Santos's share of the increase, at 30%, is $750m, and the company advised that it could fund the expense from existing cash flows, without raising new capital.

Banks were mixed with Commonwealth Bank of Australia Limited (ASX: CBA) up 0.9% to $52.62, while National Australia Bank (ASX: NAB), Westpac Banking Corporation (ASX: WBC) and Australia and New Zealand Banking Group (ASX: ANZ) all finished in the red.

BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) both ended the day up.

Foolish takeaway

All eyes will be on any news coming out of the EU Summit starting today (tonight our time). As always short term movements tend to be the result of news that rarely matters in the long run. Keep your eyes on the long term price Fools!

If you're in the market for some less risky, high yielding ASX shares, look no further than Secure Your Future with 3 Rock-Solid Dividend Stocks. In this free report, we've put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

More reading

Motley Fool writer/analyst Mike King owns shares in BHP. The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »