The S&P/ASX 100 (Index: ^AXTO) (ASX: XTO) has posted a 0.5% fall today – it's fourth consecutive down day – despite chances of another rate cut rising.
With unemployment in January jumping to 6.4%, the odds of another rate cut next month have dramatically shortened. One statistic I saw today suggests the market is pricing in a 70% chance of a cut in early March.
Usually, rate cuts are good news for the equity market – makes those dividend stocks highly attractive when term deposit rates are being slashed to below the level of inflation.
Still, the market outperformed these 4, which lost more than 4% today.
Copper and gold miner Oz Minerals Limited (ASX: OZL) sank 6.9% to $3.52, as investment bank JP Morgan cut the stock to 'Neutral' today. The company's shares have lost 13.6% since Tuesday after the company posted its first profit in two years – but declined to pay a dividend. Oz Minerals has burned through its cash in the past 4 years – from $1.3 billion in 2011 to $218 million at the end of December 2014.
Construction group Leighton Holdings Limited (ASX: LEI) crashed 5.2% to $20.55, as investors digested the company's 2014 financial report. What the headline 33% increase in net profit hid was that Leighton's continuing operations produced a loss of $112.8 million, despite revenues increasing. Has the company sold off its best performing and profitable divisions?
Shipbuilder Austal Ltd (ASX: ASB) slipped 5.2% to $1.47, despite no news from the company. Shares have still gained 68% over the past 12 months, as Austal was awarded a number of contracts by the US Department of Defence. The company is also still in the process of building a number of boats for the Australian Customs and Border Protection Service.
And finally, Channel Nine broadcaster, Nine Entertainment Co Holdings Ltd (ASX: NEC) fell 3.7% to $1.82. Was it a result of my colleague Mitch Sonogan's article written earlier today? Or is it the looming threat posed by US streaming provider Netflix's imminent arrival in Australia? Certainly Australians will have plenty more options when it comes to their viewing entertainment – and that's likely to place the commercial broadcasters such as Nine under pressure – with potentially lower advertising revenues.
