The Australian share market has ended the day 1 per cent lower as concern grows over the global economic outlook. Investors reacted cautiously to Moody’s downgrading the credit ratings of fifteen of the world’s biggest banks.
Today, the S&P/ASX 200 index fell 39 points finishing the week 9 points weaker at 4,048. On the futures market, the SPI is currently 51 points lower.
Looking at Wall Street, over its four trading days this week: The Dow Jones Industrial Average fell 194 points. The S&P 500 Index lost 17 points, both the Nasdaq and the 100 Index shed 14 points.
Fortescue Metals Group Limited (ASX:FMG) has lodged a High Court challenge against the government’s minerals resource rent tax (MRRT). The iron ore miner says the tax unfairly discriminates between the states, curtails state sovereignty, gives preference to one state over another and restricts a state’s ability to encourage mining. Fortescue shares gained 2.51 per cent, closing at $4.91.
Westpac Banking Corporation (ASX:WBC) and KPMG have been named as tenants at Lend Lease Group’s (ASX:LLC) Barangaroo development. Westpac says the move will let the bank consolidate from nine sites in Sydney to just two – Kent Street and Barangaroo. Westpac shares fell 1.1 per cent, closing at $20.75.
Sundance Resources Limited (ASX:SDL) says Hanlong has advised that the Foreign Investment Review Board has no objection to Hanlong’s proposed acquisition of Sundance.
And BHP Billiton Limited (ASX:BHP) approves a US$845 million investment to open a new mining area at its Illawarra Coal business in New South Wales.
Best and worst performers
The sector with the smallest losses was Telco Services falling less than a point to close at 1,233. The worst performing sector was Energy, losing 275 points to close at 12,061.
The best performing stock in the S&P/ASX 200 was Sundance Resources Limited (ASX:SDL), rising 7.46 per cent to close at $0.36. Shares in Acrux Limited (ASX:ACR) and Coalspur Mines Limited (ASX:CPL) also closed higher.
The worst performing stock was Aquarius Platinum Limited (ASX:AQP), dropping 14.61 per cent to close at $0.76. Shares in Saracen Mineral Holdings Limited (ASX:SAR), and Alacer Gold Corporation (ASX:AQG) also closed lower.
Gold is trading at $US1,564 an ounce and is $61.84 lower on the week. Light crude is down $3.05 at $US78.53 a barrel.
The Australian dollar
The Australian dollar is buying $US1.005, shedding less than half a cent over the week.